Silver and the silver exploration company Reyna Silver Corp. (RSLV:TSX.V; RSNVF:OTCMKTS) were the focus of the July 14, 2021, Streetwise Live! Broadcast. Reyna CEO Jorge Ramiro Monroy, Reyna Chief Technical Adviser Peter Megaw and The Mining Speculator Editor Greg McCoach discussed the current silver market and two of Reyna Silver's projects in Mexico.
Host Cyndi Edwards launched the broadcast by asking Greg McCoach why he likes silver so much.
"Disastrous monetary policies of the U.S. government, and the Federal Reserve specifically, the shameful deficit spending and the currency devaluation of the U.S. dollar," he responded. McCoach said silver is "grossly undervalued compared to other asset classes around the world for investment purposes," more undervalued than gold right now.
He predicted the current inflationary environment will continue for the foreseeable future, the Fed cannot continue creating money and a bull market forever, the bubbles cannot be sustained for much longer and the moment is coming, likely in the fall, when precious metals "are going to break out big time." For these reasons, McCoach said, silver is "the No. 1 place to look right now for undervalued investment" and Reyna Silver Corp. (RSLV:TSX.V; RSNVF:OTCMKTS) "is perfectly positioned for when that moment happens."
Reyna Silver's CEO Jorge Ramiro Monroy noted that two of the company's Mexico projects, Guigui and Batopilas (the company also has projects in the U.S.) are past-producing projects with potential for high grade and district scale. They were previously part of MAG Silver Corp.'s portfolio.
"MAG explored the projects and validated a lot of the concepts we are now, in a dedicated company, pursuing under Peter [Megaw's] guidance," Monroy said.
Edwards asked Megaw, Reyna's chief technical adviser, to define "district scale" and "high grade."
Simply put, he responded, "district scale" means big. District scale suggests a company is not looking for one mine or a piece of one mine but, rather, multiple mines that will provide several decades of exploitation potential. If a company controls a district, it controls the center of the ore system as well as its area of influence.
As for "high grade," Megaw said it means "something that makes a whole lot more money than it costs to get something out of the ground.
"You don't want to be sitting around going, 'when silver gets to X price, it will be economic,'" Megaw added. "You want to be economic now."
Certainly with Reyna Silver, the focus is on high margin, which, according to Megaw, encompasses size, grade and profitability. He looks for high enough grades so the deposit generates cash flow under the worst conditions, when the commodity price is low for instance or operational costs are high due to inflation, and looks for a big enough size so the company has a good profit margin for at least two market cycles.
"Margin is how much you're going to make and how long you're going to make it for," he said. "It's all about creating wealth."
Monroy described what's happening at Guigui and Batopilas in terms of drilling. At Guigui, he noted, Reyna Silver is nearing completion of 12,000 meters (12,000m) of drilling, with the results to follow. At the end of June 2021, the silver company commenced 10,000m of drilling at Batopilas, the highest grade silver mine in Mexico. Upcoming catalysts for Reyna Silver's stock include the release of drill results as they become available. Between the two drill campaigns, investors can expect constant news flow throughout the rest of this year.
At the request of its investors in the United States, Reyna Silver recently listed on the OTCQX, the best of the three marketplaces for trading over-the-counter stocks, he noted.
"The U.S. market has tremendous interest in silver, so we're delighted to be there," Monroy said.
Finally, Edwards asked McCoach how he goes about making a recommendation like Reyna Silver. He said he works through his process to determine how many factors a company actually has of the ones he wants to see.
"In the case of Reyna Silver, they check these boxes in an amazing way, so it's so easy to make a recommendation like this," McCoach said. "Certainly, the odds of Reyna hitting a good drill hole is very, very high, in my view, and that's why I follow them."
View the broadcast here:
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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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- Jorge Ramiro Monroy - CEO owns securities of the company.
- Disclosures for: Greg McCoach - The Mining Speculator. I, or members of my immediate household or family, own securities of the following companies discussed in the broadcast: Reyna Silver Corp. I personally am, or members of my immediate household or family are, paid by the following companies discussed in the broadcast: None. My company has a financial relationship with the following companies discussed in the broadcast: None.
- Peter Megaw - Chief Technical Advisor owns securities of the company.
- Disclosures for: Cyndi Edwards, Host. I, or members of my immediate household or family, own securities of the following companies discussed in the broadcast: Reyna Silver Corp. I personally am, or members of my immediate household or family are, paid by the following companies discussed in the broadcast: None. My company has a financial relationship with the following companies discussed in the broadcast: None.