Americas Silver Corp (USA-T)

It's one of his anchor stocks. It's been lagging in price, but so have many silver companies. He still likes this among Mexican-based silver producers. It has just started a gold mine in the US which helps diversify away from silver. They keep adding mines and value, and will have leverage to the prices of gold and silver. They're producing and he expects earnings to continue to rise. The current high prices of gold and silver will cover their labour costs, taxes and other climbing costs. Lastly, they have great management (from Barrick).

They can increase production. Has big institutional stockholders.

(Past Top Pick, June 22, 2018, Down 27%) There are warrants coming due, but this company has good leverage with cost production down to -2, because Glencore buys all their extra rock (lead and zinc). They started a new mine, New Rafael, which will lower costs further to -7. He's owned this for a long time.

One of his favourite silver producers and one of the world's lowest-cost ones. Fine management, mostly from Barrick Gold. Unlike its peers who have been selling their high-grade minerals to stay alive, they have been selling their low grade (zinc and lead). They're selling their garbage at negative cost. They can easily start mining their high-grade which is being stored. This will have quite a bit of upside. (Analysts' price target: $7.42)

A colleague likes Americas silver a lot as a good representative of the silver sector. For him, this stock has run up too high and so he cannot buy it now.

This company used to mine silver heavily, and will still mine a million ounces this year but over the past four years it has been refocusing on zinc. A new zinc mine will come into production this year, replacing a silver mine with a large production of zinc. Very few new zinc mines are coming onstream, so there is a strong opportunity for this company over the next 12 months. He expects the stock to run up as high as $6.

Silver has a somewhat related pattern to gold, except it has some industrial applications. Stock is moving sideways, in a very volatile, but basing pattern. It needs to break that at about $5.50-$6. Until it breaks that, he wouldn't touch it.

The main focus of their property is in Mexico. The initial ore body ran out, and they are now putting another one into production. There are a number of ample opportunities in that whole area, so there could be an expansion in that part of the holding. They also have a property in Idaho, which basically has a 10-year reserve life, as well as a new holding in Mexico.

(A Top Pick May 1/15. Up 57.14%.) This continues to be a Top Pick.