Silver boom with no end in sight! Strong price drivers for Silver Viper, First Majestic Silver, and Pan American Silver!

Silver Viper – Well-positioned explorer

Silver Viper's shares have performed brilliantly in recent months.
In the last six months alone, the shares have almost quadrupled to CAD 2.11, consolidating somewhat from their high of CAD 2.57 at the beginning of the year. The current valuation is standing at around CAD 194 million. However, structural trends continue to favor investment.

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. The Central American country is home to some of the largest mines in the world and accounts for 23% of global silver production.

A total of 52,000 meters of drilling has already been completed at La Virginia. A 2021 resource measurement 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 (40 g/t) in the inferred category. The Company recently strengthened its team with two renowned experts who will support the Company's next phase of growth. Andreas L'Abbe brings extensive capital market and financing experience from building Discovery Silver, while Gernot Wober is one of Mexico's most recognized exploration geologists.

With the latest capital increase of CAD 17 million, the Company has not only secured the necessary funds to carry out extensive drilling programs on all properties next year, but has also brought renowned institutional investors on board, while surpassing the symbolic CAD 100 million market capitalization mark. In addition, the world's largest silver producer, Fresnillo (17%), and Orex Minerals (11%) are among the shareholders. Both companies joined the Company through a share swap as part of the USD 15 million Coneto deal. Fresnillo can also be classified as a potential buyer.

The further development of the properties, most of which have been little explored to date and are located in areas rich in precious metals, and thus the targeted expansion of existing zones and potential new discoveries, are positive drivers for the share price performance, especially given the persistently high silver price level forecast by analysts.

First Majestic Silver – Stock exhausted?

The stock has risen sharply in recent months, and analysts are struggling to keep up with their price target increases. Since the beginning of the year alone, the stock has gained 28% and is now valued at just under CAD 14 billion. Valuation ratios are now high. However, the achievement of high free cash flows stands out as a clear positive. Nevertheless, analysts currently see no further upside potential for the stock.

The Canadians operate several silver mines in Mexico and have projected production of 30.6 to 32.6 million ounces of silver equivalent for last year. The investment portfolio was recently consolidated with the sale of the wholly owned Del Toro Silver Mine in Mexico to Sierra Madre Gold & Silver for up to USD 60 million in cash and shares.

Pan American Silver – Still moderately valued

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. Its precious metal reserves comprise an impressive 452 million ounces of silver and 6.3 million ounces of gold.

Pan American Silver's shares have doubled in value over the last six months and are trading at around CAD 80, close to their all-time high. The Company is currently valued at just under CAD 33 billion. Based on a strong projected increase in earnings, the 2026 P/E ratio falls to a moderate level of 15. In the current fiscal year, analysts expect earnings to rise to CAD 2.1 billion on average, up from CAD 1.2 billion in the previous year.

For 2026, the Company has forecast production of 22 to 22.5 million ounces of silver and 735,000 to 800,000 ounces of gold. Analysts derive revenues of around CAD 6.2 billion from this. Given the historically high silver prices, which are reflected in these forecasts with a time lag, this could prove to be too low. Estimated production costs of USD 14.50 to USD 16 per ounce of silver and USD 1,525 to USD 1,625 per ounce of gold underscore the huge margin potential. Analysts currently consider the stock to be fully valued. The silver boom could soon require a readjustment here as well.

The conditions for silver producers and prospective producers are perfect. Analysts forecast strong earnings growth for First Majestic Silver and Pan American Silver, but still consider the stocks to be fully valued. High profits and high free cash flows among producers could lead to further acquisitions in the industry. Silver Viper is benefiting from these favorable conditions. With the ongoing exploration of high-quality projects, the share price should continue to rise.