1Semana
How did you come up with the two of them?
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IHecla Mining and Silvercorp Metals because I expect the uptrend in silver prices to continue. The gold/silver ratio remains below historical averages, which typically indicates a lagging silver setup. Until the ratio normalizes, I see silver as an undervalued metal relative to gold.
For me, Hecla is the core position in the silver sector:
high proportion of primary silver production
Strong cost structure and solid cash flow generation
production in politically stable jurisdictions, which improves the risk and valuation profile
Hecla offers clear operating leverage (cash flow and margin expansion) as the silver price rises
I add Silvercorp as a high-conviction exposure:
high leverage to the silver price due to strong production base
additional upside potential through minor metals (lead/zinc) and exploration/expansion projects
lower correlation to gold than pure gold mining stocks, therefore ideal for a pure silver thesis
All in all, this is a thematic silver bet:
I deliberately position myself in companies with a strong operating base and scalable cash flow, which should benefit disproportionately from a silver upswing - while the risk is partially cushioned by geographical stability (Hecla) and diversified metal components (Silvercorp).
For me, Hecla is the core position in the silver sector:
high proportion of primary silver production
Strong cost structure and solid cash flow generation
production in politically stable jurisdictions, which improves the risk and valuation profile
Hecla offers clear operating leverage (cash flow and margin expansion) as the silver price rises
I add Silvercorp as a high-conviction exposure:
high leverage to the silver price due to strong production base
additional upside potential through minor metals (lead/zinc) and exploration/expansion projects
lower correlation to gold than pure gold mining stocks, therefore ideal for a pure silver thesis
All in all, this is a thematic silver bet:
I deliberately position myself in companies with a strong operating base and scalable cash flow, which should benefit disproportionately from a silver upswing - while the risk is partially cushioned by geographical stability (Hecla) and diversified metal components (Silvercorp).
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•1Semana
@fund_manager_2787 Thank you for the detailed explanation. I have the same view on silver, but I am betting on different values.
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