Chen Highlights His Premium Silver, Gold Opportunities for Q2

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With gold firmly above US$3,000 on Wednesday and silver also poised for a breakout, FX Empire's A.G. Thorson reported on March 18 that the "near-term remains bullish" for the precious metals.

Chen Lin of What Is Chen Buying? What Is Chen Selling? told Streetwise Reports that he feels the same way and likes the metals — and in particular, some miners — for this coming quarter, especially silver.

Adding to the mix is U.S. President Donald Trump's new tariffs against Canada and Mexico, both huge suppliers of the metals to the country.

"Whatever the outcome of the tariff chaos, it has added to the awakening of the silver bulls," Chen wrote in February in his newsletter. "The simple fact is that global consumption of it continues to exceed supply. Remember, while miners and recyclers can supply about a billion ounces of silver annually the current demand stands above 1.2 billion ounces. This fundamental supply-demand deficit can only increase silver’s US$32 per ounce price, which is why I remain confident that it will continue to offer positive, long-term opportunities for investors. Gold may be the metal of kings, but silver remains the people’s metal."

Thorson reported that the “slingshot move” off the late December low in gold is "likely just the start of a massive catch-up rally, pushing prices significantly higher into April," and "silver is also poised for a breakout above US$35.00, with US$40.00 in reach by April. There's even potential for a short squeeze towards US$50.00 before a period of consolidation."

Some Uses 'Nearly Impossible to Substitute'

Unlike other precious metals, silver's industrial uses are also coming into play to create a deficit for the metal, an unparalleled conductor of electricity.

"Underpinning silver's fundamentals is robust demand from industrial applications," The Silver Institute said in its World Silver Survey 2024 report. "These continued to push higher last year, reaching a new all-time record, fueled by the remarkable rise in solar demand and in spite of stagnation in some other sectors. Sluggish silver supply, owing to the slight decline in global mine production, was another factor contributing to silver's deficit conditions last year."

The metal's unique properties "make it nearly impossible to substitute and its uses span a wide range of applications," the institute has said.

Mordor Intelligence noted that silver is expected to register a compound annual growth rate (CAGR) of more than 5% between 2024 and 2029.

For gold, Goldman Sachs recently revised its gold forecast higher to $3,100 a troy ounce by the end of 2025. "Gold is in a secular bull market. We forecast prices to trade between US$3,000-US$3,200 this year," said Alex Ebkarian, chief operating officer at Allegiance Gold, according to a Reuters report.

Chen highlighted some of his favorite gold and silver stocks for this quarter, and even a biotech company.

Apollo Silver Corp.

Apollo Silver Corp. (APGO:TSX.V; APGOF:OTCQB) has signed an earn-in and option agreement with MAG Silver Corp. for the Cinco de Mayo Project, which is made up of 29 concessions totaling about 25,000 hectares and located in the north-central part of Chihuahua in Mexico, about 190 kilometers northwest of the state capital. The project area is located immediately west of the village of Benito Juarez and benefits from excellent access through local dirt roads.

"Cinco de Mayo marks the beginning of our transformation as a company," Apollo Chairman and Interim Chief Executive Officer Andrew Bowering has said. "We have successfully mitigated single-asset risk by now boasting a portfolio of two exciting projects in two pro-mining jurisdictions. Much of our group has considerable experience in Mexico and we are excited to begin the work to unlock value at Cinco de Mayo for all our stakeholders."

According to Apollo, the project is prospective for and hosts carbonate-replacement-type deposits (CRD), including the Upper Manto lead-zinc-silver-gold deposit, which consists of two parallel and overlapping manto deposits referred to as the Jose Manto and the Bridge zone. The project also hosts the Pozo Seco molybdenum-gold deposit.

The two deposits host distinctly different mineralization with different commodities and are separated by 4 kilometers.

A technical report from 2012 used an NSR (net smelter return royalty) cut-off of US$100 per tonne to estimate an inferred resource of 12.45 million tonnes (Mt) of 132 grams per tonne silver (g/t Ag), 2.86% lead (Pb), 6.47% zinc (Zn), and 0.24 g/t gold (Au). The total contained metals in the historical resource are 52.7 million ounces (Moz) silver, 785 million pounds lead, 1,777 million pounds zinc, and 96,000 Moz gold.

About 5% of the company is owned by management and insiders and about 8% by institutions, according to Refinitiv. The rest is retail.

Top investors include Jupiter Asset Management Ltd. with 6.97%, Interim President, Chief Executive Officer, Chairperson, and Director Andrew Bowering with 5.4%, Commodity Capital AG with 1.09%, Amandip Singh with 0.01%, and Alps Advisors Inc. with 0.01%.

Its market cap is CA$78.77 million with 242.19 million shares outstanding. It trades in a 52-week range of CA$0.13 and CA$0.35.

Argenta Silver Corp.

Argenta Silver Corp. (AGAG:TSX.V; AGAGF:OTCQB) reported a spate of news recently, including a market uplisting and a strategic investment.

The latest is that the Canadian explorer began trading on the OTCQB, or the Venture Market, in the U.S. on Jan. 31 under the symbol AGAGF. This represents an uplisting from the OTC Pink Market.

In another Argenta development, major shareholder and strategic investor Frank Giustra bolstered his position in the company to 15.09% with his purchase of 2.5 million common shares of it in the open market, according to a Jan. 29 news release. Now Giustra directly or indirectly owns and/or controls a total of 25.54 million shares and 3,425,000 common share purchase warrants of Argenta.

Giustra explained, "My decision to increase my holdings in Argenta reflects my strong belief in the company's vision to unlock the value of high-potential silver assets and its disciplined approach to exploration."

Peter Krauth of Silver Advisor wrote on Jan. 30, "Given Giustra's history and major mining successes, this is yet another big vote of confidence in Argenta. Shares are up slightly on this news."

Giustra is CEO of the Fiore Group, which manages a portfolio of private equity investments and companies. Along with Argenta, Fiore has been involved with NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX; TRC1.F:FRA), Goldcorp Inc., Endeavour Mining Corp. (EDV:TSX; EVR:ASX), Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE), West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO), and Leagold Mining Corp. (LMC:TSX.V; LMCNF:OTCQX).

"This is going to be a very good story," Chen said of the company.

According to Refinitiv, about 18% of the company is owned by management and insiders. The top three shareholders are Giustra with 15.09%, Thomas Humphreys with 2.73%, and Joaquin Marias with 0.31%.

The rest of Argenta is in retail. There are no institutional investors at this time.

The company has 169.21 million outstanding shares and 138.05 million free float traded shares. Its market cap is CA$44.88 million. Its 52-week trading range on the TSX Venture Exchange is CA$0.14–0.47 per share.

Silvercorp Metals Inc.

Silvercorp Metals Inc. (SVM:TSX; SVM:NYSE) is a Canadian pure-play silver mining company operating several low-cost, long-life mines in China, according to Chen's newsletter.

Over the past 12 months, Silvercorp produced 6.5 million ounces silver (Moz Ag) at an all-in sustaining cost of under US$12 per ounce. Silver accounted for 62% of total revenue, one of the highest percentages among its shrinking peer group of silver miners. 

The company, backed by US$355 in cash, is constructing its fully permitted El Domo copper-gold project in Ecuador.

"The project has strong community and government support and will be Ecuador’s third large-scale modern mine once in production," Chen's newsletter noted.

In an updated research note on February 14, Roth Analyst Joe Reagor noted that its prior valuation of El Domo was "conservative," and its DCF valuation increased by about US$110 million.

"Mainly due to the inclusion of El Domo in our mine model DCF, we are increasing our price target from US$5.50 to US$6.00," wrote Reagor. "Additionally, we believe SVM is on the cusp of significant production and revenue growth in fiscal 2026 as the Ying mill expansion ramps up. Thus, we are reiterating our Buy rating."

About 4% of the company is owned by insiders and management, according to Refinitiv, and about 40% is held by institutions. The rest is retail.

Top shareholders include Van Eck Associates Corp. with 7.9%, Tidal Investments LLC with 3.48%, Rui Feng with 2.87%, Renaissance Technologies LLC with 2.66%, and Connor, Clark & Lunn Investment Managers with 2.38%.

Its market cap is CA$1.3 billion with 217.42 million shares outstanding. It trades in a 52-week range of CA$3.69 and CA$7.34.

Cerro de Pasco Resources Inc.

Cerro de Pasco Resources Inc. (CDPR:CNSX; GPPRF:OTCMKTS) is a Canadian miner focused on advancing its 100%-owned El Metalurgista mining concession in Peru.

The asset encompasses the Quiulacocha Tailings Deposit, which contains 70 million tonnes of silver-rich tailings from the historic Cerro de Pasco mine. In 2024, CDPR secured a long-waited easement enabling the advancement its Quiulacocha Project. In the same year, a drill campaign confirmed over 400 Moz silver equivalent (Ag Eq), plus critical metals like gallium and indium.

Chen noted that critical metals like gallium are "low-hanging fruit" for the company in addition to its silver resources.

"With low mining costs and existing infrastructure, the project is nationally significant and prioritized by Peru's Ministry of Economy and Finance for its economic, environmental, and employment benefits," according to Chen's newsletter.

About 8% of the company is held by insiders and management, according to Refinitiv. About 23% is held by other strategic entities, and about 8% is held by institutions. The rest is retail.

Top shareholders include 2176423 Ontario Ltd. with 16.5%, Gordaldo Ltd. with 6.31%, LH Financial Services Corp. with 5.78%, Steven Zadka with 5.09%, and Guy Goulet with 1.96%.

Its market cap is CA$128.28 million with 493.39 million shares outstanding. It trades in a 52-week range of CA$0.09 to CA$0.39.

Irving Resources Inc.

Another company that has Chen's attention is Irving Resources Inc. (IRV:CSE; IRVRF:OTCQX), a Canadian explorer going after gold and silver in Japan.

The country is known for some of the highest-grade gold mines in the world, and there are dozens of past-producing epithermal mines, Irving Resources said. But Japan shut down most of its gold production to focus on base metals during World War II, and little exploration has occurred since then.

Few mines there have seen modern-day exploration techniques like drilling, the company said.

The company in November drilled a single hole at the Omu gold project, which it has optioned to JX Advanced Metals Corp., at the Omui historic mine site. The hole tested an area up to approximately 150 meters south of Honpi, the main vein that was mined during the 1930s.

Beginning at approximately 35 meters down hole depth, the drill encountered extensive quartz veining and silicification to the end of the hole at 101 meters, the company said.

During 2025, JX and Irving plan to drill an additional three such holes testing more parts of Omui for shallow veins and silicified ore.

"Irving is back to work drilling at both East Yamagano and Omu," commented Quinton Hennigh, director and geologic advisor to Irving. "2025 has a lot in store. The current drill hole being drilled at East Yamagano, 24SY-002, displays abundant quartz veins, a promising sign. The first hole we have completed with JX at Omui appears to have encountered a considerable number of shallow quartz veins, an encouraging start to the strategically planned search for shallow silica here. We look forward to having a steady stream of updates and news from both drill programs throughout the year."

Newmont Corp. (NEM:NYSE) owns nearly 1/5 of the company, Irving said, while Japan Gold Corp. (JG:TSX.V) is partnering with Barrick Gold Corp. (ABX:TSX; GOLD:NYSE).

"So, the largest mining companies are very interested in Japan," Chen said.

The company said management and directors own about 9.3%, and strategic investors Newmont and Sumitomo Corp. (8053:TKY; SSUMF:OTCPK) own 19.2% and 5.2%, respectively. Yahoo Finance said about 1% is owned institutions. The rest is retail.

According to Refinitiv, top insiders include President and Chief Executive Officer Akiko Levinson with 4.84% and Hennigh with 3.05%.

Irving Resources has a market cap of CA$19.95 million with 76.69 million shares outstanding. It trades in a 52-week range of CA$0.20 and CA$0.48.

Equinox Gold Corp.

For gold, Chen said he likes Equinox Gold Corp. (EQX:TSX; EQX:NYSE.A), a growth-focused Canadian mining company with seven operating gold mines across the Americas, including Canada, the United States, Mexico, and Brazil.

The company is on a path to achieve more than 1 Moz of annual gold production by advancing a pipeline of expansion projects.

Last month, the company announced it has agreed to acquire Calibre Mining Corp. (CXB:TSX; CXBMF:OTCQX) in a CA$2.6 billion all-stock deal that would make the combined company Canada’s second-largest gold producer.

Under the agreement, Calibre shareholders will receive 0.31 of an Equinox share for each Calibre share. Equinox’s stock fell 3% on the news in New York and 7% in Toronto.

According to the company, about 6% is held by insiders and management, institutions hold about 68%, and retail and other sources hold 26%.

Its top shareholders include Orion Resources Partners (USA) LP with 9.22%, Van Eck Associates Corp. with 8.16%, Donald Smith & Co. Inc. with 5.92%, Director Ross Beeaty with 5.26%, and The Vanguard Group with 3.02%, according to Refinitiv.

Its market cap is US$3.16 billion with 455.76 million shares outstanding. It trades in a 52-week range of US$4.48 and US$7.22.

B2Gold Corp.

Another gold producer Chen likes is B2Gold Corp. (BTG:NYSE; BTO:TSX; B2G:NSX), which has which operating gold mines in Mali, Namibia and the Philippines, the Goose Project under construction in northern Canada, and numerous development and exploration projects in various countries including Mali, Colombia and Finland.

B2Gold forecasts total consolidated gold production of between 970,000 and 1,075,000 ounces in 2025.

The company just announced that its new Phase 2 solar plant expansion in Mali became operational in January, providing an additional 22 megawatts (MW) of solar capacity and 12.7 megawatt-hours (MWh) of battery capacity, supplying about 30% of the project's total electricity demand.

According to the company, about 1% of is owned by insiders and management, about 61% by institutions, and about 38% by retail.

Top shareholders include Van Eck Associates Corp. with 12.06%, Fidelity Management & Research Co. with 4.5%, The Vanguard Group Inc. with 4%, Pale Fire Capital SE with 3.98%, and Two Sigma Investments LP with 2.73%.

Its market cap is CA$6.19 billion with 1.32 billion shares outstanding. It trades in a 52-week range of CA$3.16 and CA$4.84.

Soleno Therapeutics Inc.

Chen is also hoping to continue his streak with biotech companies. In 2023, Chen picked Soleno Therapeutics Inc. (SLNO:NASDAQ), in the fourth quarter, a stock that went on to be the top gainer of the year as determined by Dow Jones Market Data.

The company had jumped 1,900% as it announced positive results for its diazoxide choline extended-release (DCCR) tablets to treat Prader-Willi syndrome. Prader-Willi syndrome is a rare genetic condition that can cause intellectual disability and obesity.

According to Investing.com, Stifel analysts recently resumed coverage of Soleno, issuing a Buy rating and setting a price target of US$74. According to InvestingPro data, analysts maintain a strong bullish consensus with price targets ranging from US$67 to US$93.

The firm expressed optimism about the biopharmaceutical company’s prospects, particularly regarding its product DCCR, which is under review by the FDA.

The analysts highlighted that the Prescription Drug User Fee Act (PDUFA) goal date for DCCR is scheduled for March 27. Despite acknowledging some debate around the approval, they estimated an 80% probability of success.

In addition, H.C Wainwright & Co. analysts Raghuram Selvaraju and Mitchell S. Kapoor wrote in an updated research note on March 3 that "assuming DCCR approval in late March 2025, we continue to expect Soleno to start generating revenue in mid-2025. From our vantage point, the approval decision should be favorable and rendered on schedule. We reiterate our Buy rating and 12-month target price of US$70." 

About 3% of the company is owned by insiders and management, according to Refinitiv, with the rest being retail.

Top shareholders include Vivo Capital LLC with 13.72%, Janus Henderson Investors with 11.31%, Nantahala Capital Management LLC with 8.57%, Adage Capital Management LP with 6.05%, and Avoro Capital Advisors with 5.51%.

Its market cap is US$2.3 billion with 45.86 million shares outstanding. It trades in a 52-week range of US$36.61 and US$60.92.

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