What Comes After Silver’s Historic Run? CEO Reveals Next Moves | Jalen Yuan
Summary
- Silver prices have surged from under $30 to the $80-$100 range, drastically changing the profitability and valuation multiples for the entire mining sector.
- New Pacific Metals (NEWP) controls two major silver projects in Bolivia (Silver Sand and Carangas) with a combined potential production of 19 million ounces annually.
- The political landscape in Bolivia has shifted away from left-wing socialism toward a center-right government that is actively seeking foreign investment to solve its USD shortage and economic crisis.
- NEWP's project NPVs were originally calculated using a $24 silver baseline; at current spot prices, the combined NPV exceeds $2 billion, compared to its current market cap of roughly $1 billion.
- Permitting remains the primary hurdle, with commercial production targeted for 2030 and an estimated initial capital expenditure of $700 million.
Trade Ideas
The NPV for Silver Sand as of the preliminary feasibility study in 2024 is $740 million and Carangas is $51 million based on $24 silver. If you adjust that for today's silver, you simply multiply it by three or four times, putting the value over two billion. The market is currently discounting NEWP's valuation due to historical nationalization and permitting risks in Bolivia. However, the recent election of a center-right government desperate for US dollars and foreign investment drastically reduces this jurisdictional risk. As the company secures environmental licenses and advances toward its 2030 production goal, the stock price will re-rate to reflect the current $80-$100 silver price environment rather than the outdated $24 baseline. LONG. The company offers a high-leverage call option on silver with a massive valuation gap waiting to be closed by successful permitting milestones. Permitting delays, local community opposition, or a reversion to anti-mining political policies in Bolivia could stall the project indefinitely.
Pan-American Silver currently owns 11.5% and 28% is owned by Silvercorp Metals. Both have been long-term strategic partners in our company since 2017. Established silver producers are already printing massive free cash flow due to silver's historic run to the $80-$100 range. Furthermore, companies like Pan American Silver and Silvercorp Metals hold massive equity stakes in high-potential junior miners like NEWP. As NEWP's valuation expands from successful permitting in Bolivia, these partner companies will see significant balance sheet appreciation, making them dual-threat investments that offer direct commodity leverage plus venture upside. LONG. Large-cap silver producers offer lower operational risk than junior explorers while still capturing the massive margin expansion from high silver prices and upside from strategic equity investments. A sharp correction in the underlying spot price of silver would directly compress their profit margins and free cash flow yields.
Up Next
This The David Lin Report video, published March 09, 2026, features Jalen Yuan discussing NEWP, PAAS, SILVER, SVM. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Jalen Yuan · Tickers: NEWP, PAAS, SILVER, SVM