(Kitco News) Highlander Silver President and CEO Daniel Earle says the sharp move higher in silver prices through late 2025 reflects a structurally tightening market marked by constrained supply, thin inventories, and rising strategic demand. Speaking with Kitco Mining’s Investment Trends in early January, Earle said the rally followed a familiar precious metals pattern, with gold leading before silver took over. “Silver begins to play catch-up and then take over leadership and really start to outperform,” he said.
Silver rose roughly 170% in 2025, significantly outpacing gold as short positions were forced out of the market. Earle said the speed of the move surprised even long-time silver bulls, but the broader setup was consistent with prior cycles. He pointed to the gold-silver ratio, which peaked above 100:1 before compressing sharply as silver rallied. While the ratio has already moved meaningfully, Earle believes, “there’s a lot more room to run for silver relative to gold within the context of both metals moving higher.”
He emphasized that this silver bull market differs from past cycles due to structural constraints. On the demand side, Earle cited long-term growth from solar, electrification, and artificial intelligence, noting that some applications are increasingly price-insensitive. On the supply side, he said the industry faces a shortage of new large-scale silver projects under construction, limiting the market’s ability to respond to rising demand. “You just don’t have the inventories there to cushion the flows,” Earle said, adding that thin inventories amplify volatility.
China has emerged as a key factor in the current market, with Earle pointing to recent export restrictions on silver as evidence that the metal is increasingly being treated as strategic. China is both a major producer and one of the world’s largest consumers of silver, particularly through solar manufacturing. He said record premiums in the Chinese market suggest physical demand is exerting greater influence and could play a larger role in price setting than in past cycles. “You can see that through these absolutely record, totally unprecedented premiums in the Chinese market,” Earle said.
Against that backdrop, Highlander Silver moved to scale up its exposure to silver through its proposed acquisition of Bear Creek Mining and the Corani silver project in Peru. The all-stock transaction values Bear Creek at roughly C$130 million to C$140 million and would give Highlander control of what Earle described as the largest fully permitted primary silver project in the world. Corani hosts 229 million ounces of silver reserves and more than 400 million ounces of silver resources, supported by a 2019 feasibility study outlining production of about 9.6 million ounces per year.
Earle notes that scale becomes increasingly important at higher silver prices. While Highlander’s San Luis project in Peru offers exceptional grades and strong margins, he noted that larger projects provide greater leverage in a rising price environment. “When you look forward to a market where the silver price is $80 an ounce, $100 an ounce and above, there’s really no substitute for scale,” he said. The Corani acquisition would be completed with less than 20% share issuance, which Earle described as attractive given the size of the asset.
The company plans to restart exploration at Corani for the first time in about a decade, beginning with geophysics, followed by drilling once weather conditions allow. Earle said historical drilling focused largely on outcropping mineralization during a much lower silver price environment, leaving potential for further expansion. Highlander is already funding early exploration work ahead of the transaction’s expected closing.
At San Luis, Earle said Highlander continues to focus on de-risking and advancing the high-grade project toward permitting. He described San Luis as a smaller-scale but high-margin asset that complements the company’s push for scale through Corani. By contrast, Bear Creek’s Mercedes gold-silver mine in Mexico is considered non-core. Earle notes that Highlander does not have the bandwidth to operate the asset alongside its Peruvian portfolio and will evaluate options to unlock its value.
On January 27, 2026, Highlander announced a US$40 million strategic investment from Eric Sprott through a non-brokered private placement, with Sprott acquiring just over 8 million common shares at C$6.80 per share. The financing, expected to close around January 30, is set to increase Highlander’s cash position to roughly US$100 million, strengthening the company’s ability to advance its San Luis gold-silver project and support execution across its broader portfolio, including the pending combination with Bear Creek Mining.
Turning back to the regional backdrop, Earle highlighted improving sentiment toward Peru and the broader Latin American mining sector. He pointed to recent acquisitions and renewed investor interest as signs that the region is regaining attention as political conditions evolve. Peru offers a combination of large, high-quality assets, experienced mining talent, and valuations that remain discounted relative to other jurisdictions, according to Earle, adding that the country is “very rich in opportunity.”
Looking ahead to 2026, Earle said execution will be the key measure of success. “The ultimate outcome that shareholders are going to judge my performance by is share price performance,” he said. Highlander expects a catalyst-rich year as it closes the Bear Creek transaction, advances exploration at Corani, progresses San Luis toward permitting, and pursues a planned U.S. listing on the NYSE American. With silver markets tightening and capital rotating into the sector, Earle believes the company is positioned to benefit from both rising prices and expanding scale.
Watch the full interview on the Kitco Mining YouTube channel to hear Daniel Earle’s full outlook on silver markets, Highlander Silver’s growth strategy, and the company’s plans for 2026.
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