Primary Silver Miners Recent Stock Performance Tied To Profitability?

The leading primary silver mining companies have experienced significant stock rallies from their lows in March. Some of the primary silver miners’ stock prices outperformed the competitors. Why? Could the silver miners with better stock performance be tied to their financials? Good question.

In the past, I looked at some comparisons to see why certain primary silver miners outperformed their competitors. In the chart below, I posted the stock performance of six of the leading primary silver miners since their lows in March this year versus the net income margin to total revenues.

(Click on image to enlarge)

As we can see, Fortuna Silver enjoyed the best stock performance in the group by increasing 201% from its lows in March. On the other end of the spectrum, Endeavour Silver suffered the worst performance at only 83%, and this is likely due to the closing of its El Cubo Mine and horrible Q1 2020 financial results. I wrote about Endeavour Silver EXK in my previous article and also on my SRSrocco Report Twitter Feed:

Because Endeavour Silver lost a stunning $15.9 million in net income versus only $21.9 million in total revenues, that resulted in a net income margin of a NEGATIVE 73%.  No wonder Endeavour Silver’s stock performance is DEAD LAST. Furthermore, the silver miners that enjoyed the best stock performance, Fortuna Silver and Coeur Mining, also had the lowest net income margin losses compared to the other four in the group.

Pan American Silver was the largest silver producer in the group at nearly 26 million oz in 2019. Half of that silver came from just two mines, the La Colorada and Dolores Mines (13.3 Moz). Pan American Silver’s PAAS stock price hit a low of $10.59 on Mar 16th and reached a high of $25.68 in early trading today (Monday). Thus, Pan American Silver’s stock performance increased by 142% over the past month:

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