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Dirk Harbecke, Executive Chairman, RockTech Lithium Inc.

Dirk Harbecke
Executive Chairman | RockTech Lithium Inc.
600 – 777 Hornby Street, V6Z 1S4 Vancouver (CAN)

info@rocktechlithium.com

Rock Tech Lithium: Where Canadian Mining Meets German Engineering


Andrew Davidson, CEO, Royal Helium Limited

Andrew Davidson
CEO | Royal Helium Limited
224, 4th Avenue South, S7K 5M5 Saskatoon (CAN)

davidson@royalheliumltd.com

+1 (306) 281-9104

Royal Helium CEO Andrew Davidson on NASA, SpaceX and the path to dynamic growth


Craig Taylor, CEO, Defense Metals

Craig Taylor
CEO | Defense Metals
605-815 Hornby St., V6Z 1T9 Vancouver (CAN)

craig@defensemetals.com

+1 (778) 994 8072

Milestones, ESG as an USP and the new openness of policy toward rare earths outside China - Defense Metals provides backgrounds


18. February 2021 | 10:08 CET

First Majestic Silver, Silver Viper Minerals, Endeavour Silver - After the Short Squeeze is Before the Short Squeeze

  • Silver
Photo credits: Silver Viper Minerals

Silver has performed much better than gold in recent weeks and months. Investors were able to book profits with the precious metal, while losses were made with gold investment. Often the prices of precious metals run relatively in unison. The fact that the demand situation of silver also includes the industry it can lead to short-term deviations, but also speculation can move prices powerfully in the short term. Some stocks in the silver sector began to rally during January as the market bet on a short squeeze in some candidates based on short-sale data. We give you an update and tell you where it's worth being involved.

time to read: 2 minutes by Carsten Mainitz


 

Author

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


FIRST MAJESTIC SILVER CORP - Where are the Shorties?

The silver producer's stock gained 2/3 from January to CAD 28 and is currently trading around CAD 22. What happened? First Majestic has been one of the most heavily shorted stocks for many years. When investors turned to shorting stocks like GameStop at the beginning of the year, and the securities went through the roof due to a short squeeze, First Majestic's stock also got on traders' radar. According to market data, the Company's short-sold shares accounted for about 23% of the total share count in late December and mid-January. However, by January 29, that figure was only about half, explaining the abrupt end to the share's upward movement.

Today, investors are likely to pay more attention to the Company's fundamental data because the Group plans to publish Q4 figures and those for the past fiscal year. In January, First Majestic released the corresponding production data and formulated a significant increase in silver production in the current year.

The Company is among the TOP 20 silver producers in the world. The core of the activity are the three silver mines in Mexico - the San Dimas Silver & Gold Mine, the Santa Elena Silver & Gold Mine and the La Encantada Silver Mine. Despite good figures and a positive outlook, the share is not one of the analysts' favorites. The experts consider the shares to be too expensive and suggest a downside potential of around 20%.

SILVER VIPER MINERALS CORP - Patience will pay off

Sometimes investors need a little more patience until a company's value is also reflected in the stock market price. Silver Viper Minerals is valued at only CAD 36 million at current prices and is thus clearly too cheap.

The exploration Company is focused on gold & silver deposits in the state of Sonora, in northwestern Mexico. The core of its activities is the wholly-owned La Virginia Gold-Silver Project. In addition, Silver Viper has an option to acquire 100% of additional claims (Rubi-Esperanza). In the past, extensive drilling with a length of 52,000m has been carried out. A few weeks ago, the Company reported good drill results confirming high silver & gold grades in the El Rubi zone.

Further increases in the silver price and project progress will provide momentum to the stock. The current valuation is very moderate and leaves room for upside.

ENDEAVOUR SILVER CORP - things are going well

Endeavour Silver is a mid-tier silver and gold producer that owns three producing mines in Mexico. In the last few weeks, the Company "produced" rows and rows of good news. No wonder, then, that the share price increased significantly to currently around CAD 7.50. The Company is now valued at CAD 1.2 billion.

At the end of January, the Canadians published a production forecast for the current year. According to this, 2021 silver production is expected to be between 3.6 and 4.3 million ounces and gold production between 31,000 and 35,500 ounces. This output equates to silver equivalent production of 6.1 to 7.1 million ounces. The Group will release full 2020 data on March 1. Earlier this month, the Company released a resource update, after which silver deposits in the top two categories increased 11%.

Endeavour Silver is on a roll. The excellent outlook justifies further rising prices. Currently, the stock is only a hold in the eyes of most analysts. However, it usually takes a few weeks for the information to be fully reflected in the analyses. We would therefore not be surprised to see upgrades of the stock soon.


Author

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



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


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  • Silver

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  • Silver

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Silver Viper Minerals, BYD, First Majestic Silver - Position in the silver boom!

  • Silver

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