- “Brien Lundin says don’t miss this buying opportunity” –The Gold Report
- “A legit 10-bagger” –Mining stock analyst Don Durrett
- The Alicia project is 30 km southeast from Gold Field’s Salares Norte.
- Aftermath Silver is “the deal of the century” –Fund manager Michael Swanson
- “Sprott backs upsized Aftermath Silver” –Mining Journal
There’s a new silver bull market taking off, and you won’t want to miss it. Especially if you missed on the last silver bull that ran from 2008 to 2011, when investors built fortunes with gains that soared to 3,600%.
The fundamentals back then weren’t anything close to being as good as they are today, either.
After being on the skids for nearly a decade, silver is back.
So is gold, but you’ll see in a moment why silver will outperform its sparkly sister.
Even with its recent pullback, the price of silver is still about 50% below its 2011 high.
Which gives it a lot of run room to bounce back up…and then streak higher in what experts are saying will be the greatest silver bull market in history.
Aftermath just completed a deal in late August that vaulted the company into prominence in the silver world.
The deal will give Aftermath 100% ownership of the Berenguela silver-copper project in Peru.
Mining analysts consider it a coup, with veteran mining stock commentator Don Durrett saying that:
➢ $4.16 billion mining giant SSR Mining (SSRM) is all but “giving away” Berenguela to Aftermath
The price, he adds, “isn’t that much for what they’re getting.”
Berenguela is one of Peru’s premier undeveloped silver projects.
Yet so far, few investors outside the mining industry have noticed.
Of course, a handful of knowledgeable investors have jumped on-board, lifting stock price and trading volume slightly, but…
➢ Aftermath isn’t even close to what it should be based on the quality of its projects.
Especially when you look at everything else Aftermath has going for it.
The stellar credentials and track record of Aftermath’s leadership team, alone, and the astute way they have structured project development and funding deals, was enough to secure the financial backing of some of the mining sector’s top investors, including:
- Mining billionaire Eric Sprott, who has made several successive investments in the company and now holds 19% ownership stake in Aftermath.
- Following the Berenguela acquisition, institutions in Europe and North America have increased their holdings to 35%.
All the other stars are aligned, starting with:
Biggest silver bull market of all time a once-in-a-lifetime chance for investors
From tycoon mining sector venture capitalists Ross Beaty and Rick Rule…
…to respected analysts like Doug Casey, David Morgan, and Don Durrett…
The big guns of resource investing are calling this a once-in-a-lifetime chance for investors.
In its August 17 research note, commodities investment banking firm CPM Group advised investors that this is the time to climb aboard, saying:
“The silver bull market appears to be still in its early days,” and it will “ last years if not decades.”
On August 26, chief resource analyst Nick Giambruno of investment advisory Casey Research announced that:
“We are in the early stages of the largest bull market in the history of precious metals.”
A few weeks later, on September 14, gold and silver tycoon Ross Beaty predicted that:
This silver bull market will be “longer and stronger than I’ve ever seen in my lifetime.”
It’s setting up right now.
Even after the huge run up in early 2020…and even after the recent pullback…experts are holding firm in their belief that this will be the mother of all precious metals bull markets.
Which is great news for late stage silver mine developers.
In fact, it’s exactly what venture capitalists have been waiting for so they can leverage the rising price of silver.
Aftermath is exactly at the sweet spot to generate not only near-term gains, but long-term investor wealth.
The company now has all the right ingredients to advance its projects quickly.
1. Aftermath Silver’s newest deal places it in the company of the world’s leading silver developers
It’s extremely rare for a junior silver developer to land even one high value silver asset, let alone two.
But then came Aftermath’s July 29 announcement that it had just completed its Berenguela purchase in Peru, and the news made headlines throughout the global mining industry.
Just two days after the July 29 announcement, analyst Bob Moriarty, whose forecasts are sought out by more than 100,000 investors every day, was one of the first to break the story, proclaiming that:
➢ “This is going to go down as the deal of the century for Aftermath.”
Landing the Berenguela project was enough to get the attention of some high-powered mining investors too.
On August 20, Aftermath shared news of a $12.5 million private placement, only to revise that number up to $15.6 million the following day, and ultimately closing at $17.6 million (a 29% increase).
A few days later, after its detailed review of Aftermath’s capital structure, capital markets analysts Private Placements ranked the deal as:
➢ One of the most “exciting deals” in the market today.
With Aftermath Silver (TSXV: AAGTSXV: AAG) now securely among the world’s leading silver development companies, and with plenty of capital to fund development, Aftermath is progressing rapidly towards completing a pre-feasibility study.
The timing could not be better as investors worldwide rush to safe havens.
2. When gold goes high, silver goes higher
Souring economic conditions worldwide are driving investors to precious metals as a safe haven for their wealth.
And, as usual, that means gold.
So it’s no surprise that from its low in March 2020, gold has shined brighter than any other investment, outperforming every other asset class and passing $2,000 before taking a breath.
Those gains far exceed silver’s. But don’t expect that trend to last.
Veteran investors know the golden rule of precious metals investing:
➢ When gold runs, silver gallops
That may come as a surprise to you, since gold is the only investment grade metal the media ever focus on.
But the indisputable truth is that when gold enters a bull phase, silver outperforms it.
The data proves it.
The commodities research team at CPM Group recently analyzed every gold bull market dating back to 1967.
What they found is is that:
➢ In six out of the seven gold bulls we’ve seen since 1967, silver has outperformed gold by as much as four times.
Gold only beat silver once, when it soared 454.9% to silver’s 431.5%.
Virtually a tie, but still a small win for gold.
Gold generally starts stronger, but then silver catches up and speeds by, as the following chart from CPM Group shows in dramatic detail.
➢ Aftermath’s silver projects offer investors a highly leveraged opportunity against rising silver prices. With every move up, the value of Aftermath’s potential value grows.
As the price of silver takes off and skyrockets, Aftermath’s intrinsic value should soar right along with it.
3. Silver is cheaper than it’s been in recorded history
Though the Financial Times of London is not prone to flamboyant narrative, the illustrious paper cannot help itself when it comes to silver.
Quoting the chairman of top-ranked Charteris Treasury Management Funds, FT wrote, “You can go back 3,000 years before Christ – silver has never been this cheap relative to gold.”
Veteran commodities trader and data junkie Ross Norman goes even further. Data compiled by Norman shows the ratio at a 4,000-year high, dating back to inscriptions found at the ancient Karnak temples of Luxor, Egypt.
But it wasn’t until the U.S. government decided to finance the Civil War by printing money without backing by precious metals that things changed, and the silver-gold ratio has fluctuated wildly ever since.
What does all that mean?
It means silver is cheaper relative to gold than it has ever been.
The gold/silver balance is off. And to right it, silver needs to get on the launch pad.
Today silver trades in the mid-$20 range. But it’s going to go higher. Way higher.
Precious metals analyst Gary Christenson predicts that “silver prices will rise toward $100 in the next 5-7 years.”
Rafi Farber, noted investment writer for TheStreet.com, SeekingAlpha, and USAGold, among others, writes that:
“Silver is at the very beginning of a historic rally that should take it to all time highs in the triple digits….taking about two years or less.”
Some analysts are predicting $150 silver. And at least one respected industry expert has a solid explanation of why it could go all the way to $1,000.9
It’s worth noting that silver hasn’t even reached its previous 2011 high yet, when it roared from $11.68 to a high of $56.18 in two and a half years.
➢ With every move up, the value of Aftermath’s projects grow in value.
And that trend will only get stronger. For one very simple reason.
4. We’re out of silver
Research based on data from the U.S. federal government concludes that:
➢ All the recoverable silver in the world will be depleted in 20 years. 10
You can already see it.
The biggest mines are bringing out less ore. The ore they do manage to extract is of lower grades.
There are fewer new discoveries, and of the few there are, fewer still are of significant size.
CPM Group analyzed historical mine production and concluded:
➢ “For as long as records have been kept on silver mine output, we’ve never seen a four-year drop this severe.” 11
And don’t count on big silver miners like Pan American or Fresnillo to come to the rescue either.
They can’t find any more silver to mine. In fact:
➢ Last year the amount of silver produced from new silver operations was less than six million ounces.
That’s a decline of more than 83% in just the six years since 2013.
Industry analyst Jeff Clark points out that most big mining companies have given up even looking for new silver deposits.
The tightening supply squeeze will keep forcing the price of silver higher and higher, at the same time making Aftermath’s projects more and more valuable.
As fewer companies explore for silver, and less is discovered or produced, Aftermath’s market position and its value increase and solidify.
That’s based on a long record of documented performance showing that:
5. Junior miners outperform majors
Major mining companies can only grow incrementally, and rising resource prices don’t do much to sway valuations or stocks.
In fact, during the last silver bull market it wasn’t the majors that built the biggest investor fortunes.
It was the juniors.
In the silver bull market of 2008-2011, even small exploration stage miners saw gains of well over 1,000%.
But that’s not where the smart money goes.
The smart money aims for 10-bagger returns. But at the same time, the smart money is adamantly risk-averse.
Which is why in-the-know investors focus on a narrow range of junior miners.
All junior miners are classified into stages that are representative of where they are in the progression from exploration to full production.
The four stages are:
Speculators are drawn to exploration-stage companies. That’s where you find 100-baggers.
But you’re far more likely to lose your shirt. And your bags too.
There’s a high failure rate at this stage and few companies make it out the other side to begin the process of discovery.
Discovery-stage companies are somewhat derisked, because once a mineral deposit has been identified, the subsequent drilling and permitting can add significant value, resulting in potential re-ratings.
Development is the sweet spot.
As engineering progresses, the project risk is greatly reduced. The resource grade and size has been defined, the extraction method determined, and construction plans laid out.
But the really sweet spot for investors who are looking for big returns and reduced risk is the late-stage developers.
See where the red star is below? Companies at this point are “this close” to beginning production and generating revenue.
Of course, at this stage most are still several years from producing at full-scale, but you can see the finish line from here.
The stocks of late-stage developers typically trade at a price to net asset value of 1 or a little better.
Because at this stage, the market believes a company’s assets become fully valued.
Even after news of Aftermath’s Berenguela purchase hit the mining industry and shares soared, AAGFF still trades at under $2.00.
It hardly seems fair.
But as news gets out and more investors take a close look at Aftermath Silver that could quickly change.
And once investors discover the company and how it is progressing smoothly through late-stage development, there could be no stopping it.
The only thing missing now is the management team.
It’s time to introduce them.
7. A management team seasoned with success
In the words of famed mining sector investor Rick Rule:
➢ “Mines are made, not found.”
[In full disclosure, Rick is the Senior Managing Director of the $12 billion precious metals asset management firm, Sprott Inc, founded by Eric Sprott, who was one of the first and most enthusiastic financial backers of Aftermath Silver, and continues to be.]
It isn’t the luck of a grizzled prospector that makes a mine.
It is the skill of a management team that knows how to pilot the company through each stage of development…because they have done it before.
It’s a team that is well-balanced with technical, operational, and financial expertise…because they have done it before.
Each of them can maximize potential and avoid pitfalls that blindside less experienced managers…because they’ve done it before.
The leadership team that has been put together by Chairman and Director Michael Williams is a who’s who of the junior mining world.
Williams himself was instrumental in guiding Underworld Resources Ltd to a position that made the company an attractive target to mining giant Kinross Gold Corp. Kinross bought Underworld for $138 million.
That’s just one of his successes. Mr. Williams is the visionary behind Aftermath’s beneficial corporate structure advantageous financing efforts.
He has brought onboard geological director David Terry, BSc, PhD, who has played key roles in the successful project evaluation, acquisition, exploration, and development of numerous precious and base mineral deposits, with particular knowledge of South American operations. Terry is also a director for Great Bear Resources, one of the highest profile junior explorers on the market today.
President and CEO Ralph Rushton is a veteran of world-class mining firms Anglo American and Rio Tinto, though his real worth to Aftermath Silver is in his exemplary work in developing junior resource companies, four of which he continues to serve as a director, and two as advisor.
Director Keenan Hohol is a lawyer with 20 years of international mining experience and a record of achievements in the areas of mergers and acquisitions and corporate transactions, corporate governance, and legal and regulatory compliance. He is currently general counsel for Deepgreen Metals Inc., a private Canadian-based company focused on the exploration and development of seabed polymetallic minerals.
Mr. Hohol was general counsel, exploration, for the world’s largest global diversified resource company, BHP Billiton, and also served as vice-president, legal and general counsel, for Silver Standard Resources. He also previously acted as general counsel for Pan American Silver.
The rest of the team is equally skilled and experienced, and together they are successfully piloting Aftermath Silver with the goal of becoming a full-scale producer.
So let’s take a moment to recap:
- ➢ A new bull market in silver is taking off, possibly the biggest in history
- ➢ Gold is up too, but silver beats gold six times out of seven
- ➢ Even conservative estimates call of silver to double…some say much higher
- ➢ In silver bull markets, mining stocks can amplify returns by many degrees
- ➢ Junior mining stocks give even better leverage on the price of silver
- ➢ Aftermath is now among the world’s leading silver developers
- ➢ The quality of Aftermath’s prospects are reflected in the success its financial backers have proved in picking winners
- ➢ The management team “has done it before and will do it again.” That is the guiding principle that secured the confidence of backers like Eric Sprott and Palisades Goldcorp, and which will lead Aftermath Silver to reach its full potential.
Aftermath’s peers trade at much higher prices.
Gold and silver mining stock analyst Don Durrett says Aftermath is a good play.
➢ “I don’t own it,” he writes, “but I’m feeling a lot of FOMO at this valuation.”
“FOMO,” for those of us who aren’t in-the-know, means “fear of missing out.”
And that’s not something you want to suffer with by not taking a closer look at Aftermath Silver and giving the company your careful consideration as a great play for outstanding returns.
Or ask your broker about Aftermath Silver today.
And remember to always do your own due diligence on any stock before you buy.
1First Majestic Silver (AG)
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