Critical Minerals and Energy Intelligence. Stay Ahead.

Silver Deficit: Mining Opportunities in Bolivia

The discovery of Cerro Rico, or “Rich Mountain”, in Potosí, Bolivia, in 1545, transformed the global silver market. This single mountain produced an astounding 60% of the world’s silver during the second half of the 16th century, making it one of the most significant mineral discoveries in history — and, arguably, the first global commodity.

Now, demand from the energy transition is revolutionising the global silver market again.

In 2023, industrial demand for silver reached a record 20,353 tonnes, representing an 11% increase from the previous year. And, this surge in industrial usage is not showing any signs of deceleration.

New demand is being driven by the solar industry, a significant contributor within the sector, projected to require approximately 273 million ounces of silver annually by 2030, accounting for nearly 20% of total demand. Such a substantial increase in solar-related silver consumption highlights the metal’s essential role in advancing renewable energy technologies.

image - The Oregon Group - Critical Minerals and Energy Intelligence

And supply is struggling to keep up.

As the world increasingly pivots towards renewable energy and advanced technologies, silver, often overshadowed by gold, is now emerging as a critical component in the fight against climate change and the transition to a sustainable future.

However, the supply side struggles to match this burgeoning demand.

Despite the pressing need, silver production is barely growing, with declines noted in 2023 and anticipated further reductions in 2024.

With prices reaching highs of $34 per ounce recently, this imbalance is creating a rare window of opportunity with record demand, falling supply, and rising prices all offering a unique opportunity for forward-thinking silver mining countries and companies.

Bolivia’s bet on silver

The Cerro Rico mountain may now largely depleted of its precious metal reserves, but Bolivia still ranks as the world’s sixth-largest silver producer , with 1,200 tonnes of silver in 2023, up 5% from 2022.

The country is now working to capitalize on the opportunity and its mining history dating back up to 400 years, with government initiatives and encouraging foreign investment.

Now, the focus is on the future—and New Pacific Metals Corp, a Canadian exploration and development company is leading the charge.

”A new dynamic has emerged on the market, which provides support to the market. Investors should get used to the idea that deficits are here to stay.”

— Philip Newman, Director of Metals Focus, emphasizes the impact of this persistent deficit

New Pacific Metals Corp

TSX:NUAG, NYSE American:NEWP

Sponsored Spotlight: Silver mine developer in Bolivia positioned for rising silver demand

We want to spotlight New Pacific Metals Corp (TSX:NUAG, NYSE American:NEWP), a leading Canadian silver producer discovering and developing world-class silver and gold deposits in Bolivia, including:

Silver Sand: a silver giant
Silver Sand is one of the world’s one of the largest undeveloped pure silver deposits, with 175 million ounces of silver reserves and annual production of more than 12 million ounces (15 million ounces per year in the first three years)
Carangas: the rising star
Complementing Silver Sand is the Carangas project, a 16-year mine plan, recently delivered a positive Preliminary Economic Assessment with potential annual production of 6.6 million ounces of silver (8.5 million ounces per year in the first six years)

New Pacific Metals Corp pro forma annual silver production versus current producers - The Oregon Group - Critical Minerals and Energy Intelligence

The company has made two major silver discoveries in Bolivia, with a combined resource of 400 million ounces of silver, which could produce more than 18 million ounces of silver a year.

The scale of New Pacific Metals’ promised production, combined with the financial fundamentals of the projects, positions the company as a potential major player in meeting future silver demand.

“With the ongoing silver deficit, we believe New Pacific is uniquely positioned to deliver substantial returns to our shareholders”

— Andrew Williams, CEO, New Pacific Metals Corp

New Pacific has taken a strategic approach, creating an operating structure that effectively balances an in-country team made up of 100% Bolivian employees, with support from experience expatriates and aa Canada-based management.

Investment Implications

Just as Cerro Rico in Potosí reshaped the global silver market centuries ago, the energy transition is now sparking a new silver revolution.

For investors seeking exposure to the bullish silver market, New Pacific Metals offers a compelling opportunity. The company’s advanced-stage projects, significant production potential, and strong financial position ($20 million in cash with a low burn rate) make it an attractive prospect in the silver mining sector.

As the global push for clean energy tech (especially solar) and data centers for AI, continues to drive silver demand as supply struggling to keep pace, companies like New Pacific Metals are well-positioned to benefit from higher silver prices with world-class assets that offer a unique opportunity to investors.

Disclaimer

The Oregon Group maintains full editorial control over all content published on this website. While sponsored and advertised placements may be featured, the content remains the sole opinion of The Oregon Group. The author may receive compensation or remuneration for providing content, but all statements and expressions are made independently and are not influenced by sponsors or advertisers. From time to time, The Oregon Group and its directors, officers, partners, employees, authors, or members of their families, as well as persons who are interviewed for articles on this website, may have a long or short position in securities or commodities mentioned and may make purchases and/or sales of those securities or commodities in the open market or otherwise. By accessing and using this website, readers are cautioned to assume that each of the foregoing persons may have a financial interest in all companies and sectors mentioned on this website. Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable., and any such statements are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities or commodities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and The Oregon Group undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material. The information provided on this website is for informational purposes only and is not, directly or indirectly, an offer, solicitation of an offer and/or a recommendation to buy or sell any security or commodity, and the information provided on this website should not be construed as any advice or an opinion as to the price at which the securities of any company or commodity may trade at any time. The Oregon Group is a publisher of financial information, not an investment advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient, and the information provided on this website is not and should not be construed as personal, financial, investment or professional advice. Readers are cautioned to always do their own research and review of publicly available information and to consult their professional and registered advisors before purchasing or selling any securities or commodities and should not rely on the information contained herein. Neither The Oregon Group nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein. By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.