4 Silver Mining Stocks to Buy From a Prospering Industry

Industry Overview - The Zacks Mining - Silver industry is experiencing promising prospects due to rising silver prices, with global industrial demand projected at approximately 1.15 billion ounces, while supply is expected to be lower, indicating a fifth consecutive year of deficit [1][4] - The industry comprises companies engaged in the exploration, development, and production of silver, with only 20% of silver coming from mining activities where silver is the primary revenue source [3] Demand and Supply Dynamics - Total silver demand is expected to dip by 1% to 1.148 billion ounces in 2025, with industrial use projected at around 677.4 million ounces, accounting for roughly 59% of total demand, driven by the solar energy industry and rising usage in electrical applications [4][5] - Silver prices increased by approximately 22% in 2024 and 33.7% in 2025, supported by economic uncertainties and solid demand amid tight supply [5] Cost Management and Operational Efficiency - Industry players are facing rising production costs, particularly in energy, wages, and materials, leading to a focus on improving sales volumes and cost-effectiveness through technological innovations [6] - Companies are investing in R&D to enhance operational efficiency and sustain growth while managing costs [6] Stock Performance and Valuation - The Mining-Silver Industry has outperformed the Basic Material sector and the Zacks S&P 500 composite over the past year, with a collective gain of 42% compared to the sector's 2.4% rise [10] - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 11.79X, lower than the S&P 500's 17.66X and the Basic Material sector's 12.73X [12] Company Highlights - Pan American Silver (PAAS): Reported record cash flow of $233 million and a 291% year-over-year increase in earnings per share, with a projected output of 20-21 million ounces of silver in 2025 [16][17] - Vizsla Silver (VZLA): Advancing its flagship Panuco silver-gold project, targeting first production in the second half of 2027, with a recent 43% increase in estimated mineral resources [22][23] - Avino Silver Mines (ASM): Produced 645,602 silver equivalent ounces in Q2 2025, up 5% year-over-year, and remains on track to achieve a production range of 2.5 - 2.8 million silver equivalent ounces in 2025 [25][26] - Hecla Mining (HL): Reported record revenues of $304 million and a 10% increase in silver production, with a projected silver equivalent output of 35.5 - 39.0 million ounces for 2025 [29][30]