3 Silver Stocks With Minimal Debt To Consider At Current Levels
With the iShares Silver Trust (SLV) down nearly 4.65% over the last few trading sessions, due in large part to the interest rate cuts enacted by the ECB, I wanted to take a closer look at several silver companies and see if I could find a few positive catalysts. After developing a screen, I found three silver companies that actually carry very minimal total debt-to-total cash ratios. That ratio is simply formulated by taking the company's debt and dividing by the total cash. I consider any ratio under "1" very healthy, under "2" satisfactory, under "3" cautionary, and anything over "3" a warning sign.
Symbol | Price | Mkt Cap | Total Debt | Total Cash | Ratio |
14.25 | 1.51B | 16.01M | 0.167 | ||
14.54 | 2.25B | 104.97M | 0.176 | ||
SLW | 26.01 | 9.23B | 71.48 | 0.072 |
First Majestic Silver Corp (AG), which trades in a 52-week range of $12.12/share (52-week low) and $25.56/share (52-week high), has a market cap of $1.51 billion, was given a rating of a "1," based on the statistical calculations of my formula. AG currently has $96.01 million in total cash on its books (it should be noted that the company currently has $131.63 million in operating cash flow, and -$23.85 million in free cash flow) and only has $16.01 million in total debt. That equates to a total debt to total cash ratio of 0.167, which in my opinion, is a very positive catalyst moving forward. Recently trading at a 15.06% discount to its 200-day moving average, AG recently completed its acquisition of Silvermex Resources.
Pan American Silver Company (PAAS), which trades in a 52-week range of $14.80/share (52-week low) and $34.49/share (52-week high), has a market cap of $2.25 billion, was given a rating of a "1," based on the statistical calculations of my formula. PAAS currently has $594.21 million in total cash on its books (it should be noted that the company currently has $337.39 million in operating cash flow, and $79.14 million in free cash flow) and only has $104.97 million in total debt. That equates to a total debt to total cash ratio of 0.176, which in my opinion, is a very positive catalyst moving forward. Recently trading at a 29.2% discount to its 200-day moving average, PAAS recently completed the sale of its Quiruvilca Mine for $2 million dollars.
Silver Wheaton Corp (SLW), which trades in a 52-week range of $22.94/share (52-week low) and $42.50/share (52-week high), has a market cap of $9.21 billion, was given a rating of a "1," based on the statistical calculations of my formula. SLW currently has $997.49 million in total cash on its books (it should be noted that the company currently has $663.04 million in operating cash flow, and $335.37 million in free cash flow) and only has $71.48 million in total debt. That equates to a total debt to total cash ratio of 0.072, which in my opinion, is a very positive catalyst moving forward. Recently trading at a 15.9% discount to its 200-day moving average, SLW is expected to release second quarter results on August 9th.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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