Endeavour Silver Corp. ("Endeavour" or the "Company") (NYSE: EXK; TSX: EDR) is pleased to provide a Q2 2024 construction progress update for its Terronera Project in Jalisco state, Mexico. A photo gallery presentation accompanies this news release and can be found here or on the Company website at Terronera Project Progress Photos . All dollar ($) references in this news release are United States dollars.
The Terronera project continued to make significant progress in the second quarter, as concrete and structural steel work are nearing completion on the Upper Plant Platform for areas including crushing, coarse-ore storage, grinding, flotation, and thickening. The Project remains on track for commissioning in Q4 2024 as major mechanical installations continued to advance on schedule.
"Construction is well past the halfway mark, and site activities are beginning to peak," commented Don Gray, Chief Operating Officer. "We are very pleased with the advance at the Upper Platform, which should be ready for dry commissioning in Q3 2024. We are concentrating resources on the Lower Platform to finalize earthworks and begin concrete works in early Q3. Underground mine development continues advancing in line with expectations as we accessed ore in Q2. We are extremely pleased with our Terronera team and their progress. With project completion in sight, our focus has expanded to implementing our business readiness plan as we prepare for operating Endeavour's next core asset."
Q2 2024 Construction and Development Highlights
As of June 30, 2024, site works and activities included:
Safety – The highest workplace priority is the health and safety of our employees and contractors, with a commitment to provide the tools, training, and resources needed to identify risks and apply effective controls. Recently, underground operations increased rescue brigade participation by 40%, and two self-contained mine refuge stations were installed.
Progress – Overall project progress (mine development and surface construction) reached 64.5% completion, with more than $204 million (1) of the project's budget spent to date. Project commitments total $260 million (1,2) , 96% of the $271 million capital budget.
Engineering – Efforts have transitioned to construction support. During the quarter, a detailed design was completed for the tailing storage facility, Portal 2 waste dump, and the Lower Platform excavation.
Mine Development – Over the quarter, over 1,270 meters were developed underground, totaling nearly 4,500 meters.
Upper Platform Plant Site – Surface mill and infrastructure construction is 88% complete and progressing on schedule. Concrete work and structural steel erection are 100% complete.
Primary Crusher – Structural and mechanical construction is complete on the conveyor and apron feeder support steel, and the apron feeder was placed in position. Conveyors are belted, and belts vulcanized. Cabling and terminations are ongoing.
Coarse Ore Stockpile and Reclaim ("COS") Tunnel – SAG Feed Conveyor and belt were installed. Piping, electrical, and instrumentation are ongoing.
Grinding – SAG and ball mill are installed. Piping, mechanical, electrical, and instrumentation are ongoing.
Flotation – Piping, mechanical, electrical, and instrumentation are ongoing. Flotation equipment, including blowers, instruments, and valves, is expected to be procured in early Q3.
Tailing Thickener – The Tailings thickener is complete and signed off. Some steel modifications, such as piping, mechanical, electrical, and instrumentation, are ongoing. Procurement monitoring of some equipment (tanks), instruments, and valves is ongoing.
Lower Facilities Platform and Tailing Storage Facility – Excavation for the tailing storage facility embankment key trench was over 95% complete, and the Lower Platform area was nearly 50% complete. Concrete work on the lower platform is scheduled to start in early Q3.
Procurement – Bulk materials purchase orders have been released, and lead times are aligned with the current schedule. The Procurement team has focused on critical path purchases, such as electrical components and transfer chutes, and reducing bulk material lead times to increase schedule float.
Onsite Personnel – At the end of Q2, the workforce increased to over 190 Endeavour employees and over 700 contractor workers.
Community Relations – Local community support continues to be a major commitment. A plant-operator training program for local community members has been established. The Company is also preparing a comprehensive training and support services plan for groups and individuals seeking to form businesses that can provide local goods and services.
Environmental – Environmental and social impact assessment initiatives continue and will be presented in early Q3 (July 2024), with a 3-month delay compared to the schedule outlined under the Equator Principles requirements for project loan financing.
Next Steps and Planning
The Terronera Project remains on track for commissioning in Q4 2024.
For Q3 2024, surface construction will continue to focus on mechanical, piping, and electrical installations. Completing the Lower Platform excavation is anticipated to be no later than mid-Q3 2024. Concrete work for the tailing and concentrate filtration areas is expected to begin in early Q3 2024, with the LNG and power generation areas to follow. The Company anticipates commissioning using temporary power with the LNG and power generation to be operational subsequent to commissioning. The temporary power has been planned and is expected to be available for Q4. Concentrate and tailing filtration structural, mechanical, and electrical installations will commence as concrete work is completed.
Mine development in Portals 1, 2, and 4 declines will continue, with a test long-hole stop being developed in Q3 2024. Initial long-hole production is planned for early Q4, followed by cut-and-fill mining; ore will be stockpiled for mill ramp-up. At La Luz, development activities are anticipated to begin in Q3, with the portal being constructed and the ramp to ore access being advanced in Q4.
The critical path remains the TSF, Lower Platform construction, and the advancing underground mine.
Visit www.terronera.com , our dedicated project website, to stay informed on the ongoing development at Terronera. Explore updates, learn about our commitment to environmental stewardship, and discover the positive impacts on local communities.
About Endeavour Silver: Endeavour is a mid-tier precious metals company committed to sustainable and responsible mining practices. With operations in Mexico and the development of the new cornerstone mine in Jalisco State, the Company aims to contribute positively to the mining industry and the communities in which it operates. In addition, Endeavour has a portfolio of exploration projects in Mexico, Chile, and the United States, which has helped it achieve its goal of becoming a premier senior silver producer.
Financial figures are based on a preliminary estimate. Final unaudited figures will be released with the Q2 2024 financial statements on August 1, 2024.
Project commitments include total project expenditures.
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within applicable Canadian securities legislation. Such forward-looking statements and information herein include but are not limited to statements regarding the development and financing of the Terronera Project, including capital cost estimates, the anticipated timing of the project construction, Terronera's forecasted operations, costs and expenditures, and the timing and results of various related activities. The Company does not intend to and does not assume any obligation to update forward-looking statements or information other than as required by applicable law.
Forward-looking statements or information involve known and unknown risks, uncertainties, and other factors that may cause Endeavor's actual results, level of activity, production levels, performance, or achievements, and its operations to be materially different from those expressed or implied by such statements. Such factors include but are not limited changes in production and costs guidance; the ongoing effects of inflation and supply chain issues on mine economics; national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada, Chile, the USA and Mexico; financial risks due to precious metals prices; operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; the speculative nature of mineral exploration and development; risks in obtaining necessary licenses and permits; satisfaction of conditions precedent to drawdown under the project loan debt facility; the ongoing effects of inflation and supply chain issues on the Terronera Project economics; fluctuations in the prices of silver and gold, fluctuations in the currency markets (particularly the Mexican peso, Chilean peso, Canadian dollar and US dollar); and challenges to the Company's title to properties; as well as those factors described in the section "risk factors" contained in the Company's most recent form 40F/Annual Information Form filed with the SEC and Canadian securities regulatory authorities.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of the Company's mining operations, no material adverse change in the market price of commodities forecasted Terronera mine economics as of 2024, mining operations will operate, and the mining products will be completed under management's expectations and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, other factors may cause results to be materially different from those anticipated, described, estimated, assessed, or intended. There can be no assurance that any forward-looking statements or information will be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.
Endeavour Silver Corp. ("Endeavour" or the "Company") (NYSE: EXK; TSX: EDR) is pleased to announce that shareholders voted in favour of all items of business at the Company's 2024 Annual General Meeting ("AGM") held on May 28, 2024 in Vancouver. A total of 104,090,503 votes were cast or represented by proxy at the AGM, representing 43.31% of the outstanding common shares as of the record date. The following is a tabulation of the votes submitted by proxy:
DIRECTORS
NUMBER OF SHARES
PERCENTAGE OF VOTES CAST
FOR
WITHHELD/ ABSTAIN
FOR
WITHHELD
Rex J. McLennan
50,212,585
11,699,944
81.10%
18.90%
Margaret M. Beck
61,370,134
542,396
99.12%
0.88%
Ricardo M. Campoy
61,455,874
456,656
99.26%
0.74%
Daniel Dickson
61,461,186
451,345
99.27%
0.73%
Amy Jacobsen
61,364,651
547,879
99.12%
0.88%
Kenneth Pickering
53,516,716
8,395,815
86.44%
13.56%
Mario D. Szotlender
61,428,282
484,248
99.22%
0.78%
Angela Johnson
61,333,538
578,992
99.06%
0.94%
All director nominees were re-elected, including the addition of Angela Johnson to the Board of Directors (see news release dated April 18, 2024 ) to fill vacancy left by the retirement of Christine West.
Shareholders voted 88.36% in favour of re-appointing KPMG LLP as auditor of the Company and authorized the Board to fix the auditor's remuneration for the ensuing year. In addition, shareholders also voted 96.79% in favour of approving certain amendments to the Stock Option Plan and all unallocated options grantable under the Stock Option Plan, as amended by Amendment No. 6, and 96.76% in favour of approving all unallocated awards grantable under the Share Unit Plan.
About Endeavour Silver – Endeavour Silver is a mid-tier precious metals company with a strong commitment to sustainable and responsible mining practices. With operations in Mexico and the development of the new cornerstone mine in Jalisco state, the Company aims to contribute positively to the mining industry and the communities in which it operates. In addition, Endeavour has a portfolio of exploration projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer.
Endeavour Silver Corp. ("Endeavour" or the "Company") (TSX: EDR, NYSE: EXK) made further progress executing its 2022-2024 Sustainability Strategy as outlined in the Company's 2023 Sustainability Report released today.
Entitled "Transformation in Motion", the report provides insights into Endeavour's sustainability performance and approach over 2023, including second-year progress highlights against the strategy.
"Since launching our 2022-2024 Sustainability Strategy two years ago, we have completed many significant initiatives and achieved key targets," stated Dan Dickson, CEO of Endeavour. "In 2023, we transformed more commitments into meaningful impact across our sites and surrounding areas. With the ongoing construction of our flagship mine, Terronera, we're on the doorstep of a transformation that will bring us closer to becoming a premier silver producer—and our sustainability initiatives have helped set us up for this exciting future."
Endeavour's 2022-2024 Sustainability Strategy is centered around three pillars:
People – Increasing positive social impacts for people in our workplace and in the communities where we operate.
Planet – Elevating our environmental stewardship to reduce negative impacts, protect ecosystems and support environmental sustainability.
Business – Operating a trusted, well-performing business by further strengthening the critical foundations that create long-term organizational sustainability.
The actions we took in 2023, and achievements made, include the following (all dollar amounts presented below are in U.S. dollars):
People
Continued implementing safety procedures aligned to ISO 45001, the global standard for reducing occupational injuries and diseases, and recorded a 1.03 reportable injury rate.
Provided an average of 31 training hours per employee and contractor.
Made upgrades to our mining on-site facilities, including employee accommodations, food services and enjoyment areas, to create more comfortable experiences for our people.
Nearly doubled our community investments, to $854,620 which supported initiatives such as road improvement projects, the building of a new community water well, and the delivery of skill-training workshops for local residents.
Marked the seventh anniversary of our Scholarship Program, with 142 scholarships awarded in 2023 – and 855 since 2017 – to enhance access to education for local students.
Awarded the ‘Socially Responsible Company' distinction by the Mexican Center for Philanthropy.
Planet
Released our first climate report aligned to the Task Force on Climate-related Financial Disclosures (TCFD) framework, entitled " Our Climate Journey " , and undertook research to inform the development of a long-term Climate Action Plan.
Calculated Scope 3 emissions for the first time, for our two producing mines.
Recycled 89% of water used in our operations, beating our target and minimizing our use of fresh water.
Diverted 78% of our overall waste from landfills.
Continued working with an external consultant to align our current practices with the new Global Industry Standard on Tailings Management.
Planted 58,580 trees through our reforestation program to restore land disturbed by mining activity
Business
Surpassed 30% representation of women on the Board, achieving our 2024 target.
Developed Anti-money Laundering and Anti-terrorist Financial Protocol to formalize and strengthen the controls governing our relationships with third parties.
100% of our employees completed business conduct and ethics training.
Created a new human rights training course for Endeavour's security personal.
97% of our procurement was from local and national suppliers in Mexico.
Launched Supplier Standards of Conduct to integrate enhanced ESG criteria into our supplier due diligence processes.
The 2023 Sustainability Report and related performance tables are available on Endeavour's website . The report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards and the Sustainability Accounting Standards Board (SASB) framework, as well as with reference to the United Nations Sustainable Development Goals (SDGs). A Spanish version of the report will be available online during Q3, 2024.
About Endeavour Silver – Endeavour is a mid-tier precious metals company with a strong commitment to sustainable and responsible mining practices. With operations in Mexico and the development of the new cornerstone mine in Jalisco state, the company aims to contribute positively to the mining industry and the communities in which it operates. In addition, Endeavour has a portfolio of exploration projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer.
Silver Elephant Mining (TSX:ELEF,OTCQB:SILEF) has announced plans to appeal the termination of its Pulacayo mining production contract (MPC) by Bolivia’s state-owned mining authority.
The company received a notice of cancelation on Tuesday (December 31) from Corporacion Minera de Bolivia (Comibol), which says the MPC was revoked due to alleged illegal mining activities within the contract area.
Silver Elephant maintains that its operations have been fully compliant with Bolivian regulations and that all required authorizations for mining activities in the Pulacayo area were properly secured.
The company has also denied knowledge of any unauthorized third-party mining activities within the MPC area.
The Pulacayo MPC was originally signed on October 3, 2019, and it granted Silver Elephant's Bolivian subsidiary the right to explore and mine select Comibol concessions in Pulacayo and Paca for up to 30 years. The agreement remained subject to ratification by Bolivia’s congress, a requirement for formalizing mining production contracts in the country.
Despite the setback, Silver Elephant said in Tuesday's press release that the notice from Comibol will not affect its Apuradita mining concession, which lies adjacent to the Paca concessions.
Apuradita is directly registered under the company’s Bolivian subsidiary and does not fall under Comibol’s jurisdiction. Development activities, including tunnel construction targeting silver sulfide deposits, are currently ongoing at the site.
Comibol, which operates under Bolivia’s Ministry of Mining and Metallurgy, oversees about 163 mining concessions.
In response to the contract termination, Silver Elephant said it plans to pursue an appeal under Bolivian law and in accordance with the dispute resolution mechanisms outlined in the MPC.
Until the dispute is resolved, mining operations within the MPC area are suspended.
The company also emphasized its longstanding engagement with local communities in Pulacayo and Paca, describing its community relations as a critical component of its decade-long presence in Bolivia.
Silver Elephant acquired Pulacayo, which was previously owned by Apogee Silver, in 2016. The project is estimated to contain a silver resource of approximately 100 million ounces, making it a key asset for the company.
The company has not provided a timeline for the appeal process, but indicated that it will continue to update stakeholders as the situation develops.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
In a game-changing move, Boab Metals (ASX:BML) has locked in crucial funding for its Sorby Hills Project, a significant lead-silver resource nestled in Australia. This financial boost not only fortifies the company's position but also lessens its dependence on equity markets. It's a pivotal stride towards the project's Final Investment Decision (FID), which is on the horizon for late 2025.
Key Financial Highlights
Financing Structure: The deal comes with attractive terms - a SOFR + 5 percent interest rate spanning five years, kicking off with an 18-month interest-only period.
FEED Study Results: The recent Front-End Engineering & Design (FEED) study unveiled some eye-catching figures:
C1 operating cost: A lean US$0.36 per pound of payable lead
Net Present Value (NPV8): A whopping AU$411 million
Internal Rate of Return (IRR): An impressive 37 percent
Strategic Acquisition: Boab is upping the ante, set to snag an extra 25 percent stake in Sorby Hills from its joint venture partner for AU$23 million, showcasing its faith in the project's potential.
Investment Potential
Market watchers are buzzing about Boab Metals, and here's why it's catching their eye:
Rock-Solid Fundamentals: The FEED study's results paint a picture of a project with robust profit potential and promising returns.
Smart Positioning: By beefing up its ownership in Sorby Hills, Boab is doubling down on a project that's ripe with growth opportunities.
Market Sweet Spot: The Sorby Hills Project is perfectly poised to ride the wave of growing global demand for lead and silver.
Green Credentials: The project's sustainable metal production aligns with eco-friendly trends, potentially drawing in environmentally conscious investors.
Project Development Progress
Securing this funding is more than just a financial win - it's a crucial stepping stone towards the Sorby Hills Project's Final Investment Decision. This progress speaks volumes about Boab Metals' commitment and savvy ability to navigate the tricky terrain of resource development.
Conclusion
Boab Metals' recent triumphs with the Sorby Hills Project - from bagging favorable funding to stellar FEED study results - position it as a tantalizing prospect in the mining sector. The project's blend of sustainable metal production, robust economics, and strategic importance suggests that Boab Metals could be a goldmine for investors looking to dip their toes in the lead and silver markets.
As with any investment, it's crucial to do your homework and weigh the risks before taking the plunge. That said, the recent developments at Boab Metals are certainly turning heads in the resource sector, making it a company worth keeping on your radar.
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Silver saw ups and downs in 2024, but as the year draws to a close the metal is set to end substantially higher than where it began. Find out what trends have moved the market over the last 12 months.
The silver price put on a strong performance in 2024, hitting highs not seen in over a decade.
Despite some volatility, factors like increasing industrial demand, safe-haven buying from investors and weakening mining supply all came together during the year to support gains in the price.
All told, silver is up nearly 35 percent since the start of 2024, outperforming gold's 32 percent gain.
Silver price in Q4
Silver began Q4 on a strong note, reaching US$31.37 per ounce on October 1 and climbing to US$32.18 on October 4; it then slipped to US$30.49 on October 9. However, the white metal's price didn’t remain low for long. It surged to its year-to-date high of US$34.72 on October 22, also reaching its highest level in 12 years.
The most significant tailwinds for silver came from geopolitical tensions, with what appeared to be a greater likelihood of the Israel-Palestine conflict spilling over into a broader regional war in October. Israel’s attacks on Lebanon, Syria and Iran saw more investors seek the haven of precious metals, benefiting silver.
As November began, the price of silver was again in retreat, trading at US$30.24 by November 15.
Silver faced headwinds following the US presidential election on November 5, losing nearly 5 percent in a single day as some investors fled to interest-bearing assets. However, the metal's losses were somewhat softened after the US Federal Reserve made a 25 basis point cut to its benchmark rate on November 7.
As the month worse on, silver saw volatility, spiking to US$31.34 on November 22. The rise came as safe-haven investors flocked to the metal following an escalation in the war between Russia and Ukraine. The US, UK and France said they would allow the use of long-range missiles by Ukraine to attack military targets inside Russia.
Previously, Ukraine had only been allowed to use the missiles to strike targets along the border.
The response from Russia was a policy change that would permit the use of nuclear weapons against countries supported by nuclear powers. Following the move, Russia launched a test of an intermediate-range ballistic missile capable of carrying a nuclear payload on a target within Ukraine.
Silver fell to a quarterly low of US$30.11 on November 27, but since then the precious metal has regained some ground. As of December 11, it was trading at US$31.88.
The next Fed meeting is set to run from December 17 to 18. Most analysts expect the central bank to make one last 25 basis point cut before pausing in 2025.
Silver started the year on a low note as its lackluster performance from 2023 carried over.
However, rate cut expectations added momentum to silver at the end of February and the beginning of March, which pushed the price up from the US$22 range to above US$25.
At the time, Peter Krauth, editor of Silver Stock Investor, told the Investing News Network (INN), “Silver also typically lags gold, then catches up and surpasses it. We’re starting to see that happen in spades right now. Since the end of February, gold is up about 15 percent, while silver has been up about 22 percent.”
Krauth also mentioned declining aboveground silver inventories.
“I think there may be 12 to 24 months left before they run out,” he said.
The big news from the second quarter was silver breaking through the US$30 barrier.
The price continued to be fueled by rate cut speculation, but also saw support from industrial segments as demand from India soared. The country imported more silver during the first four months of 2024 than all of 2023.
India is typically known for its strong precious metals jewelry demand, but Silver Institute President and CEO Michael DiRienzo told INN that it was also benefiting from “firmer electrical and electronics demand, thanks to the continued strength in India’s real estate market and rising investment in local infrastructure construction.”
Industrial segments, particularly photovoltaics production, have been a driver of Indian demand as the country works to build up its domestic solar supply chain through its approved list of models and manufacturers.
Silver didn’t see much upward momentum through most of the third quarter.
Instead, it saw a significant retreat toward US$26. Still, by the end of the quarter, a Fed rate cut had provided a substantial tailwind for silver, sending it above the US$32 mark by the end of September.
The quarter also saw First Majestic Silver (TSX:AG,NYSE:AG) announce on September 5 that it would purchase all of the issued and outstanding shares of Gatos Silver (TSX:GATO,NYSE:GATO) in a US$970 million transaction.
The deal will give First Majestic a 70 percent stake in the Cerro Los Gatos mine in Northern Mexico. The combined entity's anticipated annual production is 30 million to 32 million silver equivalent ounces.
This was followed on October 4 by Coeur Mining's (NYSE:CDE) agreement to acquire SilverCrest Metals (TSX:SIL,NYSE:SILV) for US$1.7 billion. The deal will create one of the world's largest silver producers, with annual output of 21 million ounces of the white metal projected by 2025.
The deal will give Coeur 100 percent ownership of the recently opened Las Chispas mine in Sonora, Mexico, which is projected to sell 9.8 million to 10.2 million silver equivalent ounces this year.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, 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.
Silver Price Forecast: Top Trends That Will Affect Silver in 2025
Silver reached highs not seen since 2012 this past year. What trends will drive the white metal in 2025, and will its price gains continue?
The silver price reached highs not seen since 2012 this past year, supported by an ongoing deficit and increasing interest from investors as geopolitical concerns prompted safe-haven buying.
The white metal reached its highest point for the year in October, breaking through US$34 per ounce on the back of a shifting post-pandemic landscape and geopolitical tensions. However, Donald Trump's victory in the US presidential election just a few weeks later buoyed bond yields and the US dollar while weighing on silver and gold.
What will 2025 hold for silver? As the new year approaches, investors are closely watching how Trump's policies and actions could impact the precious metal, along with supply and demand trends in the space.
Here's what experts see coming for silver in 2025.
How will Trump's presidency impact silver?
As Trump's inauguration approaches, speculation is rife about how he could affect the resource industry.
The president-elect ran on a policy of “drill, baby, drill," and while his focus was largely on oil and gas companies, mining sector participants have taken it as a positive sign for exploration and development.
Trump's promise to reduce permitting timelines for anyone making an investment of US$1 billion or more in the US has excited sector members, and could end up being a boon to silver companies in the country.
However, part of the help Trump has promised to mining companies comes from reneging on environmental commitments, including the Paris Agreement. This could end up weighing on silver.
Current President Joe Biden's Inflation Reduction Act includes tax credits and deductions for solar projects, and there's some concern that the incoming administration and the new Elon Musk-led Department of Government Efficiency (DOGE) could impose reversals or have the entire act gutted, hurting the solar market.
However, Peter Krauth, author of "The Great Silver Bull" and editor of the Silver Stock Investor, told the Investing News Network (INN) that Tesla (NASDAQ:TSLA) CEO Musk could end up keeping solar safe.
“Tesla bought SolarCity, which became Tesla Energy. They are an important provider of solar panels. Again, Musk’s new role heading DOGE and obvious close connection to Trump just might help mitigate risks to Tesla and its solar panel/power storage business. If that happens, in whatever form it may take, it could shelter solar panel production and sales in the US to a considerable degree,” Krauth explained via email.
He also noted that Trump's presidency isn't without risks and that much uncertainty still remains.
Mind Money CEO Julia Khandoshko also isn't worried about solar demand in the US.
“Rolling back ESG policies and returning to carbon-based technologies could slow the green energy transition in the US. However, Europe and China, the main drivers of the green transition, remain committed to clean energy, which increases silver demand. Thus, global trends will continue to support silver use in renewable energy technologies,” she told INN.
Silver continues to hold a tremendous value proposition for investors. The market has not kept up with the gains in the commodity, and I think that provides investors with a great opportunity.
Industrial segments have been critical for silver demand in recent years.
As of November, the Silver Institute was forecasting total industrial demand of 702 million ounces of silver for 2024, an increase of 7 percent over the 655 million ounces recorded in 2023.
The institute attributes much of this increase to energy transition sectors, highlighting photovoltaics in particular.
However, these gains are coming alongside flat mine production, which is expected to grow only 1 percent to 837 million ounces during 2024. Once factored in, secondary supply from recycling pushes total supply of silver to 1.03 billion ounces for the year, a considerable gap from the 1.21 billion ounces of total demand.
Both Krauth and Khandoshko think the gap between silver supply and demand will continue.
Krauth suggested that companies have been dipping into aboveground inventories to narrow the gap, which has helped to keep the price of silver from exploding over the past year. "That supply is quickly drying up, so I expect to see renewed upward price pressure since silver miners are unable to grow output," he told INN.
Khandoshko expressed a similar sentiment, saying demand is likely to keep outpacing supply.
However, she also sees geopolitics and a global macroeconomic situation that could constrain both demand and supply growth in 2025. For example, economic difficulties in Europe and China could slow energy transition demand.
When it comes to supply, Khandoshko told INN that she sees a different scenario.
“The problem is that silver production is mainly concentrated in geopolitically challenging areas, such as Russia and Kazakhstan, where securing funding for supply expansion is quite difficult," she explained.
"These factors limit silver’s growth potential compared to gold, which in turn benefits from its role as a safe-haven asset during times of economic uncertainty."
Silver M&A set to heat up in 2025
As silver supply becomes increasingly stressed, experts are eyeing projects that are ramping up.
Krauth highlighted Aya Gold and Silver’s (TSX:AYA:OTCQX:AYASF) Zgounder mine expansion. Its first pour was at the end of November, and it is expected to ramp up to full annual output of 8 million ounces in 2025.
Endeavour Silver’s (TSX:EDR,NYSE:EXK) Terronera mine is also nearing completion. Once complete, the operation is expected to produce 15.5 million silver equivalent ounces per year.
For its part, Skeena Resources (TSX:SKE,NYSE:SKE) is working to develop its Eskay Creek project. It is set to come online in 2027, and is expected to bring 9.5 million ounces of silver per year to market in its first five years.
Krauth said a rising silver price is likely good news for mergers and acquisitions in 2025.
“Higher prices, since they translate into higher share prices, meaning acquirers can use their more valuable shares as a currency to acquire others … I think 2024 will bring deals between mid-tiers and between juniors," he said.
Krauth added, "The truth is that many mid-tier producers have not been spending on exploration. Something has to give, so I think we’ll see this space heat up."
Investor takeaway
Khandoshko and Krauth have similar silver outlooks for 2025, suggesting a possible pullback.
“Due to supply shortages and increasing demand in the coming months, silver is expected to reach US$35. After this, a slight pullback to US$30 would be possible,” Khandoshko said.
However, after that happens she projects another rise, with silver potentially passing US$50.
Krauth was looking for silver to reach US$35 in 2024, which happened in Q4. Looking forward to 2025, he thinks the white metal will revisit that level in the first quarter, with US$40 or more possible later in the year.
However, he suggested that investors should be cautious of wider economic trends affecting silver.
“There is a serious risk of significant correction in the broader markets and of a recession. A broad market selloff could bleed into silver stocks, even if only temporarily,” Krauth said.
In the case of a recession, a lack of industrial demand could create headwinds for silver. Still, Krauth thinks that could be tempered by government stimulus efforts for green energy and infrastructure.
Overall, 2025 could be a significant year for silver investors. However, geopolitical and economic instability may provide headwinds across the resource sector and could stymie silver's upward momentum.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Prismo Metals is a client of the Investing News Network. This article is not paid-for content.
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.
David Morgan: Silver to US$40 in 2025, Then Blow-off Top in 2026?
David Morgan, publisher of the Morgan Report, shared his outlook for silver in 2025 and beyond, saying that the white metal may reach US$40 per ounce next year with the possibility of a blow-off top in 2026 or so.
He also discussed his ongoing concerns about central bank digital currencies, both in the US and globally.
"If you could use one word to define my purpose, the way I see it, it's 'freedom.' I like the silver and the gold, and all the stories behind them and the monetary purposes thereof," Morgan said.
"But when it gets down to it, the way the system's going, the amount of gold and silver you have is going to be pretty much meaningless if you do not fit into the social credit system like the Chinese (have)."
Watch the interview above for more from Morgan on silver, as well as gold and the overall market. You can also click here to view the Investing News Network's New Orleans Investment Conference playlist on YouTube.
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.
Which Canadian silver stocks are the best performers so far in 2024? We break down our list of the top TSX, TSXV and CSE silver stocks to guide investors.
Silver saw strong gains in 2024, breaching US$32 per ounce in H1 and then US$34 in October.
Silver’s dual function as a monetary and industrial metal offers great upside. Demand from energy transition sectors, especially for use in the production of solar panels, has created tight supply-and-demand forces.
Demand is already outpacing mine supply, making for a positive situation for silver-producing companies.
How has silver's price movement benefited Canadian silver stocks on the TSX, TSXV and CSE? The five companies listed below have seen the best performances since the start of the year. Data was gathered using TradingView's stock screener on December 10, 2024, and all companies listed had market caps over C$10 million at that time.
Pantera Silver is focused on its Nuevo Taxco silver-gold project near Mexico City, Mexico.
The company signed an earn-in agreement with Impact Silver (TSX:IPT,OTCQB:ISVLF) for the 1,100 hectare property in October 2020. Though limited exploration has been carried out on the property, work done by Impact in 2013 identified 21 silver-bearing veins. Of the 395 rock samples collected at that time, three contained grades of over 1,000 grams per metric ton (g/t) silver. In a 2022 drill program, Pantera highlighted assay results of up to 225 g/t silver from 1.85 meters.
On October 20, explorer and developer Pantera provided a corporate update, saying it was looking at various options to restart exploration work that had previously been paused at Nuevo Taxco. In the announcement, Pantera said it was expecting to begin work in Q3 and would be focusing on sampling and mapping the Southwest zone of the project. The company has not provided any further updates regarding exploration work at Nuevo Taxco.
The most recent news from Pantera came on December 3, when the company announced it had entered into a definitive agreement to acquire a 100 percent stake in the Rakanco project. The property is composed of three mineral claims covering an area of 17,975 hectares in Southwest Bolivia.
Shares of Pantera reached a year-to-date high of C$0.46 on October 22 alongside a surging silver price.
Gatos Silver is a silver-focused production and exploration company. Its flagship asset is the Cerro Los Gatos mine and district, located south of Chihuahua City, Mexico.
The site consists of 14 predominantly silver, lead and zinc mineralization zones, and is a joint venture with Dowa Metals and Mining, which holds a 30 percent stake in the operation; Gatos owns the remaining 70 percent.
On February 21, the company released its full-year results for 2023, indicating it had produced 9.2 million ounces of silver, marking a decline from 10.3 million ounces produced in 2022. However, the company said it improved operational efficiencies to offset inflationary pressures, lowering all-in sustaining costs (AISC) to the lower end of 2023 guidance.
In the release, Gatos also said it was expecting similar production totals for 2024, with guidance of 8.4 million to 9.2 million ounces of silver at an AISC of US$9.50 to US$11.50 per payable ounce. The company said it was anticipating that exploration efforts at the South-East Deeps target would further extend the life of the mine.
On July 23, Gatos reported an update on regional exploration programs, saying that drilling at the South-East Deeps zone extension had resulted in a highlight of 214 g/t silver over 3.5 meters.
Additionally, results from its ongoing drilling at the Portigueño target included a highlight of 49 g/t silver over 1.6 meters, and results from two holes testing the depth of the San Luis target produced a highlighted intercept more than 150 meters below surface of 66 g/t silver over 8.9 meters, including 111 g/t silver over 2.5 meters.
On September 5, Gatos entered into a definitive merger agreement to be acquired by First Majestic Silver (TSX:AG,NYSE:AG). The transaction values Gatos at US$970 million and is expected to be completed in early 2025.
In a Q3 production update on October 9, Gatos reported that its silver equivalent production for the period had increased 11 percent year-on-year. Additionally, through the first nine months of 2024, Gatos produced 7.1 million ounces of silver, up from 6.65 million ounces in the same period in 2023. The higher figures allowed the company to increase its 2024 guidance to 9.2 million to 9.7 million ounces of silver, up from 8.4 million to 9.2 million ounces.
The company released its Q3 financial and operating results on November 11, saying that earnings per share were up 200 percent year-on-year to C$0.14. Net income increased to C$9.9 million from C$3.3 million.
Shares of Gatos reached a year-to-date high of C$27.85 on October 29.
GR Silver Mining is a small-cap explorer and developer that is working to advance its Rosario Mining District in Sinaloa, Mexico, to production. The district consists of three core mining areas: Plomosas, San Marcial and La Trinidad.
The company’s primary focus has been the development of Plomosas and neighboring San Marcial, a 9,764 hectare land package that hosts a past-producing silver, gold, lead and zinc underground mine.
In March 2023, the company released an updated resource estimate for Plomosas showing total indicated resources of 97 million silver equivalent ounces, with additional inferred resources of 53 million silver equivalent ounces.
Shares of GR Silver saw significant gains in the first quarter alongside a rising silver price and a March 4 announcement that GR had started small bulk sampling and test mining at Plomosas.
The company provided results from the sampling program in an update on June 27. In the report, GR Silver said it had completed 280 meters of underground development and processed 15,170 metric tons (MT) of material. Silver recovery rates from the samples were between 84 and 92 percent. Assays from channel sampling produced high grades, with one sample grading 1,625 g/t silver and 14.1 g/t gold over 2.5 meters.
On July 17, GR announced that it had completed its sale of Marlin Gold Mining to a private, arm’s-length company active in Mexico. Under the terms of the agreement, GR was to receive a 0.5 percent net smelter royalty on the concessions owned by Marlin subsidiary Oro Gold and a 10 year first right of refusal on any disposition of the concessions.
Since then, the company has spent time raising funds. Its most recent news came on September 27, when GR announced it had closed an oversubscribed private placement for C$2.37 million. The company said it intends to use the proceeds for exploration activities at its Plomosas project.
GR's share price reached a year-to-date high of C$0.295 on October 23.
Andean Precious Metals is a silver-focused company with a pair of operating assets in the Amercias.
Its primary silver-producing operation is the San Bartolome mine in the Potosi Department of Bolivia. The onsite processing facility has an annual ore capacity of 1.8 million MT.
A September 2023 mineral reserve statement demonstrates proven and probable quantities of silver at 6.85 million ounces from 21.01 million MT of ore with an average grade of 10.15 g/t.
Its other producing asset is the Golden Queen mine in Kern County, California, US. It hosts a 12,000 MT per day cyanide heap leach and Merril-Crowe processing facility. A mineral reserve statement shows measured and indicated silver values at 11.24 million ounces from 41.81 million MT with an average grade of 8.37 g/t. The company acquired Golden Queen from Auvergne Umbrella in November 2023 for total consideration of US$15 million.
On November 11, the company released its Q3 operating and financial results. Andean said that during the first nine months of the year, it produced 2.98 million ounces of silver at San Bartolomé, an 11 percent reduction from 2023. However, this was offset by production at Golden Queen, which generated 395,000 ounces of silver.
The most recent news from Andean came on December 5, when it announced it had received approval to be listed on the Toronto Stock Exchange. The company said the move reflects its commitment to delivering shareholder value and will enhance Andean’s visibility and ability to broaden its investor base.
Andean shares have positive momentum all year, but saw their biggest increase alongside a surge in silver and gold prices in September and into October. The company reached its year-to-date high of C$2.10 on October 22, the same day silver saw its highest price of the year.
Endeavour Silver is a silver company with two operating silver-gold mines in Mexico — Guanaceví and Bolañitos — plus the advanced-stage Terronera development project and several exploration properties.
Its primary focus for 2024 has been its Terronera project in Jalisco, Mexico, which is under construction. Once complete, the new mine will become the company’s flagship operation. According to a 2023 update to its 2021 feasibility report, Terronera will produce an estimated 4 million ounces of silver per year over a 10 year mine life.
On July 24, Endeavour announced that construction at the site had progressed, with surface construction achieving 77 percent completion. The company said it should be ready for dry commissioning during the third quarter, and that final earthworks and concrete pouring were also expected to take place during that time period.
Endeavour reported on August 19 that, following a failure that occurred at the primary ball mill trunnion on August 12, it had resumed processing at its Guanacevi mine site. However, the company noted that its processing capacity would be halved during a ramp up with temporary modifications. At the time, it stated that permanent repairs to return to regular capacity should take 16 weeks for fabrication and installation. The company estimated that silver production for the year would be 900,000 to 1.1 million ounces lower than previous guidance for that reason.
In its Q3 production results, released on October 8, Endeavour said the failure and temporary fix had reduced throughput at the mill to 565 MT per day, resulting in production of 847,717 ounces of silver, down 24 percent year-on-year. For the first nine months of the year, Endeavour produced 3.65 million ounces of silver, 15 percent lower year-on-year.
Endeavour expects Guanacevi to be back to full operation in December.
In a release on October 21, Endeavour provided a construction update from Terronera indicating that it had reached 77 percent completion. The company said it is on track to begin commissioning near the end of Q4.
Shares of Endeavour reached a year-to-date high of C$7.62 on October 29.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
The silver price reached highs not seen since 2012 this past year, supported by an ongoing deficit and increasing interest from investors as geopolitical concerns prompted safe-haven buying.
The white metal reached its highest point for the year in October, breaking through US$34 per ounce on the back of a shifting post-pandemic landscape and geopolitical tensions. However, Donald Trump's victory in the US presidential election just a few weeks later buoyed bond yields and the US dollar while weighing on silver and gold.
What will 2025 hold for silver? As the new year approaches, investors are closely watching how Trump's policies and actions could impact the precious metal, along with supply and demand trends in the space.
Here's what experts see coming for silver in 2025.
How will Trump's presidency impact silver?
As Trump's inauguration approaches, speculation is rife about how he could affect the resource industry.
The president-elect ran on a policy of “drill, baby, drill," and while his focus was largely on oil and gas companies, mining sector participants have taken it as a positive sign for exploration and development.
Trump's promise to reduce permitting timelines for anyone making an investment of US$1 billion or more in the US has excited sector members, and could end up being a boon to silver companies in the country.
However, part of the help Trump has promised to mining companies comes from reneging on environmental commitments, including the Paris Agreement. This could end up weighing on silver.
Current President Joe Biden's Inflation Reduction Act includes tax credits and deductions for solar projects, and there's some concern that the incoming administration and the new Elon Musk-led Department of Government Efficiency (DOGE) could impose reversals or have the entire act gutted, hurting the solar market.
However, Peter Krauth, author of "The Great Silver Bull" and editor of the Silver Stock Investor, told the Investing News Network (INN) that Tesla (NASDAQ:TSLA) CEO Musk could end up keeping solar safe.
“Tesla bought SolarCity, which became Tesla Energy. They are an important provider of solar panels. Again, Musk’s new role heading DOGE and obvious close connection to Trump just might help mitigate risks to Tesla and its solar panel/power storage business. If that happens, in whatever form it may take, it could shelter solar panel production and sales in the US to a considerable degree,” Krauth explained via email.
He also noted that Trump's presidency isn't without risks and that much uncertainty still remains.
Mind Money CEO Julia Khandoshko also isn't worried about solar demand in the US.
“Rolling back ESG policies and returning to carbon-based technologies could slow the green energy transition in the US. However, Europe and China, the main drivers of the green transition, remain committed to clean energy, which increases silver demand. Thus, global trends will continue to support silver use in renewable energy technologies,” she told INN.
Silver deficit expected to continue
Industrial segments have been critical for silver demand in recent years.
As of November, the Silver Institute was forecasting total industrial demand of 702 million ounces of silver for 2024, an increase of 7 percent over the 655 million ounces recorded in 2023.
The institute attributes much of this increase to energy transition sectors, highlighting photovoltaics in particular.
However, these gains are coming alongside flat mine production, which is expected to grow only 1 percent to 837 million ounces during 2024. Once factored in, secondary supply from recycling pushes total supply of silver to 1.03 billion ounces for the year, a considerable gap from the 1.21 billion ounces of total demand.
Both Krauth and Khandoshko think the gap between silver supply and demand will continue.
Krauth suggested that companies have been dipping into aboveground inventories to narrow the gap, which has helped to keep the price of silver from exploding over the past year. "That supply is quickly drying up, so I expect to see renewed upward price pressure since silver miners are unable to grow output," he told INN.
Khandoshko expressed a similar sentiment, saying demand is likely to keep outpacing supply.
However, she also sees geopolitics and a global macroeconomic situation that could constrain both demand and supply growth in 2025. For example, economic difficulties in Europe and China could slow energy transition demand.
When it comes to supply, Khandoshko told INN that she sees a different scenario.
“The problem is that silver production is mainly concentrated in geopolitically challenging areas, such as Russia and Kazakhstan, where securing funding for supply expansion is quite difficult," she explained.
"These factors limit silver’s growth potential compared to gold, which in turn benefits from its role as a safe-haven asset during times of economic uncertainty."
Silver M&A set to heat up in 2025
As silver supply becomes increasingly stressed, experts are eyeing projects that are ramping up.
Krauth highlighted Aya Gold and Silver’s (TSX:AYA:OTCQX:AYASF) Zgounder mine expansion. Its first pour was at the end of November, and it is expected to ramp up to full annual output of 8 million ounces in 2025.
Endeavour Silver’s (TSX:EDR,NYSE:EXK) Terronera mine is also nearing completion. Once complete, the operation is expected to produce 15.5 million silver equivalent ounces per year.
For its part, Skeena Resources (TSX:SKE,NYSE:SKE) is working to develop its Eskay Creek project. It is set to come online in 2027, and is expected to bring 9.5 million ounces of silver per year to market in its first five years.
Krauth said a rising silver price is likely good news for mergers and acquisitions in 2025.
“Higher prices, since they translate into higher share prices, meaning acquirers can use their more valuable shares as a currency to acquire others … I think 2024 will bring deals between mid-tiers and between juniors," he said.
Krauth added, "The truth is that many mid-tier producers have not been spending on exploration. Something has to give, so I think we’ll see this space heat up."
Investor takeaway
Khandoshko and Krauth have similar silver outlooks for 2025, suggesting a possible pullback.
“Due to supply shortages and increasing demand in the coming months, silver is expected to reach US$35. After this, a slight pullback to US$30 would be possible,” Khandoshko said.
However, after that happens she projects another rise, with silver potentially passing US$50.
Krauth was looking for silver to reach US$35 in 2024, which happened in Q4. Looking forward to 2025, he thinks the white metal will revisit that level in the first quarter, with US$40 or more possible later in the year.
However, he suggested that investors should be cautious of wider economic trends affecting silver.
“There is a serious risk of significant correction in the broader markets and of a recession. A broad market selloff could bleed into silver stocks, even if only temporarily,” Krauth said.
In the case of a recession, a lack of industrial demand could create headwinds for silver. Still, Krauth thinks that could be tempered by government stimulus efforts for green energy and infrastructure.
Overall, 2025 could be a significant year for silver investors. However, geopolitical and economic instability may provide headwinds across the resource sector and could stymie silver's upward momentum.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Prismo Metals is a client of the Investing News Network. This article is not paid-for content.
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.
First Majestic Silver Corp. (NYSE: AG) (TSX: AG) (FSE: FMV) (the "Company" or "First Majestic") announces that Gatos Silver, Inc. ("Gatos") has advised the Company that it has amended and restated its agreements (the "Amended Agreements") with Dowa Metals & Mining Co., Ltd. ("Dowa") regarding the Los Gatos Joint Venture (the "LGJV"). The Amended Agreements, which become effective on January 1, 2025, expand Gatos' management rights within the LGJV and allow for the financial statements of the LGJV to be fully consolidated. For copies of the Amended Agreements, please see the Form 8-K filed by Gatos under its EDGAR profile at www.sec.govedgar. The Amended Agreements do not affect the respective ownership interests of Gatos and Dowa in the LGJV, which remain unchanged at 70% and 30%, respectively. Concurrent with this news release, the Company has filed a material change report dated December 19, 2024 (the "December Material Change Report") under its SEDAR+ profile at www.sedarplus.com, with further details of the Amended Agreements.
As a result of the Amended Agreements, First Majestic has updated the unaudited pro forma condensed combined financial information (the "Pro Forma Financial Information") that was previously prepared by the Company and that was included in its management information circular (the "Circular") for the upcoming January 14, 2025 special meeting of First Majestic's shareholders (the "Special Meeting") to reflect full consolidation of the LGJV in the Pro Forma Financial Information (as opposed to accounting for Gatos' 70% interest in the LGJV using the equity method of accounting, which is reflected in the Pro Forma Financial Information set out in the Circular). The updated Pro Forma Financial Information based on fully consolidating the LGJV is attached to the December Material Change Report.
First Majestic's shareholders are encouraged to read the updated Pro Forma Financial Information in the December Material Change Report, together with the Circular and the other materials for the Special Meeting, when voting their shares in respect of the Special Meeting. Electronic versions of the materials for the Special Meeting are available at www.AGSpecialMeeting.com.
The Company would like to remind shareholders that the Special Meeting will be held on Tuesday, January 14, 2025, at 11:00 a.m. (Pacific Time) at the offices of Bennett Jones LLP, located at Suite 2500 - 666 Burrard Street, Vancouver, British Columbia V6C 2X8. Only First Majestic shareholders of record as of November 25, 2024 are entitled to vote at the Special Meeting. For further details regarding the Special Meeting, please see the Company's news release dated December 10, 2024.
First Majestic has retained Kingsdale Advisors ("Kingsdale") as a Strategic Advisor and to assist in the solicitation of proxies for the Special Meeting. Any shareholders who need assistance with voting their First Majestic Shares may contact Kingsdale by telephone at 1-866-851-3214 (toll-free in North America) or 1-647-577-3635 (text and call enabled outside North America), or by email at contactus@kingsdaleadvisors.com.
Gatos Stockholder Meeting
Holders of shares of Gatos common stock ("Gatos Shares") are also required to provide their approval of First Majestic's acquisition of all of the outstanding Gatos Shares (the "Transaction"), and accordingly, Gatos has announced that it will hold its stockholder meeting virtually on Tuesday, January 14, 2025, at 10:00 a.m. (Pacific Time), one hour prior to First Majestic's Special Meeting. Subject to the approval of First Majestic's shareholders and Gatos' stockholders and the satisfaction or waiver of other conditions precedent, it is anticipated that the Transaction will close in January 2025.
Important Information for Investors and Shareholders about the Transaction and Where to Find It
This news release is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities of First Majestic or Gatos or the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities of First Majestic or Gatos in any jurisdiction in contravention of applicable law. This news release may be deemed to be soliciting material relating to the Transaction.
In connection with the proposed transaction between First Majestic and Gatos pursuant to the Merger Agreement and subject to future developments, First Majestic has filed a registration statement on Form F-4 (the "Form F-4") with the U.S. Securities and Exchange Commission (the "SEC"), which includes a proxy statement of Gatos that also constitutes a prospectus of First Majestic (the "Proxy Statement/Prospectus"). The Form F-4 was declared effective by the SEC on December 2, 2024. Gatos filed a Proxy Statement/Prospectus with the SEC on December 3, 2024, which it commenced mailing to its stockholders on December 6, 2024. First Majestic filed the Information Circular in connection with the proposed Transaction with applicable Canadian securities regulatory authorities on December 10, 2024. This news release is not a substitute for any registration statement, proxy statement, prospectus or other document First Majestic or Gatos has filed or may file with the SEC or Canadian securities regulatory authorities in connection with the proposed Transaction. First Majestic commenced mailing the Meeting Materials to its shareholders on December 10, 2024. INVESTORS AND SECURITY HOLDERS OF GATOS AND FIRST MAJESTIC ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND MANAGEMENT PROXY CIRCULAR, RESPECTIVELY, AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC OR CANADIAN SECURITIES REGULATORY AUTHORITIES CAREFULLY IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE TRANSACTION BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT FIRST MAJESTIC, GATOS, THE TRANSACTION AND RELATED MATTERS. Investors and security holders may obtain free copies of the Proxy Statement/Prospectus, the filings with the SEC that are incorporated by reference into the Proxy Statement/Prospectus and other documents filed with the SEC by First Majestic and Gatos containing important information about First Majestic or Gatos and the Transaction through the website maintained by the SEC at www.sec.gov. Investors will also be able to obtain free copies of the management proxy circular and other documents filed with Canadian securities regulatory authorities by First Majestic, through the website maintained by the Canadian Securities Administrators at www.sedarplus.com. In addition, investors and security holders may obtain free copies of the documents filed by First Majestic with the SEC and Canadian securities regulatory authorities on First Majestic's website or by contacting First Majestic's investor relations team. Copies of the documents filed with the SEC by Gatos are available free of charge on Gatos' website at www.gatossilver.com or by contacting Gatos' investor relations team.
Participants in the Merger Solicitation
First Majestic, Gatos and certain of their respective directors, executive officers and employees may be considered participants in the solicitation of proxies in connection with the proposed Transaction. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the shareholders of First Majestic and the stockholders of Gatos in connection with the Transaction, including a description of their respective direct or indirect interests, by security holdings or otherwise, is included in the Proxy Statement/Prospectus described above and other relevant documents when they are filed with the SEC and Canadian securities regulatory authorities in connection with the proposed Transaction. Additional information regarding First Majestic's directors and executive officers is also included in First Majestic's Notice of Annual Meeting of Shareholders and 2024 Proxy Statement, which was filed with the SEC and Canadian securities regulatory authorities on April 15, 2024, and information regarding Gatos' directors and executive officers is also included in Gatos' Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 20, 2024, as amended by Amendment No. 1 to such annual report filed with the SEC on May 6, 2024 and Gatos' 2024 Proxy Statement for its 2024 Annual Meeting of Stockholders, which was filed with the SEC on April 25, 2024. These documents are available free of charge as described above.
ABOUT FIRST MAJESTIC
First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, and the La Encantada Silver Mine as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada, U.S.A.
First Majestic is proud to own and operate its own minting facility, First Mint, LLC, and to offer a portion of its silver production for sale to the public. Bars, ingots, coins and medallions are available for purchase online at www.firstmint.com, at some of the lowest premiums available.
This news release contains "forward‐looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws and "forward-looking information" under applicable Canadian securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the future performance, business prospects or opportunities of First Majestic and/or Gatos that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management of First Majestic and/or Gatos made in good faith in light of management's experience and perception of historical trends, current conditions and expected future developments. Forward‐looking statements in this news release include, but are not limited to, statements with respect to: closing of the Transaction and the terms and timing related thereto; the anticipated timing of shareholder meetings; and the timing for the Amending Agreements becoming effective. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, guidance cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon guidance and forward‐looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. All statements other than statements of historical fact may be forward‐looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "forecast", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward‐looking statements".
Actual results may vary from forward‐looking statements. Forward‐looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward‐looking statements, including but not limited to: satisfaction or waiver of all applicable closing conditions for the Transaction on a timely basis or at all including, without limitation, receipt of all necessary shareholder, stock exchange and regulatory approvals or consents and lack of material changes with respect to First Majestic and Gatos and their respective businesses, all as more particularly set forth in the Merger Agreement; the timing of the closing of the Transaction and the failure of the Transaction to close for any reason; the outcome of any legal proceedings that may be instituted against First Majestic or Gatos and others related to the Transaction; and unanticipated difficulties or expenditures relating to the Transaction. First Majestic is not affirming or adopting any statements or reports attributed to Gatos (including prior mineral reserve and resource declaration) in this news release or made by Gatos outside of this news release. In addition, the failure of a party to comply with the terms of the Merger Agreement may result in that party being required to pay a fee to the other party, the result of which could have a material adverse effect on the paying party's financial position and results of operations and its ability to fund growth prospects and current operations. Although First Majestic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward‐looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
First Majestic believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. These statements speak only as of the date hereof. First Majestic does not intend, and does not assume any obligation, to update these forward-looking statements or forward-looking information, except as required by applicable laws.
The silver price put on a strong performance in 2024, hitting highs not seen in over a decade.
Despite some volatility, factors like increasing industrial demand, safe-haven buying from investors and weakening mining supply all came together during the year to support gains in the price.
All told, silver is up nearly 35 percent since the start of 2024, outperforming gold's 32 percent gain.
Silver price in Q4
Silver began Q4 on a strong note, reaching US$31.37 per ounce on October 1 and climbing to US$32.18 on October 4; it then slipped to US$30.49 on October 9. However, the white metal's price didn’t remain low for long. It surged to its year-to-date high of US$34.72 on October 22, also reaching its highest level in 12 years.
The most significant tailwinds for silver came from geopolitical tensions, with what appeared to be a greater likelihood of the Israel-Palestine conflict spilling over into a broader regional war in October. Israel’s attacks on Lebanon, Syria and Iran saw more investors seek the haven of precious metals, benefiting silver.
As November began, the price of silver was again in retreat, trading at US$30.24 by November 15.
Silver faced headwinds following the US presidential election on November 5, losing nearly 5 percent in a single day as some investors fled to interest-bearing assets. However, the metal's losses were somewhat softened after the US Federal Reserve made a 25 basis point cut to its benchmark rate on November 7.
As the month worse on, silver saw volatility, spiking to US$31.34 on November 22. The rise came as safe-haven investors flocked to the metal following an escalation in the war between Russia and Ukraine. The US, UK and France said they would allow the use of long-range missiles by Ukraine to attack military targets inside Russia.
Previously, Ukraine had only been allowed to use the missiles to strike targets along the border.
The response from Russia was a policy change that would permit the use of nuclear weapons against countries supported by nuclear powers. Following the move, Russia launched a test of an intermediate-range ballistic missile capable of carrying a nuclear payload on a target within Ukraine.
Silver fell to a quarterly low of US$30.11 on November 27, but since then the precious metal has regained some ground. As of December 11, it was trading at US$31.88.
The next Fed meeting is set to run from December 17 to 18. Most analysts expect the central bank to make one last 25 basis point cut before pausing in 2025.
Silver started the year on a low note as its lackluster performance from 2023 carried over.
However, rate cut expectations added momentum to silver at the end of February and the beginning of March, which pushed the price up from the US$22 range to above US$25.
At the time, Peter Krauth, editor of Silver Stock Investor, told the Investing News Network (INN), “Silver also typically lags gold, then catches up and surpasses it. We’re starting to see that happen in spades right now. Since the end of February, gold is up about 15 percent, while silver has been up about 22 percent.”
Krauth also mentioned declining aboveground silver inventories.
“I think there may be 12 to 24 months left before they run out,” he said.
The big news from the second quarter was silver breaking through the US$30 barrier.
The price continued to be fueled by rate cut speculation, but also saw support from industrial segments as demand from India soared. The country imported more silver during the first four months of 2024 than all of 2023.
India is typically known for its strong precious metals jewelry demand, but Silver Institute President and CEO Michael DiRienzo told INN that it was also benefiting from “firmer electrical and electronics demand, thanks to the continued strength in India’s real estate market and rising investment in local infrastructure construction.”
Industrial segments, particularly photovoltaics production, have been a driver of Indian demand as the country works to build up its domestic solar supply chain through its approved list of models and manufacturers.
Silver didn’t see much upward momentum through most of the third quarter.
Instead, it saw a significant retreat toward US$26. Still, by the end of the quarter, a Fed rate cut had provided a substantial tailwind for silver, sending it above the US$32 mark by the end of September.
The quarter also saw First Majestic Silver (TSX:AG,NYSE:AG) announce on September 5 that it would purchase all of the issued and outstanding shares of Gatos Silver (TSX:GATO,NYSE:GATO) in a US$970 million transaction.
The deal will give First Majestic a 70 percent stake in the Cerro Los Gatos mine in Northern Mexico. The combined entity's anticipated annual production is 30 million to 32 million silver equivalent ounces.
This was followed on October 4 by Coeur Mining's (NYSE:CDE) agreement to acquire SilverCrest Metals (TSX:SIL,NYSE:SILV) for US$1.7 billion. The deal will create one of the world's largest silver producers, with annual output of 21 million ounces of the white metal projected by 2025.
The deal will give Coeur 100 percent ownership of the recently opened Las Chispas mine in Sonora, Mexico, which is projected to sell 9.8 million to 10.2 million silver equivalent ounces this year.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, 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.
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