Eight silver stocks to watch

By Dominic Frisby Nov 20, 2007

Dominic Frisby

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Last week The Paddington Hilton played host to the leading lights of the silver industry, writes Dominic Frisby, with many of the best silver miners in the world attending the conference. Although I’m not as bullish as some of the most enthusiastic attendees – silver will be $1,500 an ounce by 2017, according to one expert – I do think silver’s long-term prospects are very attractive indeed. Here are some of the silver mining stocks I think you should be keeping a very close eye on. 

Sabina (CA:SBB) has good, solid management. Its Hackett River Project in the safe (but cold) Canadian Arctic is superb. The problem is that it won’t go into production before 2012, so investors will have to be patient and management will have to work hard to keep them interested. I expect this to be a slow and steady performer. Do not expect fireworks. Buy below $2. 

If it’s fireworks you want, then First Majestic (CA:FRR) is the firm to turn to. It has experienced, ambitious management in Keith Neumeyer and Ramon Davila, has productive mines in Mexico, and production costs are falling. The exercising of warrants and subsequent selling has held the share price back, but I expect this to be higher by spring. It’s a buy below $4; a screaming buy below $3.

Excellon (CA:EXN) is another expanding Mexican producer and another favourite of mine – buy on pullbacks below $1.50. Two other Mexican miners that also look cheap are Endeavour Silver (CA:EDR) and Great Panther (CA:GPR). Another you might want to put on your watch list is Impact Silver (CA:IPT), an impressive performer with good management. It’s not looking cheap – but that’s because it never seems to sell off as much as others. 

Riskier prospects include Orko (CA:OK), which looks like it will soon be taken over, hopefully at a premium, but wait for a pullback. The fate of Oremex (CA:ORM) depends on a local (Mexican) ruling. If it goes in the firm’s favour, the stock will soar.

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Published in Precious metals & gems | More articles by Dominic Frisby

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