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Top Silver-producing Countries

The most recent estimates from the US Geological Survey show that Mexico was the top silver-producing country in 2020.
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This article was originally published by Investing News Network

There are many factors to consider when thinking about an investment in silver-mining stocks, including the management team, the silver price and which companies are operating in the top silver-producing countries.

Knowing the top silver-producing countries can help investors understand the logic behind the exploration and development decisions that companies make. For example, high silver production in a particular country might indicate mining-friendly laws or high-grade deposits.

In 2020, Mexico was once again the world’s leading silver-producing country. Global silver production decreased marginally for the period, sinking to 257,000 metric tons (MT) due to shutdowns during the COVID pandemic. Below is an overview of the top silver-producing countries. Silver production stats are based on the latest data from the US Geological Survey.

 

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1. Mexico

Mine production: 5,600 MT

Mexico continues to rank as the world’s largest pure silver producer, although its output in 2020 decreased by 320 MT over the previous year. The country is home to Fresnillo (LSE:FRES,OTC Pink:FNLPF), the largest silver company in the world. Fresnillo’s silver production increased by 1.7 percent in the first half of 2021 over the same period the previous year.

The Mexican state of Zacatecas hosts two of the world’s largest silver mines. One is Fresnillo’s Zacatecas silver mine, and the other is Newmont’s (TSX:NGT,NYSE:NEM) Penasquito polymetallic mine ,which is also Mexico’s largest open-pit mine.

2. Peru

Mine production: 3,400 MT

Second on this top silver-producing countries list is Peru, which fed 2020 silver supply by putting out 3,400 MT, down from 3,860 MT in 2019. Peru features the world’s largest-known silver reserves, with an impressive 91,000 MT of silver. The country has a massive amount of untapped silver potential that could allow it to challenge Mexico for the top spot in the future.

Most of Peru’s physical silver production comes from the Antamina mine, a joint venture between BHP (ASX:BHP,NYSE:BHP,LSE:BHP), Glencore (LSE:GLEN,OTC Pink:GLCNF), Teck Resources (TSX:TECK.B,NYSE:TECK) and Mitsubishi (OTC Pink:MSBHF,TSE:8058). It produces more silver bullion than any other mine in the country, but is primarily a copper mine with silver produced as a by-product.

Fortuna Silver Mines (TSX:FVI,NYSE:FSM) is rapidly growing its silver production with two operating mines on the market, one of which is in Peru. The Caylloma mine produced 1 million ounces of silver in 2020.

3. China

Mine production: 3,200 MT

China ranked third in silver production in 2020. The Silver Institute attributes a large part of China’s rise within the bullion market in recent years to the country’s development of its mining industry, as the majority of Chinese silver production originates as a by-product of other metals.

Many companies in China are privately owned, but Silvercorp Metals (TSX:SVM,NYSEAMERICAN:SVM) bills itself as the country’s largest primary silver producer. It has a portfolio of producing silver-leadzinc mines in China, including the multi-mine Ying district and the GC mine.

 

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4. Russia

Mine production: 1,800 MT

Russia’s silver output decreased by 200 MT in 2020. The country’s silver reserves stand at 45,000 MT, and its largest silver producer is Polymetal International (LSE:POLY,OTC Pink:POYYF). Polymetal dominates silver production in Russia and operates seven gold and silver mines in the country.

Additionally, Silver Bear Resources (TSX:SBR) produced the first silver at its Mangazeisky project in Russia in 2019. Mangazeisky includes the high-grade Vertikalny deposit, which the company says is “amongst the highest-grade silver deposits in the world.”

5. Poland

Mine production: 1,300 MT

Poland, another of the top silver-producing countries, saw its 2020 silver production fall by 170 MT compared to the previous year. Its 1,300 MT production figure for the year ties it with Chile and Australia.

Poland-based KGHM Polska Miedsz (WSE:KGH) is consistently one of the world’s top silver-producing companies, according to the Silver Institute. The country could expand its silver production further as it has 70,000 MT of silver reserves.

6. Chile

Mine production: 1,300 MT

Chile produced nearly the same amount of silver in 2020 as it did the year prior. Most of the silver production in the country is a by-product of copper and gold production.

Chile’s state-owned Codelco, one of the world’s top copper producers, is also one of the world’s top silver-producing companies. The country’s reserves are an estimated 26,000 MT.

7. Australia

Mine production: 1,300 MT

Mines in Australia churned out 1,300 MT of silver in 2020, a slight drop from 1,330 MT the previous year. Silver mining has a rich history in Australia, and BHP began there as a silver operation in the 1920s.

Today, South32 (ASX:S32,OTC Pink:SHTLF) runs the Cannington mine in Queensland, which produces more silver than any other in the country. The company claims to produce 6 percent of the world’s silver.

 

Silver Price Forecast – What Happened And Where Do We Go From Here?

 

 

Our Jam-Packed FREE Silver Report Highlights Key Insights, Exclusive Interviews And Promising Stock Picks!

 

 

8. Bolivia

Mine production: 1,100 MT

Bolivia, as with many of the largest silver-producing countries, had 2020 output that was less than the previous year. There is room for its silver industry to expand with reported reserves of 22,000 MT.

Bolivia is home to several silver mines, particularly in its Potosi region. The San Cristobal mine, operated by Sumitomo (OTC Pink:SSUMF,TSE:8053), features the third largest silver reserves of any mine. In addition, Pan American Silver (TSX:PAAS,NASDAQ:PAAS) operates an underground silver-zinc mine in Bolivia called San Vicente.

9. Argentina

Mine production 1,000 MT

Argentina replaced Kazakhstan on the list of major silver producers in 2018, and in 2019 tied with Bolivia as the ninth largest silver producer in the world. At 1,000 MT in 2020, its output was enough to tie with the US; according to the US Geological Survey, silver reserves in Argentina are unknown.

In mid-2018, Yamana Gold (TSX:YRI,NYSE:AUY) began commercial production at Cerro Moro, a high-grade gold and silver mine in the country. The company reported that 2020 production and costs at Cerro Moro were significantly impacted by COVID-19-related restrictions, but the company is planning higher production in 2021. Argentina is also home to the Chinchillas and Pirquitas mines, run by a joint venture between SSR Mining (TSX:SSRM,NASDAQ:SSRM) and Golden Arrow Resources (TSXV:GRG,OTCQB:GARWF).

10. United States

Mine production 1,000 MT

In 2020, the US put out 1,000 MT of silver, up from the previous year’s 980 MT. Metal was produced at four silver mines and as a by-product at 33 base and precious metals mines. Silver reserves in the US stand at 26,000 MT, and the country’s two top silver-producing states are Alaska and Nevada.

The largest US-based primary silver producer is Coeur Mining (NYSE:CDE). Coeur’s US projects are not silver focused, but the company does operate silver mines in South America and Australia.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

 

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Base Metals

Monsters of Rock: Lithium shares flush with positive sentiment to dominate the gains

Lithium miners were the kings, queens, jacks and aces of the bourse on an avalanche of positive news around the … Read More
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Lithium miners were the kings, queens, jacks and aces of the bourse on an avalanche of positive news around the sector.

The biggest trigger was probably the incredible rise in value for Tesla overnight, which soared beyond a US$1 trillion valuation on news Hertz would order US$4 billion worth of electric vehicles from the automaker.

As the leading electric vehicle maker in the western world, and with a big presence also in China and energy storage, Tesla is one of the biggest end users of lithium products globally.

Its boss Elon Musk, now the richest man ever, has a fair bit of sway on the market as well.

On top of that Pilbara Minerals (ASX:PLS), up 525% over the past 12 months since spodumene prices bottomed out at under US$400/t (it sold a batch for upwards of US$2000/t last month), gained 7.66% after formally announcing plans to develop a lithium chemical plant in a JV with South Korea’s POSCO.

Core Lithium (ASX:CXO) declared the start of construction on its Finniss Lithium Mine in the Northern Territory. That will be shipping concentrate from the end of 2022.

$550 million capped Neometals (ASX:NMT) was up 14% after announcing its battery recycling demonstration plant in Hilcenbach, Germany, had been fully commissioned.

The one time lithium miner is up 405% over the past year.

Vulcan Energy (ASX:VUL), Sayona (ASX:SYA), Liontown (ASX:LTR) and Orocobre (ASX:ORE) were among the lithium miners to dine out on the day’s news, while rare earths miner Lynas (ASX:LYC) was also up.

On the flippity flip, iron ore miners were weak with Fortescue (ASX:FMG) and Rio Tinto (ASX:RIO) cancelling out a gain from BHP (ASX:BHP), while Mineral Resources (ASX:MIN) cancelled out the gains it made with yesterday’s announcement the Wodgina lithium mine would be coming back online with news it ate a 48% price discount on iron ore sales in the September Quarter.

MinRes’ average realised prices fell from US$178/t to around US$78/t between the June and September Quarters.

The bright green is all lithium baby. Pic: Commsec

 

Base metals inventories falling, but can it be sustained?

Base metals were back up on Monday, with production cuts in energy starved China and Europe hitting primary supply.

Inventories held by the major exchanges are being chewed up.

While price moves among the miners was muted, nickel rose 3.2% to climb back over US$20,000/t overnight after hitting US$21,000/t briefly last week.

“Nickel rallied after Eramet disclosed a 19% drop in ferronickel production from its operations in New Caledonia,” ANZ analysts said in a note.

“The market is also showing signs of tightness, with cash contracts closing at their biggest premium to futures in two years. LME inventories are down nearly 50% since April.”

LME stockpiles for copper hit their lowest level since 1974 last week, but Commbank analyst Vivek Dhar says it is too early to say whether the market is as tight as it seems, or whether some traders are hoarding to capitalise on high prices.

The market is expected to be in a small deficit at the end of this year to a 328,000t surplus in 2022 on rising supply (about 1.3% of global demand).

Mined supply is expected to increase 2.1% this year and 3.9% in 2022, but Dhar warned copper miners had a history of underwhelming.

“The rising forecasts for copper mine production reflect 5 major copper projects due to arrive by the end of 2022,” Dhar said.

“That compares with just two major copper projects in the last 4 years.

“Given the track record of mine disruptions (i.e. labour strikes, power and water scarcity and geopolitics) and the decline in copper grades, elevated copper mine production growth forecasts don’t tend to last long.

“We think it’s worth considering that new mine supply may take longer than currently expected to hit the market.”

The post Monsters of Rock: Lithium shares flush with positive sentiment to dominate the gains appeared first on Stockhead.







Author: Josh Chiat

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Energy & Critical Metals

Chart of the Day: Plenty of immediate upside targets for Ionic Rare Earths

Let’s get into it. Iconic Rare Earthss (ASX:IXR) is a bullish set up from a technical perspective. It’s in an … Read More
The post Chart of the Day:…

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Let’s get into it.

Iconic Rare Earthss (ASX:IXR) is a bullish set up from a technical perspective.

It’s in an uptrend. The moving averages are sloping up.

It’s shown us that when it wants to the market can get a hold of it – as evidenced by the fierce run from 1.5c to 6c at the start of this year.

 

Chart of the Day: Ionic Rare Earths (ASX:IXR)

There are no immediate gaps on the chart to worry about that need to be filled.

The company surpassed 4c resistance yesterday on increasing volume, which was a positive sign. However, after touching 4.5c in intra-day trade, it has now settled back to close at 4.2c, leaving a daily selling candle.

That infers that a test of 3.8 – 4c may be on the cards.

In our view that would make attractive buying.

Given the negative response to the scoping study in late April, there are plenty of immediate upside targets, the most immediate being 4.7c, with further potential to those March highs above 6c.

Back the other way, and we don’t need to hold this below 3.5c.

The company is well funded – reporting over $11m on balance sheet at their last quarterly – with an updated quarterly anticipated before the end of the month.

We are long as of yesterday, and will manage the trade to the above risk, looking for 4.7c first, with potential to above 6c if things go their way.

Steve Collette of Collette Capital Pty Ltd (ABN 56645766507) is a Corporate Authorised Representative (No. 1284431) of Sanlam Private Wealth (AFS License No. 337927), which only provides general advice.

Collette Capital only makes services available to professional and sophisticated investors as defined by the Corporations Act, Section (s)708(8)C and 761G(7)C.

The Collette Capital Wholesale IMA Strategy has returned +24.83% p.a. net of all fees as at the end of September 2021 since inception in January 2015 (using the Time Weighted Return method of calculating returns).

Learn more at www.collette.capital

The post Chart of the Day: Plenty of immediate upside targets for Ionic Rare Earths appeared first on Stockhead.


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Energy & Critical Metals

Hastings could be next in line to produce rare earths in Australia with plant approval in Onslow

Rare earths player Hastings Technology Metals (ASX:HAS) has just secured environmental approval for construction of the downstream processing plant at…

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Rare earths player Hastings Technology Metals (ASX:HAS) has just secured environmental approval for construction of the downstream processing plant at its Yangibana rare earths project in Onslow in WA.

It’s a solid step on the path to production, with the plant set to perform hydrometallurgical processing of rare earths oxide concentrate from Yangibana into mixed rare earth carbonate (MREC) containing high levels of neodymium and praseodymium concentrate (NdPr).

NdPr are vital components used to manufacture permanent magnets that are required in advanced technology products ranging from electric vehicles to wind turbines, robotics, medical applications and digital devices.

And Yangibana contains one of the most highly valued NdPr deposits in the world, with NdPr:TREO ratios of up to 52%.

Australia’s next rare earths producer?

The Department of Agriculture, Water and the Environment (DAWE) approval follows DevelopmentWA Board sign-off last month for the company to enter discussions for an option to lease Ashburton North Strategic Industrial Area (ANSIA) Lot 600.

“This is a significant milestone for our Yangibana Rare Earths Project and further endorses Hastings’ decision last year to decouple the processing plant from the Yangibana mine site,” executive chairman Charles Lew said.

“The Commonwealth environmental approval will allow Hastings to construct the Onslow Rare Earths Plant for a full production rate of 15,000 tonnes of MREC per annum, unlocking the high-quality and NdPr-rich rare earths carbonate that we will produce at Yangibana.”

“Importantly, the Commonwealth approval is another positive step in Hastings’ journey to become Australia’s next rare earth producer.”

“Debt financing talks are advancing well and scheduled for conclusion before the end of this year and early stage civil works at the Yangibana mine site are in progress.”

Pic: Location of ANSIA highlighting the site chosen for the Onslow rare earths plant.

Plant construction kicks off in 2022

The company says that building the plant at ANSIA – which is around 15kms south-west of Onslow – is key to its downstream processing program because it offers access to piped natural gas, a plentiful supply of water and grid power.

Plus, the ANSIA location reduced the volumes of consumables and reagents needed to be transported to the Yangibana mine site by up to 80%.

Construction of the plant is due to begin in 2022, after the completion of early works at Yangibana mine site – and in line with Hastings’ target to produce its first MREC in early 2024.

The post Hastings could be next in line to produce rare earths in Australia with plant approval in Onslow appeared first on Stockhead.




Author: Emma Davies

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