How Is Vaccine News Affecting Silver Prices?
Throughout 2020, silver has been performing very well reaching new highs once in a while. But on Monday November 9th, 2020 the price of silver went down more than 7%. Why exactly did this happen? Well, precious metals such as gold and silver sold off as a result of the recent pandemic related news. Pharmaceutical company Pfizer Inc. (PFE Stock Report) announced in partnership with BioNTech, it has a COVID-19 vaccine that is about 90% effective.
This would be great for the economy, but not so good for precious metals. Many use gold and silver as assets when the dollar or economy are not performing well. That is the reason that the price of silver fell on Monday. The price of gold did not fall below $1,850, which helped silver prices stay up too, now being at $24.41 on the day of November 10th. Gold fell more than silver did, as regardless of the economy silver is a material used in the industrial sector.
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Silver is able to hold on because of its uses. There are still many questions posed at the moment. Will people be willing to take a new vaccine? Will it be distributed widely in a quick manner? And just because a vaccine exists does not mean that the damage to the economy can instantly be flipped back around. Let’s look at some silver stocks that are performing well during 2020.
Top Silver Stocks To Watch: Walcott Resources Ltd.
The first company to discuss on this list is Walcott Resources Ltd. (OTC:WALRF Stock Report) (CSE:WAL). Walcott Resources is a silver stock that has been able to stay afloat despite the negative effects of the pandemic in 2020. It searches for gold and silver deposits, primarily at its Tyr Project location in Australia.
Acquisition, exploration, and mining are what Walcott does the most at its properties. The Tyr Project is actively estimated to have 4,710 grams per ton of silver (g/t Ag) at its drilling locations. It acquired 60% interest in 1256714 B.C. Ltd. a company that owns 100% interest in multiple active prospective silver and zinc projects which was great for Walcott.
In a recent announcement, Walcott Resources announced plans to speed up the silver exploration program at the Tyr Project. Walcott will identify the current prospective silver targets, and use those to create more efficient ways to accelerate its drilling program. It will be interesting to see what the company has to say about this in the future if it is proven to be successful. Walcott is making advancements in the right direction hence why it has made it on to this list.
Top Silver Stocks To Watch: First Majestic Silver Corp.
Next up on this list is First Majestic Silver Corp. (AG Stock Report) First Majestic is a mining company that primarily focuses on acquisition of land, exploration, development, and production of mineral properties. The company’s biggest projects include silver production in Mexico. Currently, First Majestic has 100% interest in the San Simas mine, Santa Elena mine, and holds an interest in plenty more projects as well. Let’s see what First Majestic Silver Corp. has been up to in recent times, and how its financials are performing.
On November 5th, First Majestic released its third quarter results for 2020 that were very positive. Its quarterly revenue was record breaking at $125.9 million. This was an increase of 30% year over year as a result of rising metal prices, as well as selling $25 million in stockpiled metal inventory from the previous quarter.
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Its average silver price of $22.58 per equivalent ounce went up 28% year over year as well. The CEO of the company, Keith Neumeyer stated, “Along with our record cash and working capital position, the Company is poised to close out 2020 as one of its strongest years in the Company’s 18-year history.” That is what makes AG stock one to watch in the silver sector at the moment.
Top Silver Stocks To Watch: MAG Silver Corp.
The next silver stock to watch is MAG Silver Corp. (MAG Stock Report). MAG Silver Corp. is a mining company that will primarily acquire land, explore it, and develop mineral properties within. It searches for silver, gold, lead, and zinc deposits respectively. Currently, the company holds a 44% interest in the Juanicipio project in Mexico. This project is a 56%/44% joint venture between Fresnillo plc and MAG. So let’s look at what has been happening with MAG Silver Corp. recently.
MAG Silver has announced its first production from Juanicipio being 394 thousand silver ounces, 610 gold ounces, as well as large amounts of lead and zinc. The material was processed through a nearby Fresnillo processing plant. George Paspalas, the President and CEO of MAG Silver had this to say about the advancement, “The successful processing of development material not only provides cash flow to offset capex, but further de-risks the project as it heads toward commercial production. We are looking forward to the first production stope coming online in Q4 2020, and our potential to continue to produce cash whilst we complete the process plant construction.”
Fresnillo has now estimated that 16,000 tons per month of mineralized material will be processed through this joint venture through mid-2021.
Top Silver Stocks To Watch: Silvercorp Metals Inc.
The last company on this list is Silvercorp Metals Inc. (SVM Stock Report). Silvercorp Metals is a silver company that acquires, explores, develops, and mines mineral properties located in China. The company will mostly search for silver, gold, lead, and zinc as well. It holds an interest in the Ying silver-lead-zinc project and the GC silver-lead-zinc mine. Silvercorp just announced a variety of things so let’s dive right into these recent news pieces.
On November 5th, Silvercorp Metals released its second-quarter fiscal 2021 financial results. Its revenue was reported at $56.4 million, up 13% year over year. This was an increase of $6.5 million. It mined 267,853 tons of ore, which was up 3% year over year. Its total gold, lead, silver, and zinc sales went up 100% in total, but a decrease in silver and lead, with the rest being made up of gold and zinc. As a result of this news, SVM stock price went up from $6.89 a share on average to above $8 a share at one point.
It also just filed the shelf prospectus and a corresponding registration statement. The goal is to provide the company with more financial flexibility in the future, yet is not currently offering any securities. It is not final or effective yet, but may not be sold or have any offers to buy accepted before the prospectus becoming final. This November 9th announcement is the most recent from the company.
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