Glenn Jessome, CEO of Silver Tiger Metals (TSX.V: SLVR), discusses the transformative impact of a silver price of $90/oz on the company’s flagship El Tigre project in Sonora, Mexico.
Key points from the interview:
The PFS for the open-pit mine, originally based on a silver price of $26/oz and a gold price of $2,150/oz, yielded a post-tax net present value of ~$300 million.
At current spot prices (~$90/oz silver and corresponding gold), the open-pit mine alone yields:
– $1.2 billion post-tax net present value
– 157% IRR
– 6-month payback period
– $1.8 billion post-tax net cash flow over a 9-year mine life
Construction is progressing after Mexico granted the first major permit for open-pit mining since 2019.
Detailed technical plans are nearing completion, road expansion work is underway, and site preparations are in progress.
The preliminary economic assessment (PEA) for underground mining is expected by the end of January 2026, with the potential to bring high-grade feed online simultaneously.
The company has cash reserves of ~$50 million, providing financial flexibility without immediate pressure.
Initial production targeted for mid-2027, against a backdrop of structural silver supply shortages
Jessome responds to the ongoing global silver supply deficit, limited development of new primary mines, and growing industrial demand due to trends in AI, solar energy, and electrification.
Timestamps:
00:00 – Introduction and market context
00:45 – Impact of a $90 silver price on project economics
05:40 – Silver supply dynamics and new mining projects
08:30 – Progress on construction and permitting of El Tigre
14:00 – Updated sensitivity analysis
16:30 – Upcoming PEA for underground mining
20:20 – Potential simultaneous development
23:15 – Merger and acquisition considerations
26:45 – Financing strategy and capital allocation
