That’s a bit incestuous to have First Majestic financially bailing out First Mining, and shoots a hole in Keith N.’s “One Country, One Metal” tag-line, but I guess he needed to help out his smaller venture with the larger one.

I don’t currently have a position in First Majestic but I have been a regular shareholder for the last 4 years most of the time, and this move seems unusual and I wonder if that is really the best use of First Majestic’s cash reserves at this point. It may turn out to be brilliant if Springpole does get developed into a mine, but this royalty stream will be a factor any suitor for Springpole will have to discount for as it eats into the margins.

I wonder if other mining companies are going to start doing more financing of developers in exchange for NSRs to get in on the royalty game?

In a way this is a relief. I was fine with the initial bid from Silvercorp for Guyana, but didn’t like when they upped their stakes on the 2nd bid to outbid Gran Colombia Gold, and was worried they would do it a 3rd time now that this “foreign-based multinational mining company” raised the stakes once again.

I’d rather see Silvercorp go after a distressed Silver producer or developer in Mexico, Canada, or Australia, or to take over New Pacific Metals since they already have a 29% stake in it in Bolivia.

Having said that, if they found another distressed Gold producer that would have good economics, and they have the cashflow and experience to turn it around, then as long as it is an accretive Precious Metals transaction then it’s worth grabbing. I’d just prefer to see them aligned with Silver to keep that leverage as the underlying metal still has so much room to run higher.

Silvercorp ought to buy Silvercrest. Sounds like a strong silver play.

I also like that (SVM) Silvercorp is going to make an easy $9 Million for Guyana breaking their agreement. Value creation for spotting the deal first.

“Silvercorp says it expects to receive a C$9M termination fee if Guyana accepts the offer.”

https://seekingalpha.com/news/3582200-silvercorp-gives-up-bid-for-guyana-goldfields

As for (SIL) (SILV) Silvercrest, they are a top quality silver development project, but they are already valued appropriately at $1.44 Billion and they are not distressed like (GUY) Guyana Goldfields was in April when (SVM) Silvercorp (valued at $1.1 Billion) made their initial offer.

So for Silvercorp to go after Silvercrest would have to be a merger of equals, which would be much different than their target of acquiring a bolt-on long life distressed producer like Guyana Goldfields. It would be better for Silvercorp to scout out another distressed producer to scoop up and bolt-on to their operations, which would be much more of a win for SVM shareholders, than a merger of equals in market cap.

Also, (SSRM) SSR Mining has been assisting (SILV) Silvercrest with their financings for years and (SSRM) is valued at double what (SILV) is, so they are the most likely suitor. Obviously, their hands are full with their merger of equals with (ASR) Alacer at present; but I think it would have made far more sense and have been more warmly received for SSRM to have done that same merger with SILV instead of this merger with ASR.

Besides the $9 Million payment that (SVM) will receive from (GUY) for them to break their contract, it should also be noted that Silvercorp holds around 10% of the shares of Guyana Goldfields, and will still make out like bandits on the re-rating higher of these shares for this new “foreign-based multinational mining company” as they take over (GUY). So either way, (SVM) wins.

This was summed up well over at ceo.ca by a contributor @Tony4ever:
___________________________________________

@Tony4ever – “$SVM holds about 16.5 M shares of $GUY. After it decided to walk away, I do not know if it will hold the 16.5 M shares. If it does, I suppose it will vote for the bidding of C$1.85/share. Assuming the acquisition will be completed, $SVM will make at least US$12M capital gains.”

Zijin Mining to Acquire Guyana Goldfields Inc. in an All-Cash Offer for $323 million
by @newswire on 12 Jun 2020

Alan Pangbourne, President and CEO of Guyana Goldfields, stated:

“The all-cash offer from Zijin represents a significant premium to the amended Silvercorp offer price and is an excellent outcome for Guyana Goldfield’s shareholders. Zijin is a highly regarded mining company with an impressive track record of successful international acquisitions and operations. We look forward to working with Zijin over the coming weeks to close this transaction and transition to the new team.”

https://ceo.ca/@newswire/zijin-mining-to-acquire-guyana-goldfields-inc-in-an

Banyan Gold

When I saw the route wasn’t going to bounce, sold a bunch of Dolly at .39, bought even more back end of session at .32

Buzz:
I wasn’t thinking about it until it was 18% down which was more than most others. You had the better play, but first I was checking for news to see if I was missing something. Once I was comfortable it was a little excessive compared to others, I got some. Not sure I could have projected the drop. Good buy. I always like more shares.

I have a large weighting in (DV)Dolly Varden and was buying at much lower prices than where things pulled back today, and simply held onto them, but didn’t add or sell any based on one day’s move.

DV was only down 12.5% on the day, which was definitely in line with many other Silver stocks on the day. For example, I was buying more CDE Coeur and AXU Alexco today which were both also down over 12%, and replacing what I trimmed in (AUN) Aurcana down about 10% on the day.

Look at ASM Avino that was down 18%, or AUMN Golden Minerals down 14.4%, or Hecla down 11% on Thursday. It was rough across the board in the Silver stocks, so again, I don’t attribute anything significant to Dolly Varden’s move at all.

____________________________________________

Silver Producers that had big pullbacks on (06/11/2020)

ASM Avino Silver & Gold Mines Ltd. 0.5850 -0.1310 -18.30%
CDE Coeur Mining, Inc. 4.9500 -0.6900 -12.23%
IPT.V IMPACT Silver Corp. 0.6300 -0.0800 -11.27%
HL Hecla Mining Company 3.0600 -0.3800 -11.05%
EXN.TO Excellon Resources Inc. 0.7400 -0.0900 -10.84%
MYA.TO Maya Gold and Silver Inc. 1.9700 -0.2300 -10.45%
AG First Majestic Silver Corp. 9.31 -1.06 -10.22%
USAS Americas Gold and Silver Corporation 2.2800 -0.2500 -9.88%
PAAS Pan American Silver Corp. 25.89 -2.80 -9.76%
GPL Great Panther Mining Limited 0.4298 -0.0432 -9.13%
EXK Endeavour Silver Corp. 1.9300 -0.1800 -8.53%
FSM Fortuna Silver Mines Inc. 4.3900 -0.4000 -8.35%

>> Silver Developers & Explorers

VGLD.V Vangold Mining Corp. 0.1150 -0.0200 -14.81%
AUMN Golden Minerals Company 0.3380 -0.0571 -14.45%
ELEF.TO Silver Elephant Mining Corp. 0.2400 -0.0400 -14.29%
SSV.V Southern Silver Exploration Corp. 0.1800 -0.0300 -14.29%
BCK.V Blind Creek Resources Ltd. 0.0350 -0.0050 -12.50%
KS.V Klondike Silver Corp. 0.0350 -0.0050 -12.50%
DV.V Dolly Varden Silver Corporation 0.4550 -0.0650 -12.50%
SVE.V Silver One Resources Inc. 0.4300 -0.0600 -12.24%
BCM.V Bear Creek Mining Corporation 2.3300 -0.3200 -12.08%
AXU Alexco Resource Corp. 1.9700 -0.2700 -12.05%
AZS.AX Azure Minerals Limited 0.0740 -0.0090 -10.84%
VIPR.V Silver Viper Minerals Corp. 0.3900 -0.0450 -10.34%
AAG.V Aftermath Silver Ltd. 0.3100 -0.0350 -10.14%
SIL.TO SilverCrest Metals Inc. 11.30 -1.23 -9.82%
AUN.V Aurcana Corporation 0.5700 -0.0600 -9.52%

Impact and Excellon were both down 11%, Southern Silver down 14%, Bear Creek down 12%.

Overall a brutal day in the Silver stocks, but I added to 3 of them (Coeur, Alexco, and Aurcana) as mentioned above, and considered adding to more positions, but want to see if this move down in the general equities and another sell everything event has any legs.

If these miners continue selling off like this then DV Dolly Varden is one I’d definitely be adding more to.

Dolly. We are talking US v Canada. I am showing Dolly closed on 10th @ .388. At point it was 20% down it was around .31 US. By the time I got through checking news, I bought around -16% and it ended day on my printout -14.11%. It definitely hit -20% about an hour out, but may have been a US thing. (Schwab)

Dolly: checking google this morning it shows a close of .35 which Schwab didn’t at close. Must be after hours. Anyway it hit .31 on the Google site this AM. Time and space and markets.

Google showing .31 low this morning in reference to yesterday’s performance. Currently .352 or .35.

Oh yes, that makes more sense then, as the OTC listings can have more wild intraday swings than the primary tickers on the main exchanges.

Yes I was talking about the main ticker for Dolly Varden (DV) which closed at $.4550 down 12.5% yesterday.

As for the OTC (DOLLF) I show on Yahoo finance it closed down 9.5% at $.3520

Yeah during the trading session many of the Silver miners were down more mid-day than where they closed at, and there were some good deals to be scalped in that process.

As noted above most of the Silver stocks were not hot as hell today, with many key stocks having a 10%-15% Clearance Sale on the day.

Get them while they’re not hot… (lol)