Why Silver Stocks Are Set to Soar: An In-Depth Analysis

As we head into 2025, gold has consistently reached record highs, yet silver remains significantly below its peak of $50 per ounce. Historically, silver prices tend to follow gold’s trajectory, albeit with a lag. When silver prices eventually do rise, it often surpasses gold in performance. Retail investors typically flock towards silver during this time, perceiving gold as too pricey after its dramatic climb.

The Outlook for Silver Prices

The upward trend in silver prices appears to be holding firm, and I contend that 2025 will be a pivotal year for silver, potentially pushing it back to $50 and beyond. Reports indicate that China is actively stockpiling silver for industrial applications, anticipating supply shortages and tightening market conditions.

Highlighting a Unique Opportunity: Aya Gold and Silver

Aya Gold and Silver Inc. (AYS:TSX; MYAGF:OTCMKTS) stands out as a compelling investment in the realm of silver stocks. Unlike most silver mines that are poly-metallic—yielding copper, lead, zinc, and gold—Aya operates a pure silver mine located in Morocco. This distinction is significant, especially considering that their Zgounder mine boasts a remarkable 96 million ounces of measured and indicated resources, with a high silver grade of 306 grams per tonne.

Impressive Mining Figures

The Zgounder mine’s exploration has positioned it among the best-performing silver discoveries in recent years, with three of the top ten drill results reported globally between 2020 and 2024. Notable intersections include:

• 21.6m of 3,956 grams per tonne silver (g/t Ag)
• 14.4m of 4,101 g/t Ag
• 9.6m of 5,691 g/t Ag
• 14.4m of 3,043 g/t Ag
• 27.0m of 1,611 g/t Ag

With ongoing advancement in production capabilities, Aya Gold and Silver is poised to leverage its unique asset to capture significant market share in the growing silver industry. Click here for a brief overview of the Zgounder operation.

Morocco: A Prime Mining Jurisdiction

Morocco has established itself as a favorable mining destination, ranking #12 in Global Policy Perception by the Fraser Institute. After the privatization of state-owned mines in the 1990s, mineral exploration flourished within a well-structured regulatory framework. Additionally, Morocco’s mining sector is a significant contributor to the national economy, primarily driven by phosphate production.

Strong Leadership at Aya Gold and Silver

Aya Gold and Silver is backed by a proficient management team with extensive experience in the African mining sector. President and CEO Benite La Salle has three decades of experience and has played pivotal roles in multiple successful mining ventures. His expertise is complemented by a capable team, including Mustapha Elouafi, the Managing Director in Morocco, and David Lalonde, the VP of Exploration.

The Boulmadine Project: A Future Growth Catalyst

The company is also venturing into the Boulmadine Advanced Polymetallic Deposit, which has already yielded impressive results from its drilling campaign. With 34 million ounces of silver equivalent resources discovered, the project offers tremendous growth potential. The total inferred resources are even more substantial at 318 million ounces of silver equivalent, highlighting the project’s long-term upside.

Financial Health and Growth Potential

As of September 30, 2024, Aya Gold and Silver reported $73 million in cash, with manageable long-term debt of $96.5 million aimed primarily at expanding the Zgounder operation. The company is positioned to ramp up production dramatically, forecasting an increase in silver output from 1.7 million ounces to 7 million ounces by 2025.

Conclusion: An Investment to Watch

Aya Gold and Silver presents a compelling case as a dedicated silver producer with a robust growth trajectory. Despite recent market volatility and a downward correction in stock price due to revised production guidance, the company’s prospects remain bright. Investors should note that the anticipated production increase in 2025 will outweigh the temporary delays experienced, making the current low valuation an opportune moment to invest in silver stocks. With commercial production at their Zgounder mine now achieved, Aya Gold and Silver is on track to become a leading player in the silver market, offering significant potential returns for discerning investors.

All forecasts and recommendations are based on opinion. Markets change direction with consensus beliefs, which may change at any time and without notice. The author/publisher of this publication has taken every precaution to provide the most accurate information possible. The information & data were obtained from sources believed to be reliable, but because the information & data source are beyond the author’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Because of the ever-changing nature of information & statistics, the author/publisher strongly encourages the reader to communicate directly with the company and/or with their personal investment adviser to obtain up to date information. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Neither the information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures, or options contract mentioned herein. The author/publisher of this letter is not a qualified financial adviser & is not acting as such in this publication.