Silver Pushes Past Gold This Year, These Stocks Will Capitalize

Key Points

• As silver takes an early lead over gold in price gains so far this year, mining companies focused on the second-most-famous metal may appeal.
• Many mining firms have silver operations, but only a small number focus exclusively or primarily on silver.
• Three such firms are Hecla Mining, First Majestic Silver, and Pan American Silver.

As of March 6, 2025, the increase in the price of silver per ounce outpaced that of the price of gold year-to-date, with silver climbing by 11.5% and gold by 9.7% during that time. The price of gold typically influences the price of other metals like silver and platinum, but that does not necessarily mean that gold will always outpace these other safe havens when prices are climbing.

Investors keen to capitalize on silver's impressive run so far this year—especially given that the S&P 500 is down nearly 2% year-to-date as of March 7—might turn to a number of silver-specific mining companies. While many mining operations conduct operations involving multiple precious metals and other resources, the companies below are primarily focused on silver, making them among those in the industry most likely to be swayed by the metal's spot price.

Hecla Sees Strong Sales Growth, Increased Production, and Record Reserves

Hecla Mining Co. NYSE: HL is a major American silver mining firm that reported 55% year-over-year (YoY) sales growth in the most recent quarter. Silver production climbed by roughly 32% in the same period. Gross profit for 2024 surged by 75% over the prior year thanks to climbing profits at the company's Greens Creek and Lucky Friday properties.

Importantly for silver enthusiasts, Hecla's silver reserves reached 240 million ounces by the end of the year, the second highest in the company's 134-year history. However, Hecla's Keno Hill property faces barriers related to permitting and infrastructure that threaten to slow production growth.

Investors may be pleased to see that Hecla's free cash flow was positive in the fourth quarter of 2024 after multiple negative quarters. The company is also taking other steps to optimize its financial health, such as eliminating the silver-linked component of its dividend payments.

Fundamentally, Hecla appears well-positioned in terms of its mining assets to continue scaling up its silver production despite challenges. Four out of seven analysts rate it a Buy with a consensus price target of $8, for 47% upside potential as of March 7.

First Majestic Silver Faces Production Slump but Sees Revenue Growth and Strong Cash Position

First Majestic Silver Corp. NYSE: AG is in a different position from Hecla above: this silver miner saw a 14% year-over-year slump in silver equivalent ounces produced in the latest quarter, even as revenues climbed by 26% over the same period. Investors should expect production levels to increase substantially in 2025 and likely beyond, as the company recently completed the $ 1.1 billion acquisition of Gatos Silver.

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First Majestic also managed to achieve record free cash flow and strengthened its cash position in the latest quarter, thanks to more than $308 million in cash and cash equivalents as of the end of the period. And though the company missed analyst predictions of EPS for the most recent quarter by 2 cents per share, analysts see more than 48% improvement in the cards for the future based on prospective earnings growth figures. That may be one reason why the company enjoys a consensus price target of $8.50 per share, 44% above price levels as of March 7.

Pan American Silver Notes Production Boost and Revenue Growth, Enhancing Cash Flow and Dividend Potential

Pan American Silver Corp. NYSE: PAAS boosted its quarterly silver production by nearly a quarter for the final three months of 2024, helping to fuel nearly 22% year-over-year revenue improvement. Though the company has forecast slightly lower silver production levels for each quarter of 2025, continued improvement in operating margins should help Pan American make the most out of each ounce mined.

Similar to some other silver miners, Pan American saw record quarterly free cash flow last quarter, and the company started the new year with $1.6 billion in total available liquidity. In March, it used this money by renewing a buyback program allowing it to repurchase up to 5% of outstanding shares.

Pan American stands out from its peers for its compelling dividend yield of 1.63%, and the company's additional free cash flow may help it maintain a sustainable dividend payout ratio. With 14% upside potential and three out of four analysts rating PAAS shares a Buy, this stock warrants closer attention from investors seeking targeted silver exposure.