Canada is renowned for its rich mineral resources, and silver is no exception.
The country boasts numerous high-grade silver mining projects, ranging from exploration to full-scale production. Notable silver mining provinces include British Columbia, Ontario and Québec.
These regions are home to several prolific silver mines, such as the Cobalt Silver Mining District in Ontario and the Keno Hill Silver District in Yukon Territory, which have been historically significant for production.
Recent History of Silver Production Levels in Canada
While gold remains Canada’s most valuable commodity, the country ranks as the 13th-largest producer of silver according to GlobalData and serves as the leading supplier of the metal to the United States with a 32 per cent increase in output compared with 2021. This trend is promising for investors in Canadian silver stocks.
Silver production in Canada is projected to grow at a compound annual growth rate of 14 per cent from 2022 to 2026.
Trends in the Price of Silver
The price of silver has experienced significant volatility over the past year, starting at a little more than US$21 per ounce in January. It dropped to a US$20 per ounce low in March 2023 before climbing to a year-to-date high of US$32.06 an ounce in May 2024.
Since then, the price of silver has continued to fluctuate, influenced by economic factors, variations in the U.S. dollar and the Federal Reserve’s interest rate hikes.
In recent years, silver production has experienced a resurgence because of increased demand for the metal in various industries, including electronics and solar energy.
Canada is home to numerous publicly listed silver stocks on key exchanges such as the Toronto Stock Exchange, TSX Venture Exchange and Canadian Securities Exchange.
Investors remain bullish on silver because of its dual role as a precious metal and an industrial commodity, though many of the top names have been moving downward in share price following the sell-off from the beginning of the week.
We then scrutinized the list, beginning from the highest market capitalization. Here they are, in brief:
- Impact Silver Corp.
- Americas Gold and Silver Corp.
- Silvercorp Metals Inc.
- Endeavour Silver Corp.
- MAG Silver Corp.
- Fortuna Mining Corp.
- First Majestic Silver Corp.
- Pan American Silver Corp.
- Wheaton Precious Metals Corp.
10 Best-Performing Canadian Silver Stocks.
As global demand for silver continues to rise, Canadian silver stocks are gaining attention from investors looking to diversify their portfolios. Whether you’re a seasoned trader or just starting, investing in silver can offer both stability and growth potential. In this article, we’ve curated a list of the top 10 Canadian silver stocks to watch in 2024, highlighting companies with strong performance, promising outlooks, and key insights for making informed investment decisions.
10. Minco Silver Corp.
Minco Silver Corp. is focused on bringing its Fuwan silver project and the Changkeng gold project towards production. These projects are approximately 45 kilometres southwest of Guangzhou City, China.
From its headquarters in Vancouver, the company holds the smallest market cap on our list at C$11.2 million, but its stock has risen 2.78 per cent since the year began.
Minco Silver Corp. (TSX:MSV) last traded at $0.18 per share.
9. Impact Silver Corp.
Impact Silver operates through two geographical segments: Mexico and Canada. The Mexico segment includes the company’s mining operations and exploration properties. Its Canadian segment includes head office and group services. Impact operates a series of mines near Zacualpan in the state of Mexico and in Guerrero state as well as in the state of Chihuahua. Impact Silver produces silver, lead, zinc, and gold sold in the form of lead and zinc concentrates.
For Q1 2024, the company reported revenue of C$5.3 million and year to date, its stock has risen nearly 22 per cent under a market cap of C$61.8 million.
Impact Silver Corp. (TSXV:IPT) last traded at $0.22 per share.
8. Americas Gold and Silver Corp.
Americas Gold and Silver is expanding its silver production through its Relief Canyon and Cosalá operations, offering potential for significant growth.
At its head office in Toronto, the company operates its wholly owned Cosalá mining concessions in Sinaloa, Mexico and manages the Galena Complex in Idaho, where it owns a 60-per-cent share and silver production has achieved its highestper quarter levels in more than a decade.
The team is currently re-evaluating the Relief Canyon mine in Nevada and owns the San Felipe development project in Sonora, Mexico.
Americas Gold and Silver Corp. (TSX:USA) has an C$87.3 million market cap and last traded at $0.29 per share.
7. Silvercorp Metals Inc.
Silvercorp operates multiple mines in China, boasting low-cost production and strong cash flows, which have attracted substantial investor interest. The company closed its acquisition of Adventus Mining Corp. in July 2024.
With a market cap of C$906 million, Silvercorp stock has risen more than 50 per cent year-to-date and has an annual return rate of 23.53 per cent.
Silvercorp Metals Inc. (TSX:SVM) last traded at C$4.41 per share.
6. Endeavour Silver Corp.
With multiple high-grade silver-gold mines in Mexico, Endeavour Silver has maintained strong production levels and an aggressive exploration program. This mid-tier precious metals company boasts an annual return rate of 17.20 per cent and a market capitalization of C$1.5 billion
Based out of Vancouver, the company’s portfolio consists of two producing mines, which are silver-gold mines in Mexico – Guanacevi and Bolanitos.
Under development is the Terronera project, which is a proposed silver-gold mine under construction in Jalisco, where surface construction progress had reached 77 per cent completion as of July 2024.
Five exploration projects across Mexico, Chile and the United States are also under the company’s purview.
Endeavour Silver Corp. (TSX:EDR) last traded at C$4.34 per share.
5. MAG Silver Corp.
MAG Silver focuses on advancing its flagship Juanicipio Project in Mexico, a joint venture with Fresnillo plc, promising significant production potential.
MAG is a Canadian silver mining company through its 44 per cent joint venture interest in the 4,000 tonnes per day Juanicipio Mine, operated by Fresnillo, the top silver producer in the world. The mine is in the Fresnillo Silver Trend in Mexico, the world’s premier silver mining camp, where in addition to mining and processing operations, an expanded exploration program is in place targeting multiple highly prospective targets.
Juanicipio processed 336,593 tonnes of ore in Q2 2024 continuing to build on daily milling rates. The average silver head grade for the quarter was 498 grams per tonne, surpassing the previous quarter.
MAG is also executing multi-phase exploration programs at the 100 per cent earn-in Deer Trail Project in Utah and its wholly owned Larder Project in the historically prolific Abitibi region of Canada.
The company has an annual return rate of 14.95 per cent and a market cap of C$1.9 billion.
MAG Silver Corp. (TSX:MAG) last traded at C$16.77 per share.
4. Fortuna Mining Corp.
Fortuna has operating mines in Argentina, Burkina Faso, Côte d’Ivoire, Mexico and Peru, as well as the advanced exploration pre-development stage Diamba Sud Gold Project in Senegal.
Last year, Fortuna reported it had produced 5.9 million ounces of silver and 990,574 ounces produced in Q2 2024, which was a 22 per cent decrease over Q2 2023.
The company’s market cap is C$2.0 billion and its annual return rate is 34.72 per cent.
Fortuna Mining Corp. (TSX:FVI) last traded at C$5.87 per share.
3. First Majestic Silver Corp.
A leading silver producer with operations in Mexico, First Majestic has seen substantial growth because of its high-grade silver assets and efficient production methods.
The company presently owns and operates the Santa Elena silver-gold mine in Sonora, Mexico, the San Dimas silver-gold mine, and the La Encantada Silver Mine as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project in northeastern Nevada.
In July 2024, First Majestic reported that its team discovered a significant new, vein-hosted gold and silver mineralized system at its Santa Elena property.
First Majestic also owns and operates its own minting facility, First Mint LLC, and offers a portion of its silver production for sale to the public.
The company’s market capitalization sits at C$2.4 billion.
First Majestic Silver Corp. (TSX:AG) last traded at C$6.87 per share.
2. Pan American Silver Corp.
Operating across North America and South America, Pan American Silver is one of the largest primary silver producers, benefiting from diverse, high-quality assets. The company is engaged in silver and gold mining and related activities, including exploration, mine development, extraction, processing, refining and reclamation. At its La Colorada property, the team recently discovered an entirely new set of vein structures with high silver grades.
This company has an annual return rate of 35.05 per cent with a market cap of C$11.4 billion. Analysts expect its earnings per share to grow 241.7 per cent to $0.41 in fiscal 2024 and then another 148.8 per cent to C$1.02 next fiscal year.
Pan American Silver Corp. (TSX:PAAS) last traded at C$27.83 per share.
1. Wheaton Precious Metals Corp.
Wheaton specializes in silver and gold streaming, providing up-front financing to miners in exchange for a portion of future production.
Its business model offers investors leverage to commodity prices and exploration upside but with a much lower risk profile than a traditional mining company. This model has yielded consistent returns with an annual return rate of 36.35 per cent.
In its Q1 2024 financial results, Wheaton reported more than C$219 million generated in operating cash flows. The miner holds silver streams on the Blackwater project in central British Columbia, through an agreement with Artemis Gold Inc. (TSXV:ARTG). In an update from July 2024, Artemis reported the project remains fully funded and currently on schedule for first gold pour in Q4 2024.
Boasting a market cap of C$37.1 billion, Wheaton delivers amongst the highest cash operating margins in the mining industry, allowing it to pay a competitive dividend and continue to grow through accretive acquisitions.
Wheaton Precious Metals Corp. (TSX:WPM) last traded at C$75.71 per share.
Risks of Investing in Canadian Silver Stocks
Investing in Canadian silver stocks can be an attractive proposition for many investors, given the potential for high returns and the historical allure of precious metals as a hedge against economic instability. However, like any investment, it comes with its own set of risks that should be carefully considered.
1. Market Volatility
The price of silver is notoriously volatile, often influenced by factors such as geopolitical events, changes in industrial demand and fluctuations in currency values. This volatility can lead to significant price swings in silver stocks, making them a high-risk investment.
2. Economic Dependence
Silver mining companies in Canada are heavily dependent on the global economy. Economic downturns can reduce industrial demand for silver, leading to lower prices and reduced revenues for these companies. This dependence makes silver stocks particularly susceptible to broader economic conditions.
3. Operational Risks
Mining operations come with a host of operational risks. These include the possibility of accidents, equipment failures, and environmental regulations that can disrupt production. Mining companies often face challenges related to resource depletion and the need to invest in new exploration and development to maintain production levels.
4. Regulatory Risks
The mining industry is subject to stringent regulations regarding environmental impact, worker safety and land use. Changes in government policies or increased regulatory scrutiny can lead to higher operational costs and delays in project development, impacting the profitability of silver mining companies.
5. Market Speculation
Silver stocks can be subject to speculative trading, which can inflate stock prices beyond their intrinsic value. This speculation can create bubbles that eventually burst, leading to sharp declines in stock prices and potential losses for investors.
6. Currency Fluctuations
Because silver is traded globally, the value of Canadian silver stocks can be affected by currency exchange rates. A stronger Canadian dollar can make Canadian silver more expensive on the global market, reducing demand and negatively impacting the revenues of Canadian mining companies.
7. Environmental and Social Concerns
Environmental and social issues are increasingly important to investors. Mining activities can lead to significant environmental degradation and social conflicts, which can harm a company’s reputation and result in legal and financial repercussions.
How to Buy Silver Stocks in Canada
- Research and analysis
- Start by researching the top-performing silver stocks, focusing on their financial health, production levels and future growth prospects.
- Choose a brokerage
- Select a reliable brokerage that offers access to the TSX. Consider factors such as fees, trading platforms and customer service.
- Open an account
- Open a trading account with your chosen brokerage. This process typically involves providing personal information, financial details and proof of identity.
- Fund your account
- Deposit funds into your trading account. Most brokerages offer various funding options, including bank transfers, credit cards and electronic wallets.
- Place your order
- Use your brokerage’s trading platform to place an order for your chosen silver stocks. You can choose between market orders (buying at the current price) or limit orders (setting a specific price at which to buy).
- Monitor your investment
- Keep track of your silver stocks’ performance and stay informed about market trends and company news. Adjust your investment strategy as needed.
- Consider a diversified portfolio
- To mitigate risks, consider diversifying your investment portfolio by including other commodities or sectors alongside silver stocks.
A Silver Platter?
Investing in Canadian silver stocks offers an opportunity to capitalize on the country’s rich mineral resources and the global demand for silver. By conducting thorough research and following a disciplined investment approach, investors can potentially reap significant rewards from this sector.
While Canadian silver stocks offer the potential for significant returns, they come with substantial risks. Investors should conduct thorough research and consider their risk tolerance before investing in this sector. Diversification and a careful assessment of individual company performance and market conditions are essential strategies for mitigating these risks.
What are your thoughts on the role silver stocks can play in a portfolio? What explorers or producers would you like to see covered?
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