Close menu




October 21st, 2024 | 07:00 CEST

First Majestic Silver, Desert Gold Ventures, Skeena Resources – The time has come

  • Mining
  • Silver
  • Gold
  • Commodities
Photo credits: pixabay.com

Once again, the price of gold has reached a new all-time high, establishing itself above the USD 2,700 per ounce mark. Silver also reached a new twelve-year high after breaking through the horizontal resistance at USD 32. After a long period in which mining stocks failed to gain momentum, they are now celebrating a comeback with a strong upward trend. Should the gold trend continue, as experts expect, surpassing USD 3,000 per ounce, the time may now be ripe for smaller exploration companies.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: FIRST MAJESTIC SILVER | CA32076V1031 , DESERT GOLD VENTURES | CA25039N4084 , SKEENA RES LTD NEW | CA83056P8064

Table of contents:


    Desert Gold Ventures with bright prospects

    Desert Gold Ventures, a company with significant gold projects in West Africa, is on the watchlist of many investors due to its promising developments and strategic plans. Under the leadership of CEO Jared Scharf, the Canadians have already discovered 1.1 million ounces of gold on their 440 km² flagship project SMSZ, which currently results in a market capitalization of around USD 10.60 per troy ounce in the ground.

    It is noteworthy that of more than 27 gold zones discovered, only 5 have been included in the current resource estimate, which offers significant potential for future discoveries and value appreciation.

    In this context, Scharf emphasizes the importance of the current high gold price of over USD 2,600 per troy ounce, which is improving the economics of the projects and will be reflected in a forthcoming preliminary economic assessment (PEA) in the first quarter of 2025. This assessment will provide crucial details on the viability of the planned mining, which initially envisages the extraction of approximately 200,000 ounces of gold from two open-pit mines. Planned production costs are between USD 800 and USD 1,300 per ounce, which could allow for high-profit margins at current gold prices.

    The Company is considering covering the construction of Phase 1 with debt and possible financing alternatives, with discussions already underway with several financial groups. Production is already planned for the second half of 2025. With a market capitalization of around CAD 16.87 million, Desert Gold Ventures could become an outperformer if the targeted production comes closer.

    First Majestic Silver – Caution Still Advised

    The bull market in gold and silver stocks has not bypassed the recently weakening mining company from Vancouver. After forming a double bottom at USD 4.50, First Majestic Silver was able to move away from its lows, driven by rising base prices. A breakout from the horizontal resistance at USD 6.88 generated a buy signal on Friday, which could lead the stock towards its annual high from April at USD 8.44 in the short term.

    It remains to be seen whether the silver producer is really experiencing a sustainable turnaround as the preliminary production figures for the third quarter were not outstanding.

    The Company produced 5.5 million ounces of silver equivalent, a marginal increase of 4% over the second quarter. However, the acquisition of Gatos Silver could be a turning point for First Majestic Silver and improve the performance achieved in recent months. Gatos has recently raised its production forecasts, which should benefit First Majestic not only in terms of production volume but also in terms of cost structures and, thus, free cash flow.

    In addition, First Majestic Silver resumed exploration work at the ailing Jerritt Canyon mine in Nevada in the third quarter. This mine, which was previously considered a bad financial investment, is currently out of operation. CEO Keith Neumeyer recently emphasized that there are no plans to restart operations in the coming months; even higher gold prices are not motivating this. The project's production results have been too unsatisfactory so far.

    Skeena Resources – Explorer with potential

    As described above, smaller producers and exploration companies have historically had the opportunity to outperform significantly during a prolonged uptrend in the gold price. One example is the Canadian mining company Skeena Resources, which is on track to become a producer in the near future. The all-time high was set in 2007 at CAD 214, while the current price is a modest CAD 13.59. A prominent resistance level is currently at CAD 16.85. If that were to be broken, a short-term move toward CAD 28 would be possible, which could mark the end of the years-long bottoming-out phase.

    Skeena Resources operated the Eskay Creek project, a past-producing mine in British Columbia, Canada, from 1994 to 2008. During this time, 3.3 million ounces of gold and 160 million ounces of silver were mined. The Company is now focusing on this advanced project, which, together with the Snip project, is one of its most interesting ventures.

    A major development for Eskay Creek already took place in 2017, when Skeena Resources reached an agreement with Barrick Gold that allowed Skeena to begin initial exploration work. Skeena finally acquired the mine from Barrick Gold in 2020.

    Eskay Creek's strategic location is underscored by its proximity to major projects such as Seabridge Gold's KSM project and Newmont's Brucejack mine, which further highlights the region's importance and potential.


    In the current gold rush, opportunities for long-term outperformance of the gold price are particularly available in smaller exploration companies such as Skeena Resources and Desert Gold Ventures. By contrast, despite the good chart-technical condition, caution is advised with First Majestic Silver after the preliminary production figures.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

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

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by Carsten Mainitz on October 21st, 2025 | 07:40 CEST

    Power Metallic Mines, RENK, BYD – An explosive combination! And the winners are?

    • Mining
    • Copper
    • Nickel
    • Gold
    • CriticalMetals
    • Electromobility
    • Defense

    Many topics are dominating the headlines. Peace in Gaza – and soon in Ukraine? This prospect initially put a significant damper on defense stocks – but only temporarily. After just a few days of correction, prices are already rising again. Gold at an all-time high is another major topic being covered in the media. Meanwhile, the geopolitical shifts we were reluctant to acknowledge for far too long are now catching up with many companies: China is cutting the world off from critical raw materials and rare earths. Read here to find out how investors can identify promising high-potential opportunities in this constellation.

    Read

    Commented by André Will-Laudien on October 21st, 2025 | 07:35 CEST

    Gold USD 4,300 and Silver USD 53 – Buying frenzy at Silver North, First Majestic, Nel ASA, and JinkoSolar

    • Mining
    • Silver
    • Gold
    • renewableenergies
    • Solar
    • Energy

    Silver has been shorted by many investment banks for several years because sufficient supply was available from Mexico and other producing countries. The tide has turned. Over the past 12 months, the precious metal has caught up with its big brother gold, gaining 54%. There are several reasons for the scarcity-driven rally: there are only around 250 active silver mines worldwide, compared to around 1,400 gold mines. In addition, silver has massively expanded its importance as an industrial metal: it is indispensable in high-tech, e-mobility, defense, and medical technology. As a result, less and less physical silver is available to investors, while inventories on the futures markets continue to decline. Now is the time to take a position in silver. Alongside industry giants such as First Majestic, Silver North is among the most promising beneficiaries of the new silver boom.

    Read

    Commented by Fabian Lorenz on October 21st, 2025 | 07:30 CEST

    Raw materials alert for defense and technology! Almonty, MP Materials, and Rheinmetall!

    • Mining
    • Tungsten
    • Defense
    • RareEarths
    • CriticalMetals

    Europe faces a growing raw materials challenge. Whether it is rare earths, tungsten, or other critical metals, these resources are essential not only for defense, but for countless industries, including AI. The FAZ recently spoke to Almonty CEO Lewis Black about this, dedicating almost an entire page to the issue. Conclusion: Europe must act. The US has long since taken decisive action, securing access for its industry by investing in raw materials companies such as MP Materials and Lithium Americas. Europe's hesitation could pose a risk for Rheinmetall, even if investors are currently overlooking it - especially as the Company is also expanding in the US. Hopefully, Defense Minister Pistorius will have this issue on his radar during his visit to Canada.

    Read