Silver Roundtable w/ OCG CEO & Analysts The Goldfinger Capital Channel recently released a comprehensive discussion on the global silver market, led by prominent investors Chen Lin, Robert Sinn, and silver mining executive and CEO of Outcrop Silver Corp. (Ticker: OCGSF or OCG.v for US investors), Ian Harris. The conversation dived into the fundamental aspects of silver supply and demand, price movements, and the role of silver in future technologies.
Key Takeaways
Industrial Demand and Technological Advancements:
The panel highlights the growing industrial demand for silver, especially from the solar panel industry. Notably, demand for solar panels saw a 60% increase last year. This surge is expected to continue, driven by the need for rapid deployment of solar power to support the expanding AI infrastructure in the United States. Chen Lin argues that official forecasts underestimate solar panel demand growth, potentially leading to a silver deficit of 300 million ounces this year. He projects that this year's deficit could surpass historical levels, driven further by the AI boom.
Supply Constraints and Market Dynamics:
Ian Harris provides insights into silver supply, noting that primary silver mines contribute only about 30% of global production, with the rest coming as byproducts from other mining operations. This inelastic nature of silver supply means production levels are largely unaffected by silver price changes. Harris draws parallels to the uranium market, emphasizing significant supply constraints and challenges in bringing new silver production online.
Outcrop Silver's Role
OCG is positioned to benefit from the bullish silver market. As a company focused on high-grade silver and gold projects in Colombia, OCG stands to gain from the increasing demand and price of silver.
OCG's Santa Ana Project in Colombia stands out as a premier high-grade primary silver district, demonstrating significant economic and environmental potential. The project's maiden resource estimate underscores its promise, revealing an indicated resource of 24.2 million ounces of silver equivalent at a grade of 614 grams per tonne and an inferred resource of 13.5 million ounces at a grade of 435 grams per tonne, distributed across seven major vein systems.
The company's ongoing 2024 drilling campaign is aimed at expanding known mineralization on established veins and exploring new prospects along the project's extensive 18.5-kilometer strike. Additionally, Recent advancements in metallurgical test work at the project have yielded breakthrough results, enhancing the already high recoveries at Santa Ana.
In the video, Harris' insights into supply constraints and the strategic importance of silver underscore OCG.v's potential in the evolving market landscape. With its exploration and development efforts, OCG.v is well-placed to capitalize on the anticipated growth in silver demand driven by industrial and technological advancements.
Full video here:
Posted on behalf of Outcrop Silver & Gold Corp.