There’s a new potash player on the scene. (The whole Canadian potash scene is starting to remind me of the old gold rush!)

Raytec Metals Corp. (TSXV: RAY) recently (back on July 15, 2008) received its first exploration permit on its potash claim in Saskatchewan (that’s where most of the world’s potash is), a province in central Canada. According to the Financial Post (Toronto), its shares jumped 21% on the news.

Raytec’s foundation looks good: they’re developing over 300,000 acres of potash claims (that’s a LOT of land!); these claims are directly adjacent to those owned by BHP Billiton (read: if this area was good enough for BHP, it will be good enough for Raytec too). Raytec also mines iron ore in the province of Ontario, Canada. They also have some uranium claims in Northern Saskatchewan and are clearly focused on providing for economic growth in Asia.

Back in July, Raytec said it was about to commence 2D and 3D seismic work on the claim before beginning phase two of their drilling operation. It has since also applied for an additional potash permit (July 17, 2008). Back then, (July 17, 2008), it was trading between 99 cents and $1.15 CAD.

So where is Raytec at today?

Today, it’s trading between $0.68 and $0.73 CAD, so there’s been a big correction. Much cheaper to buy now. And Raytec is still a very young company, having acquired these potash claims not quite so far back as February 2008. They officially became a tier-2 mining company in November, 2007, when they adopted the new Raytec Metals name. Even still, I think they’re worth considering. I might buy some, just to position myself well for any more potash growth. At this price the growth is more compelling. What about you, are you invested in any of these potash explorers? Do you have other thoughts on Raytec? I’d love to hear.

In a previous post I said I’d talk about some of the smaller silver mining companies.  Here they are.  It’s just a quick list to get you started on your own research.  These are some of the companies that interested me.  They’re all silver-focused and interestingly, they’re almost all Canadian-based.  You’ll see that many of these companies also focus their mining in Mexico.

Junior Companies

ECU Silver Mining Inc - (TSX: ECU) - Since 1997, ECU has been working on the Velardena property in Mexico for the last decade, an under-exploited property in central Mexico’s silver belt.  This Canadian company also explores for gold, lead and zinc.

Golden Goliath - (TSX.V: GNG) - Headquartered in Canada (Vancouver) and Mexico, Golden Goliath Resources Ltd. explores and extracts gold and silver from the mountainous region in Northwestern Mexico.  This old mining camp contains mines that produced going all the way back to 1763, during the original Spanish colonial period.  GNG does not pay a dividend, but their share price is super cheap, at $0.24 CAD.

Silver Eagle Mines - (TSX: SEG) - Another Canadian-based company focusing exclusively on silver production.  They have 100% ownership of a property in Zacatecas, Mexico that was also used by the Spanish in the 1500’s.  They also mine two other properties, which lie just north of Sudbury, Ontario (Canada).  SEG does not pay a dividend.  Share price is currently near $0.56 CAD and it has a higher trading volume than GNG.

Silver Fields Resources - (TSX.V: SF) - This company focuses on silver production, also working in the Zacatecas region, but also in British Columbia, Idaho,and Montana - they work on a total of 9 silver properties.  Pays no dividend.  Last traded around $0.10 CAD.

Silvercrest Mines - (TSX.V: SVL) - In addition to Mexico, this Vancouver-based company also produces silver from El Salvador and is looking to expand more into South America in the future.  No dividend; share price was recently at $1.21 CAD.

Sabina Silver - (TSX: SBB) - Headquartered in London, Ontario (Canada) and Thunder Bay, Ontario (Canada), Sabina is one of a few companies exclusively focused on mining in Canada.  They focus on four projects: Hackett River (in the Northwest Territories), Del Norte (BC), Red Lake (Ontario) and Rockstone (Ontario).  To stay up to date, join their email list on their website (not the most user-friendly website (it’s all downloads)).  No dividend; trades infrequently.  Was last at $1.38 CAD.

Sterling Mining - (TSX: SMQ) - This company is over 100 years old and wholly focused on silver production.  Founded in 1903 in Wallace, Idaho — which is where they are still headquartered — Sterling got a breath of fresh air when it acquired the rights to new mines in 2004.  They now mine in Idaho (Silver Valley and Sunshine Mine), Montana (Troy, Rock Creek) and Mexico (also in the Zacatecas district).  Good website, too.  No dividend.  Last traded around $1.00 CAD.

Silvermex Resources Ltd - (TSXV: SMR) - Silvermex is focused solely on silver mining in Mexico, and they have ownership of approximately one ounce per share (29 million ounces and shares).  Headquartered in Vancouver, Canada.  Does not pay a dividend; has extremely low trading volume.  Last traded around $0.72 CAD.

For a longer list of silver producing companies, see the one provided by Junior Miners.

Here’s a quick compilation of some basic starting points for those interested in investing in silver stocks. There are many ways to invest in silver, including ETFs, mutual funds, buying physical bars, etc. This post will just focus on large-cap silver stocks for simplicity. In another post I’ll look at some junior producers.

Penoles - (Mexico) - Since 1887. One of Mexico’s largest exporters. The world’s top producer of refined silver. Owns the world’s largest silver mine, plus Mexico’s largest gold, lead and zinc mines.  Has been listed on the Mexican stock exchange since 1968 as PE&OLES.

Grupo Mexico (GMexico) - (Peru, Mexico) - Since 1978, originally as GIMMEX. Owns largest mining company in Mexico.  Trades OTC as GMBXF.

BHP Billiton - (Australia, UK) - In 2001, Australian resource company BHP Limited bought the UK mining company Billiton plc.  As a result of the acquisition, the company is listed on two exchanges, one in Melbourne (as BHP Billiton Ltd) and one in London (as BHP Billiton plc).  This will explain the difference in the shares’ tickers when you go to buy them.  Other than this, as far as I know there is no difference between the Ltd (NYSE: BHP) and plc (NYSE: BBL) shares.  It’s the same company.  I am not sure why the share prices diverge; it must be related to currency exchange rates.

KGHM Polska Miedz - (Poland) - Founded in 1961. Specializes in copper and silver.  Trades as (OTC : KGHMF) and (OTC : KGHPF)).

Volcan Compania Minera - (Peru) - Founded in 1943. Also mines lead, zinc and copper. Listed on la Bolsa de VALORES Lima (Lima Stock Exchange) and traded also on the Madrid stock exchange.  Their website is primarily in Spanish, with some English.  Traded in the US as (OTC: VCANF).

Rio Tinto - (Australia, UK) - Mines pretty much everything: copper, gypsum, diamonds, gold, coal, nickel, potash, lead, iron ore, bauxite, aluminum, uranium, talc and salt (they are the world’s largest salt exporter!).  As with BHP Billiton, since 1995 Rio has been a “single economic unit” and headquartered in two cities - the same cities: in Melbourne as Rio Tinto Limited, and in London as Rio Tinto plc.  You might want to wait before buying, however.  The ADR share price (which is a purchase of the plc shares) is one of the highest I’ve ever seen, at about $431.00 USD.

Of these companies, only BHP and Rio pay dividends.  Rio pays twice a year, BHP once a year (their next payment is September 25). Recently, BHP Billiton has offered to buy Rio Tinto (3.4 Billiton shares for each Rio share).  If it goes through, this would be a massive acquisition and BHP would become, by far, the world’s largest resources company.  Billiton also recently snapped up one of Canada’s few junior potash production companies.  If it were me, I’d go with Billiton.

If you disagree with any of these selections, have another favourite, or a different silver play in mind, feel free to suggest it below.  In a different post I’ll look specifically at smaller producers.