- Silver prices have surged more than 60% this year, nearing the all-time high of $49.45 per ounce.
- Gold prices have surged roughly 53% this year, reaching new all time highs of over $4,000 per ounce.
- In addition to strong investment appetite, industrial demand, particularly from solar and EV sectors, underpins silver’s long-term fundamentals.
- New Pacific’s Silver Sand and Carangas (starter pit) projects in Bolivia could yield nearly 19 million ounces of silver annually.
- Carangas also has significant gold potential, strengthening project economics amid high prices, as gold reached record highs above $4,000.
- Bolivia’s October 19 presidential runoff may open the door for more foreign mining investment.
Silver prices climbed past $48 an ounce in early October, up well over 60% year-to-date and approaching the 1980 record of $49.45 (https://ibn.fm/vo2aL). The impressive surge is driven by both macroeconomic and structural factors: persistent inflation, growing industrial demand from renewable energy and electronics, and global uncertainty that is pushing investors into safe haven assets like precious metals (https://ibn.fm/t4d1l).
Industrial use is key to the growing demand and price surge. Silver demand in solar panels and electric vehicles has reached record levels, with projections that renewable infrastructure will consume more silver by 2050 than has been mined over the last five centuries. This dual role, as both an industrial and monetary asset, distinguishes silver from other commodities.
Against this backdrop, New Pacific Metals (NYSE American: NEWP) (TSX: NUAG), a Canadian exploration and development company, is drawing investor attention. The company has projects in Bolivia, Silver Sand and Carangas, that stand out as two of the largest undeveloped silver deposits globally. Together, they are projected to produce nearly 19 million ounces annually when developed.
Bolivia offers opportunity but comes with challenges. From Cerro Rico in Potosí, one of the richest deposits in history, to today’s underexplored highlands, the country remains mineral-rich. The country is the world’s fourth-largest silver producer, accounting for 5% of global supply in 2024. Yet more than 60% of its territory remains underexplored. Geological potential is significant, but slow permitting has deterred foreign capital.
The upcoming presidential runoff on October 19 could mark a turning point. The ruling MAS party, dominant for two decades, lost in August elections. Both remaining candidates have signaled greater openness to foreign investment. For companies like New Pacific, it could unlock the ability to move key projects forward.
If investment conditions improve following the election, New Pacific’s projects could help Bolivia reclaim its historical role as a central player in global silver supply, while offering shareholders leverage to one of the most dynamic commodities of 2025.
Silver Sand is the company’s flagship in Bolivia, with potential annual production of 12 million ounces. Carangas adds at least another 6.6 million ounces of silver a year over 16 years under its preliminary economic assessment, which focused on starter pit within a much larger resource. At $24 silver, Carangas economics are already strong, with a post-tax NPV5% of $501 million, an internal rate of return of 26%, and a 3.2-year payback period. All-in sustaining costs are projected at $7.60 per ounce. With silver prices now over $48 an ounce, the project’s leverage to rising prices is substantial, highlighting its strong economic potential.
What makes Carangas more compelling is its gold upside. Exploration indicates over 1.3 million ounces of gold potential at depth, not yet included in the PEA. With gold trading above $4,000, the addition of gold credits could substantially enhance project economics and offer a hedge if silver prices consolidate. On October 8, gold reached a new record price of $4,050 an ounce, marking a 53% increase so far this year (https://ibn.fm/l5JoT).
For more information, visit the company’s website at www.NewPacificMetals.com/welcome.
NOTE TO INVESTORS: The latest news and updates relating to NEWP are available in the company’s newsroom at https://ibn.fm/NEWP
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