Remember some time ago I reported that Fresnillo set out a US$2 billion exploration budget in the Mexican press following "Foro Internacional de Minería organizado por BNamericas"? well it was no typo:
"Acquisitions also remain on the cards for Fresnillo. The company acquired the remaining 44% stake in its Penmont gold operations in Mexico's Sonora state from US-based Newmont Mining for US$450mn in October.
"We are looking for new acquisitions all the time. It's a good moment. There are a number of companies that have approached us and we are looking at them as well," Giles said."
Fresnillo's Ciénega mine has more of a focus on gold than silver but provides a good comparison. So basically they spent $55 million on adding 1500tpd at the Ciénega mine while Arian, now a producer heading for 1500 tpd (same ore as the Fres Zacatecas mine, AISC on par with the majors) valued at 8.81M GBP Market Cap (circa 30M GBP EV) for the whole shebang, concessions n' all. I'm sure Quintana wouldn't mind if the BMPA was inherited/renegociated, or simply had Fres dump the entire BMPA amount of lead & zinc on their doorstep as part of a deal.
Either this rises significantly or gets bought out
So with all that solar expansion in mind where does that leave Saudi Arabia's 'exponential' solar plans?
Interesting comments from Desert Technologies (who are ready to jump on the Saudi Solar plans):
"There is no debate, for sure they will go solar and when they start, it will be huge, they will want gigawatts and they'll be asking for projects to start yesterday,” said Cherradi pointing to the recent competitiveness of tenders in Dubai."
I'm looking for a Saudi Arabian national procurement plan for the transition to solar. Saudi along with India are going to be competing to secure silver for their respective targets. If you look through the open tenders in Saudi Arabia you see that they have "Implementation of a renewable energy programme with capacity of 54,000MW" on the list which equates to over 100 million ounces of silver and will likely now be filled (they are already mass producing polysilicon which is required for crystaline silicon wafers):
Could China be taking resource straight off mine production starting with Argentina (10th largest silver producer)? They are basically going to 'assist' Argentina's mining exploration projects following recent trade deals. This is probably the equivalent of Fresnillo buying Arian but at the 'country' level:
I just bought in, was tired of waiting for VOG and missed SXX. Tried to buy in a few months ago but could not manage to buy any shares. my buy in was at 27p. Just hope this sp doesn't go lower and that silver is currently very undervalued. Does anyone think that Harvey Organ is right or is he a fruit cake? I just figured since Greece is about to exit euro this might be the catalyst needed to start the 'Correction' (the real one this time - The Biggy).
This tells you where they are really expecting silver to go.. This could be directly related to news out of Saudi Arabia on shifting focus from fossil fuels to solar in the kingdom (which will probably be done in the most inefficient way imaginable)
U.K. Royal Mint "Sovereign gold coins was double the five-month average in June" CoinInvest.com "sales on Saturday and Sunday were the highest since Cyprus" GoldCore Ltd "Sales to U.K. and Ireland today are about three times the average for the past three Mondays"
Datafeed and UK data supplied by NBTrader and Digital Look.
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