10 Top Gold and Silver Miners May Be the Next M&A Targets

Hecla Mining

Idaho-based Hecla Mining Co. (NYSE: HL) is the largest silver producer in the United States. At the end of 2021, Hecla reported proven and probable silver reserves of 200 million ounces, the second-highest total in the company’s 130-year history. Proven and probable gold reserves increased by 14% to 2.7 million ounces.

For all of 2021, Hecla’s AISC was $9.19 per ounce of silver and $1,374 per ounce of gold. The company’s realized price for silver was $25.24 per ounce. For gold, Hecla’s realized price was $1,796 per ounce. The company produced 12.9 million ounces of silver last year at a margin of $16.05 per ounce. The margin on gold production of 201,000 ounces was $422 per ounce. Hecla’s market cap is $2.54 billion. The company’s weighting in the MVIS Junior Gold Miners Index is 2.14%.

First Majestic Silver

Canada-based First Majestic Silver Corp. (NYSE: AG) paid $470 million last year to acquire an Elko County, Nevada, silver mine. The acquisition added 440,000 proven and probable gold reserves to the company’s end-of-year total of 63 million ounces of silver and 1.32 million ounces of gold.

In 2021, First Majestic’s AISC per silver-equivalent ounce was $18.85, and its average realized price per ounce was $25.16. Costs rose 34% year over year and realized prices rose 19%. The company produced 26.9 million silver-equivalent ounces, up 32% year over year. Revenue for the year reached a record total of $584.1 million, primarily due to the Nevada mine acquisition. First Majestic’s market cap is $2.16 billion. The company’s weighting in the MVIS Junior Gold Miners Index is 2.13%.

Compañía de Minas Buenaventura

Peru-based Compañía de Minas Buenaventura SAA (NYSE: BVN) produced 350,995 ounces of gold and more than 12 million ounces of silver in 2021. Earlier this year, Buenaventura sold a 43.65% stake in Peru’s Yanacocha mine to its majority partner (Newmont) for $300 million.

The company’s AISC for 2021 was $1,580 per gold-equivalent ounce, up from $1,483 in 2020. Buenaventura’s average realized gold price was $1775 per ounce, down 4% year over year, and the average realized price for silver was $25.09, up 13%. The company’s market cap is $2.22 billion. The company’s weighting in the MVIS Junior Gold Miners Index is 1.97%.

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