Ted Butler & Shawn Khunkhun: “China & India Demand For Silver Will Change Everything!” TWIM Ep 9

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we are live with this week in mining where we discuss how to make money in the metals and Mining sector I’m your host J Martin and I’m very excited to be here today this show is live so anybody who’s watching join us in the comments if you have any questions for myself or my guests today drop them in the comment section I’ll get to them when we can and uh we’re just going to jump in so my guests today are Ted Butler of the Morgan report and contributor to the inold We Trust report the most widely distributed did publication in the gold sector uh chiefly authored by Ronnie stoer who is without question the hardest worker in the gold sector and Sean kunun a familiar face on my channel and the CEO of Dolly Ard and silver thank you both for coming on today I appreciate it thanks for having me Jay Jay thanks for having us on your pleasure is all mine and I’m excited to talk silver today we haven’t covered silver extensively on this week in mining yet and I don’t know if you’ve noticed this but I feel like I’ve seen a mass mive influx in headlines just in like the last week and a half two weeks even in the silver sector uh for a handful of reasons there’s some interesting you know macro supports um you know India for example has uh imported more silver in the last three four months they did an all of 20123 forecast for China Imports are breaking records right now and and I’m curious Ted I want to start with you as it’s your first time on my show how do you process silver headlines that you’re seeing right now hitting 11e highs as of last Friday what are you paying attention to in the silver market yeah so I guess I’ll start with the title of the in gold with trust report chapter that I recently wrote which is where we question is this Silver’s golden moment last year we questioned is it Silver’s time to shine feels like an age that we’ve been asking this question but it seems that we’re finally on the brink of a bull market and obviously these golden moments that silver has are separated by Decades of stagnation and then characterized by these huge explosive uh runs as we saw in 1980 and in 2011 um but speaking in terms of the big picture the fundamentals have never been stronger you know we’re talking about four years of consecutive uh Supply deficits uh this going to be widening in in 2024 to 250 million ounces uh this is just not sustainable without higher prices um and ultimately we’ve got you know solar demand as a huge driver that’s not so showing any signs of slowing down even despite the concerns coming out China uh ultimately the disparity between the supply uh sorry the capacity and demand is what allows solar panels to be so cheap which is um driving the adoption and obviously uh solar panels becoming higher silver loading uh with the new topcon uh solar panels coming out so uh there’s plenty of positive drivers right now in the silver market and I feel that I’ve come in at a good time to uh to talk about them and you recently mentioned in an interview that you feel like the biggest misconception by media and investors is silver right now in the market so what do you think the media is missing and if you think so why are investors not paying attention yet yeah I think one of the big things that the misunderstanding is the impact of for example Indian demand um I mean it was just in February alone they imported 70 million ounces and this was 60 4% of India’s total Imports in 2023 and actually that’s also the equivalent of uh the US Mint produced uh silver American Eagles in the last three years combined um and also you know there’s things going under the radar um adani green energy just um announced the unveiling of a solar plant that’s five times the size of Paris you know um and that’s obviously a big place where a lot of the silver is going um so that that’s a huge underestimated Factor people just sort of live in this Western bubble and they forget that actually a lot of the determinants of uh gold and silver demand are actually shifting East and that’s one of the big themes that we cover in the in the Eng Goa trust report now Sean over to you you’re running Dollard and silver today you know you used to run gold companies and I know as an investor you made a lot of money in the silver sector which inspired you to take the Helm of Dolly Varden um what do you make of silver hitting new highest today are you surprised are you um what do you make of the timing you know and and what’s your take yeah uh great question Jay um you know for me you know my move into silver I started many years ago you know I experienced that 2000 as Ted said that you know those SP Spike um pies that we saw in 1980 or 2011 That’s What attracted me to Silver and I was waiting for you know gold to break out and for that silver to gold ratio to normalize and we are seeing that ratio down to about 73 to1 right now so it’s at 52 we lows it’s gone from 125 to 1 to 73 so you know these are indications that we’re moving into a bull market for precious metals we’re seeing silver outperform we’re seeing mining stocks outperform but what I never envisioned four years ago when I took over at Dollard is I never envisioned that 35 % of the market would be taken up by solar and India so a third of the silver we’re mining today are going in two sources and it’s projected that’s where we’re going in solar is we’re going to 50% of the market and so and then you look at the phenomenon coming out of China and you know with with the Shanghai exchange and investors willing to pay you know three to $6 dollar an ounce over spot um and and why are they doing that and you know is it because and and I I think the reason for that is the the data that they’re relying on is more accurate than the information that we’re getting here in North America and I think you know I’m surrounded by North American Centric um mining Executives that are in their 60s and 7s and I’ll tell you they’re living in the past they’re dinosaurs and as Ted is exactly right metal is traveling from west to east and has been for decades and what I’m seeing today in real time is the information in that that in the Indian investor and the Chinese investor is getting is not um manipulated by the end user and the end buyer of silver and the information that we’re relying on here in the west is and I’m not going to pick on any institutes or any institutions but some of the institutions are forecasting like a 20% um growth for silver and where really it’s closer to 50% and I think what the Indian ire is is seeing and what they’re getting ahead of and so is the Chinese buyer is they’re getting ahead of the real demand for silver and that’s real demand today but I think the most compelling part of this whole argument is actually has nothing to do with silver and and what I mean by that is if the majority of the silver that we get use as a byproduct okay if you look at some of the other metals that throw off a lot of silver like a copper mine for instance so 72% of silver comes as a byproduct and we’re facing deficits in Copper and other metals where are we going to get the world’s future supply of silver and for these primary Silver Mines like like Dolly Varden and others the amount of capex that is required to increase production is it’s not economic it’s it’s not economic at $50 silver it’s not economic at $75 silver you know maybe at200 or $300 silver maybe possibly is but um you know I I just see us moving into a moment maybe not tomorrow but two or three years from now where I don’t see where we going to feed the solar demand the investment demand and uh and I really I’m in the camp that there is no substitute for silver man there’s so many threads I want to hold on with this so so give me a minute first of all when you talk about I’d say like the old guard mining Executives and you said they’re living in the past when it comes to indicators they’re paying attention to what’s specifically and you don’t have to throw anybody under the bus but what specifically are you are are they missing you know is it that is it as simple as that renewable trajectory you mentioned you know maybe we’re focusing on 20% here when reality it’s more like 50 55% driven from solar alone what’s your what’s your expansion on that it’s it has a lot you know and and whether it’s a silver mining executive who has been you know around the industry for multiple decades who’s relied on these trading ranges that we’ve become very accustomed to right so you could you know you can hedge and you could sell big inventories of silver at 25 and you could be you know more aggressive with an acquisition in the low teens and you get very comtable in a trading range it’s similar to you know investment professionals who have never gone through a rate Rising environment how can you um prep how are you prepared for something you’ve never lived through and I just think we’ve out here in the west we’ve been lulled into this complacency and it’s not just a silver story it’s a it’s an everything story right and um I think we’re in this changing world where um you know and and silver is is one example of where we’ve gotten it wrong and I think you know it’s why I’ve come into the space and you look at the setup I would have never envisioned four years ago that Mexico was going to say we don’t want open pit mines yeah largest silver producer so what I’m telling you is all the fundamentals were in place like with gold breaking out silver was going to make it move you know it’s you know the the gentlemen were going to go after silver because gold is for CES right and it’s happened over and over and over in history right we can go back to the National relationship of 16 to one we can talk about you know we’re mining you know seven to one but at the end of the day so was going to make a big move and whether it was a spike high like we’ve seen over the last 40 years or whether it was something that was more sustainable you know that you know remains to be seen but what we never factored was Peru Chile Mexico the rest of the the silver producing worlds making it increasingly difficult to to go after these projects and then considering like I said you know most overcoming is a byproduct it’s hard it’s it’s so hard you know you had a guest on recently to talk about copper um Ivan Beck and Ivan um who’s an adviser at Dolly Varden talked about if you’re lucky enough to tag a big New World cast class Discovery in Copper you’re Jay how many years away from mining are you yeah 20 to 30 probably realistically so if we’re relying on the big projects to spit off a lot of silver as a byproduct that’s 70% of the market and those projects are 30 years away you know it it it it it exaggerates was already coming and it takes the and you considering we’re at all-time highs in Copper all-time highs in Gold alltime highs in in Porsches and Fine Art and everything else on the planet but not silver when we’re the case for solar and investment demand and I I don’t know I just think it’s for me it’s it’s what I think it’s the opportunity of a lifetime for me interesting okay and you know my my take on 20 to 30 for copper might be pessimistic but but um you know 10 to 20 I think is still very realistic and in the words of like a a Ross Bey we’re not short copper by the way it’s just we have no access to it right and the path to accessing it is 20 years away and that’s the issue that we’re facing with so many metals not just because of the increased consumption and demand from solar but as you you walk through there the starvation of capital right in in new Supply and this is coming to a reckoning now you mentioned Peru Chile you mentioned Mexico’s ban on open pit mining I agree that’s Bonkers and I think I think it’s it’s it’s more than just open pits you know if if I were to think about investor sentiment towards Mexico it’s just uh it’s a huge red flag and what’s your take T because recently actually you fed a tweet that said we are undeniably um it’s undeniable the fact that resource National nationalization is on the rise and you were pointing specifically I believe to Latin America so what’s your take on the developments in those same countries and others Chile Peru Mexico yeah so I think that was probably a few months ago but the the trend is still prevalent today um I think the sort of leftwing um consensus in a lot of these countries with amo in Mexico um the I think he called borich in Chile um they just have this tendency to wrap their arms around the resource and they want their piece of it um I don’t think that’s going away anytime soon yes you have pockets of of libertarian views coming up like in Argentina which are making um the accessibility for capitalist to come in and and get a return but I think uh resource nationalism not going away anytime soon um and it also extends to Africa as well um where a lot of these um former Frank phone uh countries are sort of kicking away France’s influence you don’t have to look to ner where the military coups are occurring um and there’s there’s countless other examples Marley Bina FASA all these you know big gold producing Nations as well um and what we’re seeing actually on a on a separate note is uh countries like China uh increasing the foothold in in in these countries um which is kind of showing the um somewhat in in some way the decline of the West because they’re unable to keep their foothold in these countries um but there’s so many geopolitical risks nowadays so it just um increases the point to have a safe jurisdiction like like Shan uh up in Canada so it’s um very difficult at the moment to find uh quy projects with the political landscape that’s so divisive so it sounds like you’re following uh maybe you call it like the epidemic of coups occurring in the sahal region in Africa exactly yeah I’m watching that very closely because I’m surprised how little media coverage it’s getting but I think you know call it the battle for Africa is one of the most important conflicts happening today and um it’s happening largely under the radar but for anybody not familiar there’s been nine military coups in one little strip of land called the Sahel region in Africa six additional six failed attempts but many governments have been overthrown to the extent that the now Infamous Wagner group has been rebranded as Africa core and is parading around the sahal region offering regime change protection to these governments if it sounds like an insurance policy against the coup that’s exactly what it is in exchange they get I mean screaming deals on natural resource extraction that they can then export through their port in Libya um what’s your how significant is that event from your perspective Ted and does it deserve a bit more attention than that’s presently getting absolutely um I think it’s one of the things that the Western media doesn’t necessarily want to cover because it documents their uh demise in a sense um and the funny thing is a lot of the gold that’s the wagn group is finding is probably making its way onto the balance sheet of uh the Russian Central Bank potentially um which is an interesting segue but just go with me here I think you know 28% of the Russian Central bank’s foreign Reserve assets are gold um and this comes at a time when it’s dumping dollars and reducing its trade with uh the US significantly um and one thing I did want to touch on Jay as well was the sort of freezing of the assets um in in back in February um before the outbreak of the Ukraine war and how um China are looking towards what happened to Russia when 300 billion dollars worth of assets were froze and they’re now stacking gold and a fing rate you know talking about the shift of to East again um you know 17 consecutive month of of gold purchasing um and funnily enough they’re also wanting to reclaim Taiwan um so you’ve got another driver there for gold demand I know we’re going off on tangents here but in the sense that um gold is the price of gold is no longer being determined by the conventional factors we we’re in this new playbook now um and we’re not even talking about interest rate cuts by the Federal Reserve because we don’t need to um but my point is that gold as a neutral Reserve asset um is increasingly attractive because it can’t be weaponized like the US dollar so this explains why China is stocking gold Rec accumulating at a record rates um because it see what happens to Russia you know and that’s good for silver as well ultimately because it drags it along too 100% now I don’t think you’re going on a tangent at all I think it’s super relevant and it’s not just China as you know central banks all over the world are stockpiling gold at rates we haven’t seen in in 50 years the tune of around 1,200 tons uh per year for the last couple of years and you have to ask the question why why would you do that why would you and I wouldn’t say they’re dumping US dollars yet but what they are doing is building a Lifeboat right which is what precious metals does for you it’s the asset that’s not somebody else’s liability and so if you don’t know what spooky goon is around the corner a good asset to hold right and if this decade continues on the trajectory that it’s been on thus far sort of increasing unpredictable chaos and conflicts you’re going to see more I think smart money investors central banks and institutions gravitate towards precious metals and obviously we’re seeing that with um you know gold hitting all-time highs and silver creeping that direction um Sean what’s your take on on the dollarization trend those developments Central Bank precious metals buying what are you paying attention to um Jay I I I never I always agree with you but I gotta disagree with with you on one thing when you say they’re not dumping dollars yet I think that’s exactly what they’re doing um you know they’re down to like 700 billion of treasuries I think they’re they’re changing in those dollars for farmland and resources all over the world and um I think that’s exactly what they’re doing so I think we’ve got this trend where you know the the confidence in the US dollar government um is you know is wined and I think we’re we’re moving into a world where you know it you can’t it it’s happening slowly but then it’ll be all of a sudden and when that moment happens like I just I just saw a headline Flash from from Jim Rickards who’s calling for $25,000 USD gold and it’s you know it’s not a sensational headline there’s a lot of fact um and and evidence to support that number um I’ve heard numbers as high as $50,000 an ounce USD and uh these may sound like crazy numbers to some but if you look at the amount of like I just like look the US crossed a trillion dollars during the Reagan presidency and you know the sort of the you know the compound the magic of com compounding right and if you look at every Administration doubling the debt and we’re going for numbers that you know with from from Bill Clinton to George Bush from 4 to8 to Barack Obama of 16 to to Trump exceeding 30 um you know at some point you reach that Minsky moment and it’s and I think I think we’re there and I think that’s why um you know the bricks are doing what they’re doing and it’s why you know gold has now become very topical um you know it’s going mainstream and uh what we’ve witnessed since February is silver going mainstream and um you know we’ve seen it as recently as 2020 where silver can do in weeks would it takes gold months and uh we’re witnessing right that right now if you go back to February I don’t have a chart in front of me but I’m I think silver was around $23 an ounce we’re talking about a $32 price today and uh you know for me when I look back at September you know we’ve had two September lows put in the last back the back years $20 September 2023 $18 September 2022 and you look at you know now we’re starting to see money roll into the equities like I’m on the front lines of capital going into mining equities and I’m starting to see serious money roll into the space and we could talk about you know the $300 million IM gold deal the $300 million hudbay deal um and we will be talking very very soon about a $300 million silver deal you know it’s there in Copper and it’s there in Gold but it’s coming to Silver and that’s what’s coming next I okay that’s fascinating and and I want you to expand on that a little bit Sean because the trajectory seems intact uh you’ve got your finger on the pulse when it comes to money moving in the silver sector and it’s it’s very impressive how much cash you’ve been able to raise in the last four years and what for most Junior mining companies has been an impossible Market to raise money in and your shareholders are you know Fidelity heckla mining Eric Sprat some of the biggest names in the business what kind of transaction would you speculate we could see in the future in the silver business that would turn heads to that same degree well I think what we’ve seen going into the last 60 days right we were in a depression we were in an environment where if you look at this you know the silver leaders in the space they were facing some very very difficult times and I I I don’t want to pick on any companies but let’s just say companies went from billions of dollars of valuation down to hundred hundreds of millions and there was the you know some called it the the yellowing out or the hollowing out and in terms of silver companies going to more gold Centric opportunities it’s interesting like we we’re we’re now in a in a universe where even like even the gold producers are no longer gold producers they’re they’re copper producers right and so there is no there is no Silver Company anymore I can’t think of a company that’s listed that is a pure pay play silver opportunity and I’m I’m in the silver business like if you start going through list you look at the SJ and not to pick on the ETF but they own names that are 10% silver so if you’re an investor and you’re and this is where I think passive investing is so dangerous and you want to say to yourself oh I want some exposure to Silver and you go out and buy these silver equities that you think are silver equities but they’re like 7 % lead and zinc or you know and so it’s it it’s it’s I think the and and and why is all this why is this J is it because people you know have shied away from Silver no it’s because it’s next to impossible to find these opportunities I’ve spent 20 years in this business I spent the last four of the 20 trying to get exposure to real silver and and I’m reporting back to to you after that three-year experience and telling you that it is the toughest metal Under the Sun to get some real tonnage and grade and to to to find real opportunities that make sense even in a $30 price context let alone the $16 context that we had a few years ago or or 20 or 25 more recently so I I think if you’re talking about Silver from the standpoint of a by product um yeah it’s wonderful you know there’s a lot of projects can spit off a lot of silver but um I can’t even remember your original question noj now Well here here’s what I’ll what I’ll pull on there you know is there a price you have in mind Sean that you think would Inspire I don’t if you can Inspire but would would create enough activity that we would discover some more Pure Play opportunities like what does that price Discovery look like in your opinion so look I think the move from 23 to 27 if we took the average mid-tier Silver company that $4 move that we saw a month or so ago because if we think about how companies report and when they make their sales you know they’re not not everyone’s going to realize every sale at $32 today so let’s take an average price to 27 which the average price in the previous quarter was say 23 that difference for the you know your average one to two billion dollar company is a difference j100 million of free cash FL so already at 20 27 like I think for most of these companies their A6 is around 20 you know they’re all sustaining cost produced down of silver is around $20 so you know at $25 silver you know you’re making $5 an ounce at $30 silver you’re 100% more profitable and so on and so forth and so what I think’s going to happen the original question was on m&a um what I think will happen is that the industry that was dying the industry that was falling the industry that was going from billions of dollars that Capital was scarce that the costs were high that you know the average enger is paying like plus 10% to borrow money the good ones the big ones the best is going to start growing and what’s going to create that growth is the capital that’s coming into the space so I think the companies are going to become acquisitive companies are going to look to grow I think there’s going to be a trend to try to grow North because there’s uncertainty in the South so I think management teams will look to the north management teams look for stability um and management teams are going because their shareholders are going to demand growth and there’s going to be the capital to unlock and develop opportunities um you know I think and so you know I think the the ideal opportunities are going to be silver projects in the United States of America silver projects in Canada uh projects of size projects of grade and I think you’re going to get your silver miners who are super focused and Centric in Latin America start making big moves up north interesting okay now I know your your mission your vision when you took over Dolly Varden was to consolidate uh a district in the Golden Triangle where you operate um and to increase the ounce count of the company I believe it was around 37 trading at around 37 cents per ounce of silver when you took over four years ago um you’ve increased the ounce count substantially I believe around 140 million silver silver equivalent ounces today am I close and we’ve got drill spinning as of last week or the week prior that’s correct could you walk me through the work program and what you guys are yeah absolutely but I just want to say one thing before I do which is as you know we talk if we talk silver equivalence as that ratio normalizes it’s going to change everything in terms of as how how we look at these opportunities and I think for so long all of these silver Centric opportunities were looked at through a gold equivalent lens and so you know with silver moving higher relative to Gold it’s going to be the equivalent of a project going from like a five gram gold average to a 10 gram average and that’s without the project changing but just the ratio normalizing and that the normal ratio the average historically is 40 to1 we’re at 73 to1 right now like so and we we’ve got a long way to go like the silver price could double with gold St here but in terms of our our own project look you know Jay What drew me to the Golden Triangle is it’s home to a billion ounces of silver it’s home to SK cre it’s home to Premier it’s home to Bruce Jack So What attracted me was to try to find another SK Creek you know 200 million ounces of silver at 2200 grams per ton but when if you say Creek to any precious metals investor they don’t think of the S they think of the 3 million ounces of gold 49 gr ton so how this Segways into Dolly Varden is doll Varden was the richest silver mine in the British Empire it was Canada’s third largest silver mine but what we’re investigating this year right now three drill rigs is is this gonna come this gonna become you know one of the B great gold in the Golden Triangle in addition to all the high grade primary silver we’re finding so our drill program it’s got three components it’s grow highgrade primary silver it’s follow up on an exciting new gold Discovery and then there’s a big exploration Focus to it so in addition to expanding and extending the known resource we’re trying to discover new deposits okay and Ted I believe over the last three months silver and gold equities have been your primary destination for Capital could you walk me through where you’re putting that cash and what you’re looking for where you’re looking for Value right now you want me to name companies if you want to Regions companies stages companies yeah I’m curious where you’re putting your cash right now um yeah so obviously a lot of the silver and gold mining companies based in jurisdictions that I feel are safe like Sean mentioned of course uh Canada America um you know Australia for gold as well I’m not going to name names but the you know the the T you know the notoriously strong jurisdictions some in Latin America um obviously I’m looking for Quality Management high grade um you know political stability I’m looking for all the usual things but I just want to talk more broadly about what it will take um or the effect that it will have if the silver price doesn’t rise if you don’t mind um fig it away yeah in terms of the just in the macro sense um you know this continued exhaustion of secondary suppliers this is the alternative if the silver price doesn’t rise high enough to incentivize new mine production we’re going to be increasingly dependent on these uh you know finite secondary supplies uh I think TD securi did a forecast um a couple of months back and we included it in the Eng trust report um they basically did a calculation that shows the lbma silver inventories figure is around 260% % more uh than the free flow of silver which is just 311 million ounces and what they said is this would be depleted in the space of two years based on the current pace of silver demand growth a three-year compound annual growth rate and let’s not forget the lbma has about 75% of the total silver inventories uh of the largest global trading venues um so this I just want to get across the idea the truth that this metal is very very scarce um and it’s going to have to be incentivized with it private holders in in in South Asia or wherever it’s being held they will they know the situation they know how scarce it is and they will only part with that silver once they recognize higher prices and the same goes for recycling as well which has marginally grown you know between minus one and 1% of the last few years um because the recyclers just don’t have the the incentive so this is the this is the Dilemma we’re in um and and then you just you know you talk about the historical under undervaluations as well I just want to Bang the Drum even further silver is the only metal who have not surpassed its 19880 highs out of a group that includes gold copper lead zinc nickel tin iron platinum bladium and rodium um we talk about a return to the historical Medan as well um a $2,400 gold price which we we were not at a few few weeks ago um $80 silver we’re talking about at 30 to1 ratio so the upside is enormous talk about how Silver’s outperformed gold in in six of the last seven bull markets since 1967 um and and people often think as well um about this sort of identity crisis you know silver going becoming an industrial metal that it will no longer be correlated to gold or that being correlated to Copper is somehow a bad thing it doesn’t really matter either way because it will you know jump on the back of an industrial uh you know reflationary boom with copper one’s interest rates a cut uh and it does you know it’s correlation with gold is strong enough for it to be pulled along in in a gold bull market so it’s so versatile it’s so ambidextrous and you know it’s my favorite investment right now sorry to riff I just wanted to get those get that information out there Jay yeah no I appreciate it you know I had Lobo Tigra on the show last week and [Music] um whichever way it goes whether it’s it leans into gold or copper it doesn’t really matter because ultimately hard assets are going to be what everybody wants to hold um as uh inflation returns which I believe it will after a recession when the federal when the federal CS rights I don’t disagree with you just because you mentioned copper do you have a take on BHP withdrawing their bid from Anglo this afternoon did that surprise you did you see that coming any thoughts yeah um I think ultimately the interest is is just indicative of um the growing bullish thesis on copper I think ultimately there will be a deal made soon um obviously don’t forget about the Platinum side of anglo-americans assets as well which I think is interesting and worth considering um I think like the big misconception actually about copper is that it’s all about EVS um it’s it’s a lot more to do with the infrastructure and the D centers um in fact Global T you mentioned him I think he he calculated I saw in a podcast that he thinks copper demand will need to Copper production will need to double by 2050 excluding EV Demand right so even though an EV needs three to five uh times more copper than an internal combustion engine even without EVS you know we’re talking about uh copper Couer production needing to double so but ultimately I am I am with Lobo on this in the sense that I think it I’m I’m waiting for the recession to sort of materialize I think it will um and then you know obviously when one rate when rates are cut that’s when I’ve be looking at Copper mining uh companies more closely um but it’s certainly a structural long-term Trend that don’t think is going away anytime soon yeah that is his thesis he thinks the EV narrative is getting far more attention than it deserves when the real drivers will probably be increased erization and just general decarbonization driving a lot of that demand and um and okay um and Sean over to you I want to I want to dive into Dolly Varden a little bit more uh before we close out today because um quick recap uh as I mentioned earlier in this conversation you’ve been able to raise I would say a very large sum of cash for Dolly vard at 75 million since you took over the business in an environment where most companies of your size have had a very difficult time accessing capital I always say the most scarce resource in the resource business isn’t the metal it’s cash and um uh you’ve assembled a very impressive shareholder base and a lot of capital that you’ve put to work and are putting to work right now on your projects what can perspective shareholders expect from a news flow standpoint Sean over the next few months now that you’ve got drills spinning so um you’re you’re right it was 75 and then we recently put in another 15 so it takes us to to 90 and what we’re going to do is we’re going to leverage that last 15 into a very um a very robust exploration program and uh you know essentially what I love about Dolly Varden is you’ve got a company here and I think for any company what’s the foundation and the foundation here is the shareholders so you’ve got a lement between about 92% of the companies held by very strong astute precious metals investors corporates and essentially you’ve also got a very very large resource base so your downside risk as an investor is protected by the 150 million ounces of silver that we have in the ground right so what we’re trying to do is we’re trying to grow that and you know Jay you mentioned um the company trading at 40 cents an ounce uh you had it spot on 37.5 cents an ounce um and you know I think we’ll get into a universe where companies will trade at dollars an ounce in the ground you go back to 2020 when the silver price went to $30 in August Dolly Varden was trading Jay at $4 an ounce in the ground okay it’s at less than half that today so we’ll get into a universe where real ounces high grade ounces minable ounces economic ounces will trade at a premium to their PS but all ounces I see trading in a bu Market at a minimum of $3.30 USD and that’s based on what the last B market produced so I think for any investor if you if you identify a project that’s minable um I’m not talking about some you know 10 gram per ton silver deposit that’s down a mile I’m talking about ounces that go to surface that are high grade that are in an area that the community wants it um you know you could you’re going to get opportunities to trade at dollars an ounce on the ground and then it’s a question of how many ounces are there so what you know my plan is I came into an industry that was starved of capital we’ve put close to H hundred million do into the company uh we’ve done it with the best shareholders in the world and we’ve got a high-grade project that worked in the 1920s it worked in the 1940s and you know I always think history is a great um teacher of um you know what’s going to happen in the future and what got Canada and what got BC through a Great Depression in North America was mining was gold mining up in the north so why I went to Stewart was because I thought we were coming into some tough times where the role of you know the status quo the role of the US dollar the role of the West was changing and I thought what is going to get me and my family through through this turbulent time and I studied history and what what it what it taught me was gold mining Silver mining got our predecessors through a very very turbulent time and it was particularly like places like Stewart and places like um Dawson in the Yukon you know during the kondik Gold Rush that were the Hub like you I was recently in San Francisco and I went through the old mining museums the Old Stock Exchange what built the West you know was mining was was gold and silver Mining and um and you look you you go through the Idaho Valley you go through Nevada the Silver State um you know we just need to go back to our roots and our core and um and that’s so that’s what we’re trying to do for our shareholders high-grade safe jurisdiction with thoughtful investors with it with the best scientists in the world world and um to build on some of the discovery success we’ve had in previous Seasons I love that and I you know I I could see history repeating itself in that regard just out of necessity and that tends to be what pushes action is necessity right not necessarily logic all the time but even as recently in 2008 you know Canada got through that recession largely because of our natural resource economy and we had a prime minister who leveraged that economy very effectively and got Canada through the 2008 fin financial crisis with a healthier balance sheet than any other G7 Nation directly because we leveraged our natural resource economy very very effectively um look gentlemen anything else you want to leave our audience with today uh insights into Capital allocation into the silver sector Sean I’ll I’ll go to you first no listen I’m just humbled by both you and Ted you guys brought in some incredible information incredible perspective and just grateful to just share the stage with you I appreciate that Sean love it man thank you Sean yeah uh yeah again just want to Echo what Sean says there obviously a pleasure to be on for the on your show for the first time Jay as well and be in such a good company the thing I want to leave with as well it’s actually um a quote from uh a bit of research from Peter k um you know obviously I believe there is going to be a rate cut by the Federal Reserve and this is when the conventional sort of um correlation starts to impact the gold and silver market um and during these rate cutting Cycles Silver’s averaged 332 uh since 2000 and the three rate cting cycles that we’ve had during that period and we we’re not even that’s not even materializing in the market it’s not even come to fruition um so the silver price has got to $32 without that effect even uh happening so I think we’re only just getting started is what I’m saying I think there are a lot of reason to be optimistic about silver and uh silver mining companies like Sean Dolly Varden love it man I love it well thank you both for coming on today and chatting with me I’d love to do it again sometime in the near future and for everybody who’s tuned in thank you we are back every Wednesday at 2 pm Pacific time 5:00 pm Eastern right here on the VC media channel for this week in mining where we discuss how to make money in the medals and Mining Market make sure you hit subscribe turn turn on notifications so that you don’t miss an episode thanks again and I will see you next week [Music]

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Comments (27)

  • @jamescorcoran5861 June 4, 2024 Reply

    Ted is not the sharpest knife in the drawer………

  • @rickaklein774 June 4, 2024 Reply

    Silver will have a LIFE of it own … Strap on your seatbelt …

  • @kyleinpa5285 June 4, 2024 Reply

    If someone wants exposure to silver, they should just buy the metal. All of these mining companies are not only extremely capital intensive, and have a very low likelihood of any profit. And these money executives are just bad salesman.

  • @DarrenSmith-tq2xz June 4, 2024 Reply

    Thanks for the great content once again God bless you Jesse and your panel of guests

  • @forestdweller775 June 4, 2024 Reply

    Canadians should have first dibs at buying any silver being mined n Canada. That's our silver, not India's or China's.

  • @ricoroger June 4, 2024 Reply

    Congratulation Jay on being a man of prayer!!! Praise God.
    To me it was too long winded! and I was left that it was more of a promotion, than to help we the investors.

  • @drexelmildraff7580 June 4, 2024 Reply

    Have watched many videos recently on gold and silver, this is one of the best.

  • @dennistupper8262 June 4, 2024 Reply

    Battle for Africa… What about Venezuala ? Trillions of Commodities their . Same goes for Afgan

  • @peterwilson9327 June 4, 2024 Reply

    25 years ago I thought $6 silver was crazy…
    And three hundred dollar gold was nuts😮

  • @JesusGonzalez-oh1nh June 4, 2024 Reply

    Personally we will look back at $30+ Ounce Silver & say that was Bargain & many would realize they should of pick up many more Ounces just my Opinion. When Silver was $22+ to $25+ Ounce I thought that was Big Bargain & I took full advantage & pick up Tons of Silver each week. And know that’s Silver is $30+ Ounce still taking advantage of picking up each week. Only time will tell, but when Silver hits $35+ Ounce a lot of people will start recognizing the real value of Silver. That’s the reason I am head of the game when it comes I’ll be the Lender & Not the Borrower!!🥈🥈🥈

  • @tesskansas June 4, 2024 Reply

    Is this Ted Butler Junior?

  • @donniemoder1466 June 4, 2024 Reply

    Excited for silver but also still not convinced it will move higher than 35. Been said for many years. What is different now? Interesting that India and China retail investors are buying.

  • @redpilled_1017 June 4, 2024 Reply

    Finally🦍🦍🦍🚀🚀🚀 Silver to the Moon! (I thought Ted Butler is older??!) 😮

  • @revalt2778 June 4, 2024 Reply

    hmm Ted looks younger 😂

  • @astrogems June 4, 2024 Reply

    India plans on eliminating its power generation by oil. The Modi government has approved the first branch of 10 million roof top solar subsidies.. Wake up folks India will want more silver for solar panels than is mined in the world.. this is the biggest thing planned and legislated.. Probably some Indian billionaires are amassing silver for this planned solar expansion…

  • @edwardschindler1369 June 4, 2024 Reply

    Blackrock Silver (BKRRF) has at least 100 million oz in the ground. Located in Nevada and trades for $.24/share. Worth a look.
    They are looking to double that in this year's drill program.

  • @edwardschindler1369 June 4, 2024 Reply

    6/1 Today KWN posted that the SPROTT physical metal closed end funds are not available to be purchased in Europe! All you can do is SELL them. Hunt Bros. redo. Can you smell the desperation?

  • @HermanEmerson-ht1te June 4, 2024 Reply

    CPM reporting there is no silver deficit and demand is not going up

  • @manfredkruger9686 June 4, 2024 Reply

    How do you expect the Mexican election will affect the silver producers?

  • @davidouellette6833 June 4, 2024 Reply

    Decades of manipulation more like it

  • @thethinkingman9338 June 4, 2024 Reply

    Silver Mines Limited in Australia – pure play silver company ( with some gold , some copper ) just got government approval to mine, has the largest silver deposit in Australia, ( they say, one of the largest globally ) plans to commence open pit mining early 2025. stock price today $0.185 au. opinions anyone ?

  • @iankey1937 June 4, 2024 Reply

    Shawn doesn't know what he is talking re pure play silver mines…so I have to say goodbye

  • @JD-vd5nr June 4, 2024 Reply

    AYA is a pure play silver company in the secure district of Morocco. Its quadrupling its mine capacity starting in Q3 of this year and has excellent CDN management. Worth a look.

  • @jonesmatthew7511 June 4, 2024 Reply

    Hi Jay, love your content. I don't have any vision on macro buyers of silver and as far as the glut of solar panels being made in China, will the demand in solar panels wain and cause a headwind for further silver price growth?

  • @frankjohnson9772 June 4, 2024 Reply

    they never address the biggest problem with silver (making it the most under-priced commodity) which is the market manipulation. Everyone is now aware it is happening in the paper market but until it is addressed the price will remain low and the gold/silver ratio high.

  • @lowbloodprsure June 4, 2024 Reply

    That is not the real ted butler

  • @lotsofthisandthat9791 June 4, 2024 Reply

    Silver getting smashed again, sucker ready to break below 30…..

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