Investing

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%.

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.