4 Silver Mining Stocks to Buy to Ride the Solid Industry Trends

The prospects for the Zacks Mining - Silver industry look promising, supported by the strong rally in silver prices. Global industrial demand for silver is expected to account for a major part of the total demand, which is projected at around 1.15 billion ounces. With supply expected to be lower, the silver market is likely headed for a fifth consecutive year of deficit, which will further bolster prices. Moreover, the recent inclusion of silver in the list of critical minerals underscores its growing strategic importance and could attract increased investment in the industry.

Investors may consider adding companies such as Fresnillo FNLPF, Pan American Silver PAAS, Hecla Mining HL and First Majestic Silver AG to their portfolios, given their strong project pipelines, improving operational efficiencies and disciplined cost management.

About the Industry

The Zacks Mining - Silver industry comprises companies that are engaged in the exploration, development and production of silver. These include big and small players operating mines of widely varying types and scales. Silver-bearing ores are mined by open-pit or underground methods, and then crushed and ground. Miners continually look for opportunities to expand their reserves and resources through targeted near-mine exploration and business development. They strive to upgrade and improve the quality of their existing assets, internally and through acquisitions. Only 20% of silver comes from mining activities, wherein silver is the primary revenue source. The balance comes from projects, wherein silver is a by-product of mining other metals, such as copper, lead and zinc. Thus, several companies in the silver mining industry are engaged in mining other metals as well.

What's Shaping the Future of the Mining-Silver Industry?

Strong Demand Outlook: Per the Silver Institute, total silver demand is expected to dip 1% to 1.148 billion ounces in 2025. Industrial use continues to dominate, with demand projected at around 677.4 million ounces in 2025, accounting for 59% of the total demand. The solar energy industry continues to be a major driver. Silver consumption in photovoltaic applications has surged in recent years, fueled by the rapid expansion of solar technology, improvements in solar cell design and the global transition toward renewable energy. Silver demand in electrical and electronic applications remains supported by the rising usage in 5G infrastructure, electric vehicles and consumer electronics. Coin and net bar demand is expected to gain 7% this year to 204.4 million ounces, recovering after two years of weakness. Demand for jewelry is, however, expected to be down 6%, reflecting low demand amid high prices. Silver has been added to the critical minerals list by the U.S. Geological Survey. Silver now joins minerals that are deemed to be vital to America’s economy and national security. This boosts its strategic importance, resulting in increased demand, tighter supply and potential policy support.

Unprecedented Rally in Silver Prices: Silver prices gained around 74.5% so far this year. Prices have been supported by several factors, like rising economic and geopolitical uncertainties and surging investor demand. Spot silver prices had peaked to $54.48 on Oct. 17, 2025, breaking the previous high of $49.45 set on Jan. 18, 1980. Prices are currently at around $50 levels supported by expectations of a near-term Federal Reserve rate cut amid signs of U.S. economic weakness. 

Persistent Demand-Supply Gap: Global silver supply is projected to rise 2% in 2025, reaching 1.031 billion ounces. However, with projected demand figures still higher, the market is expected to face a deficit of 117.6 million ounces, suggesting that it is headed for its fifth consecutive year of shortfall. Even though production is expected to be higher on a year-over-year basis this year, the 2025 production forecast of 835 million ounces is much lower than the 900 million ounces in 2016. This is due to lower ore grades, limited new project development and operational challenges.  Considering this backdrop, while demand continued to rise, this gap will widen, which will provide long-term support for silver prices. 

Efforts to Combat Inflationary Costs to Aid Margins: Industry players are facing escalating production costs, including electricity, wages, water and materials. Mining companies are major consumers of energy, with around 50% of their production costs closely linked to energy prices. A shortage of skilled workforce spiked wages. With no control over silver prices, the industry must focus on improving its sales volumes while being cost-effective. Players are investing heavily in R&D and resorting to technological innovations required at almost every level of operation to increase efficiency, sustain growth and rein in costs.

Zacks Industry Rank Indicates Bright Prospects

The group's Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bright prospects in the near term. The Zacks Mining - Silver industry, a 10-stock group within the broader Zacks Basic Materials sector, currently carries a Zacks Industry Rank #8, which places it in the top 3% of 244 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.

Before we present a few Mining-Silver stocks that can be retained in one’s portfolio, it is worth taking a look at the industry’s stock-market performance and valuation picture.

Industry Versus Broader Market

The Mining-Silver Industry has outperformed the sector and the Zacks S&P 500 composite over the past year.

The stocks in this industry have collectively gained 79.3% in the past year compared with the Basic Material sector’s 8.5% rise. Meanwhile, the Zacks S&P 500 composite has risen 14.4%.

One-Year Price Performance

 

Industry's Current Valuation

Based on the trailing 12-month EV/EBITDA ratio, a commonly used multiple for valuing silver-mining companies, we see that the industry is currently trading at 14.66X compared with the S&P 500's 18.24X and the Basic Material sector's trailing 12-month EV/EBITDA of 13.04X. This is shown in the charts below.

Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio

Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio

Over the past five years, the industry has traded as high as 28.01X and as low as 7.74X, the median being 14.74X.

4 Mining-Silver Stocks to Add to Your Portfolio

Fresnillo: The company has agreed to acquire Canada-based exploration company, Probe Gold. It owns the Novador Gold Project, which has the potential to produce more than 200,000 ounces annually over more than 10 years and the early-stage Detour Gold project. The deal marks Fresnillo’s entry into Canada, adding 10 million ounces of gold resources and aligning with its strategy of acquiring early-stage precious metal projects to expand its portfolio. FNLPF’s attributable silver production was 36.6 million ounces in the first nine-month period of 2025, and it remains on track to achieve its targeted silver equivalent production at 91-102 million ounces for 2025. The company is advancing its metallurgical and underground mining optimization projects, along with the ongoing analysis of brownfield projects, to boost production platform and cost base for the 2026-2030 period. It is also progressing with its greenfield projects, Rodeo, Tajitos, Orisyvo and Guanajuato. FNLPF’s high-quality assets, ample mineral resources, competitive margins and disciplined approach to development will continue to drive growth. The company's shares have gained 29% in the past three months.

The Zacks Consensus Estimate for Mexico-based Fresnillo’s 2025 earnings has moved up 55% in the past 60 days. The consensus estimate indicates year-over-year growth of 394%. FNLPF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Price: FNLPF

Pan American Silver: The company has been rationalizing its portfolio following the Yamana acquisition (in 2023), strategically investing in its producing mines while advancing organic opportunities. Through the acquisition of MAG Silver for $2.1 billion in September, PAAS has gained access to the large-scale, high-grade Juanicipio mine in Mexico, in which MAG Silver has a 44% stake. The company also sees growth opportunities through the significant exploration potential at Juanicipio, as well as MAG Silver’s Deer Trail and Larder properties. The deal positions Pan American Silver as a leading Americas-focused silver producer. Juanicipio is expected to increase its silver production by roughly 35% on an annualized basis and meaningfully reduce all-in sustaining costs. PAAS stock has gained 16.8% in the past three months. 

The Zacks Consensus Estimate for the company’s fiscal 2025 earnings indicates a year-over-year surge of 173%. The estimate has moved up 10% in the past 60 days. PAAS has a trailing four-quarter earnings surprise of 45.2%, on average. PAAS currently carries a Zacks Rank #2 (Buy).

Price: PAAS

Hecla Mining: The company reported record revenues of $410 million and record adjusted EBITDA of $196 million as well as a record net income of $100.6 million in the third quarter of 2025. Hecla Mining produced 4.6 million ounces of silver and 40,654 ounces of gold, both 26% higher than the prior-year quarter. This was driven by upbeat performances at its mines. Backed by this performance, HL has raised its silver equivalent ounces target to 38 - 40 million for 2025. HL continues to lower debt levels and strengthen the balance sheet with a focus on the highest risk-adjusted return projects and free cash flow generation. The company is striving to drive operational excellence through automation and advanced analytics and advancing Keno Hill's permitting and infrastructure to achieve sustained profitability. HL shares have appreciated 95.8% in the last three months. 

The Coeur d'Alene, ID-based company has a trailing four-quarter earnings surprise of 25.61%, on average. The Zacks Consensus Estimate for HL’s fiscal 2025 earnings indicates year-over-year growth of 245.5%. The estimate has moved up 41% in the past 60 days. HL currently carries a Zacks Rank of 2.

Price: HL

 

First Majestic Silver: The company’s total production reached 7.7 million silver-equivalent (AgEq) ounces in the third quarter of 2025, which included a record 3.9 million silver ounces and 35,681 gold ounces. The AgEq ounces produced marked a solid 39% year-over-year increase, attributed to a 96% surge in silver production. In January 2025, First Majestic completed the acquisition of Gatos Silver, Inc., gaining a 70% interest in the high-quality and long-life Cerro Los Gatos Silver underground mine. This deal solidified AG’s position as an intermediate primary silver producer. Total silver production in the third quarter included a contribution of 1.4 million ounces from Los Gatos. AG achieved record quarterly revenues of $285.1 million and record mine operating earnings of $99 million in the third quarter as well driven by the addition of Los Gatos. The acquisition is also expected to immediately boost its free cash flow and lead to meaningful synergies. AG shares have gained 32.7% in the past three months. 

The Zacks Consensus Estimate for this Vancouver Canada-based company’s current-year earnings has increased 150% in the past 60 days. The estimate indicates year-over-year growth of 279%. First Majestic currently carries a Zacks Rank of 2. 

Price: AG

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Fresnillo PLC (FNLPF): Free Stock Analysis Report
 
Hecla Mining Company (HL): Free Stock Analysis Report
 
Pan American Silver Corp. (PAAS): Free Stock Analysis Report
 
First Majestic Silver Corp. (AG): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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