News Bites
$23 silver price is coming and would "transform" the industry says CEO
(Kitco News) - Should silver prices rally to their fair value to above $20 an ounce, a transformation would take place amongst silver miners, this according to Darren Blasutti, CEO of Americas Gold & Silver.
“I could see [silver prices] headed to $22, $23, and that would be transformational for the silver industry,” Blasutti told Kitco News on the sidelines of the Vancouver Resource Investment Conference.
Blasutti’s comments come as many silver miners enjoyed significant stock price appreciation in 2019. Americas Gold and Silver shares rose 70% in the 12 months ending January 20, 2020.
Sentiment in the precious metals sector has improved, he said.
“I think in the precious metals, it’s excellent right now. I think you’re going to see major miners have spectacular Q1 earnings, given where the gold price is right now,” he said. “The companies with good management are getting funded, and the companies with not great management and projects are not getting funded, and I think that’s the right answer.”
Due to a shrinking resource pool of economic deposits, mid-tier miners have shifted focus on developing their existing production pipelines rather than exploring for new deposits, Blasutti said.
“The focus has been on growing your cash flow base, and for the first time we’re going to spend about $4 million drilling our deposits this year,” he said.
