- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
Ora Gold Limited
True North Copper
Chariot Corporation
Purepoint Uranium
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Silver Crown Royalties Completes Offering of Subscription Receipts and Amalgamation With Reporting Issuer
Silver Crown Royalties Inc. (“Silver Crown”, “SCRi”, the “Corporation”, or the “Company”) is pleased to announce that it has closed its previously announced offering (the “Offering”) of subscription receipts (“Subscription Receipts”). Pursuant to the Offering, Silver Crown Royalties issued 7,408,600 Subscription Receipts at a price of C$0.50 per Subscription Receipt for gross proceeds of C$3,704,300 (the “Subscription Proceeds“).
Each Subscription Receipt was converted into a unit of Silver Crown (“Unit”) on June 28, 2024 upon the satisfaction of the escrow release conditions and the release of the Subscription Proceeds to Silver Crown (the “Escrow Release”). Each Unit consists of one common share in the capital of Silver Crown (“Common Share”) and one Common Share purchase warrant (“Warrant”).
Immediately following the Escrow Release, Silver Crown completed its amalgamation (the “Amalgamation”) with 1287412 B.C. Ltd. (“128”), a reporting issuer in British Columbia and Alberta, in accordance with terms of an amalgamation agreement dated May 16, 2024 (the “Amalgamation Agreement”). In accordance with the terms of the Amalgamation Agreement, the securityholders of 128 and Silver Crown became securityholders of one company that is a reporting issuer in British Columbia and Alberta (the “Resulting Issuer”). Pursuant to the terms of the Amalgamation Agreement: (i) each outstanding Common Share and Warrant was exchanged on a 20 for 1 basis (the “Exchange Ratio”) for common shares and warrants of the Resulting Issuer; and (ii) each outstanding 128 share was exchanged on a 53.5 to 1 basis for common shares of the Resulting Issuer. The Resulting Issuer will continue as Silver Crown Royalties Inc., as described in the press release dated May 16, 2024.
The Resulting Issuer has filed its initial listing statement with Cboe Canada Inc. (“Cboe”) and anticipates receipt of a conditional approval letter in the coming weeks. The Resulting Issuer anticipates listing its common shares on Cboe in Q3 2024.
Peter Bures, Silver Crown’s Chief Executive Officer, commented: “This is an exciting time for Silver Crown and its shareholders as we look to unlock value from our silver royalty portfolio as a public company. We believe a positive re-rate is possible, which will benefit our shareholders once Silver Crown starts trading amongst its peer group.”
Subsequent Financing
To further facilitate the Resulting Issuer’s growth initiatives, the Resulting Issuer will also undertake a subsequent financing (the “Subsequent Offering”) to accommodate registered accounts at a price of C$10.00 per unit (the “Subsequent Offering Units”) of the Resulting Issuer for gross proceeds of up to C$1,500,000. Each Subsequent Offering Unit consists of one common share (“Resulting Issuer Common Share”) and one warrant of the Resulting Issuer (a “Resulting Issuer Warrant”). Each whole Resulting Issuer Warrant entitles the holder thereof to purchase an additional Resulting Issuer Common Share at a price of $16.00 for a period of 3 years from closing of the Subsequent Offering. All securities issued pursuant to the Subsequent Offering will be subject to a standard four month hold.
ABOUT CBOE CANADA
Cboe Canada is Canada's Tier 1 stock exchange for the purpose-driven Innovation Economy, providing a best-in-class listing experience for issuers that are shaping the economies of tomorrow. Fully operational since 2015, Cboe Canada lists investment products and companies seeking an internationally recognized stock exchange that enables investor trust, quality liquidity, and broad awareness including unfettered access to market data.
Cboe Canada is part of the Cboe Global Markets network, leveraging deep international expertise, industry-leading market intelligence and technology, and unparalleled service to deliver what stakeholders and the world need now, and for the future.
ABOUT SILVER CROWN ROYALTIES INC.
Founded by industry veterans, SCRi is a pre-IPO stage revenue-generating silver-only royalty company focusing on silver as byproduct credits. SCRi aims to minimize the economic impact on mining projects while maximizing returns for shareholders. SCRi presently has two sources of revenues and continues to build on this foundation, targeting additional operational silver-producing projects.
For further information, please contact:
Silver Crown Royalties Inc.
Peter Bures
Chairman and CEO
Email: pbures@silvercrownroyalties.com
FORWARD-LOOKING STATEMENTS
This release contains certain “forward looking statements” and certain “forward-looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements and information include, but are not limited to, statements with respect to the use of proceeds from the Offering, the receipt of a conditional approval letter from Cboe, the listing of the Common Shares on Cboe and the completion of the Subsequent Offering. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual actions, events or results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over mining operations from which SCR will purchase gold and other metals or from which it will receive royalty payments and risks related to those mining operations, including risks related to international operations, government and environmental regulation, delays in mine construction and operations, actual results of mining and current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; SCR’s ability to enter into definitive agreements and close proposed royalty transactions; the inherent uncertainties related to the valuations ascribed by SCR to its royalty interests; problems inherent to the marketability of gold and other metals; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; industry conditions, including fluctuations in the price of the primary commodities mined at such operations, fluctuations in foreign exchange rates and fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects SCR; stock market volatility; regulatory restrictions; liability, competition, the potential impact of epidemics, pandemics or other public health crises on SCR’s business, operations and financial condition, loss of key employees. SCR 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. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. SCR undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available.
This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities of the Corporation in Canada, the United States or any other jurisdiction. Any such offer to sell or solicitation of an offer to buy the securities described herein will be made only pursuant to subscription documentation between the Corporation and prospective purchasers. Any such offering will be made in reliance upon exemptions from the prospectus and registration requirements under applicable securities laws, pursuant to a subscription agreement to be entered into by the Corporation and prospective investors.
Click here to connect with Silver Crown Royalties to receive an Investor Presentation
Should You Invest in Silver Bullion? (Updated 2024)
Investing in silver bullion has pros and cons, and what’s right for one investor may not work for another.
Interest in the silver market tends to flourish whenever the silver price increases, with investors beginning to wonder if it is the right time to add physical silver to their investment portfolios.
While silver can be volatile, the precious metal is also seen as a safe-haven asset, similar to its sister metal gold. Safe-haven investments can offer protection in times of uncertainty, and with tensions running high, they could be a good choice for those looking to preserve their wealth in difficult times.
With those factors in mind, let’s look at the pros and cons of buying silver bullion.
What are the pros of investing in silver bullion?
Silver can offer protection
Silver bullion is often considered a good safe-haven asset. As mentioned, investors often flock to precious metals in times of turmoil, politically and economically. For example, physical silver and gold have both performed strongly in recent years against a background of geopolitical instability and high inflation.
"What you can know with absolute certainty is that good money — so physical gold, physical silver in your possession — is the single safest thing that you can do to protect yourself from all of those issues, plus so many more," Lynette Zang of ITM Trading told the Investing News Network at the 2024 Vancouver Resource Investment Conference.
Silver bullion is a tangible asset
While cash, mining stocks, bonds and other financial products are accepted forms of wealth, they are essentially still digital promissory notes. For that reason, they are all vulnerable to depreciation due to actions like printing money. A troy ounce of silver bullion, on the other hand, is a finite tangible asset. That means that, although it is vulnerable to market fluctuations like other commodities, physical silver isn’t likely to completely crash because of its inherent and real value. Market participants can buy bullion in different forms, such as silver coins or silver jewelry, or they can buy silver bullion bars.
Silver's cheaper and more flexible than gold
Compared to gold bullion, silver is significantly cheaper, which makes it more accessible for investors looking for an affordable entrance to the precious metals market. This can make it easier for investors to build up a portfolio over time.
Another benefit is that investors who need to convert their precious metals to currency will have an easier time selling a portion of their silver portfolio than those looking to sell part of their gold. Just as a US$100 bill can be a challenge to break at the store, divvying up an ounce of gold bullion can be a challenge. As a result, silver bullion is more practical and versatile, particularly for everyday investors who need flexibility in their investments.
Silver offers higher returns than gold
Silver tends to move in tandem with gold: when the price of gold rises, so too does the price of silver. Because the white metal is currently worth around 1/86th the price of gold, buying silver bullion is affordable and stands to see a much bigger percentage gain if the silver price goes up. In fact, silver has outperformed the gold price in bull markets. It’s possible for an investor to hedge their bets with silver bullion in their investment portfolio.
History is on silver’s side
Silver and gold have been used as legal tender for thousands of years, and that lineage lends them a sense of stability. Many buyers find comfort in knowing that silver has been recognized for its value throughout a great deal of mankind’s history, and so there’s an expectation that it will endure while a fiat currency may fall to the wayside. When individuals invest in physical silver, there is a reassurance that the metal has value that will continue to persist. Additionally, its increasing use as an industrial metal in the energy transition has improved the metals fundamentals even further.
What are the cons of investing in silver bullion?
Danger of theft
Unlike most other investments, such as stocks, holding silver bullion can leave investors vulnerable to theft. And of course, the more physical assets, including silver jewelry, that reside within your home, the more at risk you are for losing significantly if a burglary takes place. It's possible to secure your assets from looting by using a safety deposit box in a bank or a safe box in your home, but this will incur additional costs.
Weaker return on investment
Silver may not perform as well as other investments, such as real estate or even other metals. Mining stocks, especially silver stocks that pay dividends, may also be a better option than silver bullion for some investors. Royalty and streaming companies are another option for those interested in investing in silver, as are exchange-traded funds and silver futures.
High silver demand leads to higher premiums
When investors try to buy any bullion product, such as an American silver ounce coin known as a silver eagle, they quickly find out that the physical silver price is generally higher than the silver spot price due to premiums used by sellers. What’s more, if demand is high, premiums can go up fast, making the purchase of physical silver bullion more expensive and a less attractive investment.
Bullion lacks quick liquidity
Silver bullion coins are not legal tender, meaning they can't be used for every day purchases. Since the metal is usually used as an investment, this isn't often an issue. However, it does mean that if silver needs to be sold in a hurry to cover expenses, investors will need to find a buyer. If you can't access a bullion dealer and are in a jam, pawn shops and jewelers are an option, but they won't necessarily pay well.
How to add physical silver to your portfolio?
Interested in adding silver to your portfolio? Watch the Investing News Network's interview with Mark Yaxley of precious metals dealer SWP. He discusses how much to buy, what products to consider and more.
This is an updated version of an article originally published by the Investing News Network in 2016.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Shallow High-Grade Gold Zone Intersected at Kelpie Hill – Cobar Project, NSW
Reconnaissance drilling hits 7m at 4.3g/t Au in the oxide zone, plus base metal mineralisation in the first three drillholes
Eastern Metals Limited (ASX: EMS) (“Eastern Metals” or “the Company”) is pleased to report encouraging initial assay results from a recent reconnaissance drilling program across newly identified high-priority targets at its 100%-owned Cobar Project in NSW.
- Reconnaissance drilling completed at two new targets, Kelpie Hill and Windmill Dam, and at the advanced Evergreen prospect within the 100%-owned Cobar Project in NSW.
- Assay results received for three Reverse Circulation percussion (RC) holes completed at Kelpie Hill, with hole KHRC001 intersecting significant high-grade gold plus base metal mineralisation:
- 7m @ 4.3g/t Au, 2.7g/t Ag, 0.3% Pb from 50m and 1m @ 4.17g/t Au, 2.7g/t Ag from 82m
- Holes KHRC002 and 003 intersected anomalous base metals, and were extended as diamond tails into the primary sulphide zone, returning intercepts of up to:
- 3.05m @ 3.9% Zn, 2% Pb, 29.5g/t Ag from 298.5 and 0.5m @ 7.2% Zn, 2.4% Pb from 299m
- Assays pending for two holes completed at Windmill Dam and Evergreen.
- Induced Polarisation (IP) survey due to commence in the coming weeks. Results from the IP survey will help define and prioritise targets for immediate, follow-up drill testing.
The Company has completed drilling at its two new targets, Kelpie Hill and Windmill Dam, as well as drilling at the more advanced Evergreen prospect (refer to Figure 1). Assays results have so far been received for three (3) holes at Kelpie Hill, where hole KHCRC001 returned an intercept of 7 metres at an average grade of 4.3g/t Au (incl. 1m at 8.56g/t Au) in the weathered, oxidised zone of the Preston Formation, along with silver and base metals. Refer to Table 1 for a summary of significant intercepts.
Base metal results were also returned from the other two holes, including deeper base metal zones in the primary (sulphide zone) of hole KHRCDD003. Assay results from drilling at Windmill Dam and Evergreen are still pending. In light of these highly encouraging results, the Company is finalising the design of an Induced Polarisation (IP) survey, which is due to commence in the coming weeks. Results from the IP survey will help define and prioritise targets for follow-up drill testing.
Eastern Metals’ Chief Executive Officer Ley Kingdom said: “While the high-grade gold zone intersected in the first hole was somewhat of a surprise, given that this was primarily a base metals target, intersecting significant mineralisation is an exciting development for any exploration team. While we are still in the process of evaluating the results and working out the geological context and significance of what we have seen in the first three holes at Kelpie Hill, the key takeaway for investors is that this is a highly complex, mineralised system which offers enormous discovery potential, particularly when considering how little drilling has been done. With results pending from the remaining holes, and an IP survey starting shortly, it’s definitely a case of ‘watch this space!’”.
Figure 1: Location of EL6321 (Browns Reef) and the Kelpie Hill, Windmill Dam & Evergreen prospects.
Kelpie Hill Prospect, Browns Reef (EL6321)
Three Reverse Circulation percussion (“RC”) holes were completed at the Kelpie Hill prospect for 560 metres. Two of the holes (KHRC001 and KHRC002) directly targeted a strong lead-arsenic soil geochemical anomaly, while the third (KHRC003) was drilled as a pre-collar for a planned diamond tail (KHRCDD003) to intersect the target zone at greater depth (see Figure 2).
Figure 2: Cross-section of Kelpie Hill drill-holes KHRC001, KHRC002 and KHRCDD003 showing significant intercepts including 7m @ 4.3g/t gold (Au) from 50m downhole.
All three holes intersected anomalous lead-zinc gossanous ironstones, with KHRCDD003 also intersecting primary sulphides below the depth of oxidation. Diamond cored HQ “tails” were drilled to extend holes KHRC002 and KHRC003.
The 50-56 metre interval was logged by the site geologist as “massive red haematitic ironstone, gossanous” in the weathered oxidised zone of the Preston Formation to the west of the interpreted Woorara Fault, a large regional scale structure on the Preston-Clements contact. Refer to Figure 3.
Significant intercepts for KHRC001 include:
- 7m @ 4.3g/t Au, 2.7g/t Ag, 0.3% Pb from 50m, including:
- 1m @ 8.56g/t Au from 51m
- 1m @ 4.17g/t Au, 2.7g/t Ag from 82m
- 5m @ 3.45g/t Ag, 0.35% Zn from 103m, including:
- 1m @ 8.3g/t Ag from 106m
Figure 3: Kelpie Hill plan view of drillholes KHRC001, KHRC002 and KHRCDD003 with Pb soil contours, and interpreted faults.
Hole KHRC002 was extended as hole KHRCDD002 with a diamond cored tail from 197 metres to 201.35 metres; however, this hole was abandoned due to drilling complications and did not reach the planned target depth into the Clements Formation on the eastern side of the target zone.
The oxide zone interval 169 to 197 metres is strongly lead anomalous, with the interval 175.5 to 197 metres logged by the site geologist as “strongly silica altered ex-shale and sandstone, often highly ferruginous to gossanous, limonite and haematite stain, pits ex-sulphide, quartz veins”.
Click here for the full ASX Release
This article includes content from Eastern Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
5 Best-performing Canadian Silver Stocks of 2024
Silver stocks in 2024 are benefiting from a strong performance from the price of silver, which has moved above the US$30 per ounce mark for the first time since 2012.
It has been buoyed by a variety of factors, including those driving the gold price’s record-setting performance this year, as well as its own unique tailwinds.
According to the Silver Institute, demand for silver is set to outstrip mine supply for the third year in a row, due in part to rising consumption from sectors dependent on the energy transition, including photovoltaics and electric vehicles.
India in particular has seen silver demand soar after the country introduced regulations for domestic production of new solar projects. This has set the path for the country to nearly double its silver imports this year compared to the 3,625 metric tons of silver it imported in 2023.
How has silver's price movement benefited Canadian silver stocks on the TSX and TSXV? 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 October 16, 2024, and all companies listed had market caps over C$10 million at that time.
1. GR Silver Mining (TSXV:GRSL)
Year-to-date gain: 187.5 percent
Market cap: C$75.83 million
Share price: C$0.23
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 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 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 grams per metric ton (g/t) silver and 14.1 g/t gold over 2.5 meters.
Since then, the company has spent time fundraising. 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 toward exploration activities at its Plomosas project.
GR Silver's share price reached a year-to-date high of C$0.235 on October 9.
2. Gatos Silver (TSX:GATO)
Year-to-date gain: 174.8 percent
Market cap: C$1.6 billion
Share price: C$23.55
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 the 10.3 million ounces produced in 2022. However, the company said it improved operational efficiencies to offset inflationary pressure, lowering all-in-sustaining costs (AISC) to the lower end of 2023 guidance.
In the release, Gatos also notes that it expects 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 anticipates that exploration efforts at the South-East Deeps target will further extend the life of the mine.
On July 23, Gatos reported an update on regional exploration programs. Drilling at the South East Deeps zone extension 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 announced it had entered into a definitive merger agreement in which it will be acquired by First Majestic Silver (TSX:AG,NYSE:AG). Under the terms of the deal, Gatos shareholders will receive 2.44 common shares of First Majestic for each share of Gatos held at a price of US$13.49 based on the closing price of First Majestic on the NYSE on September 4, 2024. The transaction sets the total equity value of Gatos at US$970 million. The merger is expected to be completed in early 2025.
In a Q3 production update on October 9, Gatos reported its silver equivalent production in Q3 increased 11 percent year over 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 guidance for 2024 to 9.2 million to 9.7 million ounces of silver from its original guidance of 8.4 million to 9.2 million ounces.
Shares in Gatos Silver reached a year-to-date high of C$23.55 on October 15.
3. Avino Silver and Gold Mines (TSX:ASM)
Year-to-date gain: 145.07 percent
Market cap: C$226.98 million
Share price: C$1.74
Avino Silver and Gold Mines is a precious metals miner with two primary silver assets: the producing Avino silver mine and the neighboring La Preciosa project in Durango, Mexico.
The Avino mine is capable of processing 2,500 metric tons of ore per day ore, and in 2023 produced 928,643 ounces of silver, 7,335 ounces of gold and 5.3 million pounds of copper. While within the company's guidance, there was a 6 percent decrease in silver production over 2022, when it produced 985,195 ounces in the same time period.
In addition to its Avino mining operation, Avino is working to advance its La Preciosa project toward the production stage. The site covers 1,134 hectares, and according to a February 2023 resource estimate, holds measured and indicated quantities of 98.59 million ounces of silver and 189,190 ounces of gold.
On February 28, the company provided an update for La Preciosa, saying it was preparing for the first phase of production at the Gloria and Abundancia veins. Avino also said it has the equipment needed to commence operations at the site once it receives the necessary environmental permits, which it expects later in 2024.
In its Q2 2024 results released on August 13, Avino reported that it had generated record quarterly revenues of C$14.8 million during the second quarter, an increase of 60 percent over the same quarter in 2023. Additionally, the company said it had produced 543,589 ounces of silver through the first half of the year, a 16 percent increase from the 466,755 ounces of silver in the six months of 2023.
Avino's share price marked a year-to-date high of C$1.74 on October 15.
4. Endeavour Silver (TSX:EDR)
Year-to-date gain: 132.32 percent
Market cap: C$1.49 billion
Share price: C$6.11
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 Q3 2024 and that final earthworks and concrete pouring were also expected to take place during the third quarter.
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 due to this.
In Endeavour’s Q3 production results released on October 8, the company said the failure and temporary fix had reduced throughput at the mill to 565 metric tons per day, resulting in production of 847,717 ounces of silver, a decrease of 24 percent compared to Q3 2023. For the first nine months of the year, Endeavour produced 3.65 million ounces of silver, 15 percent lower year-over-year.
Endeavour expects Guanacevi to be back to full operations in December.
Shares of Endeavour reached a year-to-date high of C$6.80 on July 15.
5. Defiance Silver (TSXV:DEF)
Year-to-date gain: 129.17 percent
Market cap: C$135.07 million
Share price: C$0.66
Explorer Defiance Silver is working to advance its district-scale Zacatecas silver project in Zacatecas, Mexico.
The project consists of a 4,300 hectare land package and includes four project areas: San Acacio, Lucito, Panuco and Lagartos. Both San Acacio and Lagartos have seen previous exploration and mining activity.
On January 15, the company announced results from its 2023 drill program at the San Acacio target, reporting well-developed silver and zinc values with elevated gold and copper. This includes a highlighted assay of 223.53 g/t silver over 12.82 meters with an interval of 306.86 g/t silver over 7.79 meters.
Defiance provided an update on April 15 on a surface-sampling campaign at the Lucita target. The results show widespread high-grade polymetallic mineralization, with Defiance highlighting grades of up to 795 g/t silver from Lucita North and 2,350 g/t silver from Lucita South. The company said the results reinforce the district-scale potential at Zacatecas.
On July 29, the company announced it closed the second and final tranche of a non-brokered private placement. The aggregate gross proceeds for both rounds came to a total of C$3.22 million, which the company intends to use for exploration and general working capital.
Shares of Defiance reached a year-to-date high of C$0.425 on May 15.
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.
Silver Price Update: Q3 2024 in Review
The silver price has seen impressive gains in 2024, with the bulk of its move coming during the first half of the year, when it jumped from US$22 per ounce to over US$32 for the first time since 2012.
The white metal remained elevated during Q3, but traded below the US$30 mark for much of the three months. Toward the end of the period it moved up as the US Federal Reserve made a long-awaited interest rate cut.
Read on to learn more about silver's Q3 performance and what experts think is next.
How did the silver price perform in Q3?
Silver started the third quarter at US$29.46 on July 1 and had surged above US$31 by the middle of the month.
The precious metal's increase came alongside renewed speculation that the Fed would cut rates in July. However, backed by another strong US jobs report, the central bank left rates unchanged.
Against that backdrop, the price of silver began to fall and by July 30 had reached US$29.04.
The silver price sank to a quarterly low of US$26.65 on August 7, even as speculation about a rate cut in September took hold among market participants. The retreat, which mirrored a dip in the gold price as investors looked to take profits, was short-lived, and by mid-month the white metal was once again trading above the US$29 mark.
Silver price, Q3 2024.
Chart via Trading Economics.
Silver reached US$30.14 on August 27 after remarks from Fed Chair Jerome Powell at his annual address at the Jackson Hole Economic Symposium. His dovish statements were the clearest indication yet of an upcoming rate cut.
September started with silver in a slide. It bottomed out on September 6 at US$27.93, but saw a reversal after August's US jobs report fell short of expectations and boosted expectations of a larger rate cut.
This provided tailwinds for silver, which broke through the US$30 level before the Fed slashed rates by 50 basis points at its September meeting. Silver climbed to its quarterly high of US$32.15 on September 24.
Industrial demand still a key silver price driver
Silver is valued as a precious metal, but is also driven by industrial demand, particularly photovoltaics.
According to the Silver Institute, silver demand for solar power has more than doubled in the past five years, rising from 74.9 million ounces in 2019 to a forecast 232 million ounces by the end of this year.
India in particular has become a major factor in global photovoltaics market, and has been one of the largest silver consumers in 2024. The country reportedly imported 4,554 metric tons of silver during the first half of the year, putting it on pace to double the 3,625 metric tons of silver it imported in 2023.
In April, India reintroduced a requirement for major photovoltaics projects in the country to use domestically sourced panels. The requirements were put on hold for the 2023 fiscal year due to insufficient domestic manufacturing. Their return has led to a ramp up in Indian photovoltaics production and an increased need for silver.
Additionally, TopCon cells, which have higher efficiency, but require 50 percent more silver content, have begun to dominate the photovoltaics market, contributing to an increasing strain on the supply of silver.
Speaking to the Investing News Network (INN), Peter Krauth, editor of Silver Stock Investor, noted that in addition to increasing demand from India’s photovoltaics sector, the government has changed import duties.
“One important development was when India decided to reduce import duties on gold and silver from 15 percent to 6 percent. That led to a second surge of imports into that country,” he said.
Overall, the silver market remains in a deficit. The Silver Institute is forecasting that demand from all sectors will rise to 1.22 billion ounces in 2024, while mine supply will reach just over 1 billion ounces.
Given that difference, why hasn’t the silver price seen a bigger run?
Part of the reason is that aboveground reserves are being drawn down. However, Krauth believes market participants are only just realizing that the deficit situation isn’t going away any time soon.
“Supply has been flat for a decade. Mine supply peaked eight years ago. Demand has grown to 20 percent above annual supply since 2020. The main reason prices haven’t exploded is that silver consumers have been able to tap stockpiles of 'secondary inventories' at major futures exchanges and exchange-traded funds," he explained.
"That may have 12 to 18 months before running out."
M&A activity increasing as silver price rises
As the silver price rises higher, M&A activity in the sector is strengthening.
First Majestic Silver (TSX:AG,NYSE:AG) announced on September 5 that it plans to purchase all of the issued and outstanding shares of Gatos Silver (TSX:GATO,NYSE:GATO) in a US$970 million transaction.
The deal will provide First Majestic with 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.
On October 4, Coeur Mining (NYSE:CDE) agreed to acquire SilverCrest Metals (TSX:SIL,NYSE:SILV) for US$1.7 billion. The deal will create one of the largest silver producers in the world, with output of 21 million ounces projected by 2025.
The deal gives 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.
Krauth said M&A involving smaller companies may follow as the silver price moves higher.
“Current silver prices are positive for profits, but replacing reserves is a big challenge. I think silver crossing the US$35 mark and sustaining it will give miners confidence that high silver prices are here to stay. With that, they are likely to start moving down the food chain to developers and explorers,” he said.
Investor takeaway
Both Krauth and Mind Money CEO Julia Khandoshko see significant gains ahead for silver.
“Silver may hit more than US$40 and even $50 this year or mid-2025,” Khandoshko commented to INN, noting that strong geopolitical and economic issues continue to impact the precious metal.
“Although silver is less popular than gold, traders might consider it to diversify their investment portfolios, valuing the possibility of using silver as a hedge during periods of uncertainty and high inflation,” she added.
Krauth was similarly positive about silver's prospects. “We are near a crucial level of US$32. Once silver stays consistently above that level, I think it can continue to US$35, which I would expect by the end of this year. Beyond that, I think silver will continue to rise and is likely to reach US$40 at some point in 2025," he said.
However, he expressed a degree of caution, saying there are near-term factors that could pose challenges for investors. He's primarily concerned that a rally in the US dollar could lead to a retreat in precious metal prices.
“In my view, the approach in Q4 should be mostly the same for both metals and equity investors. I’m still cautious that we will see a price pullback in silver, which will bleed into the equities. For that reason, I’d only be adding on weakness in either the metal or the miners,” Krauth said.
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.
Acquisition of Joaquin Silver District Completes
Unico Silver Limited (“USL” or the “Company”) refers to the announcement on 20 August 2024 regarding the proposed acquisition of Minera Joaquin S.R.L, the 100% owner of the mineral claims that make up the Joaquin project, and the 100% acquisition of the mineral titles that make up the Cerro Puntudo project (collectively the “Joaquin Project”).
Following the satisfaction of all required approvals and consents, and execution of final definitive legal agreements between Pan American Silver Corp. (“PAAS”) and USL, the Company is pleased to advise that it has completed the acquisition of the Joaquin Project.
HIGHLIGHTS
- 100% acquisition of two contiguous properties (Joaquin and Cerro Puntudo) totalling 35,G46Ha.
- Joaquin contains a historical Foreign Estimate1 of 16.7Mt at 136gpt silver equivalent (AgEq2) for 73Moz AgEq (68Moz Ag, 64koz Au) in the La Negra and La Morocha deposits.
- Strategically located 60km west of USL’s G1Moz AgEq Cerro Leon resource2 and portfolio, enhancing future development options, with added scale and economics.
- Historical Foreign Estimates exclude adjacent Cerro Puntudo mineral properties which host the along strike extensions of the La Negra and La Morocha deposits.
- USL is planning a comprehensive exploration program on four advanced prospects, aiming to boost current Foreign Estimates and publish a maiden JORC (2012) MRE.
- Historical drill holes that fall outside the current resource:
- La Negra Feeder: 4.5m at 16GGgpt Ag, 22gpt Au from 272m
- La Negra Extension: 3m at 2723gpt Ag, 4.1gpt Au from 54m
- La Morocha Extension: 8m at 226gpt Ag, 0.5gpt Au from 189m
- Cerro Puntudo is host to numerous vein targets (Brunilda, La Esmeralda, Isabella) with high silver gold values at surface that are untested by drilling.
- The transaction includes camp infrastructure and a mining and access agreement valid until 2034.
- Upfront consideration of USD$2m funded from existing cash reserves, with future payments of USD$2m on publication of an economic study supporting a mineral resource at the Joaquin project and USD$8m on commercial production.
Cautionary Statement
(a) The estimates of mineralisation included in this announcement are foreign estimates and are not reported in accordance with the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (2012 JORC Code) and is a “Foreign Estimate”
(b) A Competent Person has not yet done sufficient work to classify the Foreign Estimate as Mineral Resources or Ore Reserves in accordance with the 2012 JORC Code.
(c) It is uncertain that following evaluation and/or further exploration work that the Foreign Estimates will be able to be reported as mineral resources or ore reserves in accordance with the JORC Code 2012.
Figure 1: Joaquin and Cerro Puntudo project location
The information in this Announcement that relates to foreign estimates of mineralisation has been extracted from information contained in the Company’s ASX announcement of 20 August 2024. USL confirms that it is not in possession of any new information or data relating to the foreign estimates of mineralisation that materially impacts on the reliability of those foreign estimates or USL’s ability to verify the foreign estimates a mineral resources or ore reserves in accordance with Appendix 5A (JORC Code). USL confirms that the supporting information provided in the initial market announcement of 20 August 2024 continues to apply and has not materially changed.
Click here for the full ASX Release
This article includes content from Unico Silver Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Silver Crown Royalties Appoints Salman Partners as Strategic Advisor
Silver Crown Royalties Inc. (“Silver Crown”, “SCRi”, the “Corporation”, or the “Company”) (Cboe: SCRI; OTCQX: SLCRF; FRA: QS0) is excited to announce the appointment of Salman Partners as a Strategic Advisor to the Company.
CEO of Salman Partners, industry icon Terry Salman raised over $20 billion for over 400 exploration and mining companies. His 35+ year portfolio of experience includes executive roles at Nesbitt Thomson (acquired by BMO) where he was instrumental in forming the mining team and its mining conference in the 1990s.
Adding to his mining legacy is his dynamic public service presence, recently appointed to the Order of Canada for his contributions to mining exploration and for his generous philanthropy and community activism. He served with the United States Marine Corps and is a Vietnam veteran. Mr. Salman received an MBA from the University of Hartford. You can read about Mr. Salman’s life’s work in his recently published book “What We Give: From Marine to Philanthropist: A Memoir,” available at https://www.whatwegivebook.com/.
Mr. Salman remarked:“I am intrigued by this appointment as Strategic Advisor to Silver Crown Royalties. Silver Crown’s unique royalty model offers investors a new approach to silver investing. I look forward to an interesting and progress driven working relationship.”
“We are thrilled to welcome Terry Salman to our team as advisor. Terry’s decades of experience in mining finance combined with his deep industry insights and strong leadership make him an invaluable asset to our team. Terry’s commitment to excellence and his proven track record in the sector will be instrumental as we continue to grow and achieve our strategic objectives”, commented Peter Bures CEO of Silver Crown Royalties
ABOUT SALMAN PARTNERS
Salman Partners is an independent advisory firm with a distinguished 30-year history in the financial services industry. Since its incorporation in September 1994, the firm has evolved from its origins as a licensed broker-dealer in Canada and the United States to become a trusted advisor in the resource sector. Throughout its extensive history, Salman Partners has provided expert guidance to over 400 companies, maintaining a rich tradition of excellence and integrity in financial advisory services.
ABOUT SILVER CROWN ROYALTIES INC.
Founded by industry veterans, SCRi is a publicly traded, revenue-generating silver-only royalty company focusing on silver as byproduct credits. SCRi aims to minimize the economic impact on mining projects while maximizing returns for shareholders. SCRi presently has two sources of revenue and continues to build on this foundation, targeting additional operational silver-producing projects.
For further information, please contact:
Silver Crown Royalties Inc.
Peter Bures
Chairman and CEO
Telephone: (416) 481-1744
Email: pbures@silvercrownroyalties.com
FORWARD-LOOKING STATEMENTS
This release contains certain “forward looking statements” and certain “forward-looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements and information include, but are not limited to statements with respect to SCRi’s ability to achieve its strategic objectives in the future and its ability to target additional operational silver-producing projects. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual actions, events or results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over mining operations from which SCRi will purchase gold and other metals or from which it will receive royalty payments and risks related to those mining operations, including risks related to international operations, government and environmental regulation, delays in mine construction and operations, actual results of mining and current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; SCRi’s ability to enter into definitive agreements and close proposed royalty transactions; the inherent uncertainties related to the valuations ascribed by SCRi to its royalty interests; problems inherent to the marketability of gold and other metals; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; industry conditions, including fluctuations in the price of the primary commodities mined at such operations, fluctuations in foreign exchange rates and fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects SCRi; stock market volatility; regulatory restrictions; liability, competition, the potential impact of epidemics, pandemics or other public health crises on SCRi’s business, operations and financial condition, loss of key employees. SCRi 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. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. SCRi undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available.
This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities of the Company in Canada, the United States or any other jurisdiction. Any such offer to sell or solicitation of an offer to buy the securities described herein will be made only pursuant to subscription documentation between the Company and prospective purchasers. Any such offering will be made in reliance upon exemptions from the prospectus and registration requirements under applicable securities laws, pursuant to a subscription agreement to be entered into by the Company and prospective investors. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
CBOE CANADA DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Latest News
Latest Press Releases
Related News
TOP STOCKS
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.