Hi David,
Of the four stocks mentioned, we favour Andean Silver (ASL) and Unico Silver (USL), while Silver Mines (SVL) looks interesting as a higher-risk, potentially undervalued development play. Sun Silver (SS1) also offers significant upside potential, but we see it as a longer-dated opportunity. Importantly, these are all small companies, with market capitalisations below $500m, and none are currently in production.
ASL is targeting the restart of a previously producing mine in Chile. The operation is currently on care and maintenance, with restart studies underway and a feasibility study targeted for late 2027.
USL and SVL are both at the pre-production development stage, while SS1 remains in the exploration and resource development phase, making it the furthest from production of the four.
We don’t know this part of the market particularly well, so our conviction in the individual names is limited. However, we do agree with your broader view on precious metals, believing the current weakness presents an opportunity to accumulate exposure. That said, our preference remains for larger-cap, more established producers, which is where we’re focusing our attention across our portfolios.