Silver Mountain & Excellon Resources: A Beautiful Silver Setup For 2026
Two Peruvian Silver Miners Set To Begin Production In 2026 & Trading At Dirt Cheap Valuations
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Summary
Silver Mountain & Excellon Resouces are two junior silver miners that are planning to bring assets online in 2026.
They both have infrastructure in place, production that won’t require a ton of CAPEX, and all in sustaining costs that are expected to be fairly low.
Depending on what happens with silver prices, I think both companies could earn their entire current market cap within a couple years of bringing production online. This doesn’t even take their other assets or exploration upside into account.
For anyone looking at a basket of silver miners, I think both companies are worth a closer look. I’m partial to Silver Mountain for a couple reasons, but Excellon’s Tres Cerros project offers interesting exploration upside.
Silver is now bouncing around in the low-60s, and it seems like the next stop for the gold/silver ratio might be 60. SIL 0.00%↑ and SILJ 0.00%↑ look like they are set up to run to new highs, but we will see if investors start to put serious money to work in the miners. They definitely aren’t pricing in silver at $60/oz (or higher) or 2026 right now. To be fair, you won’t see me cheerleading the silver price every time we hit a new high, or calling for a massive parabolic move from here, but I think that the move in silver has legs if you have some patience. We might be due for a cooldown after a 20% move in the last three weeks, but I still think the silver miners are a pond worth fishing in at current valuations.
Some of the silver stackers have been talking about silver manipulation for years, but it is interesting to think about if we are about to see the physical market for silver assert dominance over the paper markets. The quote below from a recent video by Chris Martenson stood out. They talked about what your silver would be worth if you bought the open and sold the close, versus what your silver would be worth if you only held it during overnight hours. It’s not something you would see if there wasn’t a thumb on the scale.
If you wanted to buy silver, and if you just owned it during New York hours, from 8:00AM until 4:00PM, starting in 1970, your silver is only worth 15 cents an ounce. If you held it during overnight hours, your silver is now worth 331 dollars per ounce.
Two Peas In A Pod
I wrote about Andean Precious Metals last week, which is still probably my favorite risk/reward for anyone looking at silver miners, primarily because it’s lower risk in my opinion. The two companies I’ll be focusing on today are Silver Mountain Resources (AGMR.V or AGMRF) and Excellon Resources (EXN.V or EXNRF). There are a lot of similarities between the two companies, and I think both are worth owning, but I’m partial to Silver Mountain for a couple reasons that I will get into. I think shares of both companies could rerate materially if they can bring production online in 2026 as expected. The list of similarities is fairly long: