Warren Buffett has a key principle of value investing that he practices. Invest in things that have some practical purpose. Silver has multiple uses, and Buffett is hugely invested in it.
Silver Stocks are now garnering attention from investors who had overlooked the rise in gold. Moreover, many of the Silver Mining companies on the ASX produce silver as a byproduct with silver contributing only a small fraction to their profits.
The best ASX silver stocks with growth potential are
Silver Mines Limited (ASX: SVL)
Silver Mines Limited, on 28 June 2024, announced the significant improvement in the exploration of the Bowdens district due to the completion of a major seismic surveying program. The 2D seismic survey interpretation has revealed the presence of new caldera structures within the Rylstone Volcanics, similar to those hosting the 396Moz silver equivalent Bowdens Silver deposit.
The company had previously provided an update on exploration drilling activities and recent assays from the Bowdens Silver Project. Infill drilling in under sampled zones of the Bowdens Silver Deposit has returned notable grades and thicknesses of mineralization. Extensions of high-grade mineralization have been made vertically up to 80 meters and laterally up to 130 meters from the base of the planned open pit in the south of the Main Zone, which is expected to streamline future pit designs and reduce the strip ratio. Additionally, high-grade gold has been discovered in multiple holes, extending the Southern Gold Zone east (40 to 80 meters) and up dip (170 meters) into the open pit area.
In the short term, the company plans to advance its exploration initiatives and update the Mineral Resource Estimate (MRE) and Ore Reserves Statement by the third quarter of 2024. These updates will support the company's Definitive Feasibility Study (DFS), which is also expected to be completed around mid-2024.
Silver Mines, well recognised among Silver Mining Stocks, is well positioned to advance towards the commercialization of its flagship Bowdens Silver Project, with key milestones expected to be reached during 2024. The company is also poised to benefit from a promising market opportunity, driven by rising demand for silver, particularly in solar installations, which account for 11% of total silver demand. This growing demand is expected to be a key driver of long-term sales once the company reaches production, encouraging future prospects for healthy shareholder returns.
Sandfire Resources Limited (ASX: SFR)
Sandfire Resources Limited (ASX: SFR) announced its quarterly report for the period ending on 31 March 2024, on 30 April 2024.
The company persisted in increasing mill throughput at Motheo to an annualized rate of 4.7Mt throughout Q3 FY24, resulting in CuEq production of 11.7kt.
Updated Measured, Indicated and Inferred Mineral Resource estimate for MATSA as at 31 March 2024:
Overall Measured, Indicated and Inferred Mineral Resource estimate for MATSA of 172.8Mt at 1.3% Cu, 2.8% Zn, 1.0% Pb and 38.6g/t Ag containing an estimated 2.2Mt of copper, 4.8Mt of zinc, 1.8Mt of lead and 215Moz of silver.
Sandfire demonstrates strong prospects for financial growth, with its production ramp-up plans expected to enhance its established revenue growth trajectory, which has notably increased from $592 million in 2019 to $1.13 billion in 2023
Source: Company's Report
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