Best Silver Stocks of 2020 on the TSX

The silver price been volatile so far this year, but what are the best silver stocks on the TSX? We’ve got the answers here.

Click here to read the previous best silver stocks on the TSX article.

Following a challenging first quarter, the silver price was able to make gains in Q2. Climbing 26 percent from April 1 to June 30, the white metal ended the period at its pre-pandemic level.

The white metal’s year-to-date gains have now surpassed 37 percent — silver has added 56.8 percent to its price since falling in March to an 11 year low of US$12.59 per ounce.

Safe haven demand, which makes silver more appealing, has helped to offset declines in the industrial segment, and gold’s rapid ascent has been a tailwind.

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In the face of rising prices, along with COVID-19 lockdowns, transport concerns and shrinking demand, a number of silver miners and producers have performed positively.

The list below of best silver stocks was generated on July 20, 2020, using TradingView’s stock screener, and all companies listed had market caps above C$50 million at that time.

1. Wheaton Precious Metals (TSX:WPM)

Year-to-date gain: 69.3 percent; current share price: $66.63

Wheaton Precious Metals is one of the largest precious metals streaming companies in the world, with streaming agreements for 20 mines and nine development-stage projects.

Benefiting from the rising silver and gold prices, Wheaton reported a 50 percent increase year-over-year to its operating cash flow in Q1.

“Wheaton had a strong start to 2020 with over US$177 million generated in operating cash flow in the first quarter,” said Randy Smallwood, president and CEO.

The company’s share price hit a quarterly high on May 19, climbing 68.5 percent to C$65.18.

2. Pan American Silver (TSX:PAAS)

Year-to-date gain: 51.7 percent; current share price: C$47.71

Pan American Silver is a leading silver miner, producing 25.9 million ounces in 2019. The firm owns projects in six countries: Canada, Mexico, Peru, Argentina, Bolivia and Guatemala.

In March, a suspension of “normal operations” at its mines in Mexico, Peru, Argentina and Bolivia was announced. Pan American’s Canadian project was able to continue activity at 90 percent capacity.

In early June, the company, which is one of the year’s best silver stocks, resumed operations in Mexico after commencing work in Argentina and Bolivia in May and April.

The miner was still awaiting restart permissions for Peru in June; however, those plans were further delayed in July. A July 20 announcement notes that the company is moving its Huaron and Morococha operations into care and maintenance after several workers tested positive for COVID-19.

3. SilverCrest Metals (TSX:SIL)

Year-to-date gain: 40 percent; current share price: $13.39

SilverCrest Metals is focused on advancing its Las Chispas project in Mexico’s precious metals district.

Q2 also presented COVID-19-related challenges for Silvercrest, which suspended activity at Las Chispas in late March. In mid-May, operations were restated at the project.

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The silver company also completed two private placements during the quarter. The first was a C$27 million private placement with SSR Mining (TSX:SSRM,NASDAQ:SSRM); SSR Mining then sold some of those shares to a corporation owned by Eric Sprott.

In the other private placement, SilverCrest raised C$101 million.

4. Avino Silver and Gold (TSX:ASM)

Year-to-date gain: 34.6 percent; current share price: $1.08

Mexico-focused Avino Silver and Gold owns a diversified portfolio of precious and base metals projects.

Due to the government-imposed lockdown in Mexico, the company’s Q2 production tallies were significantly less than the same period last year.

Total silver equivalent ounces and feed grade silver declined by more than 50 percent during Q2 of 2020. There was also a pronounced quarter-over-quarter processing drop between Q1 and Q2.

In a announcement, David Wolfin, president and CEO, said, “I am very appreciative of the way our team in Mexico handled the difficult challenges faced during the last few months due to the global pandemic. I am also pleased that we are able to start our phased approach to recommencing operations and production activities.”

5. Fortuna Silver Mines (TSX:FVI)

Year-to-date gain: 34 percent; current share price: C$7.76

Fortuna Silver Mines is also a diversified miner with projects in Peru, Mexico and Argentina. The company’s flagship asset is the Caylloma silver mine in Southern Peru.

COVID-19 prevented Fortuna from reaching its production guidance in Q1, and will likely have an impact on Q2 tallies. Despite the COVID-19 shutdown, Fortuna was able to produce 1.8 million ounces of silver during the first three months of 2020.

Company shares peaked for the quarter on June 30, trading for C$6.92.

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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

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