Silver explorers part II
Somebody on the forum asked if I had a preference for one silver explorer particularly.
Very difficult to answer as every investor has its own tolerance for risk and different portfolio.
In terms of safe bets I believe the only safe names are PAAS and MAG and maybe FRES.L. All other names, even producers like AG, EXK and FSM have some risks involved and therefore everybody should do its own DD.
Of course it is always interesting to discover the next big deposit and be invested in the next Mag silver, before it explodes 5-10 times in value.
In that regard, the only name I know about is MGG, that COULD be sitting on a major silver deposit. the valuation of the company is not that cheap however!
It is quite obvious that investors prefer grade and safe location to some lower grade deposits. Therefore a name Like Dolly Varden has some potential as it has ounces proven and in safe location.
Same about Brixton Metals, that is drilling on 2 deposits in Ontario and Montana, I like this name very much, but it is a very high risk/reward story.
Defiance silver has some nice higher grades, but the company is not progressing for the moment, but will do fine longer term, although current resource is very low.
Abraplata already has big resource of 140 Million ounces in northern Argentina, I believe this is a unique high risk high reward story, that still has to be discovered by he market.
Another very interesting name is Bear Creek, sitting on 200M ounces of silver in Peru. This is a nice development story that well do well in a higher silver price environment.
Kootenay has the same optionality as its grades are average, a higher silver price will greatly benefit KTN share price.
And last but not least Silvercrest is hitting some high grade and is situated near FR properties, so an obvious take over candidate. Valuation is rich however.
Silver stocks that I own:
bear creek – american silver – ag – paas – silver standard (now ssr mining) and Minco silver.
Defiance and Dolly Varden are very good (Dolly is taking off).
BCM I like, USA too, has less leverage to silver, but is making lots of money in base metals. I own BCM and PAAS and many other explorers. I like Def, but never bought it as I always find it too expensive. Minco, no thanks too much country/permitting risk I think. AG did nice acquisition and has lots of leverage, but I think it is too expensive. SSRI is more gold than silver.
Here is one that has good upside potential (that I own), GARWF it will be carried by SSRM because of a joint venture. It is going to spin out it’s exploration side in a spin out soon. Golden Arrow has some very good past discoveries the biggest problem is where it is located…”The land of silver”…Argentina
Agree, this is a low risk play in Northern Argentina, fully financed and partnered with SSRM. I own ABRA, a nearby play that bought a property from SSRM. It has far more upside and risk of course.
Thanks Alex.