Australian (ASX) Stock Market Forum

ASX silver stocks

Here's how we stand with Oz equities rising in price:

Silver Mines (ASX: SVL) stock rose by 30% yesterday.
And that followed huge turnover in that stock last Friday.
The company has the large advanced Bowdens project in NSW. It has a mineral resource of 128 million tonnes at 40 grams per tonne silver, 0.38% zinc and 0.26% lead.

Golden Deeps (ASX: GED) owns ground adjoining Bowdens and last year identified a mineralised trend that continued into its project area. Shares were up 20% yesterday.

Investigator Resources (ASX: IVR) saw a 19.5% lift in the first hours of trade on Monday, again after a big price and volume jump on Friday. The company has the Paris project which it claims to be Australia’s largest undeveloped silver deposit.

Manuka Resources (ASX: MKR) is redeveloping the Wonawinta mine near Cobar, originally opened by the former Cobar Consolidated Resources, and plans to be in production by mid-2021 and, in the second half of this year, become what is describes as Australia’s largest primary producer of silver.

Rimfire Pacific Mining (ASX: RIM) was up 10% on Monday morning, its Sorpresa gold-silver project in northern NSW now obviously gaining some fresh attention.

Mexico gold-silver explorer Mithril Resources (ASX: MTH) saw its shares gain 15% in morning trade.

Mothballed projects:​

Azure Resources (ASX: AZS) last year mothballed its silver (and gold) plans in Mexico due to COVID-19 and instead bought projects in Western Australia. Last week, Azure’s latest quarterly noted the Mexico projects remain on care and maintenance “due to the severe and deteriorating COVID-19 situation in that country”.
Up 20% went its shares in Monday morning trade.

Argent Minerals (ASX: ARD) was up more than 24%, and no doubt thanking itself for last year reviving its silver hopes at the Kempfield project in NSW.

But the winner in the morning’s silver trade race was Thomson Resources (ASX: TMZ) which is now in the process of acquiring the Webbs and Conrad projects in NSW. Its stock had risen 42% by just after midday.

(The largest silver producer in Australia will, however, remain to be South32 (ASX: S32) with its Cannington mine in Queensland, where it is mined along with lead.)
 
Was considering a similar post rederob. Well put together.
Looks like the reddit team is raising anything and everything with a silver lining except S32, which I hold.
On the fundamentals side, apparently some US bullion chains websites are saying they have no stock!
If the trend to buy physical lasts longer than the week, then the squeeze on shorts will be even more powerful than the job reddit did on Gamestop.
I will watch with envy.
 
In Jan 1980 the CFTC increased margin requirements to like 50% and no longer allowed new longs, forcing the Hunts brothers to liquidate some of their leveraged long positions; recently robinhood went short 130% of a stock and no longer allowed longs on GME with the CFTC all good with it. I'm a bit skeptical of a retail / reddit driven short squeeze of silver; regulators are there specifically to crush the little investors, but silver and platinum look good nevertheless.
 
I'm not expecting further increases in silver. The market is too big, even for a combined group of retail/pro traders. If silver gets back above yesterday's high ~29.60 in the next week I'll stand corrected.

The froth has been blown off yesterday's price spikes in silver companies. I'll be evaluating the pullbacks. Stocks that have a 100% pull back will be binned. A pullback of 50% or less will attract my interest.
 
I'm not expecting further increases in silver. The market is too big, even for a combined group of retail/pro traders. If silver gets back above yesterday's high ~29.60 in the next week I'll stand corrected.

The froth has been blown off yesterday's price spikes in silver companies. I'll be evaluating the pullbacks. Stocks that have a 100% pull back will be binned. A pullback of 50% or less will attract my interest.
Same.

Thought it looked toppy yesterday and didn’t believe WSB nonsense too much, it might have sparked some interest but all around the globe, supposed physical shortage was for me just bullion dealers holding back to get a better price.

Let’s see how low they all go and stabilise first, the silver price move In N.Y hours will probably dictate the next move.
 
I would agree there and would note, gold still stand offish, lithium hot but hitting tops and rotating hard, oil- steady as she goes.
Imo,
Uranium, nickel, copper, graphite and rare earths are the current place to be, with my current emphasis on Uranium.

Screenshot_20210202-160848.png
 
There you go.. CME raised silver futures margins by 18% about an hour ago. Margin hikes are a great indicator to evaluate a rally's underlying strength.
From Kitco

Dahdah added that the fallout from higher silver prices is that the CME might be forced to raise its margins for the precious metal. This move could force some investors out of the marketplace, he added.

“In 2011, when silver prices rallied, initial and maintenance requirements at the CME rose by 84% in eight days. This, in turn, led to a 20% drop in silver prices as some speculators were unable or unwilling to bear the costs of holding positions,” he said.
 
SSR Mining Inc (SSR) has a 'simple dig and truck' silver mine in Argentina that profitably produces 6-7m ozs per year @ US$16-17/oz. Moreover, has a latent Ag project in Mexico with a 500moz resource which it is said will likely be sold off at higher Ag prices.

Kingsgate (KCN) will still have an investment in Nueva Esperanza in Chile when that project is formally acquired, as part of the deal is shares in the acquirer. When Kingsgate regains control of Chatree in Thailand it will be a silver by product gold miner.

There are, and venture to say, will be no primary silver companies worthy of investment in Australia. The explorer/developers have been set up to make managements rich in the next silver wave, investors will be destroyed. Taking a cynical approach and using them as silver 'tokens' for a spec trading approach will probably successfully fleece enough mugs.

Australian juniors poised to burst into the silver market, lol

So, what better time for the Australian silver sector to be on a tear?
Investigator Resources (ASX: IVR) is well advanced with its Paris silver project in South Australia. The latest resource for the project totals 53.1 million ounces contained (and 73% in the indicated category).
Last year Argent Minerals (ASX: ARD) revived exploration at the Kempfield project in NSW, its latest quarterly quoting intercepts up to 36m at 96.05 grams per tonne silver.
Also in NSW, Silver Mines (ASX: SVL) is in the final stages of the approvals process for its Bowdens project east of Mudgee, with its 29 million tonne resource, containing 66.32Moz of silver.
And Thomson Resources (ASX: TMZ) has four silver projects, all advanced.
The emerging Australian primary suppliers may have got their timing just right.

 
I have in the past used the ETF SLV on the NYSE as a trading vehicle.
I look at the silver price against the UD/USD pair to try and maximise the potential returns and/or reduce the potential losses.
Mick
 


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