Silver miners approach breakout on strong $75/oz margins, Otavio (Tavi) Costa notes

Silver miners approach breakout on strong $75/oz margins, Otavio (Tavi) Costa notes
Silver miners margins near breakout

Otavio (Tavi) Costa, portfolio manager at Crescat Capital, highlights that silver miners are poised for a significant breakout compared to gold miners.

Costa points to the strong profitability in the sector, noting that businesses are selling silver at $75 per ounce while production costs remain between $15 and $20 per ounce. These figures, he indicates, result in some of the strongest margins for silver mining companies.

Costa previously noted a shift in mining stock fundamentals as investors favor companies with strong cash flows, driven by changing metal prices. He has also highlighted gains in precious metals and mining stocks during a broader commodities rally, as oil topped $100. More details are available in Costa’s recent coverage on mining cash flows and the commodities breakout.

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