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Silver to outperform gold this year says Darren Blasutti; how miner will double production

Kitco News

Silver is expected to perform better than gold for the near to medium-term, and Americas Gold and Silver’s production strategy will evolve around this thesis, said CEO Darren Blasutti.

“I think silver is going to outperform gold this year and for the next couple of years. I’m bullish on gold too by the way, but we’ve had a really nice run on gold, I think there’s still a ways to go on silver. I think industrial demand on the silver side gives you a little more torque,” Blasutti said.

Blasutti’s comments come as America’s Gold and Silver’s Relief Canyon mine entered commercial production this month, a project that will significantly increase production and free cash flow.

“It’s going to generate this year, roughly 60,000 ounces of gold,” Blasutti said. “The average for the the life of mine of this asset is 90,000 ounces a year and $800 all-in sustaining cost, so if you’ve got an $1,850 gold price, you’re going to get $1,000 free cash flow per ounce that you produce.”

Production at Relief Canyon is expected to ramp up from 60,000 ounces to 80,000 ounces in 2022, and then 90,000 ounces in 2023, and over 130,000 ounces in 2024.

Blasutti noted that the challenges posed by COVID-19 have become "even worse" today.

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