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.
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Silver Tiger Announces PFS With NPV of US$222M for the Stockwork Zone of the El Tigre Silver-Gold Project, Sonora, Mexico
Silver Tiger Metals Inc. (TSXV:SLVR)(OTCQX:SLVTF) ("Silver Tiger" or the "Corporation") is pleased to announce a Preliminary Feasibility Study(" PFS") for its 100% owned, silver-gold El Tigre Project (the "Project" or "El Tigre") located in Sonora, Mexico. The PFS is focused on the conventional open pit mining economics of the Stockwork Mineralization Zone defined in the updated Mineral Resource Estimate ("MRE") (Figure 1). The updated MRE also contains an Out-of-Pit Mineral Resource that Silver Tiger plans to study in a Preliminary Economic Assessment in H1-2025.
Highlights of the PFS are as follows (all figures in US dollars unless otherwise stated):
- After-Tax net present value ("NPV") (using a discount rate of 5%) of US$222 million with an After-Tax IRR of 40.0% and Payback Period of 2.0 years (Base Case);
- 10-year mine life recovering a total of 43 million payable silver equivalent ounces ("AgEq") or 510 thousand payable gold equivalent ounces ("AuEq"), consisting of 9 million silver ounces and 408 thousand gold ounces;
- Total Project undiscounted after-tax cash flow of US$318 million;
- Initial capital costs of $86.8 million, which includes $9.3 million of contingency costs, over an expected 18-month build, expansion capital of $20.1 million in year 3 and sustaining capital costs of $6.2 million over the life of mine ("LOM");
- Average LOM operating cash costs of $973/oz AuEq, and all in sustaining costs ("AISC") of $1,214/oz AuEq or Average LOM operating cash costs of $12/oz AgEq, and all in sustaining costs ("AISC") of $14/oz AgEq;
- Average annual production of approximately 4.8 million AgEq oz or 56.7 thousand AuEq oz; and
- Three (3) years of production in the Proven category in the Phase 1 Starter Pit.
Glenn Jessome, President & CEO stated "We are very pleased with the work completed by our consultants and our technical team on the PFS for the open pit at El Tigre. The open pit delivers robust economics with an NPV of US$222 million, an initial capital expenditure of US$87 million, and a payback of 2 years with 3 years of production in the Proven category in the ‘Starter Pit using metal prices greatly discounted to the spot price." Mr. Jessome continued "This is a pivotal point for our Company as we now have a clear path forward to making a construction decision for the open pit. The open pit has good grade (48 g/t AgEq), low strip ratio (1.7:1), and wide benches (~150 m) with mineralization at surface. With such positive parameters and with our VP of Operations Francisco Albelais, a career expert in the construction of large heap leach mines in Mexico, we are confident we will be able to advance the Project very quickly." Mr. Jessome concluded "The open pit is only one component of El Tigre as we have also today delivered over 113 Mozs AgEq in the underground Mineral Resource Estimate and disclosed an Exploration Target establishing 10 to 12 million tonnes at 225 to 265 g/t AgEq for 73 to 100 Moz AgEq. This disclosed ‘near-mine' Mineral Resource and potential, when coupled with the fact that only 30% of this prolific Property has been explored, shows the value of the El Tigre Project. The Company will also continue to work on this substantial underground Mineral Resource by starting underground drilling immediately, and plan to release an underground PEA in H1-2025."
Highlights of the updated Mineral Resource
- Increased confidence in MRE, with increase of 132% in Total Measured & Indicated Silver Equivalent ("AgEq") Ounces from September 2023 MRE, with 59% increase in Measured & Indicated AgEq grade;
- Total Measured & Indicated Mineral Resource of 200 Moz AgEq grading 92 g/t AgEq contained in 68.0 million tonnes ("Mt");
- Inferred Mineral Resource of 84 Moz AgEq grading 180 g/t AgEq contained in 14.5 Mt; and
- Inclusion of Out-of-Pit Mineral Resource of 5.3 Mt Measured & Indicated Mineral Resource at grade of 255 g/t AgEq and 10.1 Mt Inferred Mineral Resource grading 216 g/t AgEq.
Preliminary Feasibility Summary
The PFS was prepared by independent consultants P&E Mining Consultants Inc. ("P&E"), with metallurgical test work completed by McClelland Laboratories, Inc. - Sparks, Nevada, process plant design and costing by D.E.N.M. Engineering Ltd., and environmental and permitting led by CIMA Mexico. Following are tables and figures showing key assumptions, results, and sensitivities.
Table 1: El Tigre PFS Key Economic Assumptions and Results
- Grades shown are LOM average process plant feed grades include only OP sources. Mining losses and external dilution of 3.7% were incorporated in the mining schedule.
- Column testing indicated both variable gold and silver recovery for the oxide material vs the previously reported non-discounted PEA (83% and 64%) at a 3/8-in crush size. In the process design and financial model for the PFS process design and financial model recoveries have been discounted by 3% for leaching in the field versus optimum conditions in the laboratory and shown accordingly. The presence of transition and sulfide zones has affected both the gold and silver recoveries and are shown as separate recoveries. These are reasonable and appropriate for use in this PFS design and economic analysis.
Figure 2: El Tigre Cash Flow Profile by Year
Figure 2 above highlights the post-tax cash flows of US$318 million associated with the El Tigre Project. The economics of the Project have been evaluated based on the base case scenario $26/oz silver price and gold price of $2,150/oz. As illustrated in the following sensitivity tables, the Project remains robust even at lower commodity prices or with higher costs (Tables 2 and 3).
Table 2 - El Tigre PFS Gold and Silver Price Sensitivities
Table 3 - El Tigre PFS Operating Cost and Capital Cost Sensitivities
Capital and Operating Costs
The El Tigre Project has been envisioned as an open pit mining operation starting at a processing rate of 7,500 tonnes per day for years 1-3 and then ramping up to 15,000 tonnes per day by year 4 after 1 year construction for ramp up in year 3.
The process plant is comprised of conventional three (3) stage crushing to an optimum -3/8 inch (10 mm) crush size. The crushed material will be conveyed and loaded on the lined pad areas. A series of pumping and piping will allow irrigation of the stacked heap material and subsequent production of pregnant solution to flow to the respective impoundment pond. The pregnant solution will be pumped to the recovery facility consisting of the Merrill - Crowe process (zinc precipitation) and refinery to produce the gold and silver dore for marketing. The process barren solution will be recycled (with NaCN addition) and pumped back to the heap for further leaching. The process plant location will be adjacent to the pad and pond infrastructure area.
Water supply to the process plant is provided by pumping from nearby Bavispe River to the process area water distribution system and high voltage grid power will be installed by the local utility to supply process and infrastructure electrical requirements. Expansion capital includes the cost to increase the process plant capacity from 7,500 tonnes per day to 15,000 tonnes per day as noted in Year 4 of operation.
Table 4 - LOM Capital Cost Estimate
Mining
Open pit mining will be contracted and carried out by drill and blast followed by conventional loading and truck haulage to the waste rock storage facilities and the process plant.
Metallurgy
A detailed metallurgical test program was carried out by McClelland Laboratories, Inc., Sparks, Nevada on six (6) El Tigre starter pit samples. The program included crushing, coarse bottle rolls, and column testing at both 80% passing 3/8 inch and 1/2 inch (10 and 12 mm) crush size for five (5) of the six samples. One low grade sample was only crushed to 80% passing 1-1/2 inch (38 mm) as an indication of low grade leachability. The leach samples comprised of drill core sample representing the starter pit and during the testing process it became apparent that the presence of transition and sulfide zones are in the starter pit thus affecting the base design recoveries. This variable test program (column and coarse bottle roll) estimated oxide average gold and silver respective metallurgical recoveries of 86% Au and 48% Ag at the 3/8 inch (10 mm) crush. The transition and sulfide zones had estimated recoveries of 59% Au and 43% Ag. Further percolation testing also confirmed no requirement for agglomeration of the crushed material is required prior to loading on the leach pad.
Mineral Resource Estimate
The basis for the PFS is the Mineral Resource Estimate completed by P&E for the El Tigre Project located in Sonora State, Mexico, which has an effective date of October 22, 2024, with an NI 43-101 Technical Report to be filed within 45 days of this news release. A summary of the Mineral Resource Estimate is provided in Table 5.
Table 5 - Updated Mineral Resource Estimate October 2024
- Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
- The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
- The Mineral Resources were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
- Historically mined areas were depleted from the Mineral Resource model.
- Prices used are US$2,000/oz Au, US$25/oz Ag, US$4.00/lb Cu, US$0.95 lb Pb and US$1.25/lb Zn.
- The pit-constrained AuEq respective oxide and sulfide cut-off grades of 0.10 and 0.15 g/t were derived from 40% Ag and 83% Au oxide process recovery, 40% Ag and 56% Au sulfide process recovery, US$5.25/tonne process and G&A cost. The constraining pit optimization parameters were $2.00/t mining cost and 45-degree pit slopes. Regarding recoveries, the PFS recovery for Ag in oxide material was increased to 45% after a more detailed study was complete after the MRE was finalized.
- The out-of-pit AuEq cut-off grade of 1.50 g/t was derived 93% Ag and 89% Au process recovery, US$28/tonne process and G&A cost, and a $60/tonne mining cost. The out-of-pit Mineral Resource grade blocks were quantified above the 1.50 g/t AuEq cut-off, below the constraining pit shell and within the constraining mineralized wireframes. Out-of-Pit Mineral Resources are restricted to the El Tigre Main Veins, which exhibit historical continuity and reasonable potential for extraction by cut and fill and long hole mining methods.
- The Low-Grade Stockpile AuEq cut-off grade of 0.54 g/t was derived from 85% Ag and 85% Au recovery US$28/tonne process and G&A cost, and a $2/tonne mining cost.
- The Tailings AuEq cut-off grade of 0.55 g/t was derived from 82% Ag and 83% Au process recovery, US$28.72/tonne process and G&A cost.
- AgEq and AuEq were calculated at an Ag/Au ratio of 166:1 (oxide) and 122:1 (sulfide) for pit-constrained Mineral Resources.
- AgEq and AuEq were calculated at an Ag/Au ratio of 77:1 for out-of-pit Mineral Resources.
- AgEq and AuEq were calculated at an Ag/Au ratio of 80:1 for Low-Grade Stockpile Mineral Resources.
- AgEq and AuEq were calculated at an Ag/Au ratio of 79:1 for Tailings Mineral Resources
- Totals may not sum due to rounding.
Mineral Resource Estimate Methodology - El Tigre Project
The El Tigre Project includes the El Tigre Veins, El Tigre Tailings and the El Tigre Low-Grade Stockpile.
The databases used for this Mineral Resource update contain a total of 20,149 collar records that contribute directly to the Mineral Resource Estimate and includes collar, survey, assay, lithology and bulk density data. Assay data includes Au g/t, Ag g/t, Cu %, Pb % and Zn % grades. The drilling extends approximately five km along strike.
P&E Mining Consultants Inc. ("P&E") collaborated with Silver Tiger personnel to develop the mineralization models, grade estimates, and reporting criteria for the Mineral Resources at El Tigre. Mineralized domains were initially developed by Silver Tiger and were reviewed and modified by P&E. A total of twenty-seven individual mineralized domains have been identified through drilling and surface sampling. Interpreted mineralization wireframes were developed by Silver Tiger geologists for the El Tigre Veins based on logged drill hole lithology, assay grades and historical records. Silver Tiger identified continuous zones of mineralization from assay grades equal to or greater than 0.30 g/t AuEq with observed continuity along strike and down-dip, using a calculated Ag:Au equivalent factor of 75:1. The selected intervals include lower grade material where necessary to maintain wireframe continuity between drill holes.
P&E developed mineralized domains for the El Tigre Low-Grade Stockpile and the El Tigre Tailings based on lithological logging and LiDAR surface topography.
Assay samples were composited to either 1.00 m or 1.50 m for the vein domains. No compositing was used for the Low-Grade Stockpiles and Tailings models. Composites were capped prior to grade estimation based on the analysis of individual composite log-probability distributions.
A total of 5,542 bulk density values were taken by Silver Tiger from drill hole core. Mineralized bulk density values were assigned for each of the El Tigre Main Veins based on the median vein measurement. For the El Tigre North Veins, a bulk density of 2.65 t/m 3 was assigned for the veins and a value of 2.42 t/m 3 was assigned for the Protectora Halo. For the Low-Grade Stockpile a value of 1.60 t/m 3 was assigned, and for the Tailings a value of 1.39 t/m 3 was used based on 37 nuclear density measurements.
Vein block grades for gold and silver were estimated by Inverse Distance Cubed ("ID3") interpolation of capped composites using a minimum of four and a maximum of twelve composites. Vein block grades for copper, lead and zinc were estimated by Inverse Distance Squared ("ID2") interpolation of capped composites using a minimum of four and a maximum of twelve composites.
Nearest-Neighbour grade interpolation was used for the Low-Grade Stockpiles, and for the Tailings, block grades were estimated by ID2 estimation of capped assays using a minimum of four and a maximum of twelve samples.
For the El Tigre Main Veins, blocks within 30 m of three or more drill holes/channels were classified as Measured Mineral Resources, and blocks within 60 m of three or more drill holes/channels were classified as Indicated Mineral Resources. All additional estimated blocks were classified as Inferred Mineral Resources.
For the North Veins, blocks interpolated by at least two drill holes within 50 m were classified as Indicated Mineral Resources. Blocks interpolated by at least one drill hole within a maximum distance of 200 m were classified as Inferred Mineral Resources.
For the Low-Grade Stockpiles, blocks within 15 m of two or more drill holes were classified as Indicated Mineral Resources. All additional estimated blocks were classified as Inferred Mineral Resources.
For the Tailings, blocks within 30 m of three or more auger or core drill holes were classified as Measured Mineral Resources. Blocks within 60 m of two or more auger/drill holes/pits or trenches were classified as Indicated Mineral Resources. All additional estimated blocks were classified as Inferred Mineral Resources.
P&E considers that the block model Mineral Resource Estimates and Mineral Resource classification represent a reasonable estimation of the global mineral resources for the El Tigre Project with regard to compliance with generally accepted industry standards and guidelines, the methodology used for estimation, the classification criteria used and the actual implementation of the methodology in terms of Mineral Resource estimation and reporting. The Mineral Resources have been estimated in conformity with the requirements of the CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines as required by the Canadian Securities Administrators' National Instrument 43-101. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Table 6: AuEq Cut-off Sensitivities - ET Pit-Constrained Mineral Resource
Table 7: AuEq Cut-off Sensitivities - ET Out-of-Pit Mineral Resource
Exploration Potential
Exploration potential at the El Tigre Project is substantial with prospective areas for exploration both down dip and along strike with the disclosed Exploration Target establishing 10 to 12 million tonnes at 225 to 265 g/t AgEq for 73 to 100 Moz AgEq.
Figure 3-Exploration Potential released October 2024
Surface Rights Agreement
The Company owns royalty-free, 100% of the 6,238 hectares land-package encompassing the footprint of proposed mining operation with no Ejido presence. In addition, the Company controls 28,414 hectares of Concessions to conduct exploration along a 25 km strike length of the Sierra Madres.
Underground Preliminary Economic Assessment
The Company will also continue to work on this substantial, permitted underground Mineral Resource Estimate and advance this towards a Preliminary Economic Assessment by H1-2025. The Measured and Indicated Out-of-Pit Mineral Resource at El Tigre is 44 Moz AgEq grading 255 g/t AgEq contained in 5.3 Mt and the Inferred Mineral Resource is 70 Moz AgEq grading 216 g/t AgEq contained in 10.1 Mt.
Qualified Persons
Mineral Resource Estimate: Dave Duncan P. Geo. VP Exploration of Silver Tiger, Charles Spath P.Geo., VP of Technical Services of Silver Tiger, and Fred Brown, P.Geo RM-SME Senior Associate Geologist of P&E Mining Consultants, and Eugene Puritch, P.Eng., FEC, CET, President of P&E Mining Consultants are the Qualified Persons as defined under National Instrument 43-101. All Qualified Persons have reviewed and approved the scientific and technical information in this press release.
Preliminary Feasibility Study: Andrew Bradfield P. Eng of P&E Mining Consultants, Eugene Puritch, P.Eng., FEC, CET, President of P&E Mining Consultants and David J. Salari, P. Eng. of D.E.N.M. Engineering Ltd are the Qualified Persons as defined under National Instrument 43-101. All Qualified Persons have reviewed and approved the scientific and technical information in this press release.
A Technical Report is being prepared on the Preliminary Feasibility Study in accordance with National Instrument 43-101 ("NI-43-101"), and will be available on the Company's website and SEDAR within 45 days of the date of this news release. The effective date of this Preliminary Feasibility Study is October 22, 2024.
VRIFY Slide Deck and 3D Presentation - Silver Tiger's El Tigre Project
VRIFY is a platform being used by companies to communicate with investors using 360° virtual tours of remote mining assets, 3D models and interactive presentations. VRIFY can be accessed by website and with the VRIFY iOS and Android apps.
Access the Silver Tiger Metals Inc. Company Profile on VRIFY at: https://vrify.com
The VRIFY Slide Deck and 3D Presentation for Silver Tiger Metals Inc. can be viewed at: https://vrify.com/explore/decks/492 and on the Corporation's website at: www.silvertigermetals.com.
About Silver Tiger and the El Tigre Historic Mine District
Silver Tiger Metals Inc. is a Canadian company whose management has more than 25 years' experience discovering, financing and building large epithermal silver projects in Mexico. Silver Tiger's 100% owned 28,414 hectare Historic El Tigre Mining District is located in Sonora, Mexico. Principled environmental, social and governance practices are core priorities at Silver Tiger.
The El Tigre historic mine district is located in Sonora, Mexico and lies at the northern end of the Sierra Madre silver and gold belt which hosts many epithermal silver and gold deposits, including Dolores, Santa Elena and Las Chispas at the northern end. In 1896, gold was first discovered on the property in the Gold Hill area and mining started with the Brown Shaft in 1903. The focus soon changed to mining high-grade silver veins in the area with production coming from 3 parallel veins the El Tigre Vein, the Seitz Kelley Vein and the Sooy Vein. Underground mining on the middle El Tigre Vein extended 1,450 metres along strike and was mined on 14 levels to a depth of approximately 450 metres. The Seitz Kelley Vein was mined along strike for 1 kilometre to a depth of approximately 200 metres. The Sooy Vein was only mined along strike for 250 metres to a depth of approximately 150 metres. Mining abruptly stopped on all 3 of these veins when the price of silver collapsed to less than 20¢ per ounce with the onset of the Great Depression. By the time the mine closed in 1930, it is reported to have produced a total of 353,000 ounces of gold and 67.4 million ounces of silver from 1.87 million tons (Craig, 2012). The average grade mined during this period was over 2 kilograms silver equivalent per ton.
For further information, please contact:
Glenn Jessome
President and CEO
902 492 0298
jessome@silvertigermetals.com
CAUTIONARY STATEMENT:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, Mineral Resources and Reserves, the ability to convert Inferred Mineral Resources to Indicated Mineral Resources, the ability to complete future drilling programs and infill sampling, the ability to extend Mineral Resource blocks, the similarity of mineralization at El Tigre to Delores, Santa Elena and Chispas, exploration results, and future plans and objectives of Silver Tiger, are forward-looking statements that involve various risks and uncertainties. Forward-looking statements are frequently characterized by words such as "may", "is expected to", "anticipates", "estimates", "intends", "plans", "projection", "could", "vision", "goals", "objective" and "outlook" and other similar words. Although Silver Tiger believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Silver Tiger's expectations include risks and uncertainties related to exploration, development, operations, commodity prices and global financial volatility, risk and uncertainties of operating in a foreign jurisdiction as well as additional risks described from time to time in the filings made by Silver Tiger with securities regulators.
Boab Metals Secures Funding for Sorby Hills Project: A Promising Investment Opportunity
Description
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.
For the full analyst report, click here.
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Silver Price Forecast: Top Trends That Will Affect Silver in 2025
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 Provides Update Regarding Gatos Silver's Joint Venture with Dowa Metals & Mining Co., Ltd.
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.
For further information, visit our website at www.firstmajestic.com. You can contact us by e-mail at info@firstmajestic.com, or by telephone at 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO
Cautionary Note Regarding Forward Looking Statements
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234640
News Provided by Newsfile via QuoteMedia
Silver Price 2024 Year-End Review
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.
Silver price, Q4 2024.
Chart via Trading Economics.
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.
How did silver perform for the rest of the year?
Silver price in Q1
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.
Silver price in Q2
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 price in Q3
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.
5 Best-performing Canadian Silver Stocks of 2024
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.
1. Pantera Silver (TSXV:PNTR)
Year-to-date gain: 244.44 percent
Market cap: C$13.14 million
Share price: C$0.31
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.
2. Gatos Silver (TSX:GATO)
Year-to-date gain: 166.86 percent
Market cap: C$1.62 billion
Share price: C$22.87
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.
3. GR Silver Mining (TSXV:GRSL)
Year-to-date gain: 156.25 percent
Market cap: C$68.17 million
Share price: C$0.205
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.
4. Andean Precious Metals (TSX:APM)
Year-to-date gain: 132.79 percent
Market cap: C$219.56 million
Share price: C$1.42
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.
5. Endeavour Silver (TSX:EDR)
Year-to-date gain: 129.66 percent
Market cap: C$1.49 billion
Share price: C$6.04
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.
Corporate Presentation December 2024
Boab Metals Limited (ASX: BML) (“Boab” or “Company”) is pleased to present its investor presentation.
Click here for the full ASX Release
This article includes content from Boab Metals 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.
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