Six Silver Penny Stocks To Buy
Alongside gold, silver may turn out to be one of the best ventures for 2016. After three year of losses, silver seems to have bottomed at around the $14-an-ounce level and it is on the verge of a major rebound. Silver prices are surging higher than gold amid lower supplies and higher demand. The rally in silver prices is welcome news for silver mining stocks, a large number of which have been battered more awfully than the valuable metal itself. The performance of silver mining stocks is directly dependent on silver prices. When silver prices move upward, the mining stocks generates better returns than the gain in silver prices.
There are absolutely various open doors accessible to investors, with various silver mining stocks offering for more than $20 per share only a few years back having fallen greatly to the penny stock extent to below $5 per share. There are many penny stocks with a price per share under $1 among silver mining companies with relatively low business capitalizations.
experienced a decline in revenues in 2015, but market analysts point to a substantial, ongoing share buyback program as a sign that the company’s fortunes may soon turn to the upside. Silvercorp, with a market capitalization of $74 million, has the distinction of being one of the few silver mining companies that pays a dividend, with a current yield of 2.44%. The company’s low price-to-book (P/B) ratio of 0.3 and price-to-sales (P/S) ratio of 0.7 may make it attractive to value investors.
Silvercorp encountered a decrease in income in 2015, and the company’s profitability turned into losses. Silvercorp has a market capitalization of $683 million. The organization’s low cost to-book (P/B) ratio of 0.3 and cost to-deals (P/S) ration of 0.7 may make it alluring to value investors.
Endeavor Silver Corporation
Endeavor Silver Corporation (NYSE: EXK), brought down its mining costs by almost 20%, lessened its obligation by $4 million and expanded income by about half in 2015. Endeavor has a set up reputation of expanding silver creation year to year. Its three-year normal revenue growth is 15.4%.
In spite of all that, the Canada-based organization with three working mines in Mexico, and a few more being developed, has not seen a surge in its share price and continues to trade at around $5 a share. To raise extra capital, Endeavor initiated a $16.5 million rally at-the-business sector optional offering of stock in late 2015.
Like others silver, Endeavor seriously needs another rally in the price of silver to help its stock price. In spite of the fact that Endeavor is one of the small-cap mining firms, with market capitalization of over $100 million, its existing production level and promising reports from new projects makes it an attractive opportunity for investors.
Comstock Mining, Inc. (NYSEMKT: LODE) founded in 1999 with a head office in Virginia City, Nevada. Comstock Mining presently holds control of around 70% of the mining claims in the Comstock Lode territory. Notwithstanding digging for silver and gold, the organization additionally has a hospitality division at the ownership of the Gold Hill hotel and bar.
Comstock has centered its significant endeavors in the Lucerne Resource Area, where it has as of late finished work from open cut to underground mining. Also, the organization altogether declined production costs in the last few years.
The organization’s stock is trading at around 37 pennies per share and it has market capitalization of $56 million. The stock looks little overvalued trading at around P/B ratio of 3 versus an industry average of above 0.7, however, its future look strong amid its falling costs and increasing silver prices.
Alexco Resource Corp. conducts mining operations and mineral exploration and development in Canada. It explores silver, lead, zinc, and gold ores. Alexco put its mine into production in 2011 when silver prices were high. The company suspended its operations in 2013 amid the business sector downturn.
By 2015, the stock had turned into an amazing stock worth purchase, exchanging from $0.30 to $0.50/share for a large portion a year ago. With production suspended and the organization anticipating higher silver prices to resume the mine, Alexco was an exemplary “optionality” play, promising exceptional leveraged gains.
Also, in 2016, the optionality play started working. With the growth in silver prices, its stock price also soared to $2.5 per share. The company’s share price has further upside potential considering the potential growth in silver prices.
Santacruz Silver Mining Ltd.
Santacruz Silver Mining Ltd. is engaged with the exploration, development and acquisition of mineral properties in Mexico, with an essential spotlight on silver and zinc. Its properties include Veta Grande Mine; Exploration and assessment properties; Rosario Mine, and Corporate and others. The Company currently concentrates on its Rosario Mine, the Veta Grande Mine. The company also holds roughly four mining properties in its portfolio, the Gavilanes Project, the San Felipe Project, the Minillas Property and the El Gachi Property.
Americas Silver Corporation
in the past Scorpio Mining Corporation, is a Canadian-based silver mining organization centered in light development in precious metals from its current resource base and execution of centered accretive acquisitions. The Company possesses and works the Cosala Operations in Sinaloa, Mexico and the Galena Mine Complex in Idaho. In Sinaloa, Mexico, it owns 100% of the rights to Nuestra Senora silver-zinc-copper-lead mine.
Investing in silver mining stocks is a perfect strategy for investors to make big profits in a short period of time. Silver prices surged significantly in the last couple of months and this precious metal has the potential to make a further surge in the coming months. Therefore, buying silver mining stocks could double investment in a short period of time.