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November 6th, 2020 | 11:35 CET

MAG Silver, Silver Lake Resources, Silver Viper: Inflation may come!

  • Silver
Photo credits: pixabay.com

Goldman Sachs is bullish for the commodity sector! In a memo to its clients, analysts predict a weaker dollar, rising inflation and additional monetary and fiscal policy incentives as reasons for a possible recovery in commodity prices. For the S&P GSCI, which tracks 24 commodities from all commodity sectors, a return of 30 percent is forecast over 12 months. Industrial metals, such as copper, could gain 5 percent, precious metals 18 percent and energy more than 42 percent. Goldman forecasts an average gold price of USD 2,300 per ounce in 2021, while silver is forecast to average USD 30 per ounce. Hear, hear - such a thing rarely comes from an investment bank!

time to read: 3 minutes | Author: André Will-Laudien
ISIN: CA8283341029 , CA55903Q1046 , AU000000SLR6

Table of contents:


    SILVER VIPER - It hisses again

    Silver Viper Minerals Corp. is a Canadian-based junior explorer focused on precious metals in Sonora, Mexico. The Company currently operates the La Virginia gold-silver project, formerly owned by Pan American Silver Corp. In the current rising precious metals environment, the acquisitions make the Company feel very comfortable.

    Silver Viper has an option to acquire a 100% interest in Rubi Esperanza Group assets within these concessions. The project is an early stage exploration property targeting a series of laterally extended intrusive veins and fracture zones that host low-sulphidation epithermal-style gold-silver mineralization. The Company has decided to exercise its option to bring forward the expiration date of a warrant on treasury shares. This has resulted in a total cash inflow of CAD 2.8 million in early October. The excellent deal can, therefore, be closed.

    With the consolidation of the silver price since early August, the share price has corrected significantly, and once again there is a favorable entry level for the Explorer. Especially with the US election and the upcoming fiscal measures to support the economy, the fear of inflation is on the rise again. Silver was thus able to achieve a 48-hour rally of almost 9%. Even Goldman is right in the short-term.

    The Company currently has a market capitalization of CAD 32.4 million and the stock is trading at around CAD 0.40 - after the recent 50% correction, the Chart now seems like a clear upward turn, so speculative investors are striking it.

    MAG SILVER - Runs on many rails

    MAG Silver Corp. is pleased to announce that the Juanicipio Project (56%/44% JV Fresnillo and MAG) has commenced delivery to the Fresnillo processing plant as planned in the 3rd quarter. As reported by the Fresnillo operator, 42,476 tonnes have been processed during the quarter, with a total production of 394,000 ounces of silver, 610 ounces of gold, 138 tonnes of lead and 174 tonnes of zinc. This was more than initially anticipated for the start of the joint venture.

    An agreement was announced recently, to consolidate and acquire 100% of the silver-rich Deer Trail Carbonate Replacement Deposit "CRD" project in Piute County. The project consists of a total of 793 claims (approximately 5,600 hectares) covering the historic Deer Trail Mine and the adjacent Alunite Ridge area. There is a lot of work to be done here over the next few years.

    MAG is further expanding its scope and is already one of the top 10 silver producers in the world. The recent performance of the stock may also be due to the silver trend, as MAG consolidated the last 5 months at a very high level. The silver miner has a capitalization of CAD 2.2 billion with a share price of CAD 23.41. MAG is a standard stock among precious metal producers.

    SILVER LAKE RESOURCES - The balance fortress from Australia

    Silver Lake Resources Ltd. last week released its financial results for the first quarter and reported quarterly production of 63,600 GEOs, up 7% from the same period the previous year. The improved results were driven by a 12% increase in production at the high-grade deflector mine, which offset slightly lower production at the flagship Mount Monger operation.

    Meanwhile, the higher gold price led to a dramatic increase in cash and bullion, with Silver Lake closing the period with the most robust balance sheet among ASX-listed gold producers at AUD 303 million. With fortress-like cash reserves without debt, it is a possibility that mergers and acquisitions could be considered later this year. There are many mines in Australia that are for sale, and they must, of course, fit into the solid corporate structure of a Silver Lake.

    Gold production from the most extensive property, Mount Monger, was 34,600 ounces, down 4% year-on-year, but this was mostly to be expected as the Company completed mining at the higher grade Harry's Hill and French Kiss mines during the current quarter. For the new fiscal year 2021, Silver Lake is now focusing on the Karonie South Mine and reworking previous tailings piles. Silver Lake is one of Australia's mid-sized players with a market capitalization of AUD 1.3 billion. Its value has increased by 100% in 2020 alone and has recently consolidated by 20%, current price AUD 2.11.


    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.

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    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author



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