What happened

It's not only gold bugs who are interested in adding some sparkle to their portfolios this week. Silver aficionados are also scooping up precious metals stocks. With companies reporting quarterly metals-production updates and the rising prices of gold and silver, there's considerable investor interest in adding some luster to their holdings.

As of 2:32 p.m. ET, shares of New Gold (NGD 2.56%) are up 19.2%, while Fortuna Silver Mines (FSM 4.44%) and Coeur Mining (CDE 3.06%) have climbed 15.3% and 17.7%, respectively, since the end of trading last Friday, according to data provided by S&P Global Market Intelligence.

So what

Growing gold production 46% in the second quarter of 2023 from that which it reported during the same period last year, New Gold provided investors with a glittering peek at its Q2 2023 performance. The company has two operating assets in its portfolio, Rainy River and New Afton, both of which reported higher gold production on a year-over-year basis. But wait, there's more. The company also reported 12 million pounds of copper production at New Afton, representing a sharp year-over-year increase of 62%.

Based on the company's strong performance in the first half of the year, management reaffirmed its 2023 mineral-production outlook: 365,000 gold equivalent ounces to 425,000 gold equivalent ounces.

Like New Gold, Fortuna Silver Mines also gave the market something to cheer about regarding its recent performance. Focused on more than simply silver, Fortuna reported Q2 2023 gold production of 64,348 ounces, a 4% year-over-year increase. In addition, the company grew lead production and zinc production in Q2 2023 by 34% and 29%, respectively.

Looking ahead, management maintained its 2023 mineral-production outlook of 412,000 gold equivalent ounces to 463,000 gold equivalent ounces. If the company achieves the midpoint of this guidance, it will represent an approximate 9% increase over the 401,878 gold equivalent ounces that the company produced in 2022.

While Coeur Mining, unlike its precious metals peers, didn't provide updates to its quarterly mineral production, investors are clicking the buy button this week for another reason: rising silver and gold prices -- an unsurprising event considering the high correlation between the market prices of silver and gold and the companies that produce them. Last Friday, silver finished the day at $22.72 per ounce, but its price tag has been trending higher this week, and it's now priced at $25.09 per ounce. Similarly, gold, now trading at $1,957.70 per ounce, had ended last week at $1,922.30 per ounce.

In 2022, gold and silver accounted for 73% and 27%, respectively, of Coeur Mining's consolidated revenue.

Now what

Undeniably, strong mineral production for New Gold and Fortuna is a positive sign. But that only paints an incomplete picture of the performances of these companies in the quarter. What costs the companies incurred to increase their metals production is also critically important to know. Therefore, those interested in adding these precious metals stocks to their portfolios shouldn't focus singularly on mineral production numbers but the costs of production as well. Imnvestors should check in with the companies when they report Q2 2023 financial results in the coming weeks.