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3 Silver Mining Stocks to Consider Amid Industry Woes
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Silver prices have been volatile this year, ranging from $121.64 an ounce to $55 per ounce. After a massive 170% rally in 2025, prices have been down 15.7% this year, impacted by a stronger U.S. dollar and higher interest rate expectations. This clouds the near-term outlook for the Zacks Mining - Silver industry. Although underlying demand remains resilient, inflation will drive up operating costs, squeezing margins.
We recommend considering companies such as Fresnillo plc (FNLPF - Free Report) , Pan American Silver (PAAS - Free Report) and Hecla Mining (HL - Free Report) , which will benefit from enhanced operational efficiency, disciplined cost management and solid projects.
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.
What's Shaping the Future of the Mining-Silver Industry
Silver Prices Down This Year After Record Rally in 2025: Silver surged 170% in 2025, even outpacing gold’s 66.5% gain, driven by elevated geopolitical risks, economic uncertainty, resilient demand and tightening inventories. 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. The rally extended into early 2026, with silver hitting a record high of $121.64 per ounce in late January. However, prices later retreated, touching a year-to-date low of $55 per ounce on July 17 amid rising oil prices, a stronger U.S. dollar and higher interest rate expectations fueled by escalating Middle East tensions. Silver is currently at around $60 per ounce, down 15.7% this year. Silver prices are down with the U.S. Dollar trading near 18-month highs and growing market expectations of tighter monetary policy from the Federal Reserve.
Inflationary Costs to Hurt 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. Surging oil prices, spurred by the Iranian conflict, remain a headwind. 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.
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.”
Zacks Industry Rank Indicates Lackluster Prospects
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates gloomy prospects in the near term. The Zacks Mining – Silver industry, a 12-stock group within the broader Zacks Basic Materials sector, currently carries a Zacks Industry Rank #214, which places it in the bottom 13% of 247 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.
Despite the bleak near-term prospects, we will present a few Mining-Silver stocks that you can add to your portfolio, given their prospects. But it is worth looking at the industry’s shareholder returns and current valuation first.
Industry Versus Broader Market
The Mining-Silver Industry has underperformed the sector and the Zacks S&P 500 composite over the past year. The stocks in this industry have collectively gained 10.4% in the past year compared with the Basic Material sector’s 12.6% rise. Meanwhile, the Zacks S&P 500 composite has risen 18.5%.
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 8.36X compared with the S&P 500's 18.22X and the Basic Material sector's trailing 12-month EV/EBITDA of 12.76X. This is shown in the charts below.
Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio
Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio
In the past five years, the industry has traded as high as 21.56X and as low as 7.42X, with the median being 14.09X.
3 Mining-Silver Stocks to Keep an Eye On
Fresnillo: In January 2026, the company completed the previously announced acquisition of Canada-based exploration company, Probe Gold. It added 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 marked Fresnillo’s entry into Canada, adding 10 million ounces of gold resources. The deal aligned with Fresnillo’s strategy of acquiring early-stage precious metal projects to expand its portfolio. The company continues to prioritize brownfield exploration to extend mine life, with projects including Valles, Herradura Underground, Noche Buena and Tajitos, alongside a greenfield pipeline comprising Rodeo, Orisyvo, Guanajuato and Novador. Its high-quality assets, substantial mineral resources, competitive margins and disciplined development approach support its long-term growth prospects. Fresnillo also recently acquired a 5% stake in Sinda, which holds rights to five contiguous mining concessions covering the Sinda Property, a large-scale, high-grade silver-gold greenfield discovery in Mexico’s historic Guanajuato epithermal silver belt, adjacent to Fresnillo’s advanced exploration project. The investment strengthens Fresnillo’s exposure to attractive silver districts that complement its existing portfolio. FNLPF shares gained 4.6% in the past three months.
The Zacks Consensus Estimate for Fresnillo’s fiscal 2026 earnings has remained unchanged in the past 30 days. The consensus estimate indicates year-over-year growth of 54.9%. FNLPF currently carries a Zacks Rank #3 (Hold).
Pan American Silver: The company recently reported estimated mineral reserves and mineral resources as of June 30, 2026. Proven and probable mineral reserves are estimated to contain approximately 511.1 million ounces of silver and 6.3 million ounces of gold. Measured and indicated mineral resources (excluding P&P mineral reserves) are estimated to total approximately 1,126.7 million ounces of silver and 7.5 million ounces of gold. Inferred mineral resources are estimated to total approximately 437.0 million ounces of silver and 7.2 million ounces of gold. These estimates include Pan American’s 44% attributable share of the Juanicipio mineral reserves and mineral resources following its acquisition of MAG Silver, completed on Sept. 4, 2025. The substantial mineral inventory highlights the strength of Pan American’s diversified asset portfolio and its ongoing exploration and mine development success. Continued exploration progress at La Colorada, Jacobina and Timmins further supports its efforts to extend mine life, drive innovation and generate long-term shareholder value. PAAS share have gained 7% in the past three months.
The Zacks Consensus Estimate for the company’s fiscal 2026 earnings indicates year-over-year growth of 50%. The estimate has remained unchanged in the past 30 days. PAAS has a trailing four-quarter earnings surprise of 2.8%, on average. PAAS currently carries a Zacks Rank of 3.
Price:PAAS
Hecla Mining: Hecla’s silver portfolio is anchored by three producing mines with long reserve lives and significant by-product value. The company is advancing projects that leverage existing infrastructure and established mining districts. At Greens Creek, a proposed pyrite concentrate circuit could add 1.0-1.2 million ounces of silver and 10,000-15,000 ounces of gold annually at full ramp-up, with estimated capital of $40-$60 million and initial production targeted between fourth-quarter 2027 and first-half 2028. Its dry-stack tailings project is evaluating 10.6 million tons containing an estimated 51 million ounces of silver and 600,000 ounces of gold, with further progress dependent on metallurgical testing and identifying a suitable processing facility. In Nevada, Midas has a permitted 1,200-ton-per-day mill and approximately 15 years of permitted tailings capacity, while second-quarter 2026 drilling identified two new high-grade veins. At Keno Hill, drilling extended the Bermingham Deep trend to 800 feet of strike length. Management continues to target medium-term silver production exceeding 20 million ounces, contingent on successful exploration, development and permitting. HL shares have gained 10.4% over the past three months.
The Zacks Consensus Estimate for HL’s fiscal 2026 earnings indicates year-over-year growth of 22.5%. The estimates have remained unchanged in the past 30 days. Hecla Mining has a trailing four-quarter earnings surprise of 11.2% on average. HL currently carries a Zacks Rank of 3.
View the Zacks #1 Rank List
Image: Shutterstock
3 Silver Mining Stocks to Consider Amid Industry Woes
Silver prices have been volatile this year, ranging from $121.64 an ounce to $55 per ounce. After a massive 170% rally in 2025, prices have been down 15.7% this year, impacted by a stronger U.S. dollar and higher interest rate expectations. This clouds the near-term outlook for the Zacks Mining - Silver industry. Although underlying demand remains resilient, inflation will drive up operating costs, squeezing margins.
We recommend considering companies such as Fresnillo plc (FNLPF - Free Report) , Pan American Silver (PAAS - Free Report) and Hecla Mining (HL - Free Report) , which will benefit from enhanced operational efficiency, disciplined cost management and solid projects.
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.
What's Shaping the Future of the Mining-Silver Industry
Silver Prices Down This Year After Record Rally in 2025: Silver surged 170% in 2025, even outpacing gold’s 66.5% gain, driven by elevated geopolitical risks, economic uncertainty, resilient demand and tightening inventories. 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. The rally extended into early 2026, with silver hitting a record high of $121.64 per ounce in late January. However, prices later retreated, touching a year-to-date low of $55 per ounce on July 17 amid rising oil prices, a stronger U.S. dollar and higher interest rate expectations fueled by escalating Middle East tensions. Silver is currently at around $60 per ounce, down 15.7% this year. Silver prices are down with the U.S. Dollar trading near 18-month highs and growing market expectations of tighter monetary policy from the Federal Reserve.
Inflationary Costs to Hurt 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. Surging oil prices, spurred by the Iranian conflict, remain a headwind. 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.
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.”
Zacks Industry Rank Indicates Lackluster Prospects
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates gloomy prospects in the near term. The Zacks Mining – Silver industry, a 12-stock group within the broader Zacks Basic Materials sector, currently carries a Zacks Industry Rank #214, which places it in the bottom 13% of 247 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.
Despite the bleak near-term prospects, we will present a few Mining-Silver stocks that you can add to your portfolio, given their prospects. But it is worth looking at the industry’s shareholder returns and current valuation first.
Industry Versus Broader Market
The Mining-Silver Industry has underperformed the sector and the Zacks S&P 500 composite over the past year. The stocks in this industry have collectively gained 10.4% in the past year compared with the Basic Material sector’s 12.6% rise. Meanwhile, the Zacks S&P 500 composite has risen 18.5%.
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 8.36X compared with the S&P 500's 18.22X and the Basic Material sector's trailing 12-month EV/EBITDA of 12.76X. This is shown in the charts below.
Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio
Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio
In the past five years, the industry has traded as high as 21.56X and as low as 7.42X, with the median being 14.09X.
3 Mining-Silver Stocks to Keep an Eye On
Fresnillo: In January 2026, the company completed the previously announced acquisition of Canada-based exploration company, Probe Gold. It added 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 marked Fresnillo’s entry into Canada, adding 10 million ounces of gold resources. The deal aligned with Fresnillo’s strategy of acquiring early-stage precious metal projects to expand its portfolio. The company continues to prioritize brownfield exploration to extend mine life, with projects including Valles, Herradura Underground, Noche Buena and Tajitos, alongside a greenfield pipeline comprising Rodeo, Orisyvo, Guanajuato and Novador. Its high-quality assets, substantial mineral resources, competitive margins and disciplined development approach support its long-term growth prospects. Fresnillo also recently acquired a 5% stake in Sinda, which holds rights to five contiguous mining concessions covering the Sinda Property, a large-scale, high-grade silver-gold greenfield discovery in Mexico’s historic Guanajuato epithermal silver belt, adjacent to Fresnillo’s advanced exploration project. The investment strengthens Fresnillo’s exposure to attractive silver districts that complement its existing portfolio. FNLPF shares gained 4.6% in the past three months.
The Zacks Consensus Estimate for Fresnillo’s fiscal 2026 earnings has remained unchanged in the past 30 days. The consensus estimate indicates year-over-year growth of 54.9%. FNLPF currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price:FNLPF
Pan American Silver: The company recently reported estimated mineral reserves and mineral resources as of June 30, 2026. Proven and probable mineral reserves are estimated to contain approximately 511.1 million ounces of silver and 6.3 million ounces of gold. Measured and indicated mineral resources (excluding P&P mineral reserves) are estimated to total approximately 1,126.7 million ounces of silver and 7.5 million ounces of gold. Inferred mineral resources are estimated to total approximately 437.0 million ounces of silver and 7.2 million ounces of gold. These estimates include Pan American’s 44% attributable share of the Juanicipio mineral reserves and mineral resources following its acquisition of MAG Silver, completed on Sept. 4, 2025. The substantial mineral inventory highlights the strength of Pan American’s diversified asset portfolio and its ongoing exploration and mine development success. Continued exploration progress at La Colorada, Jacobina and Timmins further supports its efforts to extend mine life, drive innovation and generate long-term shareholder value. PAAS share have gained 7% in the past three months.
The Zacks Consensus Estimate for the company’s fiscal 2026 earnings indicates year-over-year growth of 50%. The estimate has remained unchanged in the past 30 days. PAAS has a trailing four-quarter earnings surprise of 2.8%, on average. PAAS currently carries a Zacks Rank of 3.
Price:PAAS
Hecla Mining: Hecla’s silver portfolio is anchored by three producing mines with long reserve lives and significant by-product value. The company is advancing projects that leverage existing infrastructure and established mining districts. At Greens Creek, a proposed pyrite concentrate circuit could add 1.0-1.2 million ounces of silver and 10,000-15,000 ounces of gold annually at full ramp-up, with estimated capital of $40-$60 million and initial production targeted between fourth-quarter 2027 and first-half 2028. Its dry-stack tailings project is evaluating 10.6 million tons containing an estimated 51 million ounces of silver and 600,000 ounces of gold, with further progress dependent on metallurgical testing and identifying a suitable processing facility. In Nevada, Midas has a permitted 1,200-ton-per-day mill and approximately 15 years of permitted tailings capacity, while second-quarter 2026 drilling identified two new high-grade veins. At Keno Hill, drilling extended the Bermingham Deep trend to 800 feet of strike length. Management continues to target medium-term silver production exceeding 20 million ounces, contingent on successful exploration, development and permitting. HL shares have gained 10.4% over the past three months.
The Zacks Consensus Estimate for HL’s fiscal 2026 earnings indicates year-over-year growth of 22.5%. The estimates have remained unchanged in the past 30 days. Hecla Mining has a trailing four-quarter earnings surprise of 11.2% on average. HL currently carries a Zacks Rank of 3.
Price:HL