OCG: "a rare primary silver play" (Article Summary) Peter Epstein's recent article sheds light on Outcrop Silver & Gold (Ticker: OCG.v or OCGSF for US investors) highlighting the company's compelling valuation, impressive mineral resource estimate, and environmentally friendly approach that underscore its potential in the precious metals sector.
Epstein delves into the intricate dynamics of the silver market, accentuating hard data that supports Outcrop's strategic positioning. Notably, the surge in silver demand, driven by the exponential growth in solar capacity, particularly in China, underscores the critical role of silver in the renewable energy sector. With each gigawatt of solar power requiring approximately 600,000 ounces of silver, the burgeoning demand presents a substantial opportunity for silver producers like Outcrop.
Moreover, Epstein highlights the persistent deficit in mined silver, with production down by a staggering 25% from its peak in 2016. This deficit, coupled with the inelastic nature of silver supply, underscores the favorable conditions for primary silver projects like Outcrop's Santa Ana. As the price of silver remains relatively low compared to historical levels, the potential for significant upside is apparent, especially considering the rising operational costs for precious metal miners.
Outcrop's flagship Santa Ana project is garnering attention for its promising maiden mineral resource estimate, boasting 37.7 million ounces of silver equivalent. With 64% of the resource classified as Indicated, coupled with ongoing drilling activities aimed at expanding resources, Outcrop demonstrates a clear pathway for growth and scalability.
Furthermore, Outcrop distinguishes itself with its environmentally friendly approach, as tailings from its operations are anticipated to be benign without the need for leaching or cyanide. This, along with favorable infrastructure and community support, bodes well for streamlined permitting processes.
The article also underscores Outcrop's compelling valuation compared to peers of $1.2/oz, highlighting its potential for significant value appreciation. With a keen eye on market conditions and a robust pipeline of drill targets, Outcrop's management remains optimistic about achieving its ambitious targets.
Overall Epstein shows how Outcrop Silver & Gold is emerging as an exciting primary silver play with substantial potential for growth and value creation. With a strategic focus on high-grade silver assets and a clear pathway for expansion, Outcrop stands poised to capitalize on the evolving dynamics of the precious metals market, making it a compelling proposition for investors and potential acquirers alike.
Full article here:
https://epsteinresearch.com/2024/03/20/outcrop-silver-gold-a-rare-primary-silver-play/
Posted on behalf of Outcrop Silver & Gold Corp.