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Chris Ritchie – Silver trading at the quarter close, Fund Flows continue toward risk on, and an update on SilverCrest Metals construction

Cory댊
October 4, 2021

Chris Ritchie, President of SilverCrest Metals (TSX:SIL – NYSE:SILV) joins us to share his insights on the silver market and a construction update at the Las Chispas Project in Mexico.

On the silver market front there was some strange trading at the end of the month and quarter last week. A massive amount of silver contracts were dumped on the market which caused silver to drop around $1, from $22.50 to $21.50. We also discuss fund flows which continue to show funds are the most exposed to equities compared to bonds. Further driving home the risk on attitude of large money managers.

On the SilverCrest Metals front, we discuss construction updates and ESG considerations for the Company and sector as a whole.

If you have any follow up questions for Chris please email us at either Fleck@kereport.com or Shad@kereport.com.

Click here to visit the SilverCrest website to learn more about the Company.

Discussion
32 Comments
    Oct 04, 2021 04:52 PM

    There were some really good macro nuggets of wisdom from Chris Ritchie in this interview, that walk people though the interesting predicament the Fed is in. In one scenario, if Powell moves forward with the taper, and the markets have a taper tantrum, it will transition over to the “risk off” safe haven appeal of the precious metals. Conversely, if the Fed picks up on the slow down in growth and continued pressures in the general markets, hesitates, and decides not to taper, then this could really underpin a new bid in the PMs.

    Chris believes that Silvercrest is set up to prosper in either environment, as they have a number of catalysts on the horizon with their move into construction, production slated for 2022, and plenty of exploration upside; in an environment where the PMs turn the corner and start running to the upside.

    However, in a larger corrective system shock that really pulls down many sectors, including the PMs, Silvercrest has plenty of well-understood and recognized assets underpinning their valuation; and as a management team they have raised sufficient funds and structured their balance sheet to weather any coming market storms better than many of their PM peers. Most developers or explorers would continue to be in a cash-starved situation, preventing them from moving projects forwards, and thus are more likely to take in on the chin harder than SILV in any further market weakness. This was one of the bigger takeaways I got from the discussion.

    Oct 04, 2021 04:29 PM

    The Federal Reserve is in an unhappy predicament. Speculation is absorbing up surplus funds. The inflation of credit is enormous. They need to raise the rate for borrowing money to kill the price of money for speculative purposes. They can’t the debt has them cornered. Speculators will pay more for money if the rate is increased but the system can’t pay it’s bills. Something will give, if money doesn’t go to the speculators the market crashes, and if you can’t raise the rate to fend off inflation the system crashes. It is just that simple.

    Oct 05, 2021 05:25 AM

    So far…4 big red candles in a row against paper gold right before market opens to guarantee the seller the worst possible price. Must be a masochist in for another period of exciting stimulation. Beat me …beat me!

    Oct 05, 2021 05:30 AM

    If the market is not willing to give them lower prices, then we will place a gun to its head. We determine winners and losers and no one else. You peon scums don’t even deserve to have markets. Your money is ours….

      Oct 05, 2021 05:53 AM

      David, no point in expecting anything different.
      producers being hit proportionally worse to the commodity for weeks. In particular silver, look at HL, CDE and others this morning after much hope expressed of a turnaround. There is always a message in that, we need to see the opposite.
      There will be some kind of heavily oversold bounce, likely over 1800, and just enough for the agony to continue.

      Oct 05, 2021 05:08 AM

      It is cathartic to show the criminal behavior. It is like throwing a golf club after a bad shot…it doesn’t fix the situation but you start clean for the next shot.

    b
    Oct 05, 2021 05:31 AM

    bitcoin tops 50k again.
    gold kinda stagnant.

    Oct 05, 2021 05:10 AM

    (EXN) Excellon Drills 2,860 g/t Silver Equivalent Over 7.5 Metres at Platosa

    5 Oct 2021

    http://www.excellonresources.com/_resources/news/2021/20211005.pdf

      Oct 05, 2021 05:52 AM

      Excellon and Sivercrest, two amazing companies, I listened to you and Cory interview Chris Ritchie President of Silvercrest Metals last night, pretty articulate guy. I have been spending more time lately listening to the podcasts and video’s on you tube. It pays to be informed. DT

        Oct 05, 2021 05:58 AM

        Thanks DT, and agreed that there is a lot to learn from others on the plethora of podcasts and videos on youtube, which can be invaluable for being better informed.

        Yes, Chris Ritchie from Silvercrest is an incredibly sharp guy on the macro trends in the industry, so we try to feature some general questions in each of his interviews to let him get listeners up to speed on economic trends and important catalysts in the PMs. Silvercrest is also a best-in-class company and a widely respected company by most of their peers in the silver miners. Many company officers or pundits in the space make claims that “We may be the next Silvercrest…. or that company could be the next Silvercrest….” I find it very easy to just buy the real deal and own a piece of SILV. 🙂

          Oct 05, 2021 05:07 AM

          Yes!

    Oct 05, 2021 05:54 AM

    (VG) (VLMZF) Volcanic Gold drills 1.53m @ 191.8 g/t Au and 539 g/t Ag at Holly

    Oct 5, 2021

    https://www.volgold.com/news/2021/volcanic-gold-drills-1.53m-191.8-g-t-au-and-539-g-t-ag-at-holly/

      Oct 05, 2021 05:21 AM

      Bought Volcanic for a second time. Good drill results.

        Oct 05, 2021 05:36 AM

        Agreed David. Actually their last 3 sets of drill results from Holly have been encouraging, but the market has be in a place the last few months that is yawned off good results.

        The VG team is doing a solid job of outlining a new discovery in my opinion, and I reached out to Simon again today to invite him back on the show.

        We had Simon on about a month ago with an update for those that missed it:

        http://www.kereport.com/2021/09/13/volcanic-gold-mines-recapping-2-rounds-of-high-grade-gold-drill-results-from-the-holly-project/

          Oct 05, 2021 05:41 AM

          I was skimming the contributors on Volcanic (ceo.ca) this AM before I bought and saw such names as Stateside, Eric Coffin, Doc Jones and some guy named Excelsior. I was hesitant to add my name as that’s a great crowd, so I just bought and didn’t post. Avoided a jinx.

            Oct 05, 2021 05:57 AM

            Oh come on David, I believe you are a great contributor and wise stock picker, and am happy to have your name on that list.

            Yeah, Doc Jones is the one that initially gave me the heads up on Volcanic Gold, but really it was talking to Simon a few times and picking up on his intimate knowledge of Guatemala, and his team’s prior experience working on both Cerro Blanco (that Bluestone now is developing) and Escobal (that Pan American Silver now holds) that impressed me. Since he had been sitting on this land (via Radius Gold) for over a decade and was convinced there was a discovery to be made, that is what gave me the confidence to take out a position. Now, the VG team is hitting with the truth machine and validating Simon’s thesis. Gotta love it!

            Oct 05, 2021 05:00 AM

            Ever Upward!

        Oct 05, 2021 05:21 PM

        The gold readings as well as the silver grading seem to stand on their own. Together is impressive.