Silver Stocks Rally, SIL Nears 7-Week High

SILVER STOCKS NEWS – Silver stocks moved higher on Thursday as the Global X Silver Miners ETF (SIL) advanced 1.7% to $19.52 per share in mid-day trading.  In doing so, the silver stocks ETF neared its highest level since June 21st and extended its gain in August to 6.9%.

The rally in silver stocks and the SIL came despite tepid movement in COMEX silver futures, which hovered near unchanged at $28.07 per ounce.  Silver stocks also displayed a considerable amount of resiliency in the face of a stronger U.S. dollar, which rose 0.5% against a basket of foreign currencies.

Silver stocks in the news on Thursday included SIL component Silver Standard Resources (SSRI), which reported second quarter earnings per share (EPS) of $0.43.  However, Scotia Capital analyst Trevor Turnbull noted in a report to clients that after adjusting for one-time charges, Silver Standard’s adjusted EPS was negative $0.16 – far below analysts’ estimates.  Nonetheless, on the positive side the Company reiterated its full-year production guidance for its Pirquitas mine of 8.0-8.5 million ounces of silver.

Turnbull maintained his Sector Perform rating and $19.00 price target on SSRI, which in mid-day trading climbed 3.1% to $13.49 per share.

Another SIL component making headlines was Silver Wheaton (SLW), which was upgraded by TD Securities analyst Daniel Earle to Buy from Hold.  Earle also raised his price target on $37.00 from $28.00 on SLW, which today advanced 1.8% to $30.48 per share.

The Silver Wheaton upgrade followed the Company’s announcement yesterday of the acquisition of Hudbay Minerals’ 777 mine in Canada and its Constancia development project in Peru  for a total cash consideration of $750 million.  “We believe that the transaction is accretive on all key metrics and significantly increases our short and long-term production forecasts,” Earle stated.

Other notable silver stocks in the black on Thursday included Coeur d’Alene Mines (CDE), Hecla Mining (HL), and Pan American Silver (PAAS).  CDE rose by 2.9% to $19.31, HL by 1.4% to $4.70, and PAAS by 0.3% to $15.56 per share.