According to the Silver Institute, global demand for silver rose by 18% in 2022 to a record high of 1.24 billion ounces, creating a huge supply deficit and the Institute predicts more shortages in the years to come.
“We are moving into a different paradigm for the market, one of ongoing deficits,” said Philip Newman of Metals Focus, which prepared the Silver Institute’s data, in a Reuters article.
From electrical circuit boards and solar panels to chemical catalysts, silver is critical element for industry and the energy transition. Its unique properties make it almost impossible to replace and its applications are many. Almost every computer, cell phone, automobile and appliance contains silver.
Future supply is being financed today.
Costmine Intelligence tracks silver financings and highlighted some of the largest closed silver financings of 2023.
#1) Aya Gold & Silver Inc. (TSX: AYA) – The company intends to use the net proceeds of the offering to finance the Zgounder mine expansion project, the advancement of its exploration program namely at Boumadine and Zgounder, and for working capital and general corporate purposes. The company also secured a $100-million (US) project financing from the European Bank for Reconstruction and Development.
#2) Skeena Resources (TSX: SKE) – The company will use the net proceeds of this offering for the continued advancement of the company’s Eskay Creek gold-silver project and for general corporate purposes.
#3) GoGold Resources Inc. (TSX: GGD) – The company plans to use the net proceeds of the offering to support the continued advancement of the company’s Los Ricos North and South projects.
#4) MAG Silver (TSX: MAG) – The company intends to use the net proceeds of the Offering to fund exploration on Juanicipio and MAG’s other projects including Deer Trail, certain sustaining capital requirements at the Juanicipio Project not included in the initial project capital estimates, and for working capital and general corporate purposes.
#5) Discovery Silver (TSX-V: DSV) – The company intends to use the net proceeds from the offering to finance the continued advancement and derisking of the Cordero project and for working capital and general corporate purposes.
#6) Vizsla Silver (TSX-V: VZLA) – The net proceeds from the offering will be used to advance the exploration, drilling and development of the company’s Panuco project, as well as for working capital and general corporate purposes.
#7) New Pacific Metals Corp. (TSX-V: NUAG) – The company intends to use the net proceeds of the offering to advance exploration and development at the company’s Silver Sand and Carangas projects and for operating expenses, as disclosed in the prospectus supplement.
#8) Collective Mining (TSX: CNL) – The net proceeds from the offering are expected to be used to finance continuing work programs to advance the Guayabales project, to pursue other exploration and development opportunities, and for working capital and general corporate purposes
#9) Integra Resources Corp. (TSX-V: ITR) – The net proceeds from the private placements are expected to be used to finance an updated resource estimate and mine plan of operations at the DeLamar project, an updated resource estimate and a preliminary economic assessment for the Wildcat and Mountain View projects, permit advancement, and for working capital and general corporate purposes.
#10) Dolly Varden Silver Corp. (TSX-V: DVR) – The net proceeds from the offering, $6-million will be used for exploration expenditures, mineral resource expansion and related costs in the Kitsault Valley project, located in northwestern British Columbia, Canada, with the balanced to be used for working capital and G&A (general and administrative) costs.