Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to provide an update of its Sunbird exploration program at the Séguéla gold Project located in Côte d'Ivoire.
Paul Weedon, Senior Vice President of Exploration, commented, "Following the release of Sunbird´s maiden Inferred Mineral Resource containing 350,000 gold ounces in March 2022, expansion drilling has continued to grow the high grade mineralized footprint at depth and beyond the initial maiden resource envelope." Mr. Weedon continued, "Results such as 28.2 g/t gold over 3.5 meters from drill hole SGRD1408 and 12.6 g/t gold over 7.7 meters from drill hole SGRD1422 highlight the open nature of the deposit´s mineralization." Mr. Weedon added, "Further drilling is underway to test these extensions, with drill hole SGRD1423, a further 100 meters down plunge, intersecting several points of visible gold." Mr. Weedon concluded, "In addition to the exploration success at Sunbird this field season, target generation elsewhere on the Séguéla property has continued to grow the portfolio with several new very encouraging prospects identified."
Sunbird Prospect drill highlights include:
Subsequent to the release of Sunbird´s maiden Inferred Mineral Resource of 3.4 million tonnes at an average grade of 3.16 g/t gold containing 350,000 gold ounces (refer to Fortuna news release dated March 15, 2022 ), expansion drilling further down-dip and down-plunge has continued to intersect high grade mineralization beyond the initial optimized pit shell used to constrain the maiden Inferred Mineral Resource (refer to Figure 1 ).
Drilling has successfully intersected an interpreted continuation of the core high grade mineralization a further 100 meters down-plunge from previous intersections with drill hole SGRD1408 intersecting 28.2 g/t gold over an estimated true width of 3.5 meters and drill hole SGRD1422 intersecting 12.6 g/t gold over an estimated true width of 7.7 meters. Assays are pending for drill hole SGRD1423 which intersected several points of visible gold a further 100 meters down plunge. This structure remains open at depth, some 350 meters below surface.
In addition to extending mineralization at depth, drilling was also designed to further define the central high grade core, with a total of eight holes consistently intersecting high grades (greater than 100 grams x meter), including the most recent drill hole SGRD1405 intersecting 18.3 g/t gold over an estimated true width of 11.9 meters from 168 meters down-hole. Full results received for this recent 7,071 meter 20-hole program are listed in Appendix 1 .
An additional 5,110 meter 15-hole program to infill and extend the depth potential has commenced with four holes completed to date (refer to Figure 1 ). Drill hole SGDD095, for which assays are pending, intersected more than five points of visible gold to two millimeters in diameter in geological logging of the drill core. This interval has the potential to extend the high grade core a further 25 meters to the north.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/47ba223c-5747-4dfb-90ca-f4643decc5a1
Séguéla Regional Exploration
Regional exploration across the Séguéla Project has continued to generate attractive targets along the key structural corridors and building off regional soil and auger sampling campaigns, geophysical anomalies and field mapping (refer to Figure 2 and Appendix 2 ).
Highlights from the current generative field season include:
Winy : located approximately five kilometers to the south-east of Antenna, a first pass trench sampling program returned 52 meters at 1.54 g/t gold which was following up a regional soil anomaly and 25 rock chip samples ranging from 0.13 g/t gold to 68.2 g/t gold. Winy is in a structurally favorable setting at the intersection of locally significant north-east trending structures intersecting the pressure shadow to the north of a small intrusive body.
G7 : located approximately 14 kilometers to the south-east of Antenna, a 196-hole, 5,008-meter, reconnaissance air core drilling program returned a best intersection of 32 meters at 1.26 g/t gold in hole SGAC7763 from eight meters with a follow up 6-hole, 504 meter, scout reverse circulation (RC) drilling intersecting 18 meters at 1.54 g/t gold from 76 meters in drill hole SGRC1396. G7 is hosted in the easternmost volcaniclastic and schistose domain and represents a potentially new host setting.
Barana : located 8 kilometers north of Antenna, a greater than 2-kilometer-long +50 parts per billion (ppb) gold auger anomaly has been identified, with a 759-hole, 14,204 meter, scout air core drilling program returning up to seven meters at 2.25 g/t gold from 12 meters in hole SGAC629 and 20 rock chip samples ranging from 0.01 g/t gold to 9.28 g/t gold. Barana is hosted in the northern extension of the same Antenna host lithologies.
Folly : located approximately seven kilometers south of Antenna, additional wide spaced 30-hole, 2,451 meter, scout RC drilling program (200-meter line spacing) following up previous reconnaissance RC drilling returned encouraging results along a greater than 1.2-kilometer strike zone interpreted as the same structural corridor as hosting the Antenna deposit approximately one kilometer to the north. Results include 1.5 meters at 12.79 g/t gold from 88 meters (drill hole SGRC1189), 8.2 meters at 1.69 g/t from 22 meters (drill hole SGRC1252) and 3.0 meters at 7.90 g/t gold from 88 meters (drill hole SGRC1317).
Follow-up drill testing of these prospects along with further drilling at the high grade Gabbro North prospect to follow up previous high grade results including 4 meters at 23.0 g/t gold from 109 meters in drill hole SGRC1236 and 8 meters at 39.0 g/t from 88 meters in drill hole SGRC1152 (refer to Fortuna news release dated September 7, 2021 and Roxgold news release dated June 17, 2021 ) is planned for the second half of 2022.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/49c58a65-f17a-4e78-a328-9262127b2321
Quality Assurance & Quality Control (QA-QC)
All drilling data completed by the Company utilized the following procedures and methodologies. All drilling was carried out under the supervision of the Company's personnel.
All air core (AC) drilling at Séguéla used a 3-inch blade bit with 1-meter samples collected and laid out in rows on the ground, and then spear-sampled in four-meter composites for a final sample weight of approximately two kilograms. Drilling is maintained until either damp samples are encountered or ground refusal. Trench samples were collected in 4-meter composites along one wall of the trench and below any transported horizons for a final sample weight of 2-3 kilograms. All rock-chip, AC and trench samples were assayed at Elam Laboratories in Côte d'Ivoire with routine gold analysis using a 50-gram charge and fire assay with an atomic absorption finish. Quality control procedures included the systematic insertion of blanks, duplicates and sample standards into the sample stream. In addition, Elam Laboratories inserted its own quality control samples. AC samples are used for target generation only and not used for any mineral resource calculation.
All RC drilling at Séguéla used a 5.25-inch face sampling pneumatic hammer with samples collected into 60-liter plastic bags. Samples were kept dry by maintaining enough air pressure to exclude groundwater inflow. If water ingress exceeded the air pressure, RC drilling was stopped, and drilling converted to diamond core tails. Once collected, RC samples were riffle split through a three-tier splitter to yield a 12.5% representative sample for submission to the analytical laboratory. The residual 87.5% sample were stored at the drill site until assay results were received and validated. Coarse reject samples for all mineralized samples corresponding to significant intervals are retained and stored on-site at the company-controlled core yard.
All DD drill holes at Séguéla were drilled with HQ sized diamond drill bits. The core was logged, marked up for sampling using standard lengths of one meter or to a geological boundary. Samples were then cut into equal halves using a diamond saw. One half of the core was left in the original core box and stored in a secure location at the company core yard at the project site. The other half was sampled, catalogued and placed into sealed bags and securely stored at the site until shipment.
All Séguéla RC and DD core samples were shipped to ALS Laboratories preparation laboratory in Yamoussoukro for preparation and then, via commercial courier, to ALS's facility in Ouagadougou, Burkina Faso for finishing. Routine gold analysis using a 50-gram charge and fire assay with an atomic absorption finish was completed for all Séguéla samples. Quality control procedures included the systematic insertion of blanks, duplicates and sample standards into the sample stream. In addition, the ALS laboratory inserted its own quality control samples.
Paul Weedon, Senior Vice President of Exploration for Fortuna Silver Mines Inc., is a Qualified Person as defined by National Instrument 43-101 being a member of the Australian Institute of Geoscientists (Membership #6001). Mr. Weedon has reviewed and approved the scientific and technical information contained in this news release. Mr. Weedon has verified the data disclosed, and the sampling, analytical and test data underlying the information or opinions contained herein by reviewing geochemical and geological databases and reviewing diamond drill core. There were no limitations to the verification process.
About Fortuna Silver Mines Inc.
Fortuna Silver Mines Inc. is a Canadian precious metals mining company with four operating mines in Argentina, Burkina Faso, Mexico and Peru, and a fifth mine under construction in Côte d'Ivoire. Sustainability is integral to all our operations and relationships. We produce gold and silver and generate shared value over the long-term for our stakeholders through efficient production, environmental protection, and social responsibility. For more information, please visit our website .
ON BEHALF OF THE BOARD
Jorge A. Ganoza President, CEO and Director Fortuna Silver Mines Inc.
Investor Relations: Carlos Baca | info@fortunasilver.com | Twitter: @Fortuna_Silver | LinkedIn: fortunasilvermines
This news release contains forward looking statements which constitute "forward looking information" within the meaning of applicable Canadian securities legislation and "forward looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 (collectively, "Forward looking Statements"). All statements included herein, other than statements of historical fact, are Forward looking Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward looking Statements. The Forward looking Statements in this news release may include, without limitation, statements about the Company's plans for the Séguéla gold Project and mineral properties, including the Sunbird Prospect; the anticipated exploration and other development programs at the Sunbird Prospect and other mineral properties at the Séguéla gold Project, together with the investment, nature, implementation and timing thereof; the timing for, and anticipated results of the exploration programs at the Sunbird Prospect and the Séguéla gold Project, and the intention to expand mineralization at the Séguéla gold Project; the Company's business strategy, plans and outlook; the merit of the Company's mines and mineral properties; mineral resource and reserve estimates; timelines; the future financial or operating performance of the Company; expenditures; approvals and other matters. Often, but not always, these Forward looking Statements can be identified by the use of words such as "estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed", "has been", "gain", "planned", "reflecting", "will", "containing", "remaining", "to be", or statements that events, "could" or "should" occur or be achieved and similar expressions, including negative variations.
Forward looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by the Forward looking Statements. Such uncertainties and factors include, among others, changes in general economic conditions and financial markets; the duration and effects of the COVID-19 pandemic on our operations and workforce and the effects on the global economy and society; changes in prices for silver, gold and other metals; the success of the Company's exploration program at the Sunbird Prospect and the Séguéla gold Project; technological and operational hazards in Fortuna's mining and mine development activities; risks inherent in mineral exploration; fluctuations in prices for energy, labor, materials, supplies and services; fluctuations in currencies; uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries; our ability to obtain all necessary permits, licences and regulatory approvals in a timely manner; governmental and other approvals; political unrest or instability in countries where Fortuna is active; labor relations issues; as well as those factors discussed under "Risk Factors" in the Company's Annual Information Form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward looking Statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward looking Statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to expectations regarding the results from the exploration programs conducted at the Séguéla gold Project; expected trends in mineral prices and currency exchange rates; the accuracy of the Company's information derived from its exploration programs at the Séguéla gold Project; current mineral resource and reserve estimates; that the Company's activities will be in accordance with the Company's public statements and stated goals; that there will be no material adverse change affecting the Company or its properties; that all required approvals will be obtained; that there will be no significant disruptions affecting operations and such other assumptions as set out herein. Forward looking Statements are made as of the date hereof and the Company disclaims any obligation to update any Forward looking Statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that Forward looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on Forward looking Statements.
Cautionary Note to United States Investors Concerning Estimates of Reserves and Resources
Reserve and resource estimates included in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for public disclosure by a Canadian company of scientific and technical information concerning mineral projects. Unless otherwise indicated, all mineral reserve and mineral resource estimates contained in the technical disclosure have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards on Mineral Resources and Reserves.
Canadian standards, including NI 43-101, differ significantly from the requirements of the Securities and Exchange Commission, and mineral reserve and resource information included in this news release may not be comparable to similar information disclosed by U.S. companies.
APPENDIX 1. Séguéla gold Project, Côte d'Ivoire: Sunbird Prospect drill results
APPENDIX 2. Séguéla gold Project, Côte d'Ivoire: Regional Exploration Results
Note: true width not determined; samples are 4-meter composites
G7 and Barana RC and AC results; AC reported for intervals greater than 2.5-gram x meter
News Provided by GlobeNewswire via QuoteMedia
David Morgan: Stock Market Pain Not Over, Why Silver and Gold Aren't Higher (Yet)youtu.be
At the beginning of 2022, David Morgan, publisher of the Morgan Report, was calling for a reality check in the stock market. Halfway through the year, there's no question that it's facing a reckoning.
"I've been talking about the stock market being overvalued for quite some time, but I really sensed that this year was the year, meaning that it couldn't really go on much longer — and it hasn't," he said about the situation.
And in his view, it's not over yet — "I think there's more pain ahead. I think we need that capitulation, and we need that washing away of these overvalued situations," Morgan explained to the Investing News Network.
Precious metals are considered a safe haven during times of turmoil, but despite this year's stock market activity and other areas of turbulence, silver and gold haven't performed as well as some investors would like.
Morgan compared what's going on to what happened in 2008, when the silver price was cut in half and gold lost about 30 percent of its value; gold then doubled from its low, while silver went up fivefold.
"The point is both have been hit just like in 2008, but they've been hit less much less in percentage terms," he said, noting that this is significant because economic conditions are currently much worse now than they were then.
"I think silver will outperform just like in 2008 — gold doubled from the bottom, silver went up fivefold from the bottom. I think this time around they're acting stronger during this recessionary start, or depressionary start, and yet they will probably do better than they did in 2008," Morgan noted.
Watch the interview above for more from Morgan on silver, including the metal's real highest price.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Southern Energy Corp. has released successful early flowback results from the first well of the three-well horizontal pad site located in the Gwinville field.
The GH 19-3 No. 2 well was opened to flowback following the stimulation operation. After approximately one week of clean-up, the well is flowing at 7.7 MMcf/d (1,280 boe/d) at a highly restricted flowing pressure of 1,100 psig. Production from the well is flowing directly to sales creating significant additional cash flow for the company. The well continues to produce over 2,000 bbl/d (barrels per day) of load fluid, with approximately 24 per cent recovered to date. Throughout the first week of production, as more load fluid is recovered, the well's gas rate has consistently increased day over day.
Southern's Generation 3 completion design increased the stage count by over 275 per cent and the proppant concentration by over 40 per cent as compared with the most recent Selma Chalk horizontal wells completed in Mississippi between 2013 to 2015, and initial flowback performance suggests that the increased completion intensity is having a very positive result.
With the additional volumes from the new well, Southern's current WI (working interest) sales production has increased approximately 60 per cent to 3,175 boe/d (96-per-cent gas). The additional natural gas production from the new well is unhedged and being sold at current NYMEX gas prices.
Stimulation operations on the GH 19-3 No. 3 and No. 4 wells have also been completed, and both wells will begin flowback/clean-up shortly.
Ian Atkinson, president and chief executive officer of Southern, commented:
"This is a transformational moment for our company; not only are we adding material production, reserves and cash flow at a time when gas prices are near 14-year highs, but we are solidifying and executing our operational strategy to deliver multiyear redevelopment from our assets and highlighting the significant opportunity and optionality we have in providing equity growth for shareholders.
"We are extremely excited by these initial results from our Generation 3 completion design on these Gwinville Selma Chalk horizontal wells. The flowback results from the GH 19-3 No. 2 well are evidence of how our team has successfully used modern technology to revitalize these significantly underdeveloped conventional assets in the Gulf Coast area.
"While still premature to make accurate type curve predictions for these and future Gwinville wells, we can say at this point, that the early flowback performance is far superior to any of the previous Selma Chalk wells in the area. Our operations team has done an excellent job of safely managing the stimulations on the three-well pad, and we expect costs to come in line with AFE estimates."
As at June 7, 2022, the company is pleased to announce that 5.3 million warrants issued on April 22, 2021, representing approximately 31 per cent of outstanding 2021 warrants, have been exercised for total proceeds of $1.7-million to the company. There are 11.8 million remaining 2021 warrants outstanding that expire on April 30, 2023, for total proceeds of $3.8-million to the company. In addition, as of June 7, 2022, there have been 2,923 conversions of the outstanding 8-per-cent convertible unsecured subordinated debentures issued on June 14, 2019, and Jan. 15, 2021, for 3.6 million new common shares, representing approximately 35 per cent of the 8,389 convertible debentures issued.
It is noted that the aforementioned exercises include additional conversions since the time of the company's previous total voting rights update on June 1, 2022, amounting to the issue of a further 468,750 new common shares since that time. These new common shares have been admitted to trading on AIM (Alternative Investment Market) under the block admission announced on May 6, 2022. As of June 7, 2022, following the aforementioned share issues, the company had a total of 86,903,733 common shares in issue. This figure may be used by shareholders in the company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the company.
Southern Energy is a natural gas exploration and production company. Southern has a primary focus on acquiring and developing conventional natural gas and light oil resources in the southeast Gulf states of Mississippi, Louisiana and east Texas. The company's management team has a long and successful history working together and have created significant shareholder value through accretive acquisitions, optimization of existing oil and natural gas fields, and the utilization of redevelopment strategies utilizing horizontal drilling and multistaged fracture completion techniques.
Gary McMurren, vice-president of engineering, who has over 22 years of relevant experience in the oil industry and has approved the technical information contained in this announcement. Mr. McMurren is registered as a profession engineer with the Association of Professional Engineers and Geoscientists of Alberta and received a bachelor of science degree in chemical engineering (with distinction) from the University of Alberta.
Click here to connect with Southern Energy Corp. (TSXV:SOU) to receive an Investor Presentation
Investing in silver bullion has pros and cons, and what’s right for one investor may not work for another.
Interest in the silver market tends to flourish whenever the silver price increases, with investors beginning to wonder if it is the right time to add physical silver to their investment portfolios.
While silver can be volatile, the precious metal is also seen as a safe-haven asset, similar to its sister metal gold. Safe-haven assets can protect investors in times of uncertainty, and with tensions running high, they could be a good choice for those looking to preserve their wealth in difficult times.
With those factors in mind, let’s look at the pros and cons of buying silver in the form of physical bullion.
1. Silver can offer protection — As mentioned, investors often flock to precious metals during times of turmoil. When political and economic uncertainty are rife, legal tender generally takes a backseat to assets like gold and silver. While both gold and silver bullion can be appealing to investors, the white metal tends to get overlooked in favor of individuals investing in gold, even though it plays the same role.
2. It’s a tangible asset — While cash, mining stocks, bonds and other financial products are accepted forms of wealth, they are essentially still digital promissory notes. For that reason, they are all vulnerable to depreciation due to actions like printing money. Silver bullion, on the other hand, is a finite tangible asset. That means that, although it is vulnerable to market fluctuations like other commodities, physical silver isn’t likely to completely crash because of its inherent and real value. Market participants can buy bullion in different forms, such as silver coins or silver jewelry, or they can buy silver bullion bars.
3. It’s cheaper than gold — Compared to gold bullion, the white metal is not only less expensive and therefore more accessible to buy, but it’s also more versatile to spend. That means if you are looking to buy silver in the form of a coin to use as currency, it will be easier to break than a gold coin because it is lower in value. Just as a US$100 bill can be a challenge to break at the store, divvying up an ounce of gold bullion can be a challenge. As a result, silver bullion is more practical and versatile, making this type of silver investment more appealing.
4. Silver offers higher returns than gold — Silver tends to move in tandem with gold: when the price of gold rises, so too does the price of silver. Because the white metal is currently worth around 1/79th the price of gold, buying silver bullion is affordable and stands to see a much bigger percentage gain if the silver price goes up. In fact, silver has outperformed the gold price in bull markets. It’s possible for an investor to hedge their bets with silver bullion in their investment portfolio.
5. History is on silver’s side — Silver and gold have been used as legal tender for thousands of years, and that lineage lends them a sense of stability. Many find comfort in knowing that silver has been recognized for its value throughout a great deal of mankind’s history, and so there’s an expectation that it will endure while a fiat currency may fall to the wayside. When individuals invest in physical silver, whether that be through buying a silver bar, pure silver, a coin or other items, there is a reassurance that its value has and will continue to persist.
1. Lack of liquidity — There is a chance that if you hold physical silver, it may not be immediately liquid. In order to make common purchases such as groceries, you are not able to use silver bullion bars or a silver bullion coin, so you will need to convert that to currency first, and the ability to sell in a hurry can be an issue. If you can't access a bullion exchange and are in a jam, pawn shops and jewelers are an option, but won't necessarily pay well.
2. Danger of theft — Unlike most other investments, such as stocks, holding silver bullion can leave investors vulnerable to theft. Securing your assets from looting by using a safety deposit box in a bank or a safe box in your home will incur additional costs. Additionally, the more physical assets, including silver jewelry, that reside within your home, the more at risk you are for burglary.
3. Weak return on investment — Although silver bullion may be a good safe haven asset, it may not perform as well as other investments, such as real estate or even other metals.
Mining stocks, especially silver stocks that pay dividends, may also be a better option than silver bullion for some investors. As Randy Smallwood, president and CEO of streaming company Wheaton Precious Metals (TSX:WPM,NYSE:WPM), has said, “Streaming companies will always outperform bullion by itself.” He attributes this to organic growth and dividend payouts that bullion doesn’t provide. Other options for investors interested in silver include investing in an exchange-traded fund or silver futures.
4. High silver demand leads to higher premiums — When investors try to buy any bullion product, such as an American silver ounce coin known as a silver eagle, they quickly find out that the physical silver price is generally higher than the silver spot price due to premiums used by sellers. What’s more, if demand is high, premiums can go up fast, making the purchase of physical silver bullion more expensive and a less attractive investment.
This is an updated version of an article originally published by the Investing News Network in 2016.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Following its worst monthly performance in a year, the S&P/TSX Venture Composite Index (INDEXTSI:JX) remained in the red to start the month of June.
May saw Canada’s junior index slip to 667.25, its lowest point since July 2020. Rampant inflation as well as the Russia/Ukraine war have eroded investor confidence, leaving most markets struggling to retain any gains.
While current economic conditions have weighed on consumer sentiment in the west, other parts of the world are grappling with food insecurity and rising agricultural costs stemming from supply chain disruptions and sanctions against Russia. The severity of the situation was highlighted in a weekly S&P Global Ratings update.
“We believe the shock to food supply will last through 2024 and beyond, with negative implications for emerging market countries, affecting GDP growth, fiscal performance, and social stability ... Our analysis of sovereigns' food import exposures suggests that low and low-to-middle income countries in Central Asia, the Middle East, Africa, and the Caucasus would be worst hit by the first-round impact,” the research firm said last week.
The market overview goes on to note that the poorest countries in the world will be disproportionately affected.
“Even a one-year shock of the magnitude observed would be likely to cause malnourishment and increase food poverty, if our thesis of fertilizer shortage and export restriction-driven multiyear shock plays out, the impact could be catastrophic, absent remedial measures," the report states.
Despite this dismal economic predicament, some Canadian junior miners were able to see share price growth. The five TSXV-listed mining stocks that saw the biggest rises last week are as follows:
Here’s a look at those companies and the factors that moved their share prices last week.
Focused on its Sail Pond project in Newfoundland, Sterling Metals is exploring for silver and base metals.
On May 27, the diversified exploration company closed a private placement of charity flow-through units for gross proceeds of C$1.79 million. CEO Mathew Wilson offered the following comments in a press release:
From here, Sterling is prepping for drill mobilization and will be following up on initial discovery holes. Company shares added 56.52 percent last week, ending the session at C$0.36.
Outback Goldfields is committed to gold exploration and discovery around the Fosterville mine in Australia.
Outback published its last piece of company news in late March, when the precious metals explorer completed the initial exploration phase at its Yeungroon gold property located in Central Victoria.
Company CEO Chris Donaldson spoke with the Investing News Network in mid-May regarding the future of the company and its current exploration efforts.
Last week, shares of Outback climbed 46.35 percent to trade for C$0.19.
Junior exploration company Stelmine Canada is working to pioneer a new gold district east of James Bay in the eastern part of the Opinaca metasedimentary basin. Stelmine currently holds sole ownership of 1,277 claims or 655 square kilometers in this part of Northern Quebec.
In mid-May, the gold explorer announced the completion of Phase I drilling at its Courcy project at which the target is near-surface gold mineralization. Moving forward, the company is planning for near-term new exploration at Courcy to assist with plans for Phase II follow-up drilling.
Stelmine saw its shares climb 45.26 percent last week, ending the period at C$0.22.
Aurcana Silver owns the Revenue-Virginius mine in Colorado and the Shafter-Presidio silver project in Texas.
Last Tuesday (May 31), Aurcana gave shareholders an update on a waiver and standstill agreement the company has with Mercuria Energy Group. According to a statement, Mercuria agreed to give Aurcana an extension until last Friday (June 3). Shares of Aurcana were up 43.73 percent by the week's end, closing at C$0.11.
Cantex Mine Development is focused on the acquisition and exploration of mineral properties. It currently has projects in Canada's Yukon, the US state of Nevada and Yemen.
On May 25, Cantex reported the commencement of drilling at its North Rackla project in Yukon. According to a statement, two drills are working on testing the GZ zone for silver, zinc and lead.
Cantex shares increased 40.27 percent over the five day period, closing at C$0.31 last Friday.
Data for 5 Top Weekly TSXV Performers articles is retrieved each Friday at 10:30 a.m. EST using TradingView's stock screener. Only companies with market capitalizations greater than C$10 million prior to the week's gains are included. Companies within the non-energy minerals and energy minerals are considered.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Outback Goldfields is a client of the Investing News Network. This article is not paid-for content.
Like its sister metal gold, silver has been attracting renewed attention as a safe-haven asset.
Although it continues to exhibit its hallmark volatility, many silver investors believe that a bull market is on the way for the precious metal. Experts are optimistic about the future, and as a result, some market watchers are putting forth price forecasts and asking themselves, “What was the highest price for silver?”
The answer reveals how much potential there is for the silver price to rise. Read on for a look at silver's historical moves, and what they could mean for both the price of silver today and the white metal’s price in the future.
Before discovering what the highest silver price ever was, it’s worth looking at how the precious metal is traded. Knowing the mechanics behind how this important asset changes hands can be useful in understanding why and how its price changes on a day-to-day basis and beyond.
Put simply, silver bullion is traded in dollars and cents per ounce, with market activity taking place worldwide at all hours, resulting in a live silver price. Key commodities markets like New York, London and Hong Kong are just a few locations where investors trade the metal. London is seen as the center of physical silver trade, while the COMEX division of the New York Mercantile Exchange, called the NYMEX, is where most paper trading is done.
There are two popular ways to go about investing in silver. The first is through purchasing silver bullion products such as bullion bars, bullion coins and silver rounds. Physical silver is sold on the spot market, meaning that in order to invest in silver this way, buyers pay a specific price for the metal — the silver price per ounce — and then have it delivered immediately.
The second is accomplished through paper trading, which is done via the silver futures market, with participants entering into futures contracts for the delivery of silver at an agreed-upon price and time. In such contracts, two positions can be taken: a long position to accept delivery of the metal or a short position to provide delivery.
Paper trading might sound like a strange route to take when one wants to invest in silver, but it can provide investors with flexibility that they wouldn’t get from buying and selling bullion.
The most obvious advantage is perhaps the fact that trading in the paper markets means silver investors can benefit long term from holding silver without needing to store it. Furthermore, futures trading can offer more financial leverage in that it requires less capital than trading in the physical market.
It’s worth noting that supply chain disruptions caused by COVID-19 have caused ongoing problems for those interested in buying physical silver — travel restrictions and other factors have left dealers with limited product to sell, and have pushed up premiums on physical silver. That means even those who can find silver bullion products for sale may see much higher markups than usual.
As a final point, market participants should be aware that they can also invest in silver through an exchange-traded fund (ETF). Investing in a silver ETF is similar to trading a stock on an exchange, and there are several silver ETF options to choose from. For instance, some ETFs focus solely on physical silver bullion, while others focus on silver futures contracts. Still others focus on the silver-mining market itself or follow the live silver price.
It is important to keep in mind that you will not own any physical silver when investing in any ETF platforms — even a silver ETF that tracks physical silver typically cannot be redeemed for tangible white metal.
Silver hit US$48.70 per ounce, the highest silver price to date, towards the end of the 1970s.
However, the purchase price didn’t exactly reach that level by honest means. As Investopedia explains, the metal’s bid price was driven by the Hunt brothers, two wealthy traders who attempted to corner the market by buying not only physical silver, but also silver futures — they took delivery of those silver futures contracts instead of taking legal tender in the form cash settlements. However, their exploits ultimately ended in disaster: On March 27, 1980, they missed a margin call and the silver market price plunged to US$11.
Silver wouldn’t test that high again until 2011. At that time, the commodity's price uptick came on the back of very strong silver investment demand, and was more than double the 2009 average silver price of US$14.67. The chart below from Kitco spans from the start of January 2010 to February 2022. It shows that the silver price reached US$47.94 in April 2011 before plummeting in the years that followed.
Silver price chart, January 2010 to February 2022.
The chart also shows the current upward trend in the silver price, which has been spurred on by the economic uncertainty surrounding the COVID-19 pandemic. The price of silver breached the key US$26 level in early August 2020, and soon after tested US$30 — but it has failed to make substantial progress.
Although the silver price was trading around the US$22 point as of early 2022, market watchers are still curious as to when the silver price will continue its upward trajectory. Only time will tell, but Gwen Preston of Resource Maven and Peter Krauth of Silver Stock Investor and Gold Resource Investor are confident that silver bugs are in for a treat. In a late 2021 interview with the Investing News Network (INN), Krauth said he think there are good odds that silver will challenge 2020's high again in 2022.
Chris Marcus, founder of Arcadia Economics, also expressed bullish sentiments in an interview with INN. Marcus said he's feeling positive about 2022, and would be "stunned" if the precious metal was still around US$25 at the end of the year. He doesn't think it will take much longer for silver to break past the all-important US$30 level.
Like other metals, the silver spot price is most heavily influenced by supply and demand dynamics. However, as the stats above illustrate, the silver price can be very volatile. That is partially due to the fact that the metal is subject to both investment and industrial demand within the global markets.
In other words, it’s bought by investors who want it as a store of wealth, as well as by manufacturers looking to use it for different applications that are incredibly varied. For example, silver has diverse technological applications and is used in devices like batteries and catalysts, but it’s also used in medicine and in the automotive industry.
In terms of supply in 2021, the world’s three top producers of the metal were Mexico, China and Peru. Interestingly, even in those countries the white metal is usually produced as a by-product — for instance, a mine producing primarily gold might also have silver output.
As a final note on the price of silver and buying silver bullion, it’s important for investors to be aware that manipulation of prices is a major issue in the space.
For instance, in 2015, 10 banks were hit in a US probe on precious metals manipulation. Evidence provided by Deutsche Bank (NYSE:DB) showed “smoking gun” proof that UBS Group (NYSE:UBS), HSBC Holdings (NYSE:HSBC), the Bank of Nova Scotia (NYSE:BNS) and other firms were involved in rigging silver rates from 2007 to 2013.
JPMorgan Chase (NYSE:JPM) has been long at the center of silver manipulation claims as well. For years the company has been in and out of court for the accusations. In a recent case, the bank settled a lawsuit over alleged precious metals “spoofing” for an undisclosed amount. It agreed to pay US$920 million to resolve federal agency probes regarding manipulation of multiple markets, including precious metals.
In 2014, the London Silver Market Fixing stopped administering the London silver fix, which had been used for over a century to fix the price of silver. It was replaced by the LBMA Silver Price, which is run by ICE Benchmark Administration, in a bid to increase market transparency.
Market watchers like Ed Steer have said that the days of silver manipulation are numbered, and that the market will see a significant shift when the time finally comes.
While there’s a concrete answer to the question “What was the highest price for silver?” it’s anyone’s guess whether it will reach those heights once again. Even so, many commentators say prospects are bright for buying silver — and no matter the current state of the market, investors will no doubt be watching to see how the metal fares.
This is an updated version of an article first published by the Investing News Network in 2015.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, currently hold no direct investment interest in any company mentioned in this article.
The silver price made waves in 2020 when it rose above US$20 per ounce for the first time in four years. Despite volatility, theprecious metal has managed to stay securely above that level in 2022.
Nonetheless, well-known figure Keith Neumeyer, CEO of First Majestic Silver (TSX:FR,NYSE:AG), has frequently said he believes the white metal could climb even higher, reaching into the triple digits.
Neumeyer has voiced this opinion often, most recently in a March 2022 interview with Kitco. He put up a US$130 price target in a November 2017 interview with Palisade Radio, and has reiterated his triple-digit silver price forecast in multiple interviews with Kitco: one in March 2018, one at the top of 2020 and another in May 2021.
At times he’s been even more bold, suggesting the white metal could reach US$1,000.
In order to better understand where Neumeyer’s opinion comes from and whether a triple-digit silver price is really in the cards, it’s important to take a look at the factors that affect the metal’s movements, as well as where prices have been in the past and where other industry insiders think silver could be headed. First, let’s dive a little deeper into Neumeyer’s prediction that the white metal could break the US$100 level.
There’s a significant distance for the silver price to go before it reaches the success Neumeyer has boldly predicted. In fact, in order for the precious metal to jump to the seemingly distant US$100 mark, its price would have to increase from its current value by more than 350 percent.
Neumeyer expects a triple-digit silver price in part because he believes the current market cycle compares to the year 2000, when investors were sailing high on the dot-com bubble and the mining sector was down. He thinks it’s only a matter of time before the market corrects, like it did in 2001 and 2002, and mining sees a big rebound in pricing. It was during this time that Neumeyer himself invested heavily in mining stocks and came out on top.
“I’ve been calling for triple-digit silver for a few years now, and I’m more enthused now,” said Neumeyer at an event in January 2020, noting that there are multiple factors behind his reasoning. “But I’m cautiously enthused because, you know, I thought it would have happened sooner than it currently is happening.”
In a May 2021 interview, when presented with supply-side data from the Silver Institute indicating the biggest surplus in silver market history, Neumeyer was blunt in his skepticism.
“I think these numbers are made up,” he said. “I wouldn’t trust them at all.” He pointed out that subtracting net investments in silver exchange-traded products leaves the market in a deficit, and also questioned the methodology behind the institute’s recycling data given that most recycled silver metal comes from privately owned smelters and refineries that typically don’t make those figures public.
More controversially, Neumeyer is of the opinion that the white metal will eventually become uncoupled from its sister metal gold, and should be seen as a strategic metal due to its necessity in many everyday appliances, from computers to electronics to solar panels. He has also stated that silver production has gone down in recent years, meaning that contrary to popular belief, the metal is actually a rare commodity.
According to Neumeyer in a 2018 interview, “We’re consuming, as a human race, over 1 billion ounces of silver annually, and miners are only producing about 800 million ounces a year, and that’s been dropping for three consecutive years.” He has also pointed to declining grades, making the case for a supply deficit.
In order to glean a better understanding of the precious metal’s chances of trading around the US$100 range, it’s important to examine the elements that could push it to that level or pull it further away.
The strength of the US dollar, US Federal Reserve interest rate changes and the unwinding of quantitative easing by central banks are all factors that will continue to affect the precious metal, as well as geopolitical issues and supply and demand dynamics. Although Neumeyer believes that the ties that bind silver to gold need to be broken, the reality is that most of the same factors that shape the price of gold also move silver.
For that reason, it’s helpful to look at gold price drivers when trying to understand silver’s price action. Silver is, of course, the more volatile of the two precious metals, but nevertheless it often trades in relative tandem with gold.
For gold, and by extension silver, a key price driver lately hasn’t been so much supply and demand, but uncertainty. The past few years have been filled with major geopolitical events such as tensions between the US and other countries such as North Korea, China and Iran. More recently, the huge economic impact of the COVID-19 pandemic and Russia's war with Ukraine have been major sources of concern for precious metals investors.
The Russia/Ukraine war is expected to weigh heavily on commodities markets, including precious metals, even after the conflict ends, with many expecting sanctions to remain. Speaking to the Investing News Network (INN) in March 2022, Lobo Tiggre, founder and editor of IndependentSpeculator.com, said he believes these sanctions will lead to a "new Iron Curtain," which will have lasting economic consequences on a global scale.
"It's not a small thing, and it's not going away. I mean, except for an unlikely scenario, it seems to me that this is a paradigm shift; it's a one-way transition," he said. "And we will be dealing with the costs for many years to come."
It’s also key for market participants to watch what central banks do, as this can have a large impact on silver. Precious metals investors have always closely followed the US Federal Reserve’s interest rate plans.
In recent years, the Fed has cut rates down to zero, a move that positively affected prices for both metals. Rate cuts are generally good for physical silver and gold bullion prices, because when rates are lower it is more profitable to invest in precious metals rather than in products that can accrue interest.
However, rising inflation has led the Fed and other central banks to flip their strategies from rate cuts to rate increases, which has in turn had a negative impact on gold and silver prices.
Peter Krauth, editor of Silver Stock Investor, told INN in a May 2022 interview, "We're likely at the end of a 40 year bull market in both stocks and bonds, and with rising inflation (and) huge debts that are continuing to grow, I think people really need to look for alternatives to stocks and bonds."
Silver’s close ties to gold’s safe-haven status should be beneficial in the long term, and there is also a strong case to made for the metal's industrial growth potential. According to CIBC market analysts, who see silver averaging US$32 in 2022, higher industrial demand from emerging sectors due to factors like the transition to renewable energy will be highly supportive for the metal over the next few years.
“Given our expectations for inflation to increase over the coming months and for pressure on the Fed to walk a fine line between hiking rates to manage inflation vs. supporting economic growth, we continue to believe that gold and silver prices will continue to climb over the coming quarters,” they said.
While not all silver market watchers anticipate a triple-digit silver price in the near future, there is support for Neumeyer’s belief that the metal is undervalued and that “ideal conditions are present for silver prices to rise.”
Many are on board with Neumeyer in the idea that silver's prospects are bright, including Krauth, who believes that "we are very likely going to experience the greatest silver bull market of our generation."
So, if the silver price does rise, how high will it go? Let’s look at silver’s recent history. The highest price for silver was just under US$50 in the 1970s, and it came close to that level again in 2011. The commodity’s price uptick came on the back of very strong silver investment demand.
In February 2021, the price of silver reached nearly US$28.50 before pulling back again. The price of silver has yet to trend that high in 2022.
Many market watchers believe that silver is ripe for a rally, but perhaps just not as high as US$100 or more.
David Morgan of the Morgan Report sees the potential for silver to hit US$50 in the short term. Speaking to INN in February 2022, he pointed out that high levels of stock market volatility will make silver more attractive to investors. "There is going to be huge distortions across all markets — meaning the bond market, the stock market, the metals market, the crypto market," explained Morgan.
He believes silver may break through US$30 to trade in the US$33 range in 2022. He also sees potential for silver to reach US$50 in the near future. "Once silver gets above US$33 and it stays there for three or four days — or better yet, even two or three weeks — there's not much holding it back to hit US$50 again," he said.
Matt Watson, founder of Precious Metals Commodity Management, thinks that over the next decade silver will benefit greatly from increased industrial demand, particularly from the electric vehicle, solar photovoltaic and electronics industries. This increasing demand is happening in concert with decreasing mine supply, which has the potential to push the silver price to US$50 — just not in the short term.
"Now, as (silver) starts pushing, like I said, into the mid-2030s and becomes more of an industrial-based metal, then I think you see the likelihood of that 8 percent growing to a 10 to 12 percent type of CAGR," Watson told INN.
For his part, Tiggre thinks the present market circumstances are ripe for silver to outperform gold and perhaps reach triple-digit levels. "I know that sounds wild and crazy, but you know what? Even if it just goes back to a new all-time nominal high, we're talking US$50+ silver, which completely rewrites the book for all the exploration and production stories. It's a big deal, and it should be reflected in share prices," he told INN.
This is an updated version of an article originally published by the Investing News Network in 2016.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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