Silver Stocks (SIL) Buck Trend of Lower Silver

SILVER STOCKS NEWS – Silver stocks bucked the trend of a weaker silver price on Thursday, as the Global X Silver Miners ETF (SIL) rose 0.5% to $24.72 per share. Silver stocks followed the broader equity markets higher, despite weakness in precious metals. Silver futures, per the COMEX September contract, slid $0.65, or 1.7%, to $38.68 per ounce this afternoon, but did bounce considerably from their intra-day low of $37.93.

Thursday’s outperformance of silver stocks relative to gold’s sister precious metal is a welcome respite for investors. Silver stocks have substantially lagged silver bullion this year, with the SIL posting a year-to-date loss of 8.9%, compared to a 24.9% gain for the metal.

One of the largest decliners this year in the silver stocks sector has been Pan American Silver (PAAS), which is also one of the SIL’s largest components. Shares of PAAS have tumbled 30.9% year-to-date and fell 1.2% to $28.72 on Thursday after the Company reported second quarter financial and operating results.

Shares of Pan American Silver moved lower despite the broad-based advance in silver stocks and despite reporting record net earnings of $113.5 million, or $1.04 per share. Operating cash flows also set a quarterly record, at $119.4 million, or $1.11 per share. Pan American reiterated its full-year production forecast of 23-24 million ounces of silver as well.

However, weakness in PAAS indicated that the markets chose to focus on the Company’s increased cash cost guidance, which was raised to $8.25-$8.75 per ounce, net of by-product credits, due to higher royalty payments on several of its assets.

Another laggard in the silver stocks sector, Silver Standard Resources (SSRI), reported its second quarter results last evening. Shares of SSRI have performed much better than PAAS, with only a 3.8% year-to-date loss, but still far short of gains in the price of silver.

On Thursday, SSRI was one the top performing silver stocks, however, climbing 3.8% to $27.16 after the Company announced second quarter earnings of $0.57 per share. This figure came in well north of the $0.17 per share consensus estimate among analyst. Silver production came in at 2.0 million ounces, a 16% increase over the prior year period.

Other notable silver stocks posting gains alongside the SIL included Coeur d’Alene Mines (CDE), Hecla Mining (HL), and Silver Wheaton (SLW). CDE, HL, and SLW rallied 3.1%, 2.2%, and 1.4%, respectively.