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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 Underpins the Industry: Industrial applications account for roughly 59% of the total demand, with the solar energy industry being one of the main drivers. Silver use in photovoltaic (PV) technology has climbed sharply in recent years due to the increasing global adoption of solar technology, advances in solar cell design and the global push for renewable energy. Per the International Energy Agency (IEA), global renewable power capacity is expected to double between 2025 and 2030. Solar PV will account for 80% of the increase, given its low costs, faster permitting and rising social acceptance. Silver has been used by the automotive industry for many years, and there has been a steady increase in the use of electrical and electronic components driven by demand for enhanced safety features and improved functionality. The electrification of the automotive industry has boosted demand further. Battery electric vehicles use significantly more silver than hybrids or internal combustion engine vehicles, while the growing number of electronic control units further boosts consumption. Rapid digitalization and the rise of AI are emerging as powerful new demand drivers for silver. As economies transition toward clean energy, electrification and AI-led digital infrastructure, silver is increasingly cementing its role as a critical “next-generation metal.”
Solid Trend in Silver Prices Bodes Well: Silver delivered an exceptional performance in 2025, soaring 170% and far outpacing gold’s 66.5% gain. The rally was driven by a convergence of factors, including elevated geopolitical risks, economic uncertainty, resilient demand and tightening inventories. Momentum accelerated further following U.S. rate cuts. Also, 2025 marked a sharp reversal in ETF trends, with strong inflows after consecutive years of outflows, one of the key catalysts behind silver’s breakout. Adding to the bullish narrative, the U.S. Geological Survey included silver in its 2025 List of Critical Minerals, highlighting its strategic importance in defense, clean energy, electronics and medical technologies. This is expected to unlock policy support, faster permitting and efforts to strengthen domestic supply chains. The upward trend has extended into 2026, with silver reaching a record high of $121.67 per ounce in late January. Year to date, prices are up 16.4%, supported by ongoing geopolitical and economic uncertainty, concerns over potential supply deficits and steady industrial demand.
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 nine-stock group within the broader Zacks Basic Materials sector, currently carries a Zacks Industry Rank #16, which places it in the top 7% 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 162.9% in the past year compared with the Basic Material sector’s 35.7% rise. Meanwhile, the Zacks S&P 500 composite has risen 18%.
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 22.67X compared with the S&P 500's 19.17X and the Basic Material sector's trailing 12-month EV/EBITDA of 16.32X. This is shown in the charts below.
Over the past five years, the industry has traded as high as 28.735X and as low as 7.99X, the median being 14.72X.
4 Mining-Silver Stocks to Add to Your Portfolio
Fresnillo: The company reported attributable silver production of 48.7 million ounces in 2025, in line with guidance. In January 2026, FNLPF completed the previously announced acquisition of Canada-based exploration company, Probe Gold. It adds 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. 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. FNLPF shares gained 85.2% in the past three months.
The Zacks Consensus Estimate for Fresnillo’s fiscal 2026 earnings has moved up 16.7% in the past 60 days. The consensus estimate indicates year-over-year growth of 577.8%. FNLPF currently sports a Zacks Rank # 1 (Strong Buy). . You can see the complete list of today’s Zacks #1 Rank stocks here.
Buenaventura Mining: In December 2025, the company’s new gold operation, San Gabriel, produced its first dore bar during commissioning tests. The start-up of San Gabriel’s operations will help the company replace production from depleting mines. This flagship mine is set to reach a processing rate of 2,000 tons per day in 2026. This is expected to be achieved within a nameplate capacity of 3,000 tons per day. Production guidance for 2026 is set at 70,000-80,000 ounces of gold. In September 2025, the Peruvian Ministry of Energy and Mines granted Coimolache a new operating permit, authorizing fresh ore placement on a new level of Tantahuatay’s leach platform and on additional adjacent surface areas. This milestone marks the initiation of full-capacity production at both the mine and the leach pad. BVN shares gained 72.9% in the past three months.
The Zacks Consensus Estimate for BVN’s fiscal 2026 earnings has moved up 35.8% over the past 60 days. The estimate suggests year-over-year growth of 60%. Buenaventura has a trailing four-quarter earnings surprise of 28%, on average. BVN currently sports a Zacks Rank of 1.
Hecla Mining: The company recently agreed to sell the Casa Berardi operation in Quebec, Canada, for up to $593 million in total consideration. The move advances Hecla's strategic transformation to focus on its premier silver assets and is expected to strengthen its financial position. The company produced 17 million ounces of silver in 2025, up 5% year over year. HL continues to focus on the highest risk-adjusted return projects and free cash flow generation. Its Polaris Exploration Project in Mineral County, NV, has been cleared for exploration activities to commence in 2026. This marks a milestone in advancing its exploration strategy in one of Nevada’s most prospective high-grade gold districts. Also, at the Midas Project in Nevada, initial drilling of the previously untested two-mile-long Pogo Trend has discovered high-grade gold mineralization with visible gold on a new structure. This could position Midas as a low-capital-cost opportunity to expand HL’s production profile in the world-class mining district. HL shares gained 95.8% in the past three months.
The Zacks Consensus Estimate for HL’s fiscal 2026 earnings indicates year-over-year growth of 56.5%. The estimates have moved up 56% in the past 60 days. Hecla Mining has a trailing four-quarter earnings surprise of 25.6%, on average. HL currently carries a Zacks Rank # 2 (Buy).
Avino Silver Mines: The company produced 2.6 million silver equivalent ounces in 2025, within its guidance of 2.5-2.8 million silver equivalent ounces. The fourth quarter of 2025 represented ASM’s return to being a primary silver producer, with silver production accounting for more than 50% of its consolidated silver equivalent production. Avino achieved a number of milestones in 2025, underpinned by strong performance at the Avino Mine and the commencement of development and material extraction at La Preciosa. The company recently reported excellent silver grades from all six holes at La Preciosa. It is a development-stage mineral property, hosting one of the largest undeveloped primary silver resources in Mexico. Also, its proximity to the Avino mine and infrastructure could yield numerous financial and operational synergies. ASM shares gained 152.4% in the past three months.
The Zacks Consensus Estimate for Avino Silver’s fiscal 2026 earnings has moved up 68% over the past 60 days. The estimate indicates year-over-year growth of 114.7%. ASM has a trailing four-quarter earnings surprise of 150% and carries a Zacks Rank of 2.
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This article originally published on Zacks Investment Research (zacks.com).
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