Silver Mining: Morocco is Open for Business While Mexico is Teetering Towards Nationalizing
Aya Gold and Silver Feature. [repost, previous had typing error]
Morocco is the opposite of Mexico
Why?
Morocco is Open for Business (SAFE)
Mexico is Teetering on Nationalizing (UNSAFE)
Tomorrow, we are releasing the first of three transcripts from Mexico's impressive grassroots campaign, reporting straight from the picket lines, factory floors, habitat rejuvenation projects, and burgeoning organic farms.
María Luisa Albores González is Mexico's Secretary of Environment, responsible for permitting silver mining.
González (formerly Secretary of Welfare) is a Mexican politician from the National Regeneration Movement.
She was the Secretary of Social Development from 2018 to 2020
Her grassroots coalition brings in an overwhelming majority and political mandate (a move to Nationalize Silver)
Her coalition, a diverse tapestry of farmers, campesinos, laborers, students, professors, professionals, environmentalists, intellectuals, and a large constituency that believes the Silver of Mexico belongs to the People of Mexico, is a testament to the inclusive nature of this movement.
She has called on her constituents to be "Guardians of the territory," which is an overt call for stewardship and autonomy rather than a future of colonization.
This is no different from Mexico's past sentiment over oil in 1938, nor is it any different from Bolivia's move to Nationalize its Silver resource and develop strategies to boost the rural laborers with small-scale artisanal mining cooperatives.
These historical and international precedents lend a strong foundation to the campaign's approach.
This is precisely why we endorsed Andean Precious Metals.
Their model of working with over 15,000 Artisans provides a win-win situation for the locals and APM.
Sociologists and economists have extensively studied the economic multiplier effect, and this business model must emphasize the job and economic development upside. The potential economic benefits of this campaign are significant, offering a promising future for all involved.
Aya Gold and Silver: Riding the Silver Wave in Morocco's Mining Oasis
In the ever-evolving landscape of precious metals, one company has emerged as a shining beacon of opportunity – Aya Gold and Silver. Led by the visionary CEO Benoit La Salle, this pure silver player listed on the TSX has defied industry norms and carved out a niche for itself in the often-overlooked jurisdiction of Morocco. As the world grapples with supply constraints and surging industrial demand for silver, Aya Gold and Silver finds itself in an enviable position, poised to capitalize on the looming silver supply crunch.
Morocco: A Mining Jurisdiction Redefined
When it comes to mining jurisdictions, Morocco may not be the first name that comes to mind. However, La Salle's team has recognized the country's untapped potential, describing it as "the best-kept secret in mining." With a government that actively promotes and supports the mining industry, Morocco offers a stable and favorable environment for mineral exploration and development.
"Morocco is in the top three mining jurisdictions in the world," La Salle asserts. "It's not yet recognized because there aren't enough players, but you have a government that likes mining, that promotes mining. The minister is with you, supporting you in all your applications."
This unwavering support from the Moroccan authorities has been a game-changer for Aya Gold and Silver, allowing the company to navigate the often-complex regulatory landscape with ease.
Unlocking the Potential of the Atlas Fault
At the heart of Aya Gold and Silver's success lies the Atlas Fault, a 1,600-kilometer-long geological structure that has remained largely unexplored. La Salle's team, comprising seasoned industry veterans, has leveraged their expertise to secure a significant land position along this fault, positioning the company as a frontrunner in what could be a major silver discovery.
"If on 1,600 kilometers you have two world-class assets, I can guarantee you 100% that there's more," La Salle states confidently, referring to the two existing silver mines owned by Managem and Maya Gold and Silver along the fault.
By securing a strategic foothold in this prospective region, Aya Gold and Silver has positioned itself as a potential beneficiary of any future discoveries along the Atlas Fault.
Drilling for Growth: A Remarkable Resource Expansion
Aya Gold and Silver's aggressive drilling campaign has already yielded remarkable results. Since taking over the company four years ago, La Salle and his team have increased the resource base from a modest 10 million ounces of measured and indicated silver to a staggering 450 million ounces.
"Going from 40 to 450 in four years, this is how you create value," La Salle proudly states, emphasizing the company's commitment to exploration and resource expansion.
This remarkable growth has been fueled by an unwavering focus on drilling, with the company completing nearly 300,000 meters of drilling since its acquisition. La Salle attributes this success to the team's expertise and attention to detail, likening the process to "running the Vatican Library, where everyone is like little atoms working together to make the thing fly and be 43-101 compliant."
The Silver Supply Crunch: A Perfect Storm Brewing
La Salle's bullish outlook on silver is rooted in the fundamental supply-demand dynamics of the market. With industrial demand for silver surging, driven by the growth of renewable energy technologies, 5G networks, and the ever-expanding applications in the automotive and electronics industries, the supply side is struggling to keep up.
"The silver demand is exploding, there's no supply, and it's very difficult to find a silver mine, much more difficult than to find a copper mine," La Salle explains.
He further highlights the potential impact of the paper silver market, where the equivalent of one year's production is traded daily. A reversal in this market could trigger a massive squeeze, with the leverage ratio currently standing at an astonishing 365.
"If that reverses, then it will be a good day for all of us," La Salle quips, hinting at the potential windfall for silver producers like Aya Gold and Silver.
Catalysts on the Horizon: Production Ramp-Up and Resource Expansion
Aya Gold and Silver is not resting on its laurels. The company is gearing up for a significant production increase, with its third plant set to come online in Q4 2023. This will boost annual production from 2 million ounces to 7 million ounces, cementing Aya Gold and Silver's position as one of the lowest-cost silver producers in the industry.
"That third plant will take our annual production from 2 million to 7 million ounces at an all-in cost of $10," La Salle explains. "We become one of the lowest cost in the industry, with a beautiful 7 million ounce per year production, knowing that can grow because the plant has been oversized for additional discoveries."
Moreover, the company's Badin project, a world-class asset with 352 million ounces of silver at an average grade of 500 grams per ton, promises further upside potential. With an ongoing 120,000-meter drilling campaign and promising geophysical data indicating parallel zones, Aya Gold and Silver is well-positioned to continue expanding its resource base.
"We identified 352 million ounces of silver at an average grade of 500 grams per ton silver equivalent," La Salle enthuses. "It's unique in the silver world. There's nothing like this. One year of work, 352 million, and we're doing another campaign right now of 120,000 meters."
A Compelling Investment Opportunity: Alignment, Funding, and Jurisdiction
Aya Gold and Silver's value proposition extends beyond its impressive resource base and growth prospects. La Salle emphasizes the company's tight capital structure, with the board and management team owning nearly 50% of the outstanding shares, ensuring alignment with shareholder interests.
"At the board level, we own almost 50% of this company, which is extremely rare," La Salle points out. "You have a very tight capital structure. You have the board, you have a couple of the shareholders at the board that are extremely involved and owning the stock."
Additionally, the company is well-funded, with approximately $100 million in cash reserves, eliminating the need for immediate dilutive financing. This financial stability allows Aya Gold and Silver to focus on executing its growth strategy without the burden of near-term capital constraints.
La Salle aptly summarizes the investment thesis: "Three criteria for investing: jurisdiction, grade, and make sure management is well invested in the company." Aya Gold and Silver checks all these boxes, making it a compelling investment opportunity in the silver space.
The Macroeconomic Tailwinds: A Perfect Storm for Silver
Beyond the company-specific merits, La Salle also points to the broader macroeconomic factors that are likely to drive silver prices higher in the coming years. With global instability, rising debt levels, and the inevitable need for central banks to lower interest rates, he sees a perfect storm brewing for precious metals.
"What's going on in Ukraine, in the Middle East, all this instability, the US dollar – we know it's high, it's expensive, they have to bring the interest rate down," La Salle explains. "China has started, Canada has started, the United States is going to be following. And then you'll see a rush out of the US dollar, and they're not going into Euro, they're not going into Yen, they'll go into gold and silver."
This macroeconomic backdrop, coupled with the surging industrial demand for silver and the looming supply constraints, paints a bullish picture for silver prices. As La Salle concludes, "If there's one commodity you want to be invested in right now, it's silver, but not silver in Mexico – you want to be in silver in top jurisdictions."
[video] Aya Gold & Silver
Successful Ten-Bagger
Conclusion: Aya Gold and Silver's Shining Future
Aya Gold and Silver's remarkable growth trajectory, strategic positioning in Morocco's mining oasis, and the looming silver supply crunch make it a standout player in the precious metals space. With a proven management team, a robust resource base, and a pipeline of catalysts on the horizon, the company is well-positioned to capitalize on the rising tide of silver demand.
As the world grapples with the challenges of the energy transition and the ever-expanding applications of silver in cutting-edge technologies, Aya Gold and Silver finds itself at the forefront of this transformative shift. With its unwavering commitment to exploration, resource expansion, and operational excellence, the company is poised to deliver substantial value to its shareholders in the years to come.
As the global economy navigates through turbulent waters, with geopolitical tensions and macroeconomic uncertainties looming large, precious metals like silver are likely to emerge as safe-haven assets. Aya Gold and Silver's pure-play exposure to silver, coupled with its strategic positioning in the mining-friendly jurisdiction of Morocco, makes it a compelling investment opportunity for those seeking to capitalize on the impending silver bull market.
With a management team that has skin in the game, owning nearly 50% of the company's outstanding shares, Aya Gold and Silver's interests are closely aligned with those of its shareholders. This alignment, combined with the company's robust financial position and well-funded growth plans, provides a solid foundation for long-term success.
As the world transitions towards a more sustainable future, the demand for silver in renewable energy technologies, electric vehicles, and advanced electronics is set to soar. Aya Gold and Silver's low-cost production profile and ambitious growth plans position it as a prime beneficiary of this burgeoning demand.
Moreover, the company's strategic focus on the Atlas Fault, a largely unexplored geological structure with immense potential, could yield further discoveries and resource expansions, further bolstering its position as a leading silver producer.
In a market often dominated by gold, Aya Gold and Silver stands out as a shining beacon of opportunity, offering investors a pure-play exposure to the silver market's upside potential. With a compelling investment thesis, a robust growth strategy, and a management team that has proven its mettle, Aya Gold and Silver is poised to ride the silver wave to new heights, delivering substantial returns to its shareholders in the process.
As the world grapples with the challenges of the 21st century, companies like Aya Gold and Silver, with their unwavering commitment to sustainable practices and responsible mining, are likely to play a pivotal role in shaping the future of the precious metals industry. By embracing innovation, fostering transparency, and prioritizing environmental stewardship, Aya Gold and Silver is not only positioning itself for financial success but also contributing to the broader goal of a more sustainable and equitable future for all.
priced last Friday below
Luke Gromen's projection:
Silver: 1700% growth = 18x (correct)
Gold: 742% growth = 8.42x (rounded to 8.4x, correct)
Jon Forrest Little's projection:
Silver: 2151% growth = 22.51x (rounded to 22.5x, correct)
Gold: 952% growth = 10.52x (rounded to 10.5x, correct)
Jim Rickards' projection:
Silver: 2330% growth = 24.3x (correct)
Gold: 1037% growth = 11.37x (rounded to 11.4x, correct)
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