Silver!

This is a thread discussing S32's silver output. Ag is essential for solar panels, a major source of fresh insistent demand, alongside the bullion, jewellery and current industrial uses.

The Silver Institute forecasts a modest supply/demand deficit in 2022

https://www.silverinstitute.org/global-silver-demand-forecast-reach-record-1-112-billion-ounces-2022/

The S32 FY report says Cannington produced 13,655,000oz.

Recently purchased Sierra Gorda Cu-Au mine adds an estimated 225,000oz (being 45% share) this FY, more than double that in a full year.

The Taylor PFS forecasts 7,300,000oz pa Ag when it starts producing. There are also Ag credits in the Clarke deposit.

Silver Bull Resources

The exploration JV with SBR is in good standing, though activity had been stalled by a blockade by locals.

While Sierra Mojada is described as a silver project, multiplying out the prices and volumes values gives 3/4 Zn 1/4 Ag. I call that a zinc project with significant Ag credits.

South32’s Option: In June 2018, Silver Bull signed an agreement with a wholly owned subsidiary of South32 whereby Silver Bull granted South32 an option to form a 70/30 joint venture with respect to the Sierra Mojada Project. To maintain the option in good standing, South32 must contribute minimum exploration funding of US$10 million ("Initial Funding") during a 4-year option period with minimum aggregate exploration funding of US$3 million, US$6 million and US$8 million to be made by the end of years 1, 2 and 3 of the option period, respectively. South32 may exercise its option to subscribe for 70% of the shares of Minera Metalin S.A. De C.V. ("Metalin"), the wholly owned subsidiary of Silver Bull which holds the claims in respect of the Sierra Mojada Project, by contributing US$100 million to Metalin for Project funding, less the amount of the Initial Funding contributed by South32 during the option period.Despite the blockade, South32’s option remains in good standing but is under a force majeure pause.

https://www.annualreports.com/HostedData/AnnualReports/PDF/TSX_SVB_2020.pdf

Project site is a study of masterful inactivity while seething locals calm down. SBR market cap is ~$US11m.

S32 is a significant Ag producer, set to grow output considerably.

Ash