Erik Wetterling – Record High Gold And Silver Prices Are Making The New Junior Producers And Advanced Developers Shine
Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins me to review the opportunities he sees in some of the new smaller PM producers ramping up growing revenues at time of record margins and extremely high underlying metals prices. Additionally, he is seeing compelling value in some of the gold and silver developers expediting their process through the 2nd leg of the Lassonde Curve, on the pathway to construction and production in the next couple years.
We review the continued strange dichotomy between surging precious metals prices and the lagging reactions in many junior gold and silver stocks over the last couple years. Then we look ahead to why we may see more capital start rotating down into the PM junior stocks that are actively pursuing revenue growth as this year unfolds.
We start off discussing just how much more profitable even the small producers are today compared to what the mid-tier producers with much larger production profiles could have achieved in cashflows 6-8 years back.
- This current environment has taken what would be considered small tier 3 projects and mines and now turned them into cash cows for companies. By generating substantial revenues, instead of purely diluting through market financings, these junior companies can then fund further growth and development of their other projects.
- Erik points to new producers ramping up production like Talisker Resources, Blue Lagoon, and Kuya Silver as companies that are garnering attention on relatively small production profiles, because of just how profitable spot PM prices are for generating new revenues.
- We highlighted some of the junior resource companies that we’ve reviewed in prior discussions that blazed this similar path over the last couple of years like Integra Resources, Heliostar Metals, Discovery Silver, and Magna Mining. These companies have been solid case studies of this business pivot, through transforming their business models by going from developers to junior producers, and then they were positively rewarded by the marketplace.
With regards to the junior developers, he sees opportunities in the companies that are expediting their move through the 2nd leg of the Lassonde Curve.
- He mentions Amex Exploration, which is working towards trial mining a large bulk sample over the next year, to then fund going into toll-mining process for the first 4-5 years; before eventually building a larger plant and operations on site in a multi-phased mining approach. This is a way to self-fund at least a big part of their future growth through much lower initial capex moves into production.
- Scottie Resources is also taking a very similar approach and already has completed their bulk sample at the end of last year, bringing in non-dilutive capital and learning a lot through that real world trial mining process to apply to future economic studies and the move towards Direct Ship Ore production.
* In full disclosure, the companies mentioned by Erik in this interview, are positions held in his personal portfolio, and also may be site sponsors of The Hedgeless Horseman website at the time of this recording.
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The Precious Metals Complex Explodes Off The Blocks In The Seasonal Q1 Run
Excelsior Prosperity w/ Shad Marquitz (Written late on 01-12-2026)
Charts on Gold, GDXJ, Silver, SIL, SIL:Silver ratio, and expanded thoughts on seasonality and the #Q1Run
https://excelsiorprosperity.substack.com/p/the-precious-metals-complex-explodes
West Red Lake Gold Declares Commercial Production at Madsen Gold Mine
January 12, 2026
“West Red Lake Gold Mines Ltd. (TSXV: WRLG) (OTCQX: WRLGF) is pleased to declare commercial production at its 100% owned Madsen Gold Mine, located in the Red Lake Mining District of Northwestern Ontario, Canada.”
“The Madsen Mine achieved commercial production as of January 1, 2026. The mill averaged 689 tonnes per day (“tpd”) in December 2025. This represents 86% of permitted throughput of 800 tpd and meets the Company’s internal commercial production requirement of 30 consecutive days of mill throughput at 65% or greater of permitted capacity. Operational stability, the other internal requirement, is also in place at Madsen. Consistent strong mill recoveries, which averaged 94.6% in December, enabled production of 3,215 ounces of gold.”
“We are delighted to announce commercial production at the Madsen Mine, achieved only seven months after completion of the bulk sample,” said Shane Williams, President and CEO. “Achieving commercial production is a major milestone for any producer and it comes after a strong December that saw tonnage, grade, recoveries, and production all perform to plan. Credit and gratitude go to the site operations team, who delivered a responsible and methodical mine ramp up. I also want to thank our partners the Lac Seul and Wabauskang First Nations and the community of Red Lake for their longstanding support.”
https://westredlakegold.com/west-red-lake-gold-declares-commercial-production-at-madsen-gold-mine/
West Red Lake Gold – January 12th 2026 – News Explained – Video Clip With Gwen Preston
In today’s KE Report interview with Erik Wetterling, we discussed how successful junior companies fast-tracking development into production have been rewarded, and so now 2026 will be West Red Lake Gold’s turn in the spotlight.
Erik and I also talked about just how many companies have benefited by doing a bulk sample to learn a lot about their average grade and metals recoveries, but also bring in non-dilutive capital. Talisker, and Scottie, also West Red Lake Gold all have used this approach. Amex is also going to be embarking a massive bulk sample over the next year, which is essentially trial mining.
I really like this bulk sample approach that many juniors are taking to earn while they learn and capitalize on these record high gold, silver, copper prices.
Now that WRLG has gone from bulk sample, to mining ramp up, to announcing full commercial production in just the last 7 months, hopefully this will silence those remaining haters and doubters that thought they’d never get this pulled off.
West Red Lake Gold is going to be absolutely printing money at $4,600+ gold, as are all these smaller producers.
To Erik’s point in the interview from today, now the revenues that these small producers are going to enjoy actually match the revenues of much larger mid-tier producers with multifold higher amounts or production output from 6-8 years ago.
I’ve been positioned in many these junior explorers that wanted to get into production and cash in on this bull market as it has been expanding the last few years, and they’ve been handsomely rewarded:
– Integra Resources
– Discovery Silver
– Heliostar Metals
– Magna Mining
– Mako Mining
– Thor Explorations
– Minera Alamos
– Talisker Resources
– Sierra Madre
– Luca Mining
– Cerrado Gold
– and now we can add West Red Lake Gold to their ranks
We are up over $90 Silver on the futures market, after tagging $91.34 recently in overseas trading.
Gotta love it!
On that note, one of the most important and telling charts for investors to keep their eyes on, which underscores just how much the silver mining stocks have lagged this rocket ride higher in silver is the SIL:SIlVER ratio chart.
It is totally crazy that the (SIL) ETF has underperformed the move in Silver to such a degree that it is back down near the 2015 Major low in precious metals and the 2020 pandemic crash low, where one ounce of silver almost buys one share of SIL.
Considering how much these producers margins are expanding at these record high silver prices, the silver equities should just be ripping higher on a 2:1 or 3:1 ratio to the moves in the metal, and yet over the last couple months the equities have actually been falling further behind the moves higher in the underlying metals price.
Come on silver silver stocks wake up and smell the all-time high silver prices already!
At least somebody Cares! It’s pretty amazing what has transpired. Last night I was thinking about what is going on with the rest of the World dumping US treasuries. After The US confiscated $300 billion of Russian assets at the beginning of the war in Ukraine it really has spiked gold because every country in the World knows that it is at risk of having their money stolen by the swift system. That is why the price of Gold has gone Ballistic. Holding physical Gold is the only safe haven from US intervention. Not only for countries but also individuals. New banking laws have recently been passed, (Eric Sprott talks about this) and if a Bank fails they have the right to seize everyone’s listed account with that Bank. We are taught as citizens to handle our money carefully while the Banks play roulette in the casino. DT
My EXK red this morning and HL is barely up by a dime. Mugs game.
One explanation of this crazy underperformance is we are headed into an epic stock market crash imminently (a la 1929) and that silver is going to get absolutely curb stomped with it.
Major and widespread mine nationalization could also be imminent or some sort of crazy capital gains tax (100%).
I can’t believe the underperformance is the market making a mistake. It’s too large and pervasive. I hope I am wrong.
Yes, I agree that the lack of action in the silver stocks is concerning and puzzling. I’ve been bringing it up to everyone we speak with and I’ve yet to hear any satisfactory reasons for why the silver stocks are not surging up double digits each day on moves like this in the commodity that they are selling.
The standard comment I’ve been receiving back has been, “Investors are still distracted with the general stock markets doing so well.” OK, but the gold and silver stocks have made big runs while that was the case the entire time, what about all the global investors actually following the PM stocks… why are they not bidding up these silver producers and developers as their economics keep expanding to record levels?
The other comment I’ve been getting back is “People don’t believe this metals prices. Even the PM investors are waiting for the blow off top and correction, and THEN they’ll by that dip.” Maybe some retail investors are hesitant to initiate new positions, but institutions running quant models on estimated revenue growth should be all over the silver producers.
Analysts looking at the developers Net Present Values on their main projects, and plugging in anywhere near spot prices should be amazed and hitting the bid to close the valuation arbitrage gap. Instead a lot of silver stocks have actually been selling off as silver keeps plowing higher. It makes no logical sense.
I’ve pointed out to so many of our show guests in December and January that there were days were silver was up 5%-10% and the (SIL) and (SILJ) were up mildly like 1%-2%. That is bad underperformance.
Some days silver was up 7% or 8% and tagging new all-time highs, and yet quality silver producers were actually down 2%-5%. That is not because generalists are sidetracked by A.I. stocks. Something else is going on here…
I don’t believe the silver stocks have even priced in Silver in the $50s… much less the $60s, $70s, or $80s.
Again, the SIL:Silver ratio chart paints the picture of just how lackluster this response from the silver miners has been… all things considered with where silver has moved.
IMO I think it is simple, the Comex has everyone on pins and needles waiting for the next margin hike to kill this advance… what I am seeing is a new range for silver starting at over $100/oz up to wherever. Someone always pays a price in a bull market and this time I hope it is the stinking, rotting and infested Comex.
What I find is the most ridiculous thing is the price of silver falls from $91 to $90 and the price of silver stocks drop in unison from the programmed traders, 🤣.
Sell pm stocks first thing in the morning and buy back two hours later…
Examples, SCZ, KTN, DSV and IPT.
I own all four.
Just found this… Jan13th.
https://www.mining.com/web/cme-changes-margin-setting-methodology-for-precious-metals/
SIL:SLV within spitting distance of multiyear lows. Absolutely crazy stuff. Question is, what happens to the ratio when silver actually corrects (or heaven forbid, crashes)? All that added risk (heaps of added risk!) for the privilege of getting schooled by an inert piece of metal.
Even when you are winning with silver miners, you are still a loser. This is what the market is screaming. lol. It really does make you feel like a fool.
Let’s take bets on whether the ratio will ever exceed the recent top at 1.72 made in September ’25. I think there is a 50/50 chance that was a cycle high and won’t ever be taken out.
(This post is mostly me just venting frustration. I wanted to avoid using leveraged products like futures, options and ETFs on silver for this bull run. But right now any thesis built around silver miner outperformance looks extremely tenuous and is literally hanging by a thread.)
Yeah, I’ve been thinking about that same thing a lot recently. If this is how silver stocks are going to react to the biggest breakout in silver we’ve ever seen, by barely leveraging it at all or some stocks even losing ground…. Then what in the world are they going to do when silver corrects down?
Maybe, that is what people are afraid of…. buying the top and getting stuck as bag holders. (?)
That is why it would have been better if silver would have climbed a staircase higher in a more measured move, where each quarter could digest and demonstrate to the markets just how much cashflow they were generating.
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I know I’ve been a broken record on this but the average price for silver in Q3 was $39 and the silver producers had record quarters.
I’m not sure where the average price of silver is going to come in for Q4 but likely in the mid $50’s. It will be a record quarter and record revenues for these companies, as this is the best they’ve ever done. One would have expected the markets to be front-running these earnings reports and bidding these stocks higher and instead they’ve been mostly listless and drifting…
Now look at where we are tagging today at $90. We were in the high $70’s and $80s most of January so far. That is a HUGE gap between where pricing averaged in Q4 compared to where it is going to come in for Q1 and yet, we watch silver producers selling down in the red this week. It makes no sense at all!!
Ditto……..” It makes no sense at all!!”
A lot of investors think that diversification is owning stocks in a lot of different sectors. That isn’t diversification, to be diversified you need to buy physical precious metal, real estate, maybe some collectibles and art, and in a proportion that makes sense, and also have cash not just in one bank but divided up in several Banks. The lesson from The Great Depression was never leave your money in one bank and one asset class like stocks. DT 👍👍👍
Yes, back when silver was in the 40s, I made the argument that I wanted to see silver consolidate sideways for 4 or 5 months because I feared that a vertical ramp in silver would not be reflected in the miners. Unfortunately, that has been borne out in spades. What is truly shocking though is the fact that the miners couldn’t even remain relatively flat with silver (save for a few sector standouts like HL).
Largo, LGO, finally bought an opening position a couple days ago… vanadium and ilmenite miner.
HL:SLV appears to be in the process of building out a right shoulder of a head and shoulders top. HL has been a standout performer among silver miners (thank God I own it or my frustration would really be boiling over). But vs silver it has been basically flat since September ’25 and appears to be putting in the aforementioned H&S top.
In a vacuum, the silver miners still obviously look great. Even vs gold they look good, which is definitely a positive. Versus GDX, SIL looks bullish too.
Pretty much everything on earth has crashed vs silver price, I just wouldn’t have pegged silver miners as one of them.
MOS up 6% today.
HL down 7% vs silver today on a day silver is up 7%. WTAF?
https://www.tradingview.com/x/O8SxdDzP/
DOLLAR : Ultimate Top Forming?