Close menu




November 17th, 2021 | 12:06 CET

Deutsche Telekom, Silver Viper, First Majestic Silver - Boost from Green Deal

  • Silver
Photo credits: pixabay.com

The reins on achieving climate targets were tightened in the past two weeks at the COP26 World Climate Conference in Glasgow. For the first time, coal and other fossil fuels were declared phased out in a COP decision. As a result of the Green Deal with the conversion of the economy to renewable energy sources, demand for the industrial metal silver is expected to increase enormously in the coming years. Experts expect demand to grow by over 80% by 2030.

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: DEUTSCHE TELEKOM ADR 1 | US2515661054 , SILVER VIPER MINER. CORP. | CA8283341029 , FIRST MAJESTIC SILVER | CA32076V1031

Table of contents:


    Silver Viper - Best conditions

    Alongside copper, lithium, cobalt and nickel, precious metals play an essential role in climate change. While platinum metals play an important role in the development of catalytic converters for hydrogen cars, silver is particularly vital in the photovoltaic industry. Silver paste is used in 90% of all silicon photovoltaic cells, the most widely used solar cells. Sunlight hitting these silicon cells generates electrons collected by the silver conductor and bundled into electric current. According to a study by The Silver Institute, about 45,000t or 1.5 billion ounces of silver will be needed over the next twelve years to drive renewable energy, including 23,247t for solar cells alone.

    Around 55% of silver demand comes from industry, with 45% needed for inflation protection and investment. However, this is offset by tight supply. Silver is still in correction mode, unlike copper and other industrial metals, which reached new highs in recent months. In view of further high inflation and low-interest rates, anti-cyclical entry is likely worthwhile, similar to gold. Especially silver producers or exploration companies offer attractive entry opportunities at the current level.

    New impetus should soon be reported by the promising Company Silver Viper. The 6,880 hectare La Virginia gold-silver project, managed by the Belcarra Group and formerly owned by Pan American Silver, will be worked on in November with a TITAN-160 deep drill hole in cooperation with the specialist Quantec Geoscience directly above the El Rubi area. With the help of unique investigation methods such as DC-resistance measurement with induced polarization and the collection of magnetotelluric data, an investigation of the structures down to a depth of 1,500m can be achieved. Silver Viper CEO Steve Cope's management believes that the deeper mineralization is mainly in rhyolitic rocks.

    Significant exploration progress has also been reported along the El Rubi structure and in the adjacent La Colmena and Paredones exploration zones. If the deep drilling continues to be successful, larger mining companies may begin to take notice. On a current basis, Silver Viper is valued at around CAD 45 million on the stock market.

    First Majestic Silver - Blue Chip in the silver market

    First Majestic Silver Corp. is a Canadian silver and gold mining company operating in Mexico and the United States. It has four producing mines under its control: San Dimas Silver/Gold Mine, Santa Elena Silver/Gold Mine, La Encantada Silver Mine and Jerritt Canyon Gold Mine. What is interesting about First Majestic is that weeks ago, CEO and silver bull Keith Neumeyer decided to withhold a portion of silver production of about 1.4 million ounces so as not to "dump" his product.

    Investors were able to see the result of this decision in the third-quarter figures. Had the Company sold the retained inventory, it would have generated additional revenue of approximately CAD 33.2 million using the average achieved silver price of USD 23.10 per ounce for the quarter. It is now offset by a 1% decline in revenue to CAD 124.6 million. In addition, capital expenditures increased to CAD 14.09 per silver equivalent ounce due to the inclusion of the Jerrit Canyon gold project. In total, this resulted in a net loss of CAD 18.4 million for the quarter. Adjusted, this corresponds to CAD 0.07 per share. Nevertheless, there was a cash flow of CAD 0.09 per share. The Company also announced the payment of a quarterly dividend of CAD 0.0049 per share. This figure is expected to increase significantly again in the coming quarters.

    Deutsche Telekom - Analysts advise to buy

    Silver also plays an important role in the telecommunications sector due to its excellent conductivity. Here, the white precious metal is needed for the introduction of base stations, additional data storage and new 5G-capable devices. Telekom is already supplying numerous cities in Germany with fast 5G mobile communications. By the end of 2021, just under 90% of the German population should already receive 5G. In its third-quarter figures, the Bonn-based company reported a 1.8% increase in revenue to EUR 26.87 billion.

    Deutsche Telekom also outperformed the majority of experts in terms of EBIT at EUR 9.66 billion. Following the quarterly figures, Deutsche Bank reiterated its buy recommendation with a target price of EUR 26. US investment bank Goldman Sachs also left the DAX heavyweight on its "Conviction List" with a price target of EUR 26.


    Silver is becoming increasingly important due to the achievement of climate change. Demand for the precious metal is likely to increase significantly in the coming years due to its use in the photovoltaic industry. First Majestic Silver is one of the most important players here, and Silver Viper is an interesting second-tier company.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



    Related comments:

    Commented by Stefan Feulner on April 9th, 2024 | 06:45 CEST

    Palantir, Globex Mining, Bayer - The trend is pointing upwards

    • Mining
    • Commodities
    • Gold
    • Silver
    • Pharma
    • Software

    After a successful first quarter of 2024, the DAX and Dow Jones took a well-deserved breather last week. In contrast, the precious metal markets for gold and silver continued their upward trend. Gold also reached new absolute highs of USD 2,354 per ounce. While gold producers such as Barrick Gold and Newmont remained in hibernation, they have been following the rising base price for several weeks now. There is currently also an opportunity for smaller commodity stocks to participate disproportionately in the upward trend.

    Read

    Commented by Stefan Feulner on April 8th, 2024 | 06:45 CEST

    Geopolitical uncertainties - Sibanye Stillwater, Saturn Oil + Gas and Barrick Gold benefit

    • Mining
    • Oil
    • Gold
    • Silver

    In addition to the stock markets, which reached new highs last week, the direction of precious metals and oil is also clearly pointing upward. While gold also reached a new all-time high, silver has significant catch-up potential compared to its big brother. In the case of black gold, the current uncertain geopolitical situation could cause oil prices to break through the USD 100 per barrel barrier once again.

    Read

    Commented by André Will-Laudien on January 19th, 2024 | 07:45 CET

    Total sell-off in hydrogen! Nel ASA, Manuka Resources, Plug Power - Find the 300% pearl now

    • Mining
    • Gold
    • Silver
    • Vanadium
    • renewableenergies
    • Hydrogen

    The topic of hydrogen has been put on the back burner for the time being. Although the COP28 conference in Dubai showed a broad consensus on reducing greenhouse gases and avoiding fossil fuels, the OPEC countries, in particular, insist on their traditional right to continue tapping into the abundant oil wells. The observers conclude that everything remains the same; each does what it does best. The transformative idea of saving the world is collectively present, but if it can be solved with nuclear energy, then nuclear reactors will be built. This also highlights how the green-dominated traffic light policy on environmental issues is perceived internationally: Teachings from Germany are only smiled at. The topic of hydrogen was politically launched in Europe and has been traded on the stock exchange as a "world energy savior" since 2019; now, investors are sitting on a 90% loss. Is there still hope?

    Read