4 Silver Mining Stocks to Buy From a Prospering Industry
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The prospects for the Zacks Mining – Silver industry look promising, driven by rising silver prices. Global industrial demand for silver is expected to account for a major part of the total demand, which is projected at around 1.15 billion ounces. However, supply is expected to be lower, suggesting that the silver market is headed for a fifth consecutive year of deficit, which is likely to bolster prices.
We suggest keeping tabs on companies Pan American Silver PAAS, Hecla Mining HL, Vizsla Silver VZLA and Avino Silver & Gold Mines Ltd. ASM, which are poised to benefit from solid projects, improved operational efficiency and disciplined cost management.
About the Industry
The Zacks Mining – Silver industry comprises companies that are engaged in the exploration, development and production of silver. These include big and small players operating mines of widely varying types and scales. Silver-bearing ores are mined by open-pit or underground methods, and then crushed and ground. Miners continually look for opportunities to expand their reserves and resources through targeted near-mine exploration and business development. They strive to upgrade and improve the quality of their existing assets, internally and through acquisitions. Only 20% of silver comes from mining activities, wherein silver is the primary revenue source. The balance comes from projects, wherein silver is a by-product of mining other metals, such as copper, lead and zinc. Thus, several companies in the silver mining industry are engaged in mining other metals as well.
What’s Shaping the Future of the Mining-Silver Industry?
Demand to Remain Strong: Per the Silver Institute, silver-backed Exchange-Traded Products (ETPs) witnessed net inflows of 95 million ounces in the first half of 2025 amid heightened geopolitical and economic uncertainties. It has already crossed last year’s total. Retail investment demand in India remains strong, with a 7% year-over-year gain over the first half of 2025 reflecting strong price expectations. Total silver demand is expected to dip 1% to 1.148 billion ounces in 2025. Industrial use remains the largest component of silver demand and is projected to be around 677.4 million ounces in 2025, accounting for roughly 59% of the total demand. One of the main drivers is the solar energy industry. Usage of silver in photovoltaic applications has soared over recent years due to the increasing global adoption of solar technology, advances in solar cell design and the global push for renewable energy. Silver plays a crucial role in solar cells due to its unmatched electrical conductivity. Silver demand in electrical and electronic applications remains supported by rising usage in 5G infrastructure, electric vehicles and consumer electronics. Silver plays a key role in these areas due to its conductivity, reliability in compact and high-performance components. Silver coin and net bar demand is expected to gain 7% this year to 204.4 million ounces, recovering after two years of weakness, and particularly the five-year low of 190.9 million ounces in 2024. Demand for jewelry is, however, expected to be down 6%, reflecting low demand in India amid high prices.
Rising Silver Prices Bode Well: Silver prices gained around 22% in 2024 and 33.7% so far this year. Prices have been supported by several factors, like rising economic and geopolitical uncertainties as well as solid demand amid expectations of a tight supply. Per the Silver Institute, total global silver supply is projected to rise 2% in 2025 to 1.031 billion ounces. The increase in supply will be driven by gains in Mexican output, with smaller contributions from several other countries. Compared with the projected demand of 1.148 billion ounces, it suggests that the silver market is expected to record another deficit in 2025 (117.6 million ounces) for the fifth consecutive year, which bodes well for prices. Even though production is expected to be higher on a year-over-year basis in 2025 at 835 million ounces, it is much lower than the 900 million ounces in 2016. This is due to lower ore grades, limited new project development and operational challenges. This will help boost silver prices in the long run.
Efforts to Combat Inflationary Costs to Aid Margins: Industry players are facing escalating production costs, including electricity, wages, water and materials. Mining companies are major consumers of energy, with around 50% of their production costs closely linked to energy prices. A shortage of skilled workforce spiked wages. With no control over silver prices, the industry must focus on improving its sales volumes while being cost-effective. Players are investing heavily in R&D and resorting to technological innovations required at almost every level of operation to increase efficiency, sustain growth and rein in costs.
Zacks Industry Rank Indicates Bright Prospects
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bright prospects in the near term. The Zacks Mining – Silver industry, a 10-stock group within the broader Zacks Basic Materials sector, currently carries a Zacks Industry Rank #16, which places it in the top 10% of 246 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Before we present a few Mining-Silver stocks that can be retained in one’s portfolio, it is worth taking a look at the industry’s stock-market performance and valuation picture.
Industry Versus Broader Market
The Mining-Silver Industry has outperformed the sector and the Zacks S&P 500 composite over the past year.
The stocks in this industry have collectively gained 42% in the past year compared with the Basic Material sector’s 2.4% rise. Meanwhile, the Zacks S&P 500 composite has risen 17.2%.
Industry’s Current Valuation
Based on the trailing 12-month EV/EBITDA ratio, a commonly used multiple for valuing silver-mining companies, we see that the industry is currently trading at 11.79X compared with the S&P 500’s 17.66X and the Basic Material sector’s trailing 12-month EV/EBITDA of 12.73X. This is shown in the charts below.
Over the past five years, the industry has traded as high as 30.75X and as low as 7.74X, the median being 14.92X.
4 Mining-Silver Stocks to Add to Your Portfolio
Pan American Silver: The company recently reported solid second-quarter results, with record cash flow of $233 million and a solid 291% year-over-year jump in earnings per share. The company remains on track to meet its 2025 guidance of 20-21 million ounces of silver and 735,000-800,000 ounces of gold, with output expected to rise in the fourth quarter of the year. PAAS has solidified its position as a leading precious metal producer in the Americas with a diversified asset base. The company has been rationalizing its portfolio following the Yamana acquisition (in 2023), strategically investing in its producing mines while advancing organic opportunities. The company inked a deal to acquire MAG Silver for $2.1 billion in May. Through this move, PAAS will gain access to the large-scale, high-grade Juanicipio mine in Mexico, in which MAG Silver has a 44% stake. The company also sees growth opportunities through the significant exploration potential at Juanicipio, as well as MAG Silver’s Deer Trail and Larder properties. The deal, expected to close in the second half of 2025, will position Pan American Silver as a leading Americas-focused silver producer. Juanicipio is expected to increase its silver production by roughly 35% on an annualized basis and meaningfully reduce all-in sustaining costs. The PAAS stock has gained 38.5% in the past three months.
The Zacks Consensus Estimate for the company’s fiscal 2025 earnings indicates a year-over-year surge of 150.6%. The estimate has moved up 26% in the past 60 days. PAAS has a trailing four-quarter earnings surprise of 45.2%, on average.
PAAS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vizsla Silver: The company is advancing its flagship, 100%-owned Panuco silver-gold project in Sinaloa, Mexico, which is one of the highest-grade silver primary discoveries in the world. It is targeting the first silver production in the second half of 2027. In January, the company announced an updated mineral resource estimate for Panuco, which includes an estimated in-situ combined measured and indicated mineral resource of 222.4 million ounces of silver equivalent. It represented a 43% increase in contained ounces and a 4.5% increase in average grade, relative to the previous estimate. The company recently acquired the Santa Fe Project including both production and exploration concessions. With an option agreement now in place on the Santa Fe production concessions, Vizsla Silver has the potential to bolster its overall production profile well beyond the 20.2 million ounces silver equivalent ounces of initial annual production envisioned for Panuco Project #1. The company’s shares have gained 42.7% in the past three months.
The Zacks Consensus Estimate for this Vancouver, Canada-based player’s 2025 bottom line is currently pegged at a loss of three cents per share. The estimate has moved up from the loss of four cents per share projected 60 days ago. It has a trailing four-quarter earnings surprise of 75%, on average. VZLA currently sports a Zacks Rank of 1.
Avino Silver Mines: The company produced 645,602 silver equivalent ounces in the second quarter of 2025, up 5% year over year, driven by significantly improved mill availability. ASM remains on track to achieve its targeted production range of 2.5 – 2.8 million silver equivalent ounces in 2025. The company reported mine operating income of $10.2 million, marking a 118% increase year over year, driven by meaningful unit cost reductions from economies of scale, with 36% higher tons milled. The company’s strong cost-control measures are expected to continue to aid its margins. At La Preciosa, underground development has commenced. It is one of the largest undeveloped silver deposits in both Mexico and the world. Also, its proximity to the Avino mine and infrastructure could yield numerous financial and operational synergies. This project is expected to play a significant role in ASM’s target to become an intermediate silver producer in Mexico. ASM also completed the Pre-Feasibility Study for its Oxide Tailings Project at the Avino Mine Operations. This is a milestone in its growth trajectory as the project is considered one of the growth catalysts. ASM shares have gained 45.7% in the last three months.
The Zacks Consensus Estimate for this Vancouver, Canada-based company’s 2025 earnings has moved up 31% over the past 60 days. ASM has a trailing four-quarter earnings surprise of 104.2%, on average. Avino Silver Mines currently carries a Zacks Rank #2 (Buy).
Hecla Mining: The company reported record revenues of $304 million and record adjusted EBITDA of $132.5 million as well as a record cash flow of $103.8 million in the second quarter of 2025. Hecla Mining produced 4.5 million ounces of silver and 45,895 ounces of gold, an increase of 10% and 34%, respectively, compared with the prior quarter. This was driven by upbeat performances at its mines. The Lucky Friday mine established a new quarterly milling record of 114,475 tons, beating the prior record by 5% set in the prior quarter. The company projects silver equivalent ounces to be in the band of 35.5 – 39.0 million for 2025. HL continues to strengthen the balance sheet with a focus on the highest risk-adjusted return projects and free cash flow generation. It is evaluating strategic alternatives for Casa Berardi. The company is striving to drive operational excellence through automation and advanced analytics and advancing Keno Hill’s permitting and infrastructure to achieve sustained profitability. The stock has gained 46% in the past year. HL shares have appreciated 61% in the last three months.
The Coeur d’Alene, ID-based company has a trailing four-quarter earnings surprise of 35.8%, on average. The Zacks Consensus Estimate for HL’s fiscal 2025 earnings indicates year-over-year growth of 145%. The estimate has moved up 50% in the past 60 days. HL currently carries a Zacks Rank of 2.
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