Silver boom shows no end! Exploration stocks like Silver Viper are significantly outperforming the precious metal! High reserves at Pan American Silver, record highs at Barrick

Silver Viper – Great popularity among investors

The Canadian exploration company is focusing on the further development of its three projects in Mexico. The focus is on the two flagship gold-silver projects, La Virginia in Sonora and Coneto in Durango. Thanks to the recent CAD 17 million capital increase, several well-known institutional investors are now on board. The world's largest silver producer, Fresnillo (17%), and Orex Minerals (11%) are also among the shareholders who joined the Company through a share swap as part of the Coneto deal, valued at USD 15 million. Another plus point in terms of the shareholder structure is that management has a significant stake in the game with a 15% shareholding.

Subscribers to the recent capital increase have demonstrated good timing. With the share currently trading at around CAD 2, investors were able to snap it up at CAD 0.80. In addition, investors received one warrant per share with an exercise price of CAD 1.20 and a two-year term. The fresh funds will be used to continue surface exploration in preparation for a future drilling campaign at the La Virginia gold-silver project.

Historically, 52,000 meters of drilling have already been completed at La Virginia. The goal of this year's drill program was to expand the El Rubi Zone and generate new discoveries. A 2021 resource estimate for the property shows 154,000 ounces of gold (0.78 g/t) and 6.92 million ounces of silver (35 g/t) in the indicated category, as well as 260,000 ounces of gold (0.8 g/t) and 12.94 million ounces of silver (40g/t) in the inferred category.

Next year, the Canadians will carry out extensive drill programs to advance the projects. All three projects have been largely unexplored to date and are located in precious metal-rich areas. The expansion of existing zones and new discoveries are positive drivers for the share price performance, especially if the silver rally continues.

The Company is currently valued at CAD 170 million. This means that the important threshold of CAD 100 million has been crossed, as institutional investors are often only allowed to invest in companies above a certain size. The successful completion of the major capital increase and the recent share price performance underscore the fact that the capital market considers Silver Viper a good investment. With the entry of Fresnillo, a potential buyer already has a foot in the door.

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Barrick – Quality and cost control

After a spectacular share price rally of over 170% in the last 12 months, which is almost triple the increase in the price of gold, the Canadian company's market capitalization currently stands at around CAD 100 billion. The combination of a bullish gold price, cost control, and efficient capital allocation is impressively reflected in the Company's figures. Despite the price increase, the 2026 price is at a moderate level of 12.

In the third quarter, Barrick increased gold production to 829,000 ounces, generating revenue of USD 4.1 billion. Cash flows were impressive. Operating cash flow rose to a record level of USD 2.4 billion. Free cash flow reached USD 1.5 billion. This strength prompted the Company to increase its share buyback program by a further USD 500 million. In addition, the dividend was increased.

Most analysts predict that the price of gold will continue to rise next year. Consequently, Barrick shares should perform well and, as in recent months, generate above-average returns. The stock remains a core investment in the precious metals sector.

Pan American Silver – Moderate valuation

The Canadians are among the leading silver and gold producers in North and South America and have mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile, and Argentina. The portfolio comprises a total of 10 producing mines. The precious metal reserves amount to an impressive 452 million ounces of silver and 6.3 million ounces of gold.

The Company has forecast production of 22 to 22.5 million ounces of silver and 735,000 to 800,000 ounces of gold for the current year. With projected costs of USD 14.50 to USD 16 per ounce of silver and USD 1,525 to USD 1,625 per ounce of gold, high margins can be achieved.

In terms of revenue, analysts expect a value of CAD 4.9 billion for 2025 and an increase to CAD 6.2 billion in the following year. Based on rising precious metal prices and moderate production costs for silver, experts expect a disproportionately high increase in profits from CAD 1.2 billion to CAD 2.1 billion. This puts the 2026 P/E ratio of the Company, valued at CAD 30 billion, at a moderate 13.

There is no end in sight to the silver boom, putting producers such as Pan American Silver on the winning side. However, exploration companies such as Silver Viper promise more lucrative returns, as they act as a leveraged investment in the precious metal. With a good capital base, the Company can undertake extensive exploration activities, the results of which are important drivers for the share price.