Silver stocks beating the marketsSilver Wheaton Corp. (NYSE: SLW)
Silver Wheaton is the largest precious metals streaming company in the world. The company has thirteen long-term silver purchase agreements and two long-term precious metal purchase agreements.
These agreements allow the company to purchase all or a portion of the silver production at a low fixed cost from high-quality mines located in Mexico, the United States, Greece, Sweden, Peru, Chile, Argentina, and Portugal.
For 2010, Silver Wheaton expects to produce 22.2 million ounces of silver and 20,000 ounces of gold, for a total production of 23.5 million ounces of silver-equivalent.
By 2013, annual production is expected to increase significantly to 38 million ounces of silver and 59,000 ounces of gold, for total production of over 40 million silver-equivalent ounces.
Pan American Silver Corp. (NASDAQ: PAAS)
Pan American Silver is the second largest primary silver producer in the world. The company owns and operates eight silver mines and four development projects in Peru, Mexico, Bolivia, and Argentina.
Pan American's growth strategy is based on the continued increase of low cost silver production through the efficient operation and expansion of its existing mines, an aggressive exploration program, and the acquisition and development of new silver-rich deposits.
The company has increased silver production by 105% since 2004. Last year, the company produced 23 million ounces of silver from its Latin American assets. For 2010, the company anticipates increasing production slightly to 23.4 million ounces.
According to the latest estimates, Pan American Silver has 234 million ounces of silver reserves and 940 million ounce of resources in the measured, indicated, and inferred category.
The company also mineral reserves of 679,000 ounces of gold, 717,000 tonnes of zinc, 302,000 tonnes of lead, and 67,000 tonnes of copper.
Fresnillo plc (LSE: FRES)
Fresnillo plc is the third largest silver producer in the world and Mexico's second largest gold producer. The company operates four producing mines and one development project, all located in Mexico. In total, Fresnillo has mining concessions covering approximately 1.75 million hectares across the country.
One of the main drivers of Frenillo's growth is the investment in exploration and the development of projects and prospects with the potential to become low-cost operating mines. The company's disciplined approach to investment includes the evaluation of economic ore grades, maximum extraction costs, and an established reserve base.In 2009, Fresnillo increased silver production by 9% to a record 38 million ounces. The company also increased gold production by 5% to 277,000 ounces.
The company plans to bring one new mine into production each year until 2014. As a result, Fresnillo anticipates increasing silver production by another 50% to over 56 million ounces in the next four years.
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