A Look at 8 Silver Producers by Cost per Ounce of Resources

by: Thomas Kelly

Following up from my attempt at getting a comparative look at junior gold miners, I've put together a similar spreadsheet for analyzing silver producers by their cost per ounce of silver reserves and resources in the ground. This was done by dividing each miner's market cap by its total reserves (proven and probable) plus resources (measured and indicated) of silver in the ground to come up with the company's valuation per ounce of silver. The companies that appear in the table below are all US listed and have market caps between $400 million and $4 billion.

Just as in the last analysis, this is a starting point for further research. I have not included non-silver assets in this analysis, and many of the companies have significant gold or base metal resources. Additionally, I have made no attempt to control for near term production profiles, cost of production, mineral grades, exploration potential, political risk, or any of the other factors that affect each companies market valuation.

Once again, please feel free to comment and point out any data this is out of date or superseded. In all cases I have sourced reserve data from the company's own websites. For reference, silver is currently trading just under $30 per ounce.

Ticker Mkt Cap (NYSE:M) Total Reserves and Resources (MOz) Mkt Cap/Oz
SSRI 1920 1285 1.49
PAAS 3640 945 3.85
CDE 2220 449 4.94
MVG 548 110 4.98
HL 2450 346 7.08
AG 1230 131 9.39
SVM 1950 185 10.54
EXK 455 41 11.10

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in CDE over the next 72 hours.

About this article:

Author payment: $35 + $0.01/page view. Authors of PRO articles receive a minimum guaranteed payment of $150-500. Become a contributor »
Problem with this article? Please tell us. Disagree with this article? .