Zacks Industry Outlook Highlights Fresnillo, Hecla Mining, First Majestic Silver, MAG Silver and Vizsla Silver

Zacks Equity Research
12 min read

In This Article:

For Immediate Release

Chicago, IL – September 13, 2024 – Today, Zacks Equity Research discusses Fresnillo FNLPF, Hecla Mining HL, First Majestic Silver AG, MAG Silver MAG and Vizsla Silver VZLA.

Industry: Silver

Link: https://www.zacks.com/commentary/2335455/5-silver-mining-stocks-to-watch-in-a-promising-industry

The prospects for the Zacks Mining - Silver industry look promising on the back of rising silver prices. Global industrial demand for silver is expected to reach record levels in 2024, driven by photovoltaics. Meanwhile, supply is expected to dip 1%. This suggests a fourth consecutive year of deficit for the silver market, which is likely to bolster prices.

We suggest keeping tabs on companies like Fresnillo, Hecla Mining, First Majestic Silver, MAG Silver and Vizsla Silver, which are poised to benefit from solid projects, improved operational efficiency and disciplined cost management.

About the Industry

The Zacks Mining - Silver industry comprises companies that are engaged in the exploration, development and production of silver. These include big and small players operating mines of widely varying types and scales. Silver-bearing ores are mined by open-pit or underground methods, and then crushed and ground.

Miners continually look for opportunities to expand their reserves and resources through targeted near-mine exploration and business development. They strive to upgrade and improve the quality of their existing assets, internally and through acquisitions.

Only 20% of silver comes from mining activities, wherein silver is the primary revenue source. The balance comes from projects, wherein silver is a by-product of mining other metals, such as copper, lead and zinc. Thus, several companies in the silver mining industry are engaged in mining other metals as well.

What's Shaping the Future of the Mining-Silver Industry

Demand to Remain Strong: Per the Silver Institute, total industrial demand for silver in 2024 is expected to surpass last year’s record of 654.4 million ounces and rise 9% year over year to 710.9 million ounces. Notably, industrial applications account for more than 50% of the total silver demand.

Last year, higher-than-expected photovoltaic demand (which rose 64% year over year) and the faster adoption of new-generation solar cells boosted global electrical and electronics demand by 20%. Other green applications, including power grid construction and automotive electrification, contributed to the improvement.

Riding on the same trends, the demand for electrical and electronics is expected to rise 9% year over year in 2024, fueled by 20% growth in photovoltaics. Demand in jewelry is expected to increase 4% year over year to 211.3 million ounces in 2024 and silverware demand is likely to be up 7% to 58.8 million ounces. Both are expected to gain from higher discretionary spending and recover from the declines seen last year.

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