PAAS or HL: Which Silver Mining Stock is the Superior Investment Right Now?

Market Overview: Silver prices have increased by 35% this year, reaching $38.80 per ounce, while gold prices rose by 28.5%, driven by safe-haven demand and geopolitical tensions. The silver market is expected to face a deficit in 2025 for the fifth consecutive year.

Pan American Silver (PAAS): PAAS operates 12 mines across the Americas and has significant mineral reserves. The company reported an 18% revenue increase in Q2 2024, with record cash flow and a 20% dividend hike. A pending acquisition of MAG Silver is anticipated to enhance its production and lower costs.

Hecla Mining (HL): Hecla produces over 45% of U.S. silver and reported record revenues in Q2 2024, with a 300% increase in earnings year-over-year. The company maintains low all-in sustaining costs and is focused on organic growth and exploration projects.

Investment Outlook: Both companies are well-positioned to benefit from rising silver and gold prices, but Hecla Mining currently shows stronger fundamentals and share price performance, making it a more attractive investment option compared to Pan American Silver.