Top 10 Silver Mining Companies By Output
There are different ways to define the largest silver mining companies in the world. This can be done through stock market capitalization or future production calculations. However, I choose to define the world’s top 10 silver mining companies on the silver they produced in the recent past.
After all, there’s no second-guessing actual results, no matter how good a detailed feasibility study looks on paper.
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Silver investors will recognize the names of many of these silver-producing companies. The big names generally also mine other precious metals besides silver and frequently produce significant amounts of base metal byproducts. These companies have deep pockets and the best geologists and technical crews in the world.
Some of the company’s mines are located in very inhospitable conditions, such as at high altitudes or thousands of feet underground. These mines are true modern-day engineering marvels.
Even when the big players don’t stake great new finds themselves, they often ultimately walk away with prime properties. Large mining companies often have access to credit that smaller mining companies do not, forcing small companies to sell off or royalty properties they would otherwise retain.
Large silver-producing companies frequently have the cash flow necessary to take on and service new debt, bringing burgeoning mines to life. As the famous saying goes, “the rich get richer.” This is definitely true in the mining industry.
Many of the top 10 silver mining companies are also located in the big three silver mining regions: Mexico, Peru, and China. Altogether, these countries produced 434.5-million ounces of silver in 2015, accounting for a whopping 49% of world production. Mexico was head-and-shoulders above the rest, accounting for 189.5 million ounces of silver while Peru was second, with 135.9 million ounces produced. China was the only other nation that was producing in double-digits, at 109.1 million ounces. (Source: “Top 20 Silver Producing Companies,” The Silver Institute, last accessed February 21, 2017.)
So without further ado, we take a look at the largest silver mining stocks in the world. Figures are based on latest available numbers (2015) from The Silver Institute, in millions of ounces.
Top 10 Silver Mining Companies (Producers, 2015)
| Company | 2015 Silver Output (oz) |
| Fresnillo plc | 43,000,000 |
| KGHM Polska Miedź S.A. Group | 41,600,000 |
| Goldcorp Inc. | 40,400,000 |
| Glencore Plc. | 36,600,000 |
| Polymetal International PLC | 32,100,000 |
| Pan American Silver Corp. | 26,100,000 |
| Volcan Cia Minera SAA | 24,800,000 |
| Compania de Minas Buenaventura SAA | 22,300,000 |
| Corporación Nacional del Cobre de Chile | 21,300,000 |
| Tahoe Resources Inc | 20,400,000 |
(Source: The Silver Institute, op cit.)
10. Tahoe Resources Inc (NYSE:TAHO)
Tahoe Resources Inc (NYSE:TAHO) is an intermediate metals producer with operating gold and silver mines in Guatemala and Canada. Its flagship Escobal silver mine in Guatemala is one of the main reasons that Tahoe makes this list. In 2015, it produced a record 20.4-million ounces of silver concentrate, accounting for all of the company’s silver production.
The company doesn’t appear to have any new sources of silver forthcoming, so it may encounter a short stay on my top 10 list.
Fortunately, Tahoe Resources has diversified revenue streams outside of silver. The company’s Timmins West Gold Mine in northern Ontario, Canada produced 139,000 ounces of gold from 1,011,000 tonnes of processed ore in 2015, and current guidance calls for between 375,000-425,000 gold ounces to be produced for 2017. (Source: “Tahoe Resources Achieves Record Silver And Gold Production in 2016, Announces Financial And Operating Guidance,” CNW, January 5, 2017.)
Tahoe Resources’ silver output increased from 20.3-million oz. in 2014 to 20.4-million oz. in 2015. This represents an increase of 0.49%.
9. Corporación Nacional del Cobre de Chile (CODELCO)
Corporación Nacional del Cobre de Chile (also known as CODELCO) is a state-owned Chilean diversified metals producer. The company’s primary targets are the base metals copper, molybedium, and rhenium. In fact, it is among the biggest molybdenum and rhenium producers in the world.
It is through the electrorefining of its target base metals that a process called electrowinning leads to the recovery of silver and gold byproducts. This is achieved by passing a current through an electrically charged solution. Electrons from the current change then reduce the gold and silver ions to form a metal commixture on a cathode. It is through this process that CODELCO accounts for the ninth-most silver production in the world.
CODELCO’s silver output increased from 20.4-million oz. in 2014 to 21.3-million oz. in 2015. This represents an increase of 4.41%.
8. Compania de Minas Buenaventura SAA (ADR) (NYSE:BVN)
This Peru-based mining giant, Compania de Minas Buenaventura SAA (ADR) (NYSE:BVN), is a gold and silver producer with several projects in Peru. This company is actually the largest publicly traded precious metals and mineral rights holder in Peru and has been a mainstay on Lima’s stock exchange since 1971. The company received its American stock listing just over 20 years ago, in 1996.
The company also produces lower quantities of copper and zinc byproducts, but they are not significant to the company’s bottom line.
Compania de Minas Buenaventura’s silver output increased from 19.7-million oz. in 2014 to 22.3-million oz. in 2015. This represents an increase of 13.2%. Updated guidance suggests between 27–30-million ounces of silver could be mined in 2017, so the company is currently ramping up silver production.
7. Volcan Cia Minera SAA (XVOLB:SM)
Similar to Buenaventura, Volcan Cia Minera SAA (XVOLB:SM) is a base metal/precious metal producer with significant properties in Peru. Volcan produces lead, copper, silver, gold and zinc, the latter of which seems to generate a bigger proportion of revenues than seen with Bonaventura.
According to its latest press release, the company states, “The production of silver during this period decreased according to what was announced in our Production press release dated 01/20/16.” Suspension of production at the Cerro de Pasco project was cited. (Source: “Volcan announces third quarter 2016 production results,” Volcan Cia Minera SAA, October 20, 2016.)
Volcan’s silver output increased from 22.5-million oz. in 2014 to 24.8-million oz. in 2015. This represents an increase of 10.22%.
6. Pan American Silver Corp. (NASDAQ:PAAS)
For those investing in silver stocks, Pan American Silver Corp. (NASDAQ:PAAS) is one of the North American investors’ top choices. Average traded volume of PAAS currently tops two-million shares traded per day. Pan American Silver is considered a bellwether company within silver mining circles.
Although silver is the company’s main target, it also produces a notable portion of gold and incidental base metals. The company estimates that it will mine between 155,00–165,000 ounces of gold in 2017, although silver production is expected to slip between 24.5–26.0 million ounces (down 6.13%–0.38% from 2015 recorded production). (Source: “Pan American Silver Releases 4th-Quarter, Full Year Numbers,” Yahoo! Finance, February 15, 2017.)
Pan American Silver Corp.’s silver output remained unchanged, at 26.1-million oz. produced in 2015.
5. Polymetal International PLC (LON:POLY)
Polymetal International PLC (LON:POLY) is a leading precious metal producer in central Asia and Russia. It has a steady portfolio of producing mines, along with an aggressive exploration and acquisition mentality, constantly looking to take on the next big project.
According to the latest production figures, gold production outpaced silver production in full-year 2016. The company reported that its gold production increased three percent year-over-year while its silver production actually fell nine percent compared to 2015. The company has not disclosed its silver production guidance for 2017. (Source: “Q4 And Full Year Production Results,” Polymetal International PLC, last accessed February 21, 2017.)
Polymetal International PLC’s silver output increased from 28.7-million oz. in 2014 to 32.1-million oz. in 2015. This represents an increase of 11.85%.
4. Glencore PLC (LON:GLEN)
One of the largest companies in the world (of any type), the current iteration of Glencore PLC (LON:GLEN), resulted from the mega-merger between Glencore and XStrata Ltd (LON:XTA) back in 2013. Glencore isn’t just involved in base/precious metals; it employs over 160,000 workers worldwide in the hydrocarbon and agricultural sectors as well. Total revenues were a mind-blowing $172.7 billion in 2015, which accurately represents how diverse Glencore’s markets really are.
Glencore’s silver output increased from 35.5-million oz. in 2014 to 36.6-million oz. in 2015. This represents an increase of 3.1%.
3. Goldcorp Inc. (NYSE:GG)
Goldcorp Inc. (NYSE:GG) is a primary precious metals producer which generates a significant amount of base metal byproducts. It primarily targets gold, but it also produces meaningful ancillary amounts of silver in the process. And there’s reason to believe that its silver production is about to go higher.
According to the company, the upcoming “Pyrite Leach Project” (PLP) is expected to provide annual incremental production of between 100,000 to 140,000 gold ounces and four-million to six-million silver ounces by 2019. The new mine is currently under production, having achieved 65% engineering progress by the end of 2016. Therefore, Goldcorp could inch closer to becoming the biggest of the top 10 silver mining companies by the end of the decade.
Goldcorp’s silver output increased from 36.8-million oz. in 2014 to 40.4-million oz. in 2015. This represents an increase of 9.78%.
2. KGHM Polska Miedź S.A. (WSE:KGH)
The Polish mining conglomerate KGHM Polska Miedź S.A. (WSE:KGH) is one of the largest silver and copper producers in the world. The company owns interests in many different mining entities and has been a mainstay on the Warsaw stock exchange for 20 years.
KGHM Polska Miedź’s silver output increased from 40.4-million oz. in 2014 to 41.6-million oz. in 2015. This represents an increase of 2.97%.
1. Fresnillo plc (LON:FRES)
Fresnillo plc (LON:FRES) is a Mexican-based precious metal miner listed on the London Stock Exchange. It is the world’s largest silver producer and Mexico’s second-largest gold producer. With $1.44 billion in revenues in 2015, Fresnillo is actually big enough to be included in the FTSE 100 Index. There’s reason to believe that the company will increase its industry-leading silver production position.
According to Fresnillo’s recently-released “Production Report,” the company’s silver production is about to hit a new stratosphere. Its 2017 outlook calls for silver production in the 58-million- to 61-million-ounce range, including four-million ounces from the company’s up-and-coming Silverstream project. (Source: “Production Report for the three months ended 31 December 2016,” Fresnillo plc, January 25, 2017.)
Fresnillo plc’s silver output increased from 40.4-million oz. in 2014 to 43-million oz. in 2015. This represents an increase of 6.44%. As indicated, this is set to increase to much higher levels in 2017.
