Silver Producers' Find Production Growth and Financings as Silver Price Surges 249% Year-Over-Year

• Silver prices have surged 249% over the past year and 47% year-to-date, leading silver producers achieved record operational performance in 2025, with year-over-year production increases exceeding 50% at major operations.
• Development-stage projects have published feasibility studies demonstrating industry-leading economics including after-tax net present values exceeding US$1 billion, and payback periods at conservative commodity price assumptions well below current market levels.
• The silver mining sector secured substantial financing throughout 2025, with companies raising millions through equity offerings and project finance facilities, achieving institutional ownership levels exceeding 60% while fully funding construction decisions and eliminating near-term dilution pressure.
• Aggressive 2026 exploration programmes of planned drilling across multiple jurisdictions target resource expansion at high-grade discoveries, systematic testing of newly consolidated property positions, and conversion of inferred mineralisation into mine plans.

Silver's dramatic ascent has captured global investment attention, with the metal surging to multi-year highs amid converging supply constraints, industrial demand acceleration, and strategic resource designation by China. As prices approached $90 per ounce (they surpassed $115 in early February 2026 but have since come off andd are back now around $83) - representing a 249% increase over the past year and 47% year-to-date - mining companies advancing toward production or expanding existing operations are attracting significant institutional scrutiny. The confluence of favourable pricing, technical de-risking across multiple projects, and record operational performance creates a compelling entry point for investors seeking exposure to silver's structural transformation from primarily monetary metal to critical industrial commodity.

China's Strategic Resource Designation and Supply Constraints

China's designation of silver as a strategic resource and subsequent export restrictions have fundamentally altered global supply dynamics. With only 44 companies globally qualifying for export licences, trade flows have been disrupted at a time when industrial demand continues accelerating. Solar panel manufacturing, electric vehicle component production, and electronics applications provide structural support for silver consumption beyond traditional monetary demand.

Guy Goulet, CEO of Cerro de Pasco Resources, frames the opportunity:

"The market conditions present a unique opportunity for companies like ours to deliver near-term production from above-ground resources, while meeting growing industrial demand sustainably."

This regulatory shift affects pricing for producers outside Chinese jurisdiction, particularly those in established mining regions like Mexico, Peru, and the United States. Industrial applications are expanding rather than contracting, and supply chain diversification efforts by Western governments suggest sustained policy support for domestic production.

Fully Financed Developments with Industry-Leading Economics

Vizsla Silver (TSX:VZLA) delivered transformative progress throughout 2025, advancing its Panuco silver-gold property in Sinaloa, Mexico from study-driven validation to construction readiness. The company published a feasibility study in November outlining exceptional project economics that stand among the sector's strongest.

Michael Konnert, President and CEO, described the achievement:

"The project's updated mineral resource estimate set the stage for an industry leading Feasibility Study published in November, outlining over 20 million ounces of annual silver equivalent production over the first five years and 17.4 million ounces annually over the initial 9.4-year mine life and after-tax NPV (5%) of US$1.8 billion..."

The seven-month payback period and financing position provides complete construction funding without near-term dilution pressure. Konnert emphasised this advantage:

"With a current cash position of over US$450M, the project is now fully financed, and we are ready to build and ready to grow following receipt of our MIA permit expected sometime mid-year."

The company secured this position through US$160 million in equity financing in 2025 followed by a US$300 million project financing facility structured as a five-year, cash-settled capped call convertible notes issuance. This represented the largest financing of this structure completed by a Canadian silver-focused development company.

Silver Operational Excellence and Strategic Acquisition

Americas Gold & Silver (TSX:USA) delivered exceptional operational results in 2025, producing 2.65 million ounces of silver—the highest production level in 20 years. Oliver Turner, Executive Vice President of Corporate Development, quantified the achievement:

"We are up 52% year-over-year in production from 2024. You're going to see continued growth in the years ahead, but just a great first year out of the gate here."

The production gains reflected both operational improvements at the Galena mine in Idaho and record performance at the Cosala operation in Mexico. Then in December 2025, Americas Gold & Silver closed the acquisition of the Crescent Silver Mine for over US$130 million, representing a transformative addition located just nine miles from Galena. Crescent contains a resource exceeding 20 million ounces at over 600 grams per tonne silver—double Galena's current mining grade.

The company plans an exploration programme in 2026, deploying 15-20 drills across its asset base - more aggressive than at any point in company history. At approximately 87% of revenues from silver in 2025, Americas Gold & Silver provides one of the highest exposures to silver among investable mining companies, with strategic antimony exposure requiring zero incremental mining cost.

Interview with Oliver Turner, VP, Corporate Development of Americas Gold & Silver

Santacruz Silver (TSXV:SCZ) reported Q4 2025 production of 3,739,019 silver equivalent ounces comprised of 1,343,607 ounces of silver, 23,846 tonnes of zinc, 3,000 tonnes of lead, and 287 tonnes of copper across its Bolívar, Porco, Caballo Blanco, San Lucas operations in Bolivia and Zimapán mine in Mexico. The company achieved a 34% increase in silver equivalent production at Bolívar compared to Q3 2025.

Executive Chairman and CEO Arturo Préstamo commented:

"During Q4 2025, Santacruz delivered a solid quarter-over-quarter improvement in consolidated production, led by a meaningful recovery at the Bolívar mine, and supported by strong performance at Caballo Blanco, Zimapán, and San Lucas, reflecting the strength and diversification of our multi-asset operating portfolio."

Outcrop Silver (TSX:OCG) reported high-grade results from its Aguilar vein resource definition programme at the Santa Ana project in Colombia. Three drill holes returned grades above 270 g/t silver equivalent.

The company has completed 11,832 metres of drilling in the Aguilar corridor since July 2024, with 7,225 metres completed since August 2025. Three mineralised shoots have been identified with sub-vertical continuity of 300 metres from surface. Vice President of Exploration Guillermo Hernandez stated:

"The systematic delineation drilling is delivering key geological insights to constrain and expand our model as we work toward our updated mineral resource in Q1 2026."

Tailings Reprocessing and Environmental Remediation

Cerro de Pasco Resources (TSXV:CDPR) completed integrated Phase 1 technical programmes in 2025, including mineralogy, metallurgy, and environmental baseline studies, establishing technical readiness for its Quiulacocha tailings reprocessing project in Peru.

CEO Guy Goulet notes, "Our strategic focus is to reprocess and remediate historic mining waste, unlocking value while advancing environmental remediation and sustainable development."

In December 2025, the company completed Phase 1 bulk sampling at the Quiulacocha tailings facility, collecting approximately 12.3 tonnes of raw bulk material for laboratory chemical analysis and metallurgical testing. Tailings reprocessing projects typically feature shorter development timelines than traditional mining operations, with the environmental remediation component potentially attracting impact investors and qualifying for financing terms or government support programmes.

Exploration Upside in Proven Mexican District

Vizsla Silver's most notable 2025 discovery occurred at the Animas target in the central portion of the district, where drilling intercepted 897 g/t silver equivalent over 5.8 metres. A planned 10,000-tonne bulk sample will support a fifth phase of metallurgical test work to optimise silver and gold recovery, reagent usage, and further rheological testing for tailings and paste backfill systems. This technical validation reduces execution risk as the company transitions toward construction following permit receipt expected mid-2026.

Similarly, Capitan Silver (TSXV:CAPT) executed several strategic initiatives in 2025 that fundamentally altered Cruz de Plata's scale and potential. CEO Alberto Orozco outlined the transformation as the company fully consolidated the property through two acquisitions totaling US$5 million, eliminating a significant royalty burden, and expanded drilling.

Capitan Silver also updated mineral resources on the Capitan Hill gold deposit, increasing resources by 115% to 525,000 ounces of gold in pit-constrained measurements. This provides strategic optionality as a potential heap leach starter project. Capitan Silver announced a 60,000-metre drill programme for 2026, a substantial increase from the 15,000-metre programme just completed.

Orozco stated the company's development strategy,

"We're developing this for the long haul. We see a very big system here and we're very excited about it. We don't want to sell it early. The potential is for the long term."

The team intends to build and operate Cruz de Plata rather than pursue early monetisation, leveraging collective experience developing and operating mines in Mexico. The recent US$29 million raise completed between December and early January provides substantial runway for the expanded 2026 programme with no near-term dilution pressure.

Interview with Alberto Orozco, CEO of Capitan Silver

The Investment Thesis for Silver

• Structural Supply Constraints Meet Accelerating Industrial Demand: China's strategic resource designation restricting silver exports to just 44 licensed companies globally has fundamentally disrupted supply chains at precisely the moment when industrial consumption from solar manufacturing, electric vehicle components, and electronics applications is expanding. This creates sustained pricing support above historical norms while improving project economics across both producing operations and development-stage assets positioned in established mining jurisdictions outside Chinese regulatory control.
• Record Production Growth Demonstrates Operational Capability: Year-over-year production increases exceeding 50% at major silver operations validate management teams' ability to identify operational bottlenecks, implement modern mining methods, and deliver on commitments, with strategic acquisitions of high-grade deposits located proximal to existing infrastructure enabling low-capital integration and continued production trajectory expansion.
• Industry-Leading Development Economics Provide Leverage to Current Pricing: Feasibility studies projecting after-tax net present values above US$1.8 billion, internal rates of return exceeding 111%, and payback periods under seven months at conservative commodity assumptions of US$35.50 per ounce silver offer exceptional leverage to current market pricing near $90 per ounce, particularly for fully-funded projects approaching construction decisions.
• System-Scale Exploration Discoveries Expand Resource Potential: Property consolidation efforts expanding vein targets from 7 to 20 kilometres demonstrate complete mineral systems comparable to major producing mines, while high-grade drill intercepts exceeding 800-900 grams per tonne silver equivalent—often double current mining grades—reveal potential for multi-million ounce resource additions through systematic exploration programmes.
• Critical Mineral Dual Exposure Adds Strategic Value: Operations producing silver as primary revenue driver while generating antimony, copper, lead, and gold as byproducts requiring zero incremental mining cost capture both precious metals momentum and critical mineral supply chain priorities, with US government engagement opportunities emerging as domestic production becomes strategic policy objective.
• Strengthened Capital Structures Enable Systematic Project Advancement: Institutional ownership exceeding 60% at multiple companies provides both credibility and trading liquidity, while robust financing positions totalling over US$600 million raised in 2025 eliminate near-term dilution pressure and fully fund aggressive 135,000+ metre exploration programmes alongside construction decisions and development activities.
• Proven Jurisdictional Quality Reduces Execution Risk: Concentration of projects in established US, Mexican, and Peruvian mining districts offers existing infrastructure access, experienced labour pools, established regulatory frameworks, and management teams with demonstrated track records developing and operating mines in respective regions, contrasting favourably with frontier jurisdictions requiring greenfield infrastructure development.

TL;DR

Silver's 249% price surge driven by China's export restrictions and accelerating industrial demand has coincided with record operational performance, strategic acquisitions, and industry-leading feasibility studies across the producing and development-stage sector. Leading companies achieved 52% year-over-year production growth while securing over US$600 million in financing, fully funding construction decisions and aggressive exploration programmes targeting high-grade discoveries exceeding 800-900 grams per tonne. Development projects demonstrate exceptional economics providing substantial leverage to current ~$90 pricing—while institutional ownership exceeding 60% validates investment thesis combining precious metals exposure with strategic antimony byproduct revenues in proven US, Mexican, and Peruvian mining jurisdictions.

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