Exploration Breakthroughs Position Miner as Key Player in Silver Market

Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) is engaged in exploration and development activities in British Columbia's silver-rich regions. The company's efforts and strategic landholdings are situated in the historic Golden Triangle area, known for its significant silver mining. With the increasing demand for precious metals driven by industrial uses and investment interests, Dolly Varden's recent exploration activities are positioned to address these growing market needs.

Why Silver?

Katsusa Research speaks highly of silver's place in the market. In a recent report, they stated, "Today, silver stands out for its practicality and affordability compared to gold. It’s not just for show; over 50% of silver serves industrial needs, powering sectors from electronics to metalworking."

These sentiments were echoed by Market Watch in an April 17 report, explaining, "Silver has been outpacing gold’s gain so far this year, and an annual report from the Silver Institute predicts that the global market for the metal is poised to mark a fourth straight yearly supply deficit."

That same day, Yahoo! Finance had similar views on silver, writing in an April 17 report, "The use of silver in industrial applications hit a new high in 2023 for a third consecutive year, according to data released on Wednesday by the Silver Institute, an industry nonprofit."

Market Expert Opinion

In a May 6 report, Technical Analyst Clive Maund stated, "It was looking increasingly likely last week that the sector correction had run its course, and gold and silver are starting the week strong. It, therefore, looks like another major upleg will begin imminently in many gold and silver (and copper) stocks." In this report, Maund listed Dolly Varden as one silver stock that may be poised to advance. 

Marcus Giannini of Haywood Securities, in a May 13 report, saw bright things ahead for mineral mining projects.

Gianni said, "While we believe the opportunity for discovery within the greater land package remains a significant catalyst for future value creation [for Dolly Varden], we also view the current endowment of defined gold and silver resources as a starting point for a modest underground and conventional mining and processing scenario." In this report, Gianni gave Dolly Varden a Buy rating, with a target price of CA$2.40 per share.

In March, 321Gold founder Bob Moriarty looked at how Dolly Varden's ownership could play a part in making it a valuable assett for investors.

Moriarty pointed out, "One factor that could really ignite Dolly Varden Silver shares is the tight ownership structure. Institutions own 47%, Fury Gold Mines owns 22% from the Homestake deal, Hecla Mining owns 15% with an eye on 19.9%, and Eric Sprott owns 9%. This leaves a float of just 7% for retail investors."

Jeff Clark of TheGoldAdvisor.com also saw value in Dolly Varden, specifically in the management team. In an April 15 report. Clark told Streetwise,  "I became very interested, bought the stock, and recommended it on The Gold Advisor. And it's been great since then. I'm a big Shawn KhunKhun fan. He has literally transformed this company from a small project into a behemoth that is growing and is still going to get a lot bigger."

Research Capital Corp. analyst Stuart McDougall, in a report published on April 29, 2024, addressed the target price for Dolly Varden, saying, "We are raising our target price to CA$1.45/share from CA$1.35/share to reflect our expectations for a 25% increase to existing project resources, net of a higher share count for CA$25M worth of equity financings completed since our last update and for our future equity assumptions, priced in the context of the current market," McDougall stated.

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 3.92% of the company. According to Reuters, Chairman and CEO Collin Kettell owns 2.76% of the company with 5.16 million shares, and President Denis Laviolette owns 1.16% of the company with 2.18 million shares.

As for strategic investors, Eric Sprott owns 1.02% of the company with 1.90 million shares.

Reuters reports that institutional investors own approximately 46.41% of the company, as Palisades Goldcorp, Ltd. owns 25.03% of the company with 46.77 million shares, Sprott Mining Inc. owns 13.00% of the company with 24.30 million shares, 2176423 Ontario, Ltd., owns 5.56% of the company with 10.39 million shares, Van Eck Associates Corporation owns 2.39% of the company with 4.46 million shares, VanEck Asset Management B.V. owns 0.21% of the company with 0.40 million shares, Integrated Advisors Network L.L.C. owns 0.15% of the company with 0.29 million shares, and Citadel Advisors L.L.C. owns 0.07% of the company with 0.13 million shares.

There are 186.87 million shares outstanding with 96.07 million free float traded shares, while the company has a market cap of CA$578.89 million and trades in the 52-week period between CA$4.09 and CA$7.60.

Important Disclosures:

1. Dolly Varden is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dolly Varden
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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