Watch the fire, not the mantle ... First Majestic Silver just announced today that it produced just over 11 million ounces of pure silver in 2018. The average grade was about 5 oz/T. That is considered high grade today … but it is about 18 to 37 times lower than the grades of BHS silver/T !
BHS has over half that amount of sky high, high grade silver (90 0z/t to 186 oz/t) in the ground ready to process. BHS is trading at 11 cents … an unfathomable, dirt cheap price. This is akin to legal robbery. We are soon going to see the shares of small players such as BHS double overnight, then double again and again … if not bought out first.
When will true value be reached? When will the speculative fever start? Here’s a hint.
We are now seeing the take over and consolidation of the precious metals mining sector really heat up with the Newmont takeover of Gold Corp …. Just after the Barrick/Rand Gold merger. The smart money is financing these gigantic maneuvers because they know they cannot keep the lid on the PM prices much longer … and they know where the big profits lie. This same activity is also seeping into the junior sector with the acquisition of properties amping up. The competition for scarce resources is heating up.