Silver reached an all time record on January 29th at $121 per oz. Then came back all the way to $64 by Feb 6th.

Now Silver is back at $94 and looks ready to renew the run to new all time highs, however the silver mining stocks are already back at their record highs. Others are realizing that silver miners are making crazy money in this market.

The cost to mine silver is about $15 to $25 per oz for most of these companies. At $90+ per oz they are making around $70 per oz in gross profits. Each company is different.

The problem is, many gold and silver mining stocks have flat production. It is not easy to increase production. They can't just increase production by 30%. It takes years of planning, permits, building capital.

Most mining companies are struggling to just maintain current production.

The only type of silver mining stock I would consider are those that:

1) producing and profitable now
2) can they significantly increase production in the coming years?
3) if they are profitable and brining in huge positive cash flow, can the company build it's next mine without any share dilution?

That is why I keep mentioning Aya (ticker AYASF) when I post on this topic. It just reached a new all time closing high today at $21.63 per share. Why?

1) Their first mine Zgounder is on pace to produce 6 million oz of silver in 2026. The company will have over $400 million in operating cash flow in 2026 if prices stay at $90 per oz or higher.

2) With those profits, their next mine Boumadine can be built (2030) without any share dilution. Boumadine is going to be 37 million oz silver equivalent (AgEq). It is a combo of gold, silver and other metals, calculated at 37 million oz per year in AgEq.

I don't know of any other silver mining stock that will be able to increase it's production revenue by that high of a percentage. From 6 million oz in 2026 to 43+ million oz (combined two mines) in 2030.

So even if gold and silver prices just stay at current levels, Aya's (AYASF) share price will likely increase 5x to 7x stock from current prices by 2030. If silver and gold prices go higher from here, AYA would be an even bigger win.

Permits are already approved to build and mine. The scale of the Boumadine deposit is huge.

I will ocassionally be posting about this mining stock for the next 4 years. Bookmark this.
$XAG #silver.