A Palladium Company Takeover, Silver Juniors To Watch, and Another Stock To Watch Out For
This is a wide ranging discussion with Dave Erfle, Founder of The Junior Miner Junky. We dive into a couple news events and a couple companies involved in gold and silver that should be watched or avoided.
Now, regarding Silver stocks:
1) to say there are only a handful of companies to choose from,
2) that none are making money at $17-$18 Silver
3) that some of the older Silver stories are not benefiting from the price increases we saw lately, are all statements that are simply not true.
1) Here are some Silver stocks to choose from and there are more than a handful (about 100 stocks !!)
> Silver Producers
AMERICAS SILVER CORPORATION
AVINO SILVER & GOLD MINES LTD
BAYHORSE SILVER INC
COEUR MINING INC
ENDEAVOUR SILVER CORPORATION
EXCELLON RESOURCES INC
FIRST MAJESTIC SILVER CORPORATION
FORTUNA SILVER MINES INC
FRESNILLO PLC LONDON
GOGOLD RESOURCES INC
GREAT PANTHER SILVER LIMITED
HECLA MINING COMPANY
HOCHSCHILD MINING PLC
IMPACT SILVER CORPORATION
MAYA GOLD & SILVER
PAN AMERICAN SILVER CORPORATION
SANTACRUZ SILVER MINING LTD
SIERRA METALS INCORPORATED
SILVERCORP METALS INC
SSR MINING INC
WHEATON PRECIOUS METALS
>> Silver Developers & Explorers
ABRAPLATA RESOURCE CORP
AFTERMATH SIlVER LTD
ALEXCO RESOURCE CORPORATION
ALIEN METALS
AMERICAN SILVER MINING COMPANY
ARGENTUM SILVER CORP
ARIZONA SILVER EXPLORATION INC
ATHENA SILVER CORP
AURA SILVER RESOURCES LTD
AURCANA CORPORATION
AZARGA METALS CORPORATION
AZURE MINERALS LTD
BEAR CREEK MINING CORPORATION
BITTERROOT RESOURCES LTD
BLIND CREEK RESOURCES
BRIXTON METALS CORP
BUNKER HILL MINING CORP
CANADA COBALT WORKS
CANADIAN SILVER HUNTER INC
CANARC RESOURCE CORPORATION
CANASIL RESOURCES INC
CANTEX MINE DEVELOPMENT
CMC METALS LTD
DEFIANCE SILVER CORP
DISCOVERY METALS CORP
DOLLY VARDEN SILVER CORPORATION
EXPLOREX RESOURCES INC
FIRST AMERICAN SILVER CORPORATION
GALENA MINING LTD
GOLDEN GOLIATH RESOURCES LTD
GOLDEN MINERALS COMPANY
GOLDEN TAG RESOURCES LTD
GOLDPLAY EXPLORATION LTD
GGX GOLD CORP
INTERNATIONAL SILVER INC
INVESTIGATOR RESOURCES LTD
JAXON MINING INC
KLONDIKE SILVER CORPORATION
KOOTENAY SILVER INC
LEVON RES LIMITED
MACPHERSONS RESOURCES LTD
MAG SILVER CORPORATION
METAL TIGER PLC
METALLIC MINERALS CORPORATION
MINCO SILVER CORPORATION
MINAURUM GOLD INC
MONTEGO RESOURCES
NEW NADINA EXPLORATIONS LTD
NEW PACIFIC METALS CORP
NUBIAN RESOURCES LTD
OREX MINERALS INCORPORATED
PATAGONIA GOLD CORP
PLATA LATINA MINERALS CORP
PROSPERO SILVER CORP
RIO SILVER INC
SANTANA MINERALS
SILVER BEAR RESOURCES PLC
SILVER BULL RESOURCES INC
SILVER DRAGON RESOURCES INCORPORATED
SILVER GRAIL RESOURCES LTD
SILVER MINES LTD
SILVER ONE RESOURCES INC
SILVER PREDATOR
SILVER RANGE RESOURCES LTD
SILVER SPRUCE RESOURCES INC
SILVER VIPER MINERALS CORP
SILVERCREST METALS INC
SOUTHERN SILVER EXPLORATION CORPORATION
STRIKEPOINT GOLD
STROUD RESOURCES LTD
VALOR RESOURCES LTD
VISCOUNT MINING
WHITE ROCK MINERALS
2) As far as all Silver producers all losing money at $17-$18 Silver, that simply is not true.
I had posted a few times on here and over at ceo.ca the Q2 All-In Sustaining Costs for the Silver producers and I’ll post those below. Keep in mind, some of these costs are actually going to be lower for Q3 when those numbers come in.
I understand these AISC numbers are in constant flux, get massaged and tweaked for optics, and will vary on each quarterly report.
$SVM Silvercorp Metals – AISC of $3.52
$PAAS American Silver – AISC of $6.12
$CDE Coeur Mining – AISC of $9.17
$USAS Americas Silver – AISC of $10.50
$HL Hecla Mining – AISC of $11.16
$FSM Fortuna Silver – AISC of $11.30
$FRES.L Fresnillo Plc – AISC of $11.83
$SMT Sierra Metals – AISC of $12.31
$SSRM SSR Mining – AISC of $12.60
$ASM Avnio Silver & Gold – AISC of $13.10
$HOC.L Hochschild Mining – AISC of $13.40
$GGD GoGold Resources – AISC of $13.61
$AG First Majestic Silver – AISC of $14.76
$EXN Excellon Silver – AISC of $16.11
$GPL Great Panther – AISC of $17.55
$SCZ Santacruz Silver – AISC of $18.37
$EXK Endeavour Silver – ASIC of $20.90
$IPT Impact Silver – AISC unknown
$MYA Maya Gold & Silver – AISC unknown
$SBR Silver Bear Resources – AISC TBD – pre-commercial ramp up
3) As for the “old” Silver companies just not responding well to price increases, that is just simply not the case either. In 2016 we saw almost all the Silver companies outperform most sectors, just like we did in the Q1 runs in 2017, 2018, and 2019.
I posted these charts at month end this August and they’ll illustrate the point on Silver stocks just fine:
Of these 9 Senior Silver #producers only 2 were down during that period, and of the 12 Jr Producers, they were all up nicely for this period:
Senior Silver Producers 3 month #Chart (May 30 – Aug 30)
Coeur D Alene – up 93%
First Majestic – up 87%
Pan American Silver – up 77%
SSR Mining – up 44%
Wheaton Precious Metals – up 40%
Hecla Mining – up 38%
Hochschild Mining – up 38%
Fresnillo – Flat down – 1/3 of a %
Sierra Metals – down -7%
http://cdn.ceo.ca/1emlltf-Major%20Silver%20Producers%20Three%20Month%20Chart.JPG
3b) Continuing on to dispel the notion that “old” Silver companies just haven’t been responding, here is a chart posted at month end this August and they’ll illustrate the point on Silver crushing most other sectors in just those 3 months (some have done even better YTD since coming out of tax loss selling in late 2018)
12 Junior Silver #Producers over 3 months (from May 30 – Aug 30)
Santacruz Silver (a former show sponsor from years ago) – up 209%
Silvercorp Metals – up 101%
GoGold Resources – up 100%
Americas Gold & Silver – up 98%
Silver Bear – up 86%
Impact Silver – up 73%
Fortuna Silver – up 68%
Avino Silver and Gold – up 60%
Excellon Resources – up 55%
Endeavour Silver – up 50%
Great Panther – up 22%
Maya Gold & Silver – flat up 4/10 of %
*Think of how well these Jr Silver producers did in just 3 months compared to the paltry returns that 99% of investors will make in the general stock indexes this year.
…. and most of them were old companies around 10 years – 125 years 😉
http://cdn.ceo.ca/1emlgcm-Junior%20Silver%20Producers%20Three%20Month%20Chart.JPG
I didn’t save any historic charts at the end of August or early Sept for the Silver Developers or Explorers, but I did post these 3 month charts on August 9th that illustrate the point well enough:
> 3 Month #Chart – Jr Silver #Developers (May 9 – Aug 9, 2019)
$SVE Silver One – Up 143%
$LVN Levon resources – up 83%
$SIL Silvercrest Metals – up 80%
$SBR Silver Bear – up 77%
$AXR Alexco – up 62%
$BCM Bear Creek Mining – up 60%
$ABRA AbraPlata – up 54%
$MSV Minco Silver – up 53%
$SVB Silver Bull – up 50%
$SSV Southern Silver – up 23%
$MAG Mag Silver – up 22%
$KTN Kootenay Silver – up 17%
http://cdn.ceo.ca/1ekshv7-JR%20Silver%20Developers%203%20Month%20Returns.JPG
(many of these companies actually rose far more than this off their individual lows, but this was just a static 3 month chart I had saved from a post on May 9th)
Lastly, I had also posted one more Silver Developers & Explorers chart on Aug 9th:
3 Month #Chart – Jr Silver #Developers & #Explorers (May 9th – Aug 9th, 2019)
$DSV Discovery Metals – up 100%
$SPD Silver Predator – up 71%
$DEF Defiance Silver – up 69%
$SSE Silver Spruce – up 67%
$REX Orex Minerals – up 54%
$PSL Prospero Silver – up 38%
$GPLY Goldplay Exploration – up 38%
$DV Dolly Varden Silver – up 31%
$MMG Metallic Minerals – up 31%
$NUAG New Pacific Metals – up 18%
$BTT Bitterroot – up 14%
$KS – Klondike silver – up 12%
http://cdn.ceo.ca/1eksi0f-JR%20Silver%20Developers%20and%20Explorers%203%20Month%20Returns.JPG
*** Again, many of these companies actually rose far more than this off their individual lows, but this was just a static 3 month chart I had saved from a post on Aug 9th as a quick snapshot at that time.
For anyone that just isn’t seeing many opportunities in the Silver sector, they just simply aren’t looking hard enough.
Good luck to everyone in their investing as the PM bull has paused to consolidate the last few weeks and these companies were back on sale for those that missed some of these runs over the last few months.
(SVM) Silvercorp has the best cost profile hands down, and has been making money hand over fist at current Silver prices. The Q3 numbers are not out yet, but here are the Q2 numbers [for their calendar year it will say Q1, but it is calendar Q2 for everyone else:
(and keep in mind, this is when Silver was in the $14-$15 doldrums)
Just think where these figures are going to land for Q3 (their Q2) with Silver prices in the $16-$19 range…. !!
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(SVM) Silvercorp Reports Net Income of $12.6 Million, $0.07 per Share, and $19.9 Million Cash Flow from Operations for Q1 Fiscal 2020
August 7, 2019
Pan American Silver Reports Earnings per Share of $0.09 for the Second Quarter of 2019
August 7th, 2019
“We delivered strong operating performance in Q2, resulting in cash flow from operations of $83.5 million,” said Michael Steinmann, President and Chief Executive Officer. ”
Hochschild MiningPLC – Interim Results
14 August 2019
Financial highlights
§ Revenue of $354.5 million
§ Adjusted EBITDA of $153.7 million
§ Pre-exceptional profit before income tax of $41.5 million
§ Post-exceptional profit before income tax of $29.5 million
§ Adjusted basic earnings per share of $0.04
(ASM) Avino was around break-even in Q2, but with higher Silver prices in Q3 they should start getting rerated (and they’ve increased their throughput with the 4th processing circuit they now have operational.
____________________________________________________________
(ASM) Avino Reports Q2 2019 Financial Results
August 7, 2019
SECOND QUARTER 2019 HIGHLIGHTS
Generated revenues of $7.8 million from the sale of concentrates
Mine operating income of $0.3 million
Net loss after taxes of $0.2 million, or Nil per share
Silver equivalent production of 599,593 ounces1, including 246,129 ounces of silver, 1,609 ounces of gold and 1,136,113 pounds of copper
Total consolidated cash cost2 was $10.89 per silver equivalent payable ounce1
Consolidated all-in sustaining cost (“AISC”)2 was $13.10 per silver payable equivalent ounce1
Working capital of $8.7 million, at June 30, 2019, and $14.2 million as of today
Earnings before interest, taxes, depreciation and amortization (“EBITDA”)2 was $0.6 million
https://www.avino.com/news/2019/avino-reports-q2-2019-financial-results/
Smaller producers like Impact Silver, Excellon, Santacruz, and medium producers Endeavour Silver and Sierra Metals were still underwater at $15 silver, and really need $20 Silver, but as the metals prices inched higher, that is why these companies really started to move. At $17-$18 silver for Q3 they may be just under profitability to flat, but I don’t know many that believe Silver will stay in the $17-18 range for the medium to longer term. Since the markets are forward looking, most serious analysts in the space expect Silver to eventually catch up with Gold (that already took out it’s 2016 high) and follow suit where silver will take out that 2016 peak of $21.23. At those prices, those marginal producers will blow up past where most investors are expecting, and investors will watch in disbelief as these Best of the Worst bring in multi-bagger returns without having to take on the risk of an explorer.
Yes, I realized my error on the location of Stillwater after the playback. Meant to say N. America, so my apologies. As far as PGM juniors are concerned, there are not any I have found that meet my investment criteria, which is very strict. As far as silver juniors are concerned, there are only six that I own and cover in my newsletter that meet this criteria. I do not have the time to break down all of the silver producers you mentioned but last I checked, Fortuna is the only jr miner to post a production profit last quarter but since they purchased the Argentina projects, this is not a jurisdiction I feel comfortable investing in and the stock has under-performed since they acquired these projects. Helca, First Majestic, Excellon etc are jr producers which all lost money last quarter and many on your list are not juniors. SilverCorp is in China and another jurisdiction I am not comfortable investing in, especially considering this companies problems there in the past. AISC is a deceiving cost base structure which does not factor in taxes, NSR’s and royalties. There are not many silver junior developer/explorers or early stage juniors that meet my investment criteria but there are a few. Sorry to say that most juniors in general are not worth speculating in IMO. I learned a long time ago that most of them are lifestyle companies, which makes the ones that are not all the more appealing. AXU & USAS are two of them. Thanks for all your comments as always.
I appreciate your comments David, and respect that you have your own investment criteria, and agree that AXU and USAS are two of the better Silver companies to hold with good managment, good jurisdictions, and good cost structures. I own good positions in both in my portfolio.
As for Silvercorp, they have absolutely made money and have been making money quarter after quarter, and they have the lowest costs in the space hands down.
That is also why Silvercorp has been the top performing Sr Silver producer year to date (currently up 98.26% on the year), with only the Jr Producer (SCZ) Santacruz Silver outperforming year-to-date up 133.33%.
In addition (SVM) Silvercorp utilizes one of the most advanced communication platforms in their mining operations of any company in the industry (real time social media updates at all places so all departments are in touch and drilling and mining with real time communication). The prior allegations from years back were dismissed as erroneous and hyped up by documentaries that only spread the fake news to attack the company and the mining industry, and amounted to nothing more than an isolated and a targeted smear by the 2 Canadians pushing the narrative. I agree, that China is more opaque, but considering how well the company has been managed at their opeations, the free cashflow, the 29% stake they hold in NUAG New Pacific Metals, and their clear outperformance in 2019, compared to almost any sector (more than doubling at one point), then I’m glad they met my investment criteria.
Likewise, I’m glad part of my investing criteria was to look for leverage in the miners, and whether in Gold or Silver producers, it is the miners struggling right below profitability that will have the most upside torque, as small increments higher in their margins transform their economics so much more on a percentage basis.
This torque to miners just underprofitability that then get to parity and then start working on profitability outperformed from 2009-2011, in the epic run in 2016, and have so far in this run in 2019. This is why an unprofitable miner (flirting with breakeven) like (SCZ) Santacruz Silver up 133% year today at at one point up 215% led the pack this year with the best performance, and why marginal companies making improvements to costs as metals prices rose like (EXN) Excellon up 41% YTD and was up about 60% at one point, or (IPT) Impact Silver up 22% on year but at one point up about 80% were still up more than most companies in any sector.
Also as for Fortuna or Pan American or Coeur they are all solid companies, with all the accolades, and were all up nicely in the 40-60% range at one point but now year-to-date (FSM)Fortuna is down -9% (PAAS) Pan American is only up 14% and (CDE) Coeur is up 20%.
It is rarely the “Best” companies or “Tier 1” deposits that have the best stock performance in the producers.
Rather, it ends up being 3 main areas that outperform with Producers:
1) the very lowest cost producers with exploration upside (like Silvercorp),
2) the companies that can most radically increase production throughput (like Americas Gold & Silver has done through mine expansion and acquisition) or
3) companies that improve recoveries on the biggest percentage increase (like what First Majestic has done with their tinier bubbles and roaster)
As a result, those are the investing criteria that net the largest gains in producers time and time again.
These 3 areas are cumulatively much easier to improve on a percentage basis for smaller companies than larger companies, so often it is “The Best of the Worst” that will see the most impact on their economic margins from raising metals prices. These marginal producers can improve their costs, expand production, and improve recoveries only slightly into rising metals cost, and see outsized moves higher.
Most larger Sr Producers like Fresnillo, Hochschild, SSR, or Tahoe (before Pan American acquired them) could not make a large enough increase to warrant such outperformance, and we see the exact same thing with most Sr Gold producers compared to the smaller producers.
None of the producers are lifestyle companies, as we only see that in worthless exploration stocks and developers without a wing or a prayer until massively higher metals prices.
Now as for Developers, if they keep hitting with exploration or become takeover targets then they can really pop, but it is their “Golden Runway” at the tail end of the Lassonde Curve higher once they are past the orphan phase, getting funded, and moving into construction that sees them take off – like right where (AXU) Alexco has been heading presently, or look at the epic run (SIL) Silvercrest has taken from exploration into development, and likely another takeover (like when First Majestic grabbed their last property). It is a very predictable pattern, just like the selloff after first pour generally pulls the stock back down or at least has them underperform for a few quarters. (Atlantic Gold being one of the few exceptions recently) — most pullback for a while before then turning and heading back up.
As for Explorers, a few of the lucky ones can pop the most, but explorers are the riskiest and have the least knows about them, and are the most prone to becoming lifestyle companies perpetually raising funds to justify their jobs, and never really getting a deposit into a mine. Most will fail.
Most of the Silver explorers did not outperform in 2016, or in the Q1 Runs in 2017, 2018, or 2019 (with Silvercrest being an exception).
In fact all year, we’ve heard belly-aching from investors on all forums about how bad most of the Jr Explorers have done in the face of rising metals prices. (with a few notable execeptions). Only 1 in 3000 exploration projects will actually become an economic mine, so that shouldn’t be a surprise. That is why when the few companies that have success with the drill bit hit, they go bananas (until the valuations get silly and return to Earth as gravity sets in).
Most generalist investors will start with passive investing vehicles = ETFs, which are generally filled with medium to small producers and a few established developers. The explorers don’t get the benefit of those inflows until later in the cycle when things go more parabolic, or unless they really lock onto something big and market themselves well, and get to keep raising capital. It is rare.
Bottom Line: There are many kinds of investors, many styles of investing, and many ways to filter criteria of one’s unique investment criteria.
Personally, I’m most interested in the strategies that net the largest returns as that is the true measure of success as an investor, and is not without a proportionate amount of risk.
2019 has a been a good year for Silver investors, and I’m happy to have owned Silver producers that all outperformed the majority of the sector like (SCZ) (SVM) (USAS) (IPT) (EXN) (ASM) (AG) and (EXK), and I’m glad I passed on most of the largest companies that would be the “safer” bets.
Good luck to everyone in their investing strategies and using their unique process, and may all the folks here at the KER have a very prosperous end to 2019 and moving into 2020.
I will say for the larger Silver producers that Coeur and First Majestic had considerable torque in 2009-2011, in 2016, and have shown strength on many of the other rallies in 2017, 2018, and this year in 2019. I don’t own Coeur, (but did briefly after they took over Northern Empire that I held and it converted into CDE shares). I do own (AG) and believe they are set up to head much higher still, but are not without risk being only in Mexico, and if they have any strikes at San Dimas, like what Primero had to endure, it could be a big headwind for them. Still, I like their improved metal recoveries, the big roaster for tailings, and their expansion potential through more exploration around their existing mines.
A few companies that surprised in the Silver space this year that don’t get discussed as much were:
– GoGold resources that are doing well with production, but really have excelled in exploration along side that operational success
– Silver One and Levon resources as developers on the move
– a few Silver explorers like Discovery Metals, Silver Spruce, and Silver Predator were on the move….
The reason (GGD) has done so well this year, is that it is another Jr Producer that is flirting with profitability and thus had some of the more out-sized moves when metals prices moved higher. They were just slightly negative in Q2, but for the last 9 months were slightly positive on Net Income and Earnings Per Share. It will interesting to see how things look in Q3 with the higher metals prices in play.
____________________________________________________________
(GGD) GoGold Reports Financial Results for the Quarter ended June 30, 2019 and Provides Los Ricos Update
Aug 8, 2019
“GoGold Resources Inc. (TSX: GGD) ) reports revenue of $6.4 million on the sale of 438,740 silver equivalent ounces sold at an average realized price of $14.55. The Corporation closed the quarter in a strong financial position with $9.0 million in cash and marketable securities and no debt.”
“The best of the worst” is exactly what you want in a bull market…
https://stockcharts.com/h-sc/ui?s=IPT.V&p=D&st=2015-03-18&en=2017-02-14&id=p43321821987&a=465849003
+1 Matthew.
Thanks for the impressive listings. It would be cruel of me to ask for rank order listings, so I will just thank you instead.
You’re welcome David. Glad to share ideas and I particularly like the PGM and Silver sectors, and just felt documentation was needed to address some of the misnomers in these sectors.
I think the whole concept of ranking mining stocks isn’t possible, as there are so many different buying criteria that may be important to one investor but not another. However, I get asked this question a few times a week by investors over at ceo.ca and finally posted a Silver rant about them a while back, that I’ll post below.
For context, I kept getting private messages asking for my Top 3 Silver stock picks, which seemed crazy because I didn’t know those investors criteria:
_______________________________________________________________________
> I was asked by someone recently in a private message what my best 3 picks are for #Silver stocks, and that is such a difficult question to ever answer because it is impossible to quantify “Best” for all potential desires, risk tolerances, trading approaches, and investing timelines.
Best means different things to different people, and comes down to the criteria that matter (does mean best safety w/ growth? Best risk/ return speculation odds? Best cashflow, best production numbers, best jurisdiction preferences, etc…) I wrote this investor back with a few ideas of just how hard it is to pick just 3 stocks in the Silver sector, especially across a spectrum of Producers, Developers, Explorers, and Prospect Generators….
_________________
I wrote him back the following:
> Best performers so far – $EXN Excellon $SCZ Santacruz have had the most upside ~torque lately as marginal producers that benefit the most from increase in metals pricing, but that may or may not continue) $BCM Bear Creek Mining had a nice initial move out of the May low, as an optionality play on a large Silver development project.
— Typically $IPT Impact Silver has the best upside torque, and while it got off to a slower start this round, it has really started to move lately.
> Best odds of increasing #production – $USA Americas Silver has gold production coming online in 6 months from Relief Canyon to assist it’s overall PM metrics, alongside Silver/Lead/Zinc; $ASM Avino Silver and Gold has 4th circuit finally completed and will be adding throughput, and is getting closer to bringing on Bralorne in BC; $EXK Endeavour Silver has a 5th mine, Terronera, about to come online in the next year that will radically augment their production profile.
> Best cost profile $SVM Silvercorp has had this honor for years, and is still the lowest cost producer with base metals credits, $USAS Americas Silver second best cost profile due to their base metals credits and it will look even better once their Gold production starts, and lastly $MAG Mag Silver will have 3rd best costs if it ever gets into production
> Best #development plays – $AXU $AXR Alexco is my favorite high-grade near term producer; $BHS Bayhorse is expanding from development and trial mining into commercial production this year and very under-rated and under-followed; $SVB Silverbear is coming online into commercial production in Russian this year.
Some would point out how $BCM Bear Creek has led the developers higher and has a wider following as a very large, lower grade optionality play on higher metals prices. Also, $SBB Sabina Gold & Silver is a very solid development-stage story, but I consider it mostly a Gold story so I don’t normally include it with the Silver stocks, but do own it, and feel it is a very likely takeover candidate for this bull run.
> Best #Exploration potential (very difficult to pick as is the nature of discovery) – $MMG Metallia Minerals [Alexco’s neighbors] has the best odds of finding new high-grade discoveries at the well-endowed Keno Hill; $IPT Impact Silver – has good Silver and Gold prospects and has regularly brough great exploration results to the market year after year; $SIL Silvercrest is leader in the pack for exploration with a number of truly bonanza grade drill results, but also has already moved very high in valuation as a result. It is the most likely silver explorer to get taken out).
Other mentions are $DEF Defiance with very promising exploration potential and a mineral rich orebody with lots of prior work done. I hold a position in $DV Dolly Varden because I feel they’ll still keep hitting big on exploration and continue developing towards production. They are working around a prior-producing mine of signifcance but have shown there is far more left in the ground. I took a punt on $REX as well to see if Gary Cope and team can get this one moving again.
> Best “safer” larger companies $AG $FR First Majestic $CDE Coeur $FSM Fortuna
> Best Optionality plays – $KTN Kootenay, $ABRA Abraplata, $SCZ Santacruz
There are so many interesting other #exploration companies left in the silver space and each has it’s own strengths, weaknesses, opportunities, and threats, but they are too many to mention here. I’m sure others have better insights into all the different drill programs going on in the Silver space.
Good luck to all in their investing whichever companies they choose.
That last link didn’t post correctly for some reason:
Well done Ex, thx for the info.
Thanks b – glad to share ideas.
It is funny because I actually thought of you before I posted these, because I know you aren’t a huge fan of lists on the blog, and I really have resisted posting as many lists as I used to, but most of those above have performance stats like returns over 3 months, or their All-In Sustaining Costs metrics, and charts to add value.
Ever Upward!
I think Excelsior should be on the show. He certainly does his research !
Thanks for the kind words Cottster. I enjoy researching the Jr mining sector, but just contribute here on the blog and over at ceo.ca.
Have a prosperous rest of the week!
Mega dittos on that… Most appreciated, Ex!
Thanks Mike. Cheers!
The Hedgeless Horseman is gearing up to do a site visit with Bob Moriarty soon:
@HHorseman “I will likely be going down to Pilbara (along with Bob) in about 2 weeks btw”
Also Bob M. will be on Jay Taylor’s show soon:
> Bob Moriarty, Chris Taylor and Michael Oliver return this week on the radio program.
“Brilliant! Outspoken! Colorful! Eccentric! Controversial! Those words describe Bob Moriarty of 321Gold. Bob sees the American Empire’s expansionism leading to the next global financial crisis and America’s military industrial complex pushing the world toward world war as America competes against China’s expanding influence financed via trade surpluses. The impact of a more dominant China on the energy markets, the dollar, and gold will be discussed along with several of Bob’s favorite gold stocks, including Novo Resources and Irving Resources.”
I really like Bobs interview, maybe because I have thought the same way for awhile now.
Its end of empire, Bob points out we are looking at a military dictatorship.
I kinda doubt anyone will recognize it tho as its right in front of their eyes.
So the banks shut down, cease up, my broker is thru a bank, what good are my shares if I cant access the account?
“Freud’s portrayal of modern society exhibits a striking blindness to the dangers emanating from charismatic leaders…”
Freud was right because, left or right, most people don’t know anything (or anything accurate) about history or economics.
$NMX $NMKEF Nemaska aims to complete $600m Pallinghurst deal by year-end
Jackson Chen | October 8, 2019 #Lithium #Developer
“In July, Nemaska received a letter of intent from Pallinghurst for a C$600 million private placement, which would enable Nemaska to complete the construction of its Whabouchi hard-rock lithium mine in the #JamesBay region and at the Shawinigan processing plant north of Montreal.”
Tesla Warns of Lithium-ion Battery Mineral Shortage
Oct 07, 2019
https://www.thomasnet.com/insights/tesla-warns-of-lithium-ion-battery-mineral-shortage/
Chinese battery giant buys discount stake in Pilbara Minerals $PLS.AX $PILBF
Cecilia Jamasmie | September 4, 2019
“China’s largest #lithium #battery maker has bought an 8.5% stake in Australian miner Pilbara Minerals (ASX:PLS)”
“Pilbara, which exports a lithium-rich spodumene concentrate, will also seek to raise A$36.5 million from institutional investors and $20 million from retail shareholders at 30¢ per share.”
https://www.mining.com/chinas-catl-becomes-pilbara-minerals-knight-in-shiny-armour/
Mining companies must show how they are prioritizing sustainable and inclusive growth to redefine their image
Paul Mitchell – The Globe and Mail – October 3, 2019
Hunt for palladium riches sends South African miners abroad
Bloomberg News | October 8, 2019
“Southern Africa is home to the world’s richest platinum deposits, but when Impala Platinum Holdings Ltd. pondered how to invest its windfall profits it chose North America instead.”
“The acquisition of North American Palladium Ltd. is partly a bet on platinum’s sister metal palladium continuing to rally, while Implats Chief Executive Officer Nico Muller has also stressed the appeal of a relatively quick payback from low-cost, mechanized assets. However, the deal is also a geopolitical play as the Johannesburg-based miner seeks to balance exposure to its more volatile home region.”
“The diversification into North America provides a hedge against some of the socio-economic, political and structural risks the company faces in South Africa and Zimbabwe,” said Christopher Nicholson, an analyst at RMB Morgan Stanley.
https://www.mining.com/web/hunt-for-palladium-riches-sends-south-african-miners-abroad/
I believe the triumph gold was getting hyped by the wealth report group this past weekend or early this week as well
Thanks Excelsior,
This is the best silver mining analysis I have seen in about 15 years.
Thanks John. I appreciate that, and do enjoy the Silver mining sector.
Ex….is there any news I’ve missed on golden valley????….showing signs of life
Maybe more folks are just realizing how undervalued GZZ is relative to its stake in RZZ and its Joint Ventures with Bonterra, O3 Mining, Sirios, and it’s other stakes in VZZ and IZZ.
It still has much further to climb to catch up to just the RZZ 44% stake, not to mention the rest.
Ever Upward!
Cory & David – You know I really enjoy both you guys input but there are a few misconceptions from todays editorial worth pointing out for investors.
1) Stillwater (that Sibanye acquired a few years back) is in Montana in the US, and NOT in Canada. It is a massive Palladium and Platinum deposit
2) To say there aren’t any North American mining stocks with exposure to the PGMs just is not true. For example, literally right next to the Stillwater deposit is a Junior called (PGM) (PGEZF) Group Ten Metals and they are exploring along the same trend, in the same safe jurisdiction, right next to the last deposit that was taken out.
They also have a 2nd PGM & Nickel/Copper project right next to Nickel Creek Platinum in the Yukon (another good jurisidiction I’m sure you’d agree on especially after the comments on Alexco). By the way Alexco’s neighbors, (MMG) Metallic Minerals has the same team running it with Greg Johnson, as does (PGM) Group Ten.
https://grouptenmetals.com/site/assets/files/3631/2019-09-23_groupten_corporate_final.pdf
3) As for there not being many PGM companies, this is true relative to Gold companies, and because most PGM deposits come along with Nickel, Copper, Gold/Silver, so they are all polymetallic deposits.
Here is a list of companies with at least some Platium or Palladium exposure and about 1/3 are in North America, 1/3 are in Australia, and the rest are South Africa, so there are options for investors that are interested in this sector:
> PGM Stocks
21C METALS INC
ABERDEEN INTERNATIONAL INC
ANGLO PLATINUM LTD
ARTEMIS RESOURCES LTD
ATLATSA RES CORP
CANADIAN PLATINUM CORP
CLEAN COMMODITIES CORPORATION
EASTERN PLATINUM LTD
GROUP TEN METALS
IMPALA PLATINUM HOLDINGS LTD
IVANHOE MINES LTD
JUBILEE METALS GROUP PLC
LONMIN PLC
MINFOCUS EXPLORATION
MMC NORILSK NICKEL PJSC
NEW AGE METALS
NICKEL CREEK PLATINUM CORP
NICKLE ONE INC
NKWE PLATINUM LTD
NOBLE METALS
NORONT RESOURCES LTD
NORTH AMERICAN PALLADIUM LTD
NORTHAM PLATINUM PROPERTY LTD
NOVX21 INC
PACIFIC NORTHWEST CAPITAL CORP
PAN AFRICAN RESOURCES
PANORAMIC RESOURCES LTD
PLATINA RESOURCES LTD
PLATINUM GROUP METALS LIMITED
POLYMET MINING CORPORATION
SIBANYE GOLD LIMITED
ST GEORGE MINING LTD
SYLVANIA PLATINUM LIMITED
TALON METAL CORPORATION
THARISA PLC
TRANSITION METALS CORP (NEW)
UCORE RARE METALS INC
WALLBRIDGE MINING COMPANY LTD
ZKB PALLADIUM CORPORATION
>> PGM – Funds and ETFs
PHYSICAL PALLADIUM SHARES
IPATH BLMBRG PLATINUM SUBINDEX TR ETN
GraniteShares Platinum Trust
PHYSICAL PLATINUM SHARES
E-TRACS UBS LONG PLATINUM
SPROTT PHYSICAL PLATINUM & PALLADIUM TRS