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Summary
- The stock prices of MAG Silver Corp rose by nearly 110 percent in one year.
- Stock value of First Majestic Silver increased by more than 115 percent.
- Both companies register impressive silver productions in their mines in Mexico.
Silver stocks across markets have witnessed a massive price surge over the last few days as the Reddit juggernaut continues to grow. Prices of silver in the US markets registered a five-month high of nearly US$ 30 an ounce on Monday and may be on course to break its previous records.
iShares Silver Trust Exchange in the US saw its biggest single-day collection of nearly US$ 870 million on Friday, according to Dow Jones Market Data. Its previous high was in 2013. Moreover, big ETF sales can have a cascading effect on the futures markets as well since these are backed by physical metal.
Canadian metal heavyweights, such as MAG Silver Corp and First Majestic Metal Corp, were some of the top performers on the Toronto Stock Exchange on Monday, taking a cue from their peers in the neighboring markets. Embolden by their recent successes, traders on the Reddit Forum “wallstreetbets” have stepped up their bets, giving many Wall Street veterans a run for their money.
MAG Silver Corp (TSX:MAG)
This Canadian metal exploration company saw its stock prices rise by more than 7 per cent in the last five trading sessions to close at C$ 24.79 on Friday. A total of 268,362 MAG stocks had exchanged hands during Friday’s session.
With a market capitalization of over C$ 2.7 billion, this Vancouver-headquartered company specializes in high-grade silver production, mainly in Latin American countries.
Its flagship joint venture in Juanicipio in Mexico’s Zacatecas state with Fresnillo Silver Trend is one of the world’s leading silver mining exploration sites. The company plans to upgrade the mine to extract around 4,000 tons of silver daily.
In its fourth quarter, ending December 31, 2020, MAG and Fresnillo jointly produced 230,000 ounces of silver and 443,000 ounces of gold from the site.
The stock grew by more than 73 per cent in the last one-year. This meteoric rise of MAG stocks has brought the company into focus. Its price-to-book ratio was 6.636.
First Majestic Silver Corp (TSX:FR, NYSE: AG)
This Vancouver-based Canadian company is a publicly-traded entity that owns and operates several big-ticket silver and gold mines in Mexico. Its projected silver production from these mines in 2020 is estimated to be around 11.7 million ounces. First Majestic has a market cap of more than C$ 6 billion.
Its stock prices have also seen an upsurge in recent days. In the last trading session on Friday, its stocks were traded at C$23.07 per share, which was more than a 16 per cent increase from the previous close. A total of 1,922,271 shares were traded during the session.
Its stock price rose by over 73 per cent in the last one year. This spectacular performance has given its shareholders a reason to smile. But its EPS and P/E ratios were not so encouraging, which were minus -C$ 0.35 and minus -C$66.00, respectively.
