Silver’s Correction Is Ending, Is $70 Next? — Silver Tiger Metals

[00:00:00] Speaker 1: Ladies and gentlemen, a warm welcome to yet another Silver Tiger Metals Fireside Chat. I'm here with my good friend Glenn Jassim from Silver Tiger Metals. Glenn, how are you? [00:00:17] Glenn Jassim: My friend, it's, where did summer go? We're almost in August, I can't believe it. And then we were chatting and we said, look, let's get on and have a gab and catch up. We've barely been able to. I think you're in Germany. I'm sitting here in Halifax. So it's just so great to see you. We haven't talked for a while and really looking forward to a little bit of a fireside chat number. I think we might go double digits here. This could be number 10. Don't quote me. We'll figure that out. But I enjoy these a lot. [00:00:48] Speaker 1: Yes, me too. And I mean, there is a lot to talk about. The metals are in a correction now since end of January already. Yet we've been all busy like crazy, to be very honest. I think you were building the mine, me with all the research and publishing and with the clients and everything. So we keep working while the metals are correcting. I think it's still healthy. It made sense. The run up was spectacular. [00:01:13] Glenn Jassim: I got to interrupt you. So I think the last one we were on, it might have been in April or May. I don't know. But I remember us being in Zurich together. And, you know, you were telling me what you thought was going to happen and all these beautiful upside. And it still resonates with me. And I didn't want to listen to you. But I think you said on the base of all these crazy charts you follow, which I'm not smart enough to understand all that. I just we're just going to build this mine and whatever the price is, it's going to be. We'll talk about that later. But you said that we could retrench. We could go back to fifty five dollars. I remember you saying it on the screen. And of course, I ignored that. I'm always the glass is half full. I said, well, I love the other side. But but you you told us that. And so thank you for that. For us, it makes not near as a difference. We are through all of this up and down. I've got 200 people on that mountain building that mine. We'll talk about that at the end. We're heading down. It's going to really matter at the end of 2027 what that price is. I'd love to hear about that, too, because that's when I'm going to start basically selling silver and gold. But but yes, I wanted to let everybody know we always talk upside and we're excited about the price. And it's been wonderful since last year, the move in silver and gold. But you also have to look at nothing straight up. And you warned us of that. And you actually said fifty five dollars. And boy, does that look like you made the call there. So tell us what you think now. Middle of summer. Everybody's gone away. We're working. What do you think in case someone does happen to not be on vacation to listen to this this week? [00:02:46] Speaker 1: Yeah, so I mean, of course, you always have to differentiate between the different time frames you're looking at. And of course, for the company, Silver Tiger Metals, the longer term outlook is much more important in the short term. But again, for investors and for our psychology, our emotions, it's also important what the short term is doing. And it's been quite a volatile ride over the last few weeks. I think the metals are trying to build a base here, like a bottom building process. You see the bears not really making any more progress on the downside. We have seen, especially in gold, like a hundred dollars up next day, a hundred dollars down. And this is going on now for the last few weeks, actually since mid of June already. I think gold is building a base around this $4,000 psychological level at the moment. Typically in July, you get this early summer low and then usually you should also get a rally into August, maybe September, meaning a recovery from here. Yeah, I think $4,200 to $3,000 for gold, easily possible. And then maybe if the bulls get a bit more encouraged, we could see $4,500. And translated that to silver, I think $70 could be possible into later summer. The metals are very oversold on the weekly chart. [00:04:07] Glenn Jassim: So you're thinking we could still have that regular cyclical we've seen all the time, a move. And we started to see that, I think, a couple of days ago, it's caught itself towards $4,200, $4,500 gold or around $70 silver. That would be beautiful during the summer. [00:04:25] Speaker 1: Yeah, so that's my expectation right now. I think we have seen more than five months correction. We are seeing the bears barely making any more progress. We're seeing divergences on the technicals. We see oversold weekly and daily charts. We see that the bulls were able last Tuesday to break through a first downtrend line in place since end of May. So slowly but surely, the picture is a bit improving. So I think the market is ripe for a bounce, for a recovery here. I'm not sure if we have seen the final low of that correction yet. So I would be surprised maybe into later third quarter, maybe fourth quarter to see some more downside pressure again. But for now, over the next, let's say, one to three months, I'm in the bull camp. I think the metals have a good chance to recover here. And then going forward, we have to see how they behave over the summer months. So that's the short term to maybe midterm. What about longer term? Mid to longer term, I think we're still in a healthy, necessary breather within this secular bull market. I'm still absolutely sure that this secular bull market has not ended in end of January at $121 silver and $5,600 gold. I think all the fundamentals continue to be in place for the metals, especially for gold, to move more and more center stage in this whole financial system on the planet. I think the conflict between China and America is intensifying. I think the Chinese will do everything to move away from the dollar. I think the whole geopolitical situation and now the re-escalation of the Iran crisis, the higher oil price, all this will lead to more de-dollarization. It will lead to more inflation. It actually will lead to a stagflation, which is the best environment for gold. And of course, also for silver, I also think that supply is still very tight for the silver market. I think that AI will drive industrial demand much higher over the next few years. And so in the longer picture, I'm still very sure that we're going to see higher gold and silver prices. But we have to accept that this breather might take a while. And the longer it takes now, the more healthier the base will be. And then the stronger the next leg higher can be, right? So I don't expect too much for the end of this year, let's say. I mean, maybe there is some surprises. But I think next year and then 2028 will be much more interesting. And I think by then we should be back in a roaring bull market. [00:07:01] Glenn Jassim: So that's, you know, it's almost like I would have asked you to say that. I didn't. I'm a little self-interested here. But, you know, the end of 2027, that's our publicly disclosed, you know, first four days where at El Tigre we'll be making silver and gold. It sounds like the timing could be just about bang on. [00:07:22] Speaker 1: Yes. I mean, if you look at the monthly chart, which is obviously the longer term time frame, you can see that this massive run up since mid of December, since September 2022, right? The metals have been railing for three and a half years, especially gold. And then at some point silver also showed up to the party. This takes some time. We simply have to accept this. And I mean, I remember being a greenhorn in the metals market 20 years ago and I thought gold needs to run up the hill immediately without stopping and without taking a breather. And it's been a painful, hard lesson, but I had to learn it. And people have to be reminded of that. It's the nature of things, right? I mean, it's totally healthy and normal that we have this breather right now. But look, I mean, the other day, Pete Hex said, I think he said something like $37 billion already did cost the war and they just started to escalate it again. They will have to print so much more money. And this is going to be crazy. There is no other place than gold and silver to be in the longer run here. So I'm absolutely sure that this is going to continue the secular bull market. We have to accept this is a healthy breather. It might take a little bit longer than we wish for or that many people expected initially. But we are already nearly six months into it. I think the downside is limited. I've said it, I think, in one of the last videos already. $3,500 was my worst case for gold and $45 to $50 for silver. We have not seen that yet. Maybe we see it later that year. But maybe we've seen the lows already. I think the picture is slowly but surely improving, you know. [00:09:00] Glenn Jassim: Good. So look, that's fantastic. I want to be brief because it's summer and people are distracted. You said everybody's taking a breather. We're not taking a breather at El Tigre. So I'm going to give, you know, those that follow you a little update on what's happening on the mountain here in a few minutes. But you said something early when we just came on, and I didn't follow up on it, and I don't know what it was. It was saying you said something very interesting with respect to AI and the metals. And maybe, and this is the first time I've heard this because you mentioned it when we just came on before we went live here. What was that, Florian? You mentioned that AI and some article you've been looking at. [00:09:40] Speaker 1: Well, I mean, you know that there's a data center boom. You have heard of hyperscalers. You have heard of this intense competition race in America. Who's going to be the AI company with the most power? [00:09:56] Glenn Jassim: The money going into it's ridiculous to the point where these big tech giants are getting lambasted now for spending all of the shareholders money on this race or chase, whatever you want to call it. [00:10:06] Speaker 1: Exactly. And you know that the Chinese are doing the same. There is not only a competition within the American hyperscalers, but there's also, if you zoom out further, there's a competition between America and China who's going to win the AI race. And for that, you need massive amounts of data centers who run the whole internet logistics, who run the electricity, et cetera, et cetera. And in the end of the day, it's pretty simple. You need cables for all that, right? And those cables, what is the best conductor of electricity and data information? [00:10:42] Glenn Jassim: Over. Not even close. No replacement for it. Exactly. Exactly. Ah, so that's the tie. Very good. Well, that's very interesting. And I knew a little bit about that. And now I'm seeing as this race speeds up, the demand for that metal is going to speed up. Look, thank you for that, Florian. That's great. I think that let's see what happens over the next month or two. You know, we're going to get back to getting on the road again near end of September. So I just made a mental note before I head for Beaver Creek and Denver and then Sweden and London and get back on the circuit talking about El Tigre all over the world. You and I will see where we sit maybe middle of September. So we'll come back and check in. I know I think people love seeing how things develop and hear your thoughts. Look, while we're here, everybody's taking a break. Everybody's having their summer. Well, El Tigre, as everyone knows, we started construction in January. Um, and we'll talk a little bit about the details. But, you know, now we're five, six months into this thing. We've had 30 people on that mountain turn into hundreds of workers every day. Shifts around the clock. Build, build, build. And I'm pleased to say that today, the most important thing I'll say in this video on the update is we are on schedule for a first pour in December, 2027. And as long as I keep coming on and saying that people should know things are going very well. We're very happy with everything on the mountain going along very nicely. I mean, some of the details we've built out the entire Mexican team. We're a Canadian company, three Canadian employees, which basically take care of the capital markets, raise the money all over the world to drive the project. But we are hundreds of Mexicans who are amazing miners and engineers and geologists are on the front end of the spear on the mountain at El Tigre building this heap leach. It's beautiful. That's all done. The team is built out. I think people know, I'll remind them, KCA, KCN, Capscacity, USA, and Mexico, their EPCM, they have a full team of 25 people on the mountain fully engaged. That is going beautifully and driving the project very, very fast. All the procurement long lead items, that is all done. If you went to the mountain now, you would see earthworks being conducted everywhere, land being cleared, heavy equipment moving all over the mountain, preparing the pad, preparing the waste dumps, preparing the site for all of the crushing units for the plant, all of that. It's just a bustle of activity. As I said, hundreds of people, heavy equipment everywhere. The road, the 45-kilometer road from Colonial Morales we built, that has been completely re-engineered, rebuilt, 365 days a year. We have transfer trucks running back and forth across that every day. So it's going very well, going very, very fast. We're very happy about that. I mean, if you can think of what this looks like, where we used to have 30 or 40 people, people don't go and come to work every day. They stay. So we have a large construction camp. We have offices for our team there, the build team for the construction offices. Those are all done. That means power. That means septic. That means water. That means everything you would have. It's a big hotel that's hosing all these people. That's all done, built, functioning beautifully. So very, very happy about what's going on there. I'm also very happy that basically, you know, the big thing that's going on now, all the bids and procurement for all the services and equipment we're going to need, that's all underway. I think looking out the next big things in the next month that will happen, very, very pleased that we were given by CFE, excuse me, which is Commission on Federal Electricity in Mexico, the full grant of the electricity we need for life of mine, that power line will be being built 18 months. That's going to take, but we're going to run off genset. So, you know, that work is all being prepared. The site is prepared for those generators. They've been, they've been procured. Those will be installed and those will be the redundant power. So it's just one step after the other Gantt charts with thousands of line items to be completed. And as we sit today, five or six months in, we're right on schedule for, for first four. So really not much more to say on the build. It's going wonderfully. Secondly, as everybody knows, the big stock work zone surface mine, heat bleach. That's wonderful. We're permanent for the underground. We have a PEA, very robust underground, which will go for 10, 20, 30 years. It'll go from long life. We've already got 15 on the books of the PEA. We'll move that to PFS and do all the things so that when we decide it's the right time, we'll then transition and start building the underground mine. It could be at the same time we're building the heat bleach. We'll see how that evolves, but a lot of work there. And then what everybody gets excited about and is drill rigs finished all the work around the stock work zone, surface mine, the geotechnical metallurgical. They've been a month or more up north on that second deposit of 3 million tons of underground that's disclosed in section 24 of the PEA. You've heard me talk about that almost doubles the amount of ore that's in the PEA that people could go look at right now. We're up there. That needs some more drilling and some more work. We're at it. And when we get enough inventory of assayed holes back, I think we're on hole 25 or 30 now, we'll be putting some of those results out. I'm excited to get that out. And we'll probably be able to talk about that when we're together next time on our chat in September. But could not be more pleased and more proud of the team. We have the top, I think, in Mexico team with KCA and KCN supporting just a flawless operation on the build, a flawless operation moving that PEA to PFS for the underground. And so excited to be outside that resource area now drilling to add more ounces and further define what will add more mine life to the underground portion of the mine when it's built. So that's it. It's, you know, nothing but positive and looking forward to me. I mean, people can go see all this. I think we have a lot of pictures on the website. I think there were some in the last press release. We'll start making more video and photos available of all the work that's going on as it happens. I know Devin Devere and our VP IR does an amazing job keeping people up to speed on that. And that's it. Next things for us. So people, if they want to see us, I think that it's interesting. We used to always go the first, second week to Beaver Creek and kick off the skin. That's been delayed this year. They've delayed it a couple of weeks. So I think it's like we go around the 20th or so of September this year. We do Beaver Creek for three or four days. And then on to Denver for that show. They call it, I guess it's in Colorado Springs, the Denver Gold Show. It has another name, but that's what we've always called it. And then right back for a week, then we're into Sweden for the big show there. The precious, the summit there on resource and mining. We're going to stay after that. And I think I'm going to do a little tour through all the key cities in Europe, talking about Tiger right after that. That takes us into New Orleans. Well, actually, I think while I'm in Europe, we're going to have to divide and conquer. Devin Devere and our VP IR is going to go to New York for the big mining show in New York. And then we both are going to hook up, I think, for New Orleans. And I can't even remember. That's as far as I can see. I know we're going to London and we're going to Frankfurt and we're going. It's going to be a busy fall. So looking forward. If anyone's listening and you know we're going to be at these, we'll make it public where we're going to be. I love you to come by and have a chat with us and fill in face to face on what we're doing at El Tigre. We'll be a lot further down the road by then. But, you know, that'll be before you know it, I'll be sitting, seeing you at Beaver Creek or in Sweden or in Frankfurt or in Zurich. It just all goes so fast. So my friend, it's been great to see you. I enjoy these chats so much. And I hope everything's going well in Germany with your family and you. Everything is good here. And you're getting a little time off because another four or five weeks, it's going to start. We're going to be back on that hamster wheel and going. We never got off at El Tigre. We've gone, we just keep hiring people and going faster. But maybe next summer or the summer after when we're in production, we'll get a little break. [00:19:38] Speaker 1: Yeah, you're absolutely right. I think the latest by early September, the markets will be back. I mean, don't forget, we are a little bit in the summer doldrums now. But Jackson Hole last week of August is usually when things slowly but surely get back. And then volume is catching up. And it's going to be interesting to see how the stock market will hold up into September, October. That's actually one of the very few real worries that I have. We all know there is a bit of a bubble in the semiconductor index that went up so much. There is a potential for a larger pullback. But let's see how this plays out. Anyway, I mean, September, definitely. We are all back. [00:20:17] Glenn Jassim: We're going to, you and I will be back in September for Fireside Chat 11. And we'll know a lot more. We're going to do this in Beaver Creek like this. We'll know a lot more, but a lot more then. Let's see what happens. The world is fascinating right now. My friend, it's been a pleasure. I thank you. [00:20:32] Speaker 1: Same here. Thank you, everyone, for watching. Looking forward to see you all again. And yeah, until the next time. Thank you, Jessam. And thank you for everyone. Thanks.