GOLD/SILVER PRODUCER --HUGE upside Vs low CAP, page-40

Part of a fin review article out today. Fear and cheap money sent gold prices soaring.

According to Mr Karp, about 1 billion ounces of silver are produced each year, versus 150 million ounces of gold.

The silver price has historically been valued on a multiple of the gold price.

Today one ounce of gold at $US1944 sells for 81 times an ounce of silver at $US24.12. In March that ratio ballooned to more than 100 as COVID-19 dislocated asset markets, but Mr Karp said it should return to a historical 40-year average between 40 to 80 in time.

Manuka is targeting a run rate of 2 million ounces of silver per year by 2021.

Dennis Karp, the chairman of listed gold and silver miner Manuka Resources, said the Silver Institute is tipping a 5 per cent global production fall in 2020.

"That'll mean five consecutive years of production decreases. We'll be back down to 2009 levels and the world has changed with new tech sucking up demand.

"What you've seen recently is ETFs have suddenly chipped in and made a substantial dent in global supply."