In September, precious metals were zooming up the charts as the biggest thing for investors after a dismal jobs report in August put stocks in a nosedive.
With gold and silver climbing in September, I highlighted two precious metals exchange-traded funds (ETF) that were also enjoying a nice upswing, PowerShares DB Silver Fund (NYSE:DBS) and Market Vectors Junior Gold Miners ETF (NYSE:GDXJ).
Here we are four months later. Have things changed? Is gold and silver still a hot market? Yes!
As for DBS and GDXJ, that’s another story. DBS is down 34 percent and GDXJ is down 33 percent since my post in September. But I always make it clear, my articles are for information purposes only and should not be used as the basis for any investment decision. I am neither licensed nor qualified to provide investment advice. I just enjoy tracking the markets. Like the article I did in 2009 on Kirkland’s Inc., a home décor retailer. Their stock (NASDAQ:KIRK) was at $3.08 a share. Today, KIRK is up 344 percent ($13.68 a share) since my article. I had no idea that was going to happen.
So the precious metals ETFs DBS and GDXJ have taken a nosedive since September. Lets turn our attention to the top silver mining company stocks, like First Majestic Silver Corp. (NYSE:AG) in Vancouver, British Columbia, Canada.
First Majestic is engaged in the business of production, development, exploration and acquisition of mineral properties focusing on silver in Mexico.
As of Dec. 31, 2010, the company owned three producing properties in Mexico: the La Encantada Silver Mine in Coahuila State, the La Parrilla Silver Mine in Durango State and the San Martin Silver Mine in Jalisco State. The company also owns two advanced-stage development silver projects, the Del Toro Silver Mine and the Real de Catorce Silver Project in San Luis Potosi State, and has an interest in certain exploration properties in Jalisco State, Mexico.
First Majestic shares are up 39 percent over the past year (Jan. 10, 2011 to Jan. 6, 2012). This year alone the stock is up 8 percent, closing Friday at $18.28 a share, up 1 percent for the day. AG has a 52-week low of $10.32 and a high of $26.88.
Silver dividend
Hecla Mining Company (NYSE:HL) in Coeur d’Alene, Idaho, is one of the top 10 precious metal stocks with highest dividend yield, according to China Analyst.
Hecla is engaged in discovering, acquiring, developing, producing, and marketing silver, gold, lead and zinc.
The company is organized into two segments: the Greens Creek and Lucky Friday units.
Hecla produces zinc, lead and bulk concentrates at its Greens Creek unit, and lead and zinc concentrates at its Lucky Friday unit, which it sells to custom smelters on contract, and unrefined gold and silver bullion bars (dore) at Greens Creek, which are sold directly to customers or further refined before sale to precious metals traders.
The concentrates produced at its Greens Creek and Lucky Friday units contain payable silver, zinc and lead, and the concentrates produced at Greens Creek also contain payable gold.
On Dec. 14, the Lucky Friday mine in Mullan, Idaho, had to be closed after a rock burst occurred, injuring a few miners.
“We are thankful that all employees are out of the mine and have been accounted for, and that those injured have been treated. The safety of our employees is our primary concern,” said Phil Baker, president and chief executive officer. “The mine is currently shut down, and once we have cared for our people, we will be investigating the cause of the seismic activity.”
The incident occurred at 5,900 feet below the surface. Seven people were transported to local hospitals and treated for non-life-threatening injuries. No mine blasting had taken place anywhere in the mine for the previous 24 hours; therefore, the rock burst is unrelated to mining activities, the company said in a press statement last month. The mine is currently closed pending further investigation.
In late December, the company said it would develop a new haulage way to bypass the rock burst. Creating the bypass and reestablishing mine production is expected to be complete by the end of February.
Hecla stock shares are down 43 percent over the past year (Jan. 10, 2011 to Jan. 6, 2012). But coming into the new year shares are up 8 percent since Jan. 1, closing Friday at $5.65 a share, down 1 percent for the day. HL has a 52-week low of $4.82 and a high of $11.08.
The company issued a $0.02 dividend in November. Its wholly-owned subsidiary is Hecla Alaska LLC.
Disclaimer: This article is provided for information purposes only and should not be used as the basis for any investment decision. I am neither licensed nor qualified to provide investment advice.
Leave a Reply