Six High-Conviction Gold-Silver Miner 10-Baggers

Posted 5/5/2025

Summary

• The HUI index needs to stay above 400 and silver above $35 for a bull market in gold/silver miners to begin.

• Coeur Mining, Hecla Silver, and Avino Silver have high upside potential, especially with significant increases in silver prices.

• West Red Lake Gold, NexGold Mining, and Revival Gold offer substantial growth potential with promising projects and strong insider support.

• Investing in these stocks hinges on the expectation of higher gold and silver prices, with potential for multiple bagger returns.

Introduction

The HUI reached 400 in April. It had been stuck in a 10-plus-year channel, with an upper band at 365. I thought if it got above 370 for two weeks, we would begin a bull market in gold/silver miners. However, it looks like we will get one more trip back into that channel.

The reason the gold/silver miners didn’t blast off once out of that channel is because silver has not broken out. Silver needs to get above $35 for the bull market in the miners (HUI) to begin. Notice (silver chart below) that once above $35, there isn’t very much overhead resistance. Once above $35 and silver is likely to trend to an ATH at $49 within 3-6 months.

It is my opinion (best guess!) that the next time the HUI gets above 400, it will be off to the races. Moreover, once the HUI gets back above 400, I expect silver to join the party and break out above $35.

So, we are likely weeks or months away from a breakout in the gold/silver miners. For this reason, I thought I would share my thoughts on some of my highest conviction stocks. I’ll give you three silver miners and three gold miners.

All of these stocks have 10-bagger upside potential (at $4,000 gold and $100 silver), but once they double in value, that upside drops to a 5-bagger.

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Disclaimer: Only invest what you can afford to lose. Gold/silver mining stocks are speculative investments with high volatility and very high risk. For this reason, keep your allocations low for individual stocks.

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Coeur Mining

Coeur is a stock that repeatedly disappoints (a perennial poor performer) and a stock that most gold/silver investors avoid.

I can understand why it is so loathed. It was valued at $34 in 2011 and at $15 in 2016, but today it is at $5. It’s been a dog. Plus, it has an ugly balance sheet with $590 in debt and only $55 million in cash.

Now, let’s look at the positives. They should produce 400K oz of AU and 18M oz of AG in 2025. Their current FCF run-rate is $600M a year. Plus, they are highly leveraged for higher gold/silver prices.

I have Coeur ranked #1 for silver producers. Why? Because they are one of the few go-to silver names for Wall St. My take is they will be bought like candy once silver breaks out. You don’t buy Coeur for $32 or $35 silver. You buy it if you expect to see $50+ silver. In fact, it prints as a 12-bagger at $100 silver and $4,000 gold.

If you can’t get excited about Coeur, then you are not a very good silver mining stock investor.

Hecla Silver

Hecla’s share price just got butchered when they released a weak Q1 financial report. Investors did not like their increased costs, low FCF, and terrible balance sheet ($568M in debt and only $23M in cash).

If investors don’t like Coeur, then they probably hate Hecla even more. Silver prices have struggled since 2012. For this reason, Hecla has struggled. It’s difficult for investors to get excited about a company with a weak balance sheet and poor earnings at $32 silver (the average silver price in Q1).

Hecla should produce 16M oz of AG and $125K oz of AU in 2025. Costs will be ugly, but they are highly leveraged for higher gold/silver prices. In fact, they get healthy at $35 silver. Like Coeur, you don’t own Hecla for $32 or $35 silver, you are holding it for much higher silver prices. If we reach $100 silver and $4,000 gold, it has 10-bagger upside potential.

Their current run-rate is at $140M FCF in 2025. In Q1, they had $29M in net income. Most of their debt ($475M) isn’t due until 2028. Are they generating enough cash to avoid share dilution? Maybe not, but this is a stock you have to hold if you believe in higher silver prices. No company has a stronger niche than Hecla, which only mines in North America.

It comes down to this fact: when silver prices break out, the #1 go-to silver name will be Hecla. Why? The location of its mines.

Avino Silver

Coeur and Hecla are both foolish for not buying Avino when it recently had a mkt cap under $100M. Now, one of them will probably buy it when it is valued at $400M. It’s currently at $333M. When the share price was at 40 cents, I said it had 50-bagger upside and was the cheapest producer. It’s now at $2.19 and still the cheapest silver producer.

Why the huge upside potential? They have 335M oz’s of AGEQ and an easy path to turn those oz’s into production using a low capex. They will spend $10M in 2025 to add 1M oz’s of production at La Preciosa. In 2026 and 2027, they will do it again. Easy peasy. It’s all organic growth.

Here is the future math:

20266M oz x ($80 - $35) = $270M FCF x 15 = $4B

20278M oz x ($100 - $40) = 480M FCF x 15 = $7.2B

Avino will become a 7M or 8M oz producer in 2027 or 2028 (with steady production growth the next 4 years). However, retail owns 80%, and insiders own less than 10%. That means it is sitting duck for a hostile takeover. Any quality producer who offers them a 30% premium will be accepted by investors, who won’t refuse a fast 30% gain. The only thing that prevents those types of takeovers is strong insiders, which they don’t have.

If Avino is likely to be acquired, then why own it? The buyer is likely to be a 5+ bagger, and you might already own it. Plus, perhaps they find a white knight, such as Eric Sprott, or do a merger of equals with a company with strong insiders.

West Red Lake Gold (WRLG)

Investors are leery of WRLG because their Madsen mine failed previously, shortly after Pure Gold put it into production. I’m not worried. WRLG understands the deposit better, drilling 7-meter spacing to get a better understanding of the deposit. Plus, gold prices are over $3,000, giving them room for error.

We won’t know their margins until they begin production, but the head grade should be around 6 gpt. The deposit is 2.2M oz’s at 6.5 gpt. It’s 1,100 tpd mill. So, at 6 gpt, that is 75,000 oz’s a year.

Madsen is a large property (20,000 acres) with a lot of drill targets. I expect the deposit to double in size. Plus, it is open at depth, adding more oz’s.

They also have their nearby Rowan property, which is already 300K oz at 12 gpt. That should add 50K oz’s of production in 2026 or 2027. Here is my math after they add Rowan:

130K oz x ($4,000 - $2200) = $234M FCF x 15 = $3.5B

Plus, I expect them to grow production beyond 130K oz.

Plus, they have strong insiders with the goal of building a large company. I think they will get to 300K oz of annual production. You do the math.

What makes this stock so intriguing is the location. You can’t find a better place to mine in the world (other than Western Australia). They will get valued at a premium. I have them valued as a 12-bagger as a 125K oz producer.

NexGold Mining

They have two solid projects in Canada. Goliath (in Ontario) is 3.5M oz and growing in size. The capex is $250M to produce 125K oz a year. Permits are due in 2025, with possible construction in 2026. The AISC is only around $1,100 a year.

Goldboro (Nova Scotia) is 2.5M oz. The capex is $200M to produce 100K oz a year, with an AISC under $1,000. Permits are due in 2025, and construction is possible in 2026.

In 2025, they will pick which project to build first in 2026. Once the first is built, they will build the second. They have 40% insiders, and won’t sell to the sharks. They know that it’s insane that their FD mkt cap is only $115M.

I have them valued as a 20-bagger after both projects are built. Here is the future math:

250K oz x ($4,000 - $1700) = $575M FCF x 4 = $2.3B

Note: I only used a 4 multiple because of share dilution to finance the capex.

Revival Gold

They have three mines to build, all of which are in the USA (Idaho and Utah). Mercur will go first. It is 1.4M oz and will start at 95K oz a year with an AISC at $1,363. The capex is $208M and the project is being advanced, with possible construction start at the end of 2027.

Beartrack-Arnett is their founding asset. It is 4.6M oz. They will build the open pit heap leach phase first, which is 900K oz at .7 gpt. The first phase capex is only $109M. Once it is built, they will focus on the potential second phase underground mine. When all three potential production opportunities are completed, Revival Gold expects to be producing more than 250K oz year.

What I like about Revival is their exploration potential. Beartrack-Arnett has a long strike (3 miles) that hasn’t been tested yet. Mercur is also a very big gold system with significant exploration potential.

This could be a 300K+ producer. Insiders and advisors own 15%, and the CEO is motivated to build a large company. I have them valued as a 25-bagger after they build out all three potential production opportunities (at $4,000 gold).

Here is the future math:

250K oz x ($4,000 - $2,200) = 450M FCF x 4 = $1.8B

Note: I used a 4 FCF multiple because of share dilution to pay for the capex.

Their current $64M FD mkt cap is ridiculously cheap.