29. April 2021 | 08:52 CET
First Majestic, Silver Viper, Nordex: Silver only at the beginning?
The printing presses keep running and that fuels the fear of inflation. The precious metal silver is currently showing strength, even against gold. Why is that? Silver has always been an important raw material for industry, but since the hype around e-mobility and renewable energies, more is needed. There are also initial successes reported in the use of silver in rechargeable batteries. At the University of California San Diego, a silver oxide-zinc battery has been developed that has 5-10 times the power of a lithium-ion battery. The manufacturing process is inexpensive and scalable. The automotive industry alone projects a 40% increase in silver demand by 2025, an excellent reason to take a closer look at stocks in these sectors.
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ISIN: CA32076V1031 , CA8283341029 , DE000A0D6554
"[...] In our experience, the local communities are supportive and friendly. [...]" Steve Cope, President, CEO and Director, Silver Viper
First Majestic Silver - Appears overvalued
The Company's quarterly figures were not convincing. Silver production plunged 8% due to weather, while gold fell as much as 25%. At the same time, silver reserves are very low compared to the competition.
There was some positive news recently. The natural gas power plant at the Santa Elena mine is up and running and supplies much of the mine's energy needs. Test mining is expected to begin soon in the Ermitano area.
The acquisition of the Jerritt Canyon Mine is expected to increase production in the coming six months significantly. Overall, the current valuation appears to be relatively high when putting the Company's current market value in context to existing silver reserves.
Silver Viper - Exciting silver investment
Silver Viper Minerals is a relatively young junior explorer company. It is engaged in the acquisition and exploration of mineral properties in Mexico. The focus of its operations is the La Virginia gold-silver project, located in Sonora, Mexico. Silver Viper acquired the area from Pan American Silver.
Following some highly mineralized silver and gold discoveries since December last year, work has now been extended along the known mineralized intercept. The creation of a digital elevation model using LiDAR technology has finally been completed after several delays and will be primarily used for further planning.
Where do we go from here? The Company is continuing the diamond drilling program, building on the discovery at El Rubi and hopes to identify new targets. Attempts are being made to find geochemical anomalies in the geological sampling and mapping of the area.
With good exploration results and increasing silver demand, Silver Viper could be an attractive takeover target. There are only about 81 million shares which means a favorable market capitalization of CAD 40 million. One can look forward to the publication of the mineral resource estimate.
Nordex - Full order books
Silver is currently not yet needed in wind power; this could only change with mega electricity storage. According to a Volkswagen study, 6,500 gigawatt hours of wind power are lost due to a lack of storage options.
Nordex can get over this as a producer of wind turbines. Orders are coming in like on an assembly line. April 13 orders received for 42 megawatts (MW) from Poland, April 14 97 MW from Finland and April 28 35 MW from the Netherlands.
In the first quarter alone, the Company reported an order intake of 1.2 gigawatts. Globally, the Company is trying to push renewable energy, so the order situation should remain positive. The share is currently trying to break the resistance of EUR 26.50. If it succeeds, new highs should be feasible.