5 Silver Mining Stocks to Watch Amid Industry Challenges

Industry Overview - In 2023, silver prices declined by 1.2% due to rising interest rates, a stronger dollar, and weak industrial demand, impacting the Zacks Mining - Silver industry [1] - The industry consists of companies engaged in the exploration, development, and production of silver, with only 20% of silver coming from mining activities where it is the primary revenue source [2] - Silver prices fluctuated between $19.83 and $26.44 per ounce in 2023, averaging $23.54, with industrial demand making up more than half of silver's total demand [3] Future Outlook - Global silver demand is expected to rise by 1% year-over-year, reaching 1.2 billion ounces in 2024, with jewelry demand projected to increase by 6% [5] - The Zacks Mining - Silver industry currently holds a Zacks Industry Rank of 142, placing it in the bottom 40% of 238 Zacks industries, indicating lackluster prospects [6] - Analysts have reduced the industry's earnings estimates for the current year by 85% over the past three months, reflecting declining confidence in earnings growth potential [7] Company Highlights - Pan American Silver (PAAS) completed the acquisition of Yamana Gold in 2023, which is expected to generate annual synergies of $40-$60 million and improve silver production by 11% [11] - Hecla Mining (HL) reported significant silver reserves and production, with expectations to produce 16.5-17.5 million ounces of silver in 2024, marking a year-over-year increase [14] - Fortuna Silver (FSM) achieved record gold-equivalent production of 452,389 ounces in 2023, with a focus on enhancing balance sheet flexibility and operational efficiencies [18] - Vizsla Silver (VZLA) is advancing its high-grade Panuco silver-gold project and plans to conduct over 60,000 meters of resource drilling in 2024 [19] - Avino Silver Mines (ASM) signed a long-term land-use agreement for the development of La Preciosa, which is expected to enhance its position as an intermediate silver producer in Mexico [22]