Top Silver Stocks

The greatest silver rush in history has just begun. . .

Global economic and investment uncertainty is rapidly increasing silver’s appeal as a precious metal. As a result, silver is quickly becoming the investment of choice for those who recognize its traditional role as a safe haven asset.

While industrial and fabrication demand for silver has recently been impacted by the lower demand for the goods it is used in, an increase in silver investment demand can be expected to continue in the near term.

For investors, this means increasing silver prices and market valuations for the companies that mine the white metal.

Below is a list of five small silver stocks that are expecting to increase silver production this year.

Five Small Silver Stocks Increasing Production
September 2009

Great Panther Resources (TSX: GPR)
Share Price: $0.90
Market Cap: $77.5 million

Great Panther is a growing primary silver producer with two operating mines in Mexico. The company steadily increased silver production from the mines from 600,000 ounces in 2006 to 1.2 million ounces last year. Great Panther is forecasting another 25% increase in production to 1.5 million ounces this year; they then expect silver production to continuing growing to 2.8 million ounces in 2010.

Silver Standard Resources (NASDAQ: SSRI)
Share Price: $22.00
Market Cap: $1.5 billion

Silver Standard has 16 geopolitically-diverse projects that range from exploration to production. The company’s first major mining operation and flagship Pirquitas mine recently began production. The mine is expected to produce three million ounces of silver in 2009 and to achieve full production of approximately 10 million ounces of silver in 2010.

Fortuna Silver Mines (TSX-V: FVI)
Share Price: $1.50
Market Cap: $137 million

Fortuna Silver is a small production and development company with two main mineral assets: the Caylloma Mine and San Jose Project. At the Caylloma Silver-Lead-Zinc Mine, silver production increased 79% last year to 860,000 ounces. This year, the firm predicts an increase in production — to 1.6 million ounces. Fortuna is still developing the San Jose Silver-Gold Project. The company expects to begin construction of the mine next year and begin silver production in 2011. The San Jose Mine is expected to yield 3.5 million ounces of silver-equivalent annually, bringing Fortuna’s total silver production to 5.5 million ounces.

Endeavour Silver (AMEX: EXK)
Share Price: $2.75
Market Cap: $142 million

Endeavour Silver is a rapidly-growing production firm with two high-grade silver-gold mines in Mexico. The company has ramped up silver output seven-fold in its first four years of production to 2.3 million ounces in 2008. This year, Endeavour forecasts another 17% increase to 2.7 million ounces. The company hopes to reach production capacity of 4.5 million ounces in coming years.

First Majestic Silver (TSX: FR)
Share Price: $2.60
Market Cap: $215 million

First Majestic is building a senior silver producing mining company with a focus on Mexico. The company currently owns three producing silver mines that yielded 3.7 million ounces in 2008. Although production won’t be as high as the company expected earlier this year, First Majestic is still planning to increase production by 22% to 4.5 million ounces.

Good Investing,

Luke Burgess
Managing Editor, Gold World

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