Citi analysts recently weighed in on the rally in precious metals, with the firm increasing their gold price forecast for the next 3 months, citing further U.S. labor market worsening, physical and ETF buying of gold, and expected interest rate cuts from the Federal Reserve. The new 3-month gold price target is $2,800 per ounce, up from $2,700, while the 6-10 month target is $3,000. For comparison, last week's new high in December gold futures (GCZ24) was $2,772.
Similarly, Citi upwardly revised their 6-12 month target for silver from $38 to $40 per ounce, compared to December silver's (SIZ24) recently tagged peak around $35.
For investors looking to target additional upside in silver prices, mining stocks often move in tandem with the asset. Here's a look at two penny stocks that could get a boost from continued upside in silver.
#1. Avino Silver and Gold Mines Ltd.
Avino Silver and Gold Mines Ltd. (ASM) is a mineral resource company that is involved in the exploration, extraction, and refining of gold, silver, and copper (HGZ24), along with the advancement of mineral properties. It owns interests in 42 mineral properties, with 4 more leased claims.
Incorporated in 1968, the company operates across Canada and Mexico, with its headquarters in Vancouver, Canada.
With a market cap of $194.05 million, ASM stock is up nearly 172% YTD.
Avino Beats Estimates
Avino Silver reported its Q2 results on Aug. 13, where it posted record revenue of $14.8 billion, surging 60% from the same quarter last year, and comfortably beating analysts' $14.0 million estimate. Adjusted earnings per share (EPS) for the quarter came to $0.03, edging out the market’s $0.02 consensus.
ASM posted a mine operating profit of $4.7 million, up from last year’s $1 million profit. EBITDA came to $3.4 million, compared to last year’s $0.4 million. Avino ended the quarter with a cash reserve of $5.3 million.
The beat was driven by the rise in payable silver per ounce sold, a decrease in mining costs, and rising metal prices. Year-to-date capex totaled $3.3 million at the end of the quarter, down from $5.6 million in the same period of 2023.
For the year, management expects 7-7.5 million tons of mill processing sourced from Avino Mines and stockpiles from La Preciosa. Production is anticipated at 2.5-2.8 million silver equivalent ounces.
Analysts Are Bullish on ASM
Although coverage is light, the two analysts tracking ASM are optimistic about the mining stock, with a unanimous “Strong Buy” rating and a mean price target of $1.87, suggesting an upside potential of more than 32% from here.
#2. Vizsla Silver Corp.
Vizsla Silver Corp. (VZLA) is a Canadian advanced-stage exploration, acquisition, and development mineral mine property company. They explore mineral sites for gold, silver, and copper deposits. Formerly known as Vizsla Resources Corp., the company rebranded to Vizsla Silver Corp in 2021, with its headquarters in Vancouver, Canada.
VZLA stock is up 71.6% YTD, and carries a market cap of $527.3 million.
Vizsla is Pre-Revenue
As a pre-revenue company, VZLA is a higher-risk investment. The company is focused on its flagship, 100%-owned Panuco silver-gold project located in Sinaloa, Mexico, and recently completed the acquisition of the La Garra-Metates district in the Panuco-San Dimas corridor.
The company is targeting first silver production in the second half of 2027, and currently has about $107 million in cash to fund operations, which it expects to provide runway through the delivery of a feasibility study in the second half of 2025.
How Do Analysts Rate VZLA Stock?
Analysts are upbeat on the penny stock, with a consensus “Strong Buy” rating among seven analysts in coverage. The mean price target for VZLA is $3.55, suggesting the shares could rally another 66% from here.
