First Majestic Silver -Silver Pushes Past Gold This Year, These Stocks Will Capitalize

Market Overview - As of March 6, 2025, silver prices increased by 11.5% year-to-date, surpassing gold's 9.7% increase, indicating a strong performance for silver in the current market [1] - The S&P 500 index is down nearly 2% year-to-date as of March 7, prompting investors to consider silver mining companies for potential gains [2] Hecla Mining - Hecla Mining Co. reported a 55% year-over-year sales growth in the most recent quarter, with silver production increasing by approximately 32% [3] - The company achieved a gross profit surge of 75% in 2024, driven by strong performance at its Greens Creek and Lucky Friday properties [3] - Hecla's silver reserves reached 240 million ounces, the second highest in its 134-year history, although permitting and infrastructure issues at the Keno Hill property may hinder production growth [4] - Positive free cash flow was recorded in Q4 2024 after several negative quarters, and the company is optimizing its financial health by eliminating the silver-linked component of its dividend payments [5] - Analysts have a consensus price target of $8 for Hecla, indicating a potential upside of 47% as of March 7, with four out of seven analysts rating it a Buy [6] First Majestic Silver - First Majestic Silver Corp. experienced a 14% year-over-year decline in silver equivalent ounces produced, despite a 26% increase in revenues [8] - The company completed a$ 1.1 billion acquisition of Gatos Silver, which is expected to significantly boost production levels in 2025 and beyond [8] - First Majestic achieved record free cash flow and strengthened its cash position, holding over $308 million in cash and cash equivalents [9] - Analysts predict more than 48% improvement in earnings growth, with a consensus price target of$ 8.50, representing a 44% upside from current levels [9] Pan American Silver - Pan American Silver Corp. increased its quarterly silver production by nearly 25% in the last quarter of 2024, leading to a 22% year-over-year revenue growth [10] - The company anticipates slightly lower silver production levels for each quarter of 2025 but expects improved operating margins to enhance profitability [10] - Pan American reported record quarterly free cash flow and started the year with $1.6 billion in total available liquidity, renewing a buyback program for up to 5% of outstanding shares [11] - The company offers a compelling dividend yield of 1.63%, supported by additional free cash flow, with three out of four analysts rating it a Buy and a price target indicating 14% upside potential [12]