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Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


John Jeffrey, CEO, Saturn Oil + Gas Inc.

John Jeffrey
CEO | Saturn Oil + Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary (CAN)

info@saturnoil.com

+1-587-392-7900

Saturn Oil + Gas CEO John Jeffrey: "Acquisition has increased production by 2,000%"


29. March 2021 | 08:00 CET

First Majestic, Silver Viper, Barrick Gold: Why silver shines brighter

  • Silver
Photo credits: pixabay.com

In the past, gold and silver have developed differently; sometimes gold was more in favor with investors, sometimes silver. During the last precious metal boom, silver was clearly in the shadow of gold. But this time, it looks as if silver will be seen by the market, at least on an equal footing. Why? Silver is not only a precious metal but also an industrial metal. The auto industry in particular needs silver. The greener the cars, the more silver they contain. Reason enough to take a look at companies in the sector.

time to read: 3 minutes by Nico Popp
ISIN: CA32076V1031 , CA8283341029 , CA0679011084


Steve Cope, President, CEO and Director, Silver Viper
"[...] In our experience, the local communities are supportive and friendly. [...]" Steve Cope, President, CEO and Director, Silver Viper

Full interview

 

Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author


First Majestic Silver: Small producers are not without risk

One of the few pure silver plays is the stock of First Majestic Silver. Betting everything on silver in 2020 was the right move, as is shown by the stock's performance, which put a return of nearly 200% on the floor last year. The Company operates 3 silver projects in Mexico and is valued at just over EUR 3 billion. For a mid-sized producer, that is already decent. But thanks to the entire development pipeline, the share also still exudes a bit of fantasy. The question remains, how much potential does First Majestic Silver still have, starting from the current level?

Small and medium-sized producers often struggle with costs or experience imponderables due to environmental influences or accidents. One thing seems certain: If 1 project out of 3 collapses due to an incident, the consequences are likely to be significant. Producers are always judged by the market on their output and costs. For this reason, it is always tricky for smaller companies with only a handful of projects to surprise on the upside. First Majestic is an excellent stock to profit from a silver bull market. However, its status as a small producer is not without risks, and risks lurk around every corner.

Silver Viper: Decisive weeks ahead

By nature, Silver Viper's stock is risky. The silver project developer has yet to prove that the properties can be economically exploited. If it fails to do so, the properties and the work of small companies will be nearly worthless. Although this sounds sobering, an attractive risk-reward ratio is nevertheless created when looking at the valuation. Currently, Silver Viper's stock is valued at just EUR 34 million. In exchange, investors get access to the La Virginia project, which is 100% owned by the Company. Silver Viper has a right of first refusal for another claim. In mid-March, the Company reported an average grade of 88 g/t silver and 2.43 g/t gold over a length of approximately 20 meters.

What makes the property special is that the previous owner Pan American Silver has already explored the project and Silver Viper can benefit from the preliminary work done. Silver Viper is nevertheless focusing on a new zone a few kilometers away. On this Ruby zone, from which results have been reported recently, the Company wants to go into further detail. Within the next few weeks, a resource estimate should provide initial insight into where the project is headed. Given the low market capitalization and the development stage, which offers room for positive surprises, Silver Viper's stock is not uninteresting. The stock is a kind of warrant on silver and also gold prices. Investors can take advantage of this and get their foot in the door with a small capital investment.

Barrick Gold: This giant is boring

Barrick Gold currently shows that it makes sense to have several irons in the fire. The Company generates about 95% of its revenues from gold and the rest from copper. The share price increased significantly after the price crash last year but has shown weakness since then. At times, Barrick Gold even considered acquiring copper projects to regain momentum on the stock market. Instead, they decided to pay a special dividend - which, however, fizzled out on the market. While the Company is very diversified, unlike First Majestic, and is better able to weather typical risks for producers, such as landslides, strikes or collapsed tunnels, than other companies, it is too sluggish to excite shareholders in the current environment.

If gold rises again soon, Barrick Gold's stock will also pick up. However, the momentum is likely to be limited. In contrast, investors seem to be better positioned with silver stocks. Its properties as a precious and industrial metal are in line with the spirit of the times and trends. Small caps from the sector also offer an attractive risk-reward ratio at current valuations.


Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

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.


Related comments:

29. July 2021 | 10:25 CET | by Carsten Mainitz

Blackrock Silver, K+S, Barrick Gold - China first!

  • Silver

The Chinese government is demonstrating with all its might who has the last word. The regulation of industries and business models, which, as recently seen in the Chinese education sector, destroys the existence of companies and has weighed heavily on Chinese stocks in recent days. If the situation continues to escalate, it could easily negatively color the world's stock markets' mood. That is when it is worth looking at precious metals stocks, as they usually benefit disproportionately from rising commodity prices in times of crisis. Who will come out on top?

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26. July 2021 | 12:55 CET | by Armin Schulz

First Majestic Silver, Silver Viper, Fortuna Silver Mines - Is silver picking up again?

  • Silver

Inflation in the US climbed again in June, reaching 5.4%, the highest level since 2008. With the expansion of the money supply in the US, it is no wonder. The money supply also increased significantly in Europe. In some cases by EUR 50 billion in one week. Nevertheless, the inflation rate in Germany fell slightly to 2.3%. An end to money printing is not in sight. In contrast to gold, silver is a sought-after raw material in the industry. The price increase in precious metals has stopped since June, and there has been consolidation. It is only a matter of time when the price of silver will pick up again as inflation forces people to invest their money in assets. So today, we take a look at three silver stocks.

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19. July 2021 | 12:53 CET | by André Will-Laudien

SGL Carbon, Millennial Lithium, Standard Lithium, Blackrock Silver - Millions of batteries needed!

  • Silver

If current trends in Germany remain valid, the share of electric vehicles in new sales will shake the 25% mark in the next 5 years. In a recent forecast, the Center of Automotive Management (CAM) predicts new car sales of around 480,000 battery-electric cars and plug-in hybrids this year, representing a good 15% share of new registrations of an estimated 3.3 million passenger cars. The assumption is that battery and plug-in hybrid vehicles will each account for around 50%. By 2025, according to the forecast, the e-vehicle share will rise to 27% of new sales, of which about 65% are expected to be pure electric vehicles. The scenario for the battery industry is thus set.

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