We recently compiled a list of the 10 Best Mining Penny Stocks to Buy Now. In this article, we are going to take a look at where Endeavour Silver Corp. (NYSE:EXK) stands against the other mining penny stocks.

The global demand for essential metals and materials has been on the rise, helping the mining industry expand. The global mineral market is forecasted to grow at a compound annual growth rate (CAGR) of 6.2%, as per The Business Research Company. The market is forecasted to grow to $3 trillion by 2029, driven by infrastructure upgradation, foreign direct investment (FDI), and automation. Capital inflows to mining projects are potentially growing due to government incentives and technological advancements.

As the metals and mining industry mitigates earnings pressure, it remains financially stable due to flexible shareholder returns and lower debt levels. On one end, due to increasing costs, gold has crossed the $2,000 per ounce mark, and metallurgical coal has surpassed $200 per ton, according to a report by S&P Global. Moreover, as North American producers of steel look to rationalize capacity, Chinese exports have seen an increase regardless of decreasing output.

On the other hand, lithium miners are facing price headwinds, whereas aluminum demand remains stable due to the demand from the transportation and packaging industries. Although M&A remained controlled within the industry, steelmakers were able to continue acquisitions, while miners, on the other hand, are putting efforts toward efficiency and cost-cutting, as technology and capital requirements shape profitability.

Key metals have seen strong price movements in 2025, which reflect the sector’s bullish outlook. Accordingly, gold and silver demand has risen as safe-haven assets due to economic uncertainty. Gold futures have seen a 38.63% increase, year-on-year, as of writing this article, while silver futures recorded an increase of 37.63%. Furthermore, Gold ETFs have seen a record gain of 26% in 2024 since 2010. Due to inflationary pressures and global trade tensions, as well as President Donald Trump’s tariffs, this pattern is expected to continue, fueling investor demand for metals.

On the other hand, industrial metals are also witnessing a growing demand. Lithium demand is expected to reach $9.01 billion by 2025, up from $7.75 billion in 2024, largely due to its use in battery production. As reported in one of the previous Insider Monkey articles, 80% of mined lithium goes toward the production of batteries, which is expected to grow to 95% by 2030. Furthermore, copper demand remains stable, with the market valued at $176.88 billion in 2024, bolstered by China and India’s infrastructure projects. Similarly, according to Zinc.org, Zinc demand is also rising in the renewable energy sector, with consumption of 568,000 tons expected by the solar industry by 2030.

Thus, the mining industry is revolutionizing due to technological advancements, bolstering efficiency and lowering costs. Mine development time has been brought down to nine years from 16, driven by AI and advanced analytics. Likewise, the time to perform geophysical data analysis has been reduced to mere weeks from two years. Furthermore, according to KPMG Mining Outlook 2024, core sample evaluations now take 12 minutes, compared to 45 days previously. Moreover, innovations have helped enhance sustainability for metal recycling. Accordingly, new methods now achieve a 95% recovery rate from steel mill waste, transforming waste into reusable materials used in construction and manufacturing.

However, the industry faces challenges in terms of geopolitical instabilities and changing trade policies. The U.S.-China tariff dispute, including potential policies against American goods, can potentially disrupt the global supply chains, especially those of critical minerals. Moreover, market volatility is still a risk as China holds around 90% of global rare earth refining capacity.

Nevertheless, the mining industry looks toward long-term growth, driven by strong demand for major metals, infrastructure development, and cost-cutting through automation.

Methodology

To curate our list of the 10 Best Mining Penny Stocks to Buy Now, we looked into ETFs, and a stock screener to come up with several top mining stocks trading below $5, as of the time of writing this article. Out of this list, 10 stocks were shortlisted based on their popularity among top hedge funds and positive outlook from analysts. Accordingly, the stocks are ranked in ascending order based on the number of hedge funds holding stakes in the respective stocks, as of Q4 2024. The data for hedge funds was extracted from Insider Monkey’s database, which tracks over 1000 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A bird's eye view of a team in protective gear operating heavy machinery in a silver extraction site.

Endeavour Silver Corp. (NYSE:EXK) 

Number of Hedge Fund Holders: 19

Share Price as of the close of March 7: $3.98

Endeavour Silver Corp. (NYSE:EXK) is a producer of mid-tier precious metals with a focus on silver and gold mining. With its key assets in Mexico, the company is advancing its flagship Terronera project in Jalisco and operates the Guanaceví and Bolañitos mines.

Backed by higher metal prices, the company recorded $53 million in revenue for Q3 ended September 30, 2024, which is an 8% year-on-year increase. Unfortunately, due to operational hurdles and rising costs, the company faced a net loss of $17 million. Marking a turnaround from the $8.3 million adjusted loss in Q3 2023, the adjusted income was reported to be $1.6 million.

Moreover, Endeavour Silver Corp. (NYSE:EXK) boosted its balance sheet to fund the Pitarrilla project in Durango and aid general operations by completing a $72.8 million bought deal offering in November 2024. In addition to that, exploration success at Bolañitos has secured high-grade silver-gold mineralization at the La Luz vein, extending mine life.

Moving forward, commissioning the Terronera project, which reached 89.4% completion as of December 31, 2024, is the company's primary focus. Full commissioning is expected in early Q2 2025, followed by delays in structural steel delivery, as surface construction is almost complete. After a ball mill failure that impacted Q4 output in Guanaceví, operations are predicted to return to their maximum capacity in the upcoming weeks.

Furthermore, with Endeavour Silver Corp. (NYSE:EXK) retaining a cash position of $55 million and working capital of $29 million, silver equivalent production attained 1.6 million ounces in Q3. Over the past year, as of writing this article, EXK’s 123.95% stock appreciation was primarily driven by its business growth and ongoing development progress. Looking ahead, analysts project an average price target of $6.75, depicting a 79.28% upside from current levels.

Thus, Endeavour Silver Corp. (NYSE:EXK) remains one of the best penny stocks to buy now for investors seeking silver exposure, due to the company’s growing silver reserves, improving financial health, and expansion projects.

Overall EXK ranks 4th on our list of the best mining penny stocks to buy now. While we acknowledge the potential of EXK as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EXK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.