Silver Storm Mining Ltd. (TSXV:SVRS)
Building the Next Latin American Silver Producer.
The automotive industry is rapidly transitioning to electric vehicles (EVs), and the demand for the metals used in their production, such as silver, is increasing. This presents an opportunity for silver exploration companies like Golden Tag Resources Inc. (GOG), which completed its acquisition of the La Parrilla Silver Mine Complex in Durango State, Mexico from First Majestic Silver Corp on April 14, 2023, and announced its listing on the Frankfurt Stock Exchange on May 9, 2023. Silver is up over 36% since September 2022.
As more car companies announce plans to shift towards EV production, the demand for silver is expected to rise. In December 2022, the Ontario government announced the opening of General Motors of Canada’s (GM Canada) first full-scale EV manufacturing plant in Ingersoll, which is transforming the CAMI manufacturing plant into an all-EV manufacturing facility. This is just one example of the growing demand for EVs and the need for metals like silver.
Silver plays an important role in EV production. It is used in the production of the battery, which is the most expensive component of an EV. Silver is used to increase conductivity and improve the efficiency of the battery. It is also used in the production of electrical contacts, wiring, and circuitry. As the demand for EVs increases, the demand for silver will also increase.
According to a CBC report from April 21, 2023, a massive new EV battery plant in St. Thomas, Ontario, is being hailed as a “game changer” for Canada’s auto sector and broader economy. Details of the multibillion-dollar project were announced at an official welcoming for German automaker Volkswagen, which plans to build what could be the largest EV battery plant in the world. This is another sign of the growing demand for EVs and the metals used in their production.
2022 was another historic year for EVs, with annual production surpassing 10 million cars for the first time ever, representing a sizable bump up from 2021’s figure of 6.7 million. This growth is expected to continue as more countries set targets for phasing out internal combustion engines.
Investors interested in silver should keep an eye on Golden Tag Resources Inc. Its acquisition of the La Parrilla Silver Mine Complex in Durango State, Mexico, gives it access to a high-grade silver deposit with a history of successful mining operations. The company has a strong technical team with extensive experience in exploration and mining, and it is well funded to continue its exploration and development efforts.
Investing in silver exploration companies like Golden Tag Resources Inc. can provide investors with exposure to the growing demand for metals like silver in EV production. As more car companies announce plans to shift towards EV production, the demand for silver is expected to increase. Golden Tag Resources Inc. is a promising company to keep an eye on in this regard, as it continues to explore and develop its high-grade silver deposit in Mexico. The company’s recent listing on the Frankfurt Stock Exchange is a positive development for investors looking to diversify their portfolios and gain exposure to the silver exploration industry.
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