The ASX Silver Stocks you absolutely must know about

This article is Part 2 of a two-part exploration of the potential opportunity in investing in silver, as well as the ASX companies aiming to capitalise on a potential boom in demand for silver due to increasing use in the energy transition. You can read Part 1 here: Mind the squeeze, silver is the new green!

Usually my metals deep dives (see Uranium and Copper) are simple enough – I can generally name half a dozen ASX stocks involved in the production of the metal straight away off the top of my head.

This is because if it were uranium, copper, or iron ore, or nickel, or lithium, I’d have a smorgasbord of highly prospective companies listed on the ASX that are either global players, or emerging as such, for you to choose from. But, when it comes to silver, there’s very little to choose from at all.

This is because most of the companies listed on the ASX that produce silver do so as a by-product of producing other metals such as lead, zinc, and copper. So, majors such as Newmont Mining (ASX: NEM), South 32 (ASX: S32), and Sandfire Resources (ASX: SFR) are worth mentioning here, but also not worth mentioning, because silver contributes only a very small fraction to their net profits.

To make it into the list, the company must have actually identified silver Mineral Resources. We're less interested in those companies simply wondering around the desert kicking at rocks! Given this criteria, there are just 8 to choose from, and just one of these is actually in production. Let’s take a closer look at each, covered below in alphabetical order.

Want to know more about mining company jargon like DFS, NPV etc., as well as the difference between what constitutes "Mineral Reserves" and "Mineral Resources"? Check out this comprehensive guide to the stages of mining company development

Adriatic Metals (ASX: ADT)

Last Price / Market Cap

• $4.60 | $1.4 billion

What / Where

• Vares Silver Project, Bosnia & Herzegovina
• Raska Zinc-Silver Project, Serbia

Stage / Next Steps

• Stage: Production (Vares Silver Project commenced early 2024)

• Next steps:

• Vares Project ramp up (see production guidance below)
• Ongoing exploration across the portfolio

Reserves

• Indicated and Inferred Mineral Resources 83Moz silver, 723Kt zinc, 457Kt lead, 640Koz gold, 64Kt copper, 24kt antimony

Latest Activity

• Quarterly Report and Cashflow
• Corporate Update
• Annual Report to shareholders

Cash in Bank vs Cash Burn

• $46.7 million cash in bank on 31 March
• $23 million cash burn last quarter
• Adriatic says that it’s “fully funded for ramp up to nameplate production” at Vares. One would expect a large cash burn (if at all) is unlikely from then

Argent Minerals (ASX: ARD)

Last Price | Market Cap

• $0.02 | $25.5 million

What / Where

• Kempfield Project, New South Wales

Stage / Studies / Next Steps

• Stage: Exploration
• Studies: Nil
• Next steps: To "continue to expand the mineralised footprint" at the Kempfield Project

Reserves

• Indicated and Inferred Mineral Resources 42.8Moz silver (30.3Moz Indicated and 12.5Moz Inferred)
• Also Indicated and Inferred Mineral Resources 149,200oz gold, 181,016t lead, and 426,900t zinc, resulting in Indicated and Inferred Mineral Resources 127.5Moz silver equivalent (78.8Moz Indicated and 48.7Moz Inferred)

Latest Activity

• New Exceptional High-Grade Drill Results over Kempfield
• Quarterly Activities/Appendix 5B Cash Flow Report
• Half Year Accounts

Cash in Bank vs Cash Burn

• $1.4 million cash in bank on 31 March
• ~$300,000 quarterly cash burn over the last three quarters

Boab Metals (ASX: BML)

Last Price / Market Cap

$0.11 | $22 million

What / Where

• Sorby Hills Joint Venture Project (75%) Western Australia
• Manbarrum Project, Northern Territory

Stage / Studies / Next Steps

• Stage: Exploration and Development

• Sorby Hills Definitive Feasibility Study:

• Pre-tax NPV $370 million @ $27.50/oz silver
• Project life 8.5 years
• CAPEX $245 million
• AISC unavailable because BML expresses costs for Sorby Hills in terms of lead recovery (C1 cash cost US$0.39/lb payable Pb including net Silver credit of US$0.38/lb silver)

• Next steps:

• Advancing the Sorby Hills Project and early site establishment works / FEED studies ongoing (“target for release Q2 2024”)
• Advancing a drilling campaign at the Sorby Hills Project and the Manbarrum Project
• Aiming to execute offtake agreements, final environmental approvals, and project financing, with a view to a final investment decision (no timing indicated)

Reserves

• Proved Reserve 14.1Moz silver and 358kt lead and Probable Reserve 5Moz silver and 172kt lead
  
• Measured, Indicated, and Inferred Mineral Resources 53Moz Silver (17.5Moz Measured, 12.1Moz Indicated, and 23.4Moz Inferred)
• Also Measured, Indicated, and Inferred Mineral Resources 1,465kt Lead (Measured 444kt, Indicated 377kt, Inferred 645kt), 207kt Zinc (Measured 45kt, Indicated 46kt, Inferred 117kt) resulting in 205Moz silver equivalent

Latest Activity

• Fully Underwritten $5m Placement and Entitlement Offer
• Quarterly Activities / 5B Cashflow Report
• Corporate Presentation

Cash in Bank vs Cash Burn

• $6.25 million cash in bank on 31 March plus up to $5 million from placement and entitlement offer
• ~$862,000 quarterly cash burn over the last three quarters.

Investigator Resources (ASX:IVR)

Last Price / Market Cap

• $0.053 | $84 million

What / Where

• Paris Silver Project, South Australia.

Stage / Next Steps

• Stage: Exploration and Development

• Paris Mine Pre-Feasibility Study:

• Pre-tax NPV $202 million @ $34.30/oz silver
• Project life 7 years
• CAPEX $131 million
• AISC $17.45/oz

• Next steps: 

• Definitive Feasibility Study progressing – according to the company is "due mid-2024”
• Regulatory approvals including mining lease application, environmental permit (PEPR), and Native Title Mining Agreement (NTMA)
• Ongoing exploration across the portfolio

Reserves

• Indicated and Inferred Mineral Resources 57Moz Silver (41Moz Indicated and 16Moz Inferred), 99kt Lead.

Latest Activity

• Sydney RIU Conference Presentation
• Strategic Alliance for Paris Mine Planning and Costs
• Quarterly Activities and Cash Flow Report

Cash in Bank vs Cash Burn

• $6.25 million cash in bank on 31 March
• ~$316,000 quarterly cash burn over the last three quarters.

Mitre Mining Corporation (ASX: MMC)

Last price / Market Cap

What / where

• Cerro Bayo Project, Chile

Stage / Studies / Next Steps

• Stage: Exploration (however, given a historical gold/silver mine operated at Cerro Bayo, there is significant infrastructure already in place including power and processing)
• Studies: Nil
• Next steps:
  • Resource drilling commenced, campaign to proceed through to Q2 2025
  • Assays are pending for the first four holes

Reserves

• Indicated and Inferred Mineral Resources 18.8Moz silver (Indicated 6.5Moz and Inferred 12.3Moz)
• Also Indicated and Inferred Mineral Resources of 379koz gold, results in Indicated and Inferred Mineral Resources 50.2Moz silver equivalent (Indicated 11.6Moz and Inferred 38.7Moz)

Latest Activity

• CG Global Metals and Mining Conference Presentation
• Highly successful raising to accelerate resource growth
• Quarterly Activities/Appendix 5B Cash Flow Report

Cash in Bank vs Cash Burn

• $12.7 million cash in bank on 2 May following a $10.5 million capital raising
• $746,000 quarterly cash burn last three quarters

Silver Mines (ASX: SVL)

Last Price / Market Cap

$0.20 | $300 million

What / Where

• Bowdens Silver Project (silver/polymetallic), New South Wales
• Barabolar Project (copper/gold/silver), New South Wales
• Tuena Project (gold/silver), New South Wales

Stage / Studies / Next Steps

• Stage: Exploration and development

• Bowdens Silver Project Pre-Feasibility Study (Feasibility Study):

• Pre-tax NPV $144 million @ $22/oz silver
• Life of mine 16 years
• CAPEX $246 million
• AISC $17.25

• Next steps:

• Definitive Feasibility Study (Feasibility Optimisation Study) progressing – according to the company is “targeted for release in the September Quarter”
• EPBC (Federal) approvals process commenced
• Ongoing exploration across the portfolio

Reserves

• Measured, Indicated, and Inferred Mineral Resources 189Moz silver (Measured 137Moz, Indicated 33Moz, and Inferred 19Moz)
• Also zinc, lead, and gold resources resulting in Measured, Indicated, and Inferred Mineral Resources 396Moz silver equivalent (235oz Measured, 88Moz Indicated, and 73Moz Inferred)

Latest Activity

• Quarterly Activities/Appendix 5B Cash Flow Report
• Investor Presentation - Gold Forum Europe
• Half Year Accounts

Cash in Bank vs Cash Burn

• $13.8 million cash in bank on 31 March
• $1.83 million quarterly cash burn last three quarters

Sun Silver (ASX: SS1)

Last Price / Market Cap

$0.60 | $41 million

What / Where

• Maverick Springs silver project in Elko County, Nevada.

Stage / Studies / Next Steps

Stage: Exploration

Studies: Nil

Next steps:

• Mine optimisation studies utilising current day data and economics
• Expansion exploration drilling to the north and south of the current resource, targeting shallow high-grade ounces
• Infill drilling to increase resource classifications
• Metallurgical Test Work
• Silver Paste & Solar Energy Investigations

Reserves

• Inferred Mineral Resources 175Moz silver
• Also Inferred Mineral Resources of 1.37Moz gold results in Inferred Mineral Resources 292Moz silver equivalent

Latest Activity

• Investor Presentation
• Financial Accounts to 31 December 2023
• Prospectus

Cash in Bank vs Cash Burn

• $13 million raised in the IPO
• No information on cash burn until the company releases its first quarterly activities report due at the end of July

Unico Silver (ASX: USL)

Last price / Market Cap

What / where

• Cerro Leon Project, Argentina

Stage / Studies / Next Steps

• Stage: Exploration
• Studies: Maiden Resource Estimate
• Next steps:
  • Business development is ongoing with the view to further strengthen the Cerro Leon portfolio through regional consolidation and project acquisition. The Company is progressing discussions with several parties
  • Drill permits for Cerro Leon are pending (aiming for low-risk resource extensions, conversion of inferred resources to indicated, there are 35 prospects prioritised for drilling)

Reserves

• Indicated and Inferred Mineral Resources 40.9Moz silver (Indicated 18.8Moz and Inferred 22.2Moz)
• Also Inferred Mineral Resources of 344.2koz gold, 129kt lead, and 332kt Zinc results in Indicated and Inferred Mineral Resources 91.3Moz silver equivalent (Indicated 37.7Moz and Inferred 53.6Moz)

Latest Activity

• March 2024 Quarterly Activities & Cashflow Reports
• Half-year financial report - 31 December 2023
• Investor Presentation

Cash in Bank vs Cash Burn

• $5.6 million cash in bank on 31 March
• $663,000 quarterly cash burn last three quarters

This article first appeared on Market Index on Friday 17 May 2024.