Silver prices have come under pressure recently with CFDs on Silver going down to US$23.47 an ounce. However, with rising inflation, precious metals may have a good long-term outlook. Therefore it’s a good time to consider gold and silver stocks while they are low and have plenty of upside.
As we all know, the ASX is no stranger to silver stocks and gold stocks. The macro theme supports precious metals and here are some quality silver stocks.
Aeon Metals engages in the exploration of copper and molybdenum properties. Its projects include Walford Creek, Constance Range, Isa North, Isa West, Isa South, and South East Queensland.
Aeon has adopted a revised process flowsheet that offers the potential to finally unlock the substantial in-situ value contained within the Walford Creek deposit. Aeon updated their Mineral Resource Estimates for the Vardy and Marley zones. This in conjunction with the revised flowsheet. It has allowed both the open cut and under-ground mining schedules to be re-optimised. The project’s throughput scale thus increased by 50% to 3 Mtpa and mine life extended to 14 years. The culmination of this work was the release of a revised Scoping Study in June 2021 and the decision to proceed to completion of a Pre-Feasibility Study (PFS), which is targeted for completion in Q1 CY2022.
There are catalysts in sight at Aeon and AML shares are now available on the cheap. AML is a quality company and one worth considering for silver stocks on the ASX.
AML shares trade at $0.046 a share.
Austral Gold is a growing gold and silver mining, development and exploration company. AGD’s strategy is to expand the life of its cash generating assets in Chile, restart its Casposo mine in Argentina, and build a portfolio of quality assets. Austral focusses on Chile, the USA and Argentina organically through a Tier 1 or 2 exploration strategy. Austral owns a 100% interest in the Guanaco/Amancaya mine in Chile and the Casposo Mine in Argentina. Additionally, AGD has a non-controlling interest in the Rawhide Mine in Nevada, USA. Finally, AGD also holds a non-controlling interest in Ensign Gold which holds the Mercur project in Utah, USA.
During the latest quarter, AGD produced a total of 9,422 gold equivalent ounces and 21,390 silver ounces. Cost of production per GEO decreased to US$1,070 in Q3 2021. This was a 4% reduction from US$1,115 in Q2 2021 while AISC was US$1,496 in Q3 2021. This signifies a 9% decrease from US$1,647 in Q2 2021. Quarterly average GEO selling price was US$1,795/oz vs US$1,830/oz (39% gross margin) in Q2 2021.
There was strong cash flow generation from operating activities of US$6.0 million. This was before changes in working capital during Q3 2021. Internal cash generation allowed the Company to fund its exploration and sustaining capex programs for the quarter that totaled US$3.7 million. Cash on hand at the end of the quarter was US$2.3 million.
AGD is operating very well and things are looking bright for the company. If you are an investor looking for silver stocks, AGD is worth considering. AGD shares trade at $0.085 a share.