The silver market has experienced a remarkable surge in value, significantly impacting the performance of major mining companies. This increase, which began early in the year, has led to impressive financial results for many industry players during the third quarter.
At the start of the year, silver prices broke the $30 mark, climbing to $32.94 by February 20. The upward trajectory continued, peaking at $34.21 by the end of March. By June, silver prices soared to a 13-year high of $36.05, and by mid-July, they exceeded $39. The momentum persisted, with prices surpassing $47 in August and September. In a historic moment, silver reached a record high of $53 per ounce in October before stabilizing around $47.
Leading players in the silver market
In this thriving environment, several mining companies have reported outstanding financial results, showcasing their ability to capitalize on rising silver prices.
First Majestic Silver’s record production
First Majestic Silver (TSX:AG, NYSE:AG) emerged as a standout performer, achieving a remarkable 96 percent increase in silver output year-on-year, totaling 3.9 million ounces in Q3 compared to 2.0 million ounces the previous year. Notably, 1.4 million ounces of this production were attributed to the recently integrated Los Gatos operation.
This impressive production growth translated into a 95 percent boost in quarterly revenue, reaching $285.1 million. This marks the third consecutive quarter of record earnings for the company, driven by increased metal prices and higher production volumes. Approximately 56 percent of the revenue came from silver sales, with an average price of $39.03 per ounce realized.
Coeur Mining’s significant achievements
Coeur Mining (NYSE:CDE) also reported impressive results, with silver production rising by 57 percent to reach 4.8 million ounces in Q3. The company enjoyed a 15 percent increase in average silver prices, which climbed to $38.93 per ounce compared to the previous quarter.
Coeur’s financial performance was bolstered by its diverse operations across North America, allowing the company to maintain strong cost control. Shortly after announcing its earnings, Coeur revealed a landmark $7 billion all-stock merger with New Gold (TSX:NGD, NYSEAMERICAN:NGD), forming a formidable entity in the precious metals sector.
Royal Gold and Endeavour Silver’s financial milestones
Other notable players in the mining industry also showcased strong performances due to favorable market conditions. Royal Gold (NASDAQ:RGLD) reported record revenue of $252.1 million for Q3, alongside an impressive operating cash flow of $174 million, fueled by rising prices of gold, silver, and copper. The company’s net income hit $126.8 million, marking a significant achievement in its financial history.
Meanwhile, Endeavour Silver (TSX:EDR, NYSE:EXK) maintained steady production levels, with output increasing by 102 percent year-on-year to 1.77 million ounces. The company anticipates further growth as it approaches the commercial production phase of its Terronera project.
Emerging players making their mark
In addition to established firms, emerging companies have also reported substantial gains. Americas Gold and Silver (TSX:USA) recorded an impressive 98 percent increase in silver production, reaching 765,000 ounces. This growth was driven by operational improvements at the Galena Complex in Idaho and higher-grade ore zones at Cosalá Operations in Mexico.
At the start of the year, silver prices broke the $30 mark, climbing to $32.94 by February 20. The upward trajectory continued, peaking at $34.21 by the end of March. By June, silver prices soared to a 13-year high of $36.05, and by mid-July, they exceeded $39. The momentum persisted, with prices surpassing $47 in August and September. In a historic moment, silver reached a record high of $53 per ounce in October before stabilizing around $47.0
At the start of the year, silver prices broke the $30 mark, climbing to $32.94 by February 20. The upward trajectory continued, peaking at $34.21 by the end of March. By June, silver prices soared to a 13-year high of $36.05, and by mid-July, they exceeded $39. The momentum persisted, with prices surpassing $47 in August and September. In a historic moment, silver reached a record high of $53 per ounce in October before stabilizing around $47.1