Why is silver considered a "magical" metal and what makes it crucial for the green transition?
Silver is indeed a phenomenal material, and it plays an underappreciated role as a technology metal. Electrification is a dominant trend worldwide, driving the need for silver in a myriad of applications such as solar panels, electric vehicles, charging stations, and a range of gadgets including iPads, iPhones, and laptops. This shift is substantially due to the phasing out of older technologies like 35mm film, which once consumed over a third of annual silver supply. While demand is increasing, there has been a substantial reduction in the exploration and identification of new silver sources, posing a significant problem for meeting the burgeoning demand.
Silver is incredibly vital to the UnitedStates’ economy , yet it is mined in only a few places, with one of the most substantial sources being our Rochester mine in northern Nevada. It is important that silver becomes more of a focus in discussions about essential metals because it is integral to many modern technologies and infrastructures, especially considering the prevailing electrification trends. Moreover, it bears noting that the application of silver is not just restricted to these avenues; it also encompasses areas where its antibacterial properties are leveraged and is integral to many of our country’s defense applications, offering a wide array of uses that truly make it a unique metal.
What approach does Coeur undertake to responsibly provide the silver needed globally and potentially for the green transition?
Our organization, with a history spanning 95 years, dedicates itself to being a premier domestic supplier of precious and critical minerals in the US. We aim to carve out a niche as a dependable source for these minerals, fostering long-standing relationships with communities and upholding the highest environmental and safety standards in our operations.
This approach is pivotal in ensuring that we remain a growth-oriented company, focusing primarily on a US-centric footprint, which involves continued reinvestment in the business to foster long-term success.
How does the global distribution of silver production affect its sourcing and what is the significance of having local supply chains in America?
When analyzing the global silver production landscape, countries like China, Peru, Mexico, and Chile emerge as dominant players, each presenting its geopolitical profile. Even neighboring countries like Mexico have shown diminished support for the mining industry.
Being situated in the US offers a strategic advantage, especially considering the geopolitical dynamics involving other top silver-producing countries such as China, Peru, Mexico, and Chile. It is important to know that, while having reliable and responsible domestic mining is important for the United States’ economic and national security, it is equally important to have domestic processing facilities, which is the next step in the value chain. We can’t just mine these important minerals and metals only to lose control over them by shipping them overseas to other countries for processing and refining. .
Being self-sufficient in processing and refining is integral to averting undue influences and manipulations from nations not aligned with US interests. It embodies a broader narrative involving energy security and economic stability, where the vision is to facilitate a seamless transition from fossil fuels to renewables through a structured and domestic strategy. Thus, the focus shifts to redefining policies and reducing bureaucratic redundancies to foster a more efficient system akin to those in Canada and Australia, streamlining the permitting processes for new mines, thereby promoting self-reliance and mitigating risks associated with external dependencies.
What is the potential of Silvertip, and how do you envision its role in the future?
Our Silvertip exploration project located in northern British Columbia, stands as potentially the highest quality deposit in our portfolio with the potential to provide high-grade outputs of silver, zinc, lead and potentially other critical minerals. Over the last five years, we have injected a substantial investment into exploration, continuously broadening our geological understanding of this world-class deposit. In the near term, our strategic focus will remain on our existing operations where we can continue to leverage our established infrastructure, operating footprint and existing workforce by sustaining our commitment to reinvesting through exploration to extend mine lives and add to the mineral inventory at these operations. The Silvertip deposit showcases potential, hinting at a rich yield of multiple critical minerals, which could transform it into our largest asset with high margins, strong cash flow, and a unique metals mix.
At present, it is premature to predict the onset of production at Silvertip, considering the ongoing exploration and the need for further knowledge acquisition. Our objective is to continue expanding and understanding the deposit while we deliver the benefits of the newly expanded Rochester mine in Nevada.
What do you believe is a main virtue Coeur and every mining industry needs to have in order to succeed?
Adaptability is indeed a vital virtue. It is essential to be flexible and be willing to change based on the circumstances. Especially for mid-sized companies like ours, we need to make decisions quickly and pivot when necessary. Acknowledging the need to shift course and swiftly steer the organization in a different direction can be vital for success and even survival at times. This includes being able to handle unexpected events proficiently, thus displaying a readiness to meet challenges head-on.
Having been in the mining industry for a long time, how important is persistence and tenacity in seeing projects through to fruition?
Persistence and tenacity have been driving forces in my career. The mining industry often presents situations where just when you think everything is lined up perfectly, an unforeseen event occurs, necessitating a reset. It's often a situation that requires getting up and starting over again. However, I hold onto the belief that we will eventually achieve our goals, despite the occasional setbacks that are characteristic of the mining industry. This kind of environment indeed ensures that there are always new challenges – and opportunities – around every corner.
The journey so far has instilled in me an unyielding spirit, and the industry has allowed me to always be challenged and engaged. There is always something that needs attention, a process that requires improvement, or an innovative solution that needs to be developed. This continuous cycle of learning and adapting keeps our work interesting and engaging and presents a tremendous opportunity for continual growth and development.
