As silver continues to dazzle audiences worldwide with its seemingly tireless ascent, one can scarcely fault a Fool for getting a bit excited about the earnings that silver miners will soon begin to report.
With another 22.5% climb in silver prices recorded during the first quarter of 2011, quality silver miners are poised to enjoy still more of that epic margin expansion that has fueled the sector's truly epic outperformance of the market. Although Silver Wheaton
Fellow growth machine Endeavour Silver
Of course, the widest per-ounce profit margins in the industry will continue to belong to ultralow-cost sensations Hecla Mining
But negative cash costs are certainly not required for a silver mining stock to yield phenomenal investment gains. A well-timed production growth spurt, combined with exciting potential for continued exploration success, is capable of propelling a silver stock with even greater force. In the case of my favorite silver miner -- Great Panther Silver
With silver prices now spending a significant portion of the second quarter above $40 per ounce -- and a number of factors suggesting continued strength on the horizon -- the difference of a couple of bucks between miners' operating cost structures seems scarcely perceptible. Fools with exposure to silver miners are bound to enjoy another spectacular set of earnings results for the first quarter of 2011, and it would require a massive reversal to prevent the second quarter from looking better still.
If the never-boring silver mining industry piques your Foolish curiosity, be sure to add these stocks to your free, personalized watchlist and follow all the precious news to come.
Fool contributor Christopher Barker can be found blogging actively and acting Foolishly within the CAPS community under the username TMFSinchiruna. He tweets. He owns shares of Endeavour Silver, Great Panther Silver, Hecla Mining, Pan American Silver, Silvercorp Metals, and Silver Wheaton. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.