Silver Juniors: Dolly Varden, Eloro Resources, Golden Tag & Defiance Silver
The following companies are some of my silver plays…
Dolly Varden Silver (DV.V)
Probably the most obvious investment for the conservative silver bull since Dolly has a few things that stand out;
- 43.5 Moz of High-Grade silver ounces
- Tier #1 jurisdiction
- Hecla Mining is a major shareholder
- A whopping C$22 M in cash
- Soon drilling
If one likes silver and wants to sleep well at night then Dolly is surely a name that should be considered. Given the already banked success there is Margin of Safety present (the silver is not going anywhere) and there is probably a lot of exploration upside left to boot.
Fullcase explained HERE.
Eloro Resources (ELO.V)
Not a pure silver play but could be one of the largest polymetallic (including silver) discoveries in quite some time. The company is very active and I think success with the drill bits will push this story higher regardless of what the metals are doing.
- Giant potential
- Not tier #1 jurisdiction but looks like a tier #1 discovery in my book
- Multiple drill rigs
- Plenty of cash
Full case explained HERE.
Golden Tag (GOG.V)
Given the company’s substantial resource (>200 Moz AgEQ) it is quite a beta play but I saw alpha potential as well. Fortunately the company has released three recent news items that have proven that the system(s) should get a lot bigger. The case is playing out along the lines which I hoped and described HERE.
- Big beta: 200 Moz AgEQ
- Proven that the system(s) is bigger
- Drilling
Defiance Silver (DEF.V)
Silver, gold and copper in Mexico. Not a pure silver beta play but the added diversification is good and very cheap based on the sum of its parts.
- Big silver potential
- Gold/Copper project which is very de-risked and could grow
- Cashed up
Full case explained HERE.
Comments
The companies mentioned above are from my silver focused portion of my diversified mining portfolio. In each and every case I see Alpha potential which is most important for me. Alpha potential is me saying that I see ways that the value of the company can be increased internally and not just from a rising silver price. This is why I am pretty relaxed when it comes to volatility in the price of metals because one day the metals will head higher and hopefully these companies will have added more value to go with a rising silver price in said future. If I see no Alpha potential in a case then I simply won’t invest because that means I am pretty much tied to what the metals do.
Note: Not investment advice. I own shares of all companies mentioned and they are banner sponsors. Therefore consider me biased and do your own due diligence.
Best regards,
The Hedgeless Horseman
