🌍 Global
Apr 25 2024
The silver market is shining bright, with prices reaching near-decade highs. Fueled by safe-haven demand, rising industrial applications, and positive analyst forecasts, silver presents a solid and lasting opportunity for investors. Read on to find out more about the top ASX mining companies with silver projects, along with the upcoming IPO of Sun Silver (ASX:SS1).
Investing in ASX silver miners could be the future thanks to the data available to date. It attributes majorly to the price of silver being more than gold by almost 20%. Price hikes are expected to soar according to analysts, with various projections amounting to US$32 per ounce. Not to mention how this projection is to be attained by the following year, 2025.
A graph depicting the 5 year prices of silver and gold
(Source: TradingView)
The other reason is the increase in demand for silver in recent times. Due to its various industrial uses in solar energy and electronics, people have begun to turn to this metal beyond just jewelry. The amount of silver used for solar needs has grown by 330% just over the last decade (2014 to 2023).
ASX boasts several promising silver mining companies. Here's a look at four of them to get a better understanding of the market:
Market Capitalization: ~ $1.24 billion (as of April 25, 2024)
Share Price: A$4.20 (as of April 25, 2024)
Adriatic Metals (ASX:ADT) is focused on both developing and exploring precious and base metals. The company owns the world-class Vares Silver Project in Bosnia and Herzegovina.
One of the biggest milestones for this business was its mine launch on March 5, 2024. The Managing Director, Marko Komljenovic has over 20 years of experience in mining and a degree in geology. This has made him contribute significantly to mine development and financing.
Market Capitalization: ~$271.4 million (as of April 25, 2024)
Share Price: A$0.18 (as of April 25, 2024)
Australia's Bowdens Silver Project, situated in New South Wales, is the main focus of Silver Mines’ (ASX:SVL) exploration and development business. It hasn't lately engaged in any significant capital raising or acquisitions but is boasting a high-grade silver resource with a recent discovery of a new high-grade zone in February 2024.
Anthony Royall is leading Silver Mines (ASX:SVL) as the Managing Director. He has over 20 years of expertise in mineral exploration and has held positions of senior ranks with other companies that work with resources in the past.
Market Capitalization: ~$83 million (as of April 25, 2024)
Share Price: A$0.053 (as of April 25, 2024)
Investigator Resources Limited (ASX:IVR) is a mineral exploration company with projects in South Australia focused on various metals, including silver. Investigator Resources (ASX:IVR) hasn't been a part of any significant acquisitions or capital raising lately.
Their main project is the MJ Hilgendorf Project, known for its copper-gold-silver potential. Steered by Andrew Leigh, the company is in able hands. This is thanks to Leigh’s background in geoscience and three decades of experience in mining.
Market Capitalization: Pre-IPO
Share Price: A$0.20 per share at IPO
This emerging player is a highly anticipated newcomer seeking to raise $13 million for developing its Maverick Springs silver-gold project in Nevada, USA. Investors hoping to profit from the silver market have a fantastic opportunity with Sun Silver's (ASX:SS1) forthcoming IPO in June 2024.
Mr. O’Donovan, the Executive Director of Sun Silver (ASX:SS1), with nearly 17 years of experience, excels in exploration, mine development, and operations across various commodities. He led projects at Battery Age Minerals, Pilbara Minerals, and Rio Tinto, demonstrating success and expertise. Holding a Bachelor of Engineering (Hons), he has also pursued studies in Sustainability, Circular Economy & Social Governance.
With 80% of the property yet unexplored, Sun Silver’s (ASX:SS1) Maverick Springs project has a substantial exploration potential. It has an inferred resource of 292 million ounces of silver equivalent.
The silver market outlook is positive, fueled by several factors:
Silver demand and investor mood can be best noted during ETFs (exchange traded funds). It is worth noting that the recent increase in silver prices has come along with major inflows of ETFs that track the metal. This shows that both institutional and individual investors are showing interest in silver.
This also shows us that the market as a whole believes that silver is a desirable option to invest in. The growth opportunities for the future are quite clearly visible and many people wish to get into it. ETFs also give investors an affordable way to handle changes in silver price, thereby contributing to its upward momentum.
The majority of analysts from research companies and financial organizations are optimistic about silver's future. Furthermore, they even anticipate more growth in the years to come. Analysts agree that the upward trend for silver will give investors the confidence to cash in.
They can commit to various silver-related assets and positions. Furthermore, the idea that silver is a strong investment opportunity with substantial upside potential is strengthened by the ongoing revisions of price estimates upward.
The demand for quality silver hinges on its role in solar panels. It is used in photovoltaic cells to capture solar energy. The demand for silver in this production will increase due to the growing global push towards renewable energy sources.
This spike in demand for solar installations has directly impacted the need for more silver. Silver is also used in other industrial fields. Some include:
The demand for silver in industrial applications is driven by technical developments, and its inherent worth as a versatile commodity is highlighted. One point of contention among analysts is whether or not silver will ever hit $100 USD an ounce.
While there are some projections indicating that silver may attain $32 USD per ounce by 2025, prominent industry players such as Keith Neumeyer, CEO of First Majestic Silver, maintain an even more optimistic stance. Neumeyer has stated in the open that he thinks silver will rise considerably higher—possibly to triple digits.
Neumeyer has a positive outlook that stems from multiple sources. He makes the argument that silver is due for a large price hike after years of trailing behind gold by citing the past cycles of precious metals. Reaching this number would need a certain combination of elements to come together.
Compared to gold, silver is a more erratic commodity, and changes in investor mood and the value of the US dollar can have a significant impact on its price. Although it's a good idea to remain optimistic, take this forecast with a grain of salt.
Silver's future is bright since prices are rising and demand is strong across a range of industries. To fully capitalize on the potential of the silver market, investors should consider combining their investments in well-established miners with stock in impending initial public offerings (IPOs) such as Sun Silver (ASX:SS1).
Disclaimer - Skrill Network is designed solely for educational and informational use. The content on this website should not be considered as investment advice or a directive. Before making any investment choices, it is crucial to carry out your own research, taking into account your individual investment objectives and personal situation. If you're considering investment decisions influenced by the information on this website, you should either seek independent financial counsel from a qualified expert or independently verify and research the information.
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