Silver in 2017: The Year of the Wild Card

Brad Cooke and Robert Archer discussed silver opportunities in 2017 at VRIC.

This year’s Vancouver Resource Investment Conference (VRIC) just wrapped up, and one of the most attended panels was the silver opportunities in 2017.
The panel was moderated by Marin Katusa, Katusa Research, and featured Brad Cooke, CEO of Endeavour Silver (TSX:EDR) and Robert Archer, President and CEO of Great Panther Silver (TSX:GPR).
Katusa started by asking the panelists their forecast for this year for the precious metal and how high would prices go in 2017. Cooke said that the silver outlook was the best of all commodities and that 2017 was the year of the wild card, with price peaks between $22 and $24.


But for most of the year he sees silver prices in the $16 to $18 range. “Wall street is assuming the fed is going to rise interests but I am skeptical. It will affect their business if they do,” he added.
Despite this, Cooke is bullish on the precious metal and said that silver is the place to be in the next three years.
Archer agreed with Cooke and highlighted the volatility of the metal and seasonal pricing for this year, with his forecast for prices ranging from $18 to $19. “I do not see a sharp rise compared to last year. But silver will outperform gold in 2017.”
A major news story in 2016 was the silver fixing case that revealed major banks conspiring to rig silver prices. Katusa did not miss the chance to ask panelists their thoughts on this important matter for the industry.
“There is manipulation and price fixing and prices are determined by the futures market and not fundamentals. But how much impact this has is difficult to say,” Archer said.
Cooke also agreed that bankers take advantage and certain trades are manipulated, “But how can you prove it? You can’t, because it happens every day,” he added.

Mexico and Costs

Another topic discussed in the panel was the costs of operations in Mexico, where both companies have projects. The discussion included concerns about the Mexican economy and political risks now that Trump is officially the US President.
Archer said that there are no direct risks for operating in the country, but the biggest impact has been the currency declining, as the Mexican peso has recently lost over 20 percent to the US dollar.
“The bad news for mining in Mexico are the rising taxes, but the good news is that the Mexican peso will continue to decline,” Cooke said.
“We’ve done the most cost cutting we could for our operations, cutting 50 percent of the costs across the board. But again, this year wild cards will drive operating costs,” he added.

Dividends and M&As

Katusa also asked them about their dividend policy, but both CEOs agreed that even though this would be a better year for stocks if prices rise, they will consider dividends in the future once more stability is reached.
On a different note, panelists also discussed their thoughts about mergers and acquisitions, and both agreed that there will be more this year compared to last.
“Higher silver prices will allow for better projects and this will result in more mergers and acquisitions,” Cooke said.
In closing, Katusa asked them about the recent election of Donald Trump and whether he could stay in office for two terms, and both panelists seemed hesitant about a re-election. Archer said that we are entering a new age of political volatility but that, at the end, Trump had the potential to make beneficial changes in the world.
Stay tuned for more coverage of VRIC, and in the meantime check out the Investing News Network’s Sunday and Monday overviews of the event.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

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FIRST MAJESTIC SILVER CORP. is pleased to announce it has filed an updated technical report in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects for its Santa Elena SilverGold Mine in Sonora, Mexico. The report also includes positive results of a Pre-Feasibility Study completed for its 100% owned Ermitaño Project which is located only four kilometres east of the Santa Elena ...

FIRST MAJESTIC SILVER CORP. (NYSE: AG) (TSX: FR) (the "Company" or "First Majestic") is pleased to announce it has filed an updated technical report in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects for its Santa Elena SilverGold Mine in Sonora, Mexico. The report also includes positive results of a Pre-Feasibility Study ("PFS") completed for its 100% owned Ermitaño Project which is located only four kilometres east of the Santa Elena processing plant. The Company has filed the Technical Report on its website (www.firstmajestic.com) under the Reserves and Resources section and on SEDAR (www.sedar.com) under First Majestic's issuer profile. All amounts are in U.S. dollars unless stated otherwise.

UPDATED MINERAL RESERVE & RESOURCE ESTIMATES FOR SANTA ELENA
(compared to Mineral Reserve and Resource estimates on December 31, 2020)

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MAG Silver Corp. has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and Raymond James Ltd. under which the underwriters have agreed to buy on a bought deal basis 2,340,000 common shares at a price of US$17.15 per Common Share for gross proceeds of approximately US$40 million . The Company has granted the Underwriters an option, exercisable at the ...

MAG Silver Corp. (TSX NYSE American: MAG) ("MAG" or "MAG Silver" or the "Company") has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and Raymond James Ltd. under which the underwriters have agreed to buy on a bought deal basis 2,340,000 common shares (the "Common Shares"), at a price of US$17.15 per Common Share for gross proceeds of approximately US$40 million (the "Offering"). The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any. The Offering is expected to close on or about November 29, 2021 and is subject to the Company receiving all necessary regulatory approvals.

The net proceeds of the Offering will be used to fund exploration on Juanicipio and MAG's other projects including Deer Trail, certain sustaining capital requirements at the Juanicipio Project not included in the initial project capital estimates, and for working capital and general corporate purposes.

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Sponsored by: Laurentian Bank Securities Featured Keynote Speakers & Panelists:Rob McEwen - Chief Owner & Chairman - McEwen Mining Inc.David Garofalo - President & CEO - Gold Royalty Corp.Denis Larocque - President & CEO - Major DrillingByron King - Editor - Whiskey & GunpowderJustin Reid - CEO & Director - Troilus Gold Corp.Steven Bowles - Senior Director, Investment - Investissement QuébecKelsey Gunderson - Chief ...

Sponsored by: Laurentian Bank Securities

Featured Keynote Speakers & Panelists:
Rob McEwen - Chief Owner & Chairman - McEwen Mining Inc.
David Garofalo - President & CEO - Gold Royalty Corp.
Denis Larocque - President & CEO - Major Drilling
Byron King - Editor - Whiskey & Gunpowder
Justin Reid - CEO & Director - Troilus Gold Corp.
Steven Bowles - Senior Director, Investment - Investissement Québec
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Catch up and get informed with this week's content highlights from Charlotte McLeod, our editorial director.

Top Stories This Week: Powell Gets Fed Nomination, Using Gold in a Market Correction youtu.be

We're back after a break last week with quite a bit to cover in the gold space.

After running up past the US$1,860 per ounce mark midway through November, the yellow metal has taken a tumble. At the time of this writing on Friday (November 26) afternoon, it was sitting just under US$1,790.

Gold's losses this week have been attributed to elements like a stronger US dollar and better Treasury yields, although Jerome Powell's US Federal Reserve chair renomination has pulled other factors into play — some market watchers believe he may move to taper and raise interest rates faster than anticipated.


If the Fed follows its previously laid out timeline for tapering, it will wrap up in mid-2022; the central bank has said it won't raise rates until after that. It has also emphasized that its roadmap may change if necessary.

Looking at the larger picture for gold, I heard recently from Nick Barisheff of BMG Group, who believes the stock market is due for a major correction.

"The market is due for a major correction. What will cause it and when it will happen is anybody's guess — it could be tomorrow, it could be six months from now" — Nick Barisheff, BMG Group

It's impossible to know when this correction will happen, but Nick emphasized the importance of acting before it's too late. He pointed out that investors are typically slow to get out of the market once a crash actually begins — they wait for a turnaround, and by the time it's clear there won't be one, they've experienced big losses.

In his opinion, the solution is to get out of the stock market early and transfer money into gold.

Here's how Nick explained it:

"Instead of taking your money off the table and going into cash … you go to gold (because cash is devaluing daily). Gold will at least hold its own and probably appreciate … so by sitting it out in gold you can wait until the market finishes correcting and then buy back in" — Nick Barisheff, BMG Group

With gold's future in mind, we asked our Twitter followers this week what price they think the metal will be at the end of 2021. By the time the poll closed, most respondents had voted for the US$1,800 to US$1,900 range.

We'll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

Finally, in the cannabis space, INN's Bryan Mc Govern spoke with Dan Ahrens of AdvisorShares to get his thoughts on 2021 trends and what's ahead in 2022.

Dan was candid, and said if he had to choose one word to describe the cannabis market in 2021, it would be "painful." Like many others, he's been disappointed in the industry's performance — while positivity initially ran high due to excitement about potential federal changes in the US, ultimately progress has been slow.

"Cannabis started with a big run-up in January and February ... and things dragged from there" — Dan Ahrens, AdvisorShares

Still, Dan has hope for 2022 and said it will be a "huge year" for cannabis. He believes US reforms will come sooner rather than later, and in his opinion those widely anticipated changes will bring a wave of M&A activity.

Specifically, he expects to see alcohol, tobacco and other consumer packaged goods companies making deals with cannabis players, not just cannabis entities doing transactions with each other.

"Those big alcohol companies, tobacco companies, other consumer packaged goods product companies — they're waiting. They're waiting on the US" — Dan Ahrens, AdvisorShares

Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.

And don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

cannabis plant layered with German flag graphic
Dmytro Tyshchenko / Shutterstock

Catch up on some of the biggest news of the week for the cannabis investment world.

Three political parties have formed a coalition in Germany, leading to a new government, and it has promised cannabis reform in the European nation.

Meanwhile, a popular cannabis retailer confirmed consumers will now find its products available for delivery on the Uber Eats mobile application in Ontario.

Keep reading to find out more cannabis highlights from the past five days.


Coalition of parties promises forward-looking cannabis policy

Germany, a country with comprehensive and elaborate medicinal rules for cannabis, is in a time of transition as a new government is set to begin to take over after 16 years of Angela Merkel.

Olaf Scholz, the proposed next chancellor of Germany, leads a three party coalition that will become the country's governing body. As part of its promises, talk of adult-use cannabis regulation has now gained even more momentum. A report from MJBizDaily quotes a German policy document that shows the coalition's stance:

"We are introducing the controlled distribution of cannabis to adults for consumption purposes in licensed shops. This controls the quality, prevents the transfer of contaminated substances and guarantees the protection of minors."

However, despite the promise and excitement, it remains to be seen how these ideas will be applied since no formal regulations have been drafted or approved yet.

Canadian cannabis retailer partners with popular delivery app

Tokyo Smoke, a cannabis retail operator in Canada owned by Canopy Growth (NASDAQ:CGC,TSX:WEED), announced a collaboration agreement with Uber Canada (NYSE:UBER) whereby cannabis consumers will be able to use the Uber Eats app to order products before they visit stores.

While the app won't let consumers get cannabis delivered to them, this new method opens the doors to more dynamic ways of buying cannabis.

"As a market leader in innovation and a platform used by so many Canadians, we believe this is the ideal next offering that can be done safely and conveniently on the Uber Eats app," Mark Hillard, vice president of operations with Tokyo Smoke, said in a press release.

A report from the Canadian Press indicates Ontario is considering allowing dispensaries to have delivery and pickup options made available to consumers permanently. The province allowed some of these purchasing options at the outset of the COVID-19 pandemic, but then removed them.

Lola Kassim, general manager of Uber Eats Canada, said this new end-to-end experience will provide consumers with responsible access to legal cannabis products.

Cannabis company news

  • Organigram Holdings (NASDAQ:OGI,TSX:OGI) issued financial results for its Q4 2021 period. In its report, the company notes a net loss of C$26 million despite a 22 percent uptick in net revenue to C$24.9 million. Beena Goldenberg, the newly appointed CEO of the firm, is encouraged by the market share position earned by the company, which said it became the fourth biggest producer in Canada during the reporting period.
  • Halo Collective (NEO:HALO,OTCQB:HCANF) confirmed the decision for Akanda, its spinoff company focused on international cannabis opportunities, to begin trading on a US exchange. "The number of shares to be offered and the price range for the proposed offering have not yet been determined," the company told investors in a press release.
  • High Tide (NASDAQ:HITI,TSXV:HITI) announced the acquisition of 80 percent of NuLeaf Naturals, a CBD product wellness developer, for an estimated US$31.24 million. The deal includes a three year option clause for High Tide to complete a total acquisition. "As international markets open up and as export regulations evolve, NuLeaf's cGMP-certified facility positions us to take advantage of the global CBD business opportunity," Raj Grover, president and CEO of High Tide, said.
  • Humble & Fume (CSE:HMBL,OTC Pink:HUMBF) released the financial report for its first 2022 fiscal quarter to shareholders and the market. "As the legal cannabis market in North America continues to mature, Humble remains agile and focused on providing a leading solution for brands to scale quickly and retailers to focus on their customers," Joel Toguri, CEO of Humble, said.

Don't forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

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