Silver hits 14 year high - what happens next? Here’s our ASX silver stocks

Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 3,428,902 SS1 Shares, 2,777,000 MTH Shares, 2,177,000 MTH Options, 4,863,000 WCE Shares. The Company has been engaged by these stocks to share our commentary on the progress of our Investments in them over time. This information is general in nature about speculative investments and does not constitute personal advice. It does not consider your objectives, financial situation, or needs.

Six hours ago the silver price hit ~US$41.50 per ounce.

That’s officially the highest level silver has traded at since October 2011.

The silver price is officially at new 14-year highs...

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

In our note last Saturday, we wrote about the potential generational cup and handle pattern forming in the silver chart.

And the potential breakout into new all-time highs that could happen if that theory is true and plays out.

Then we followed it up on Sunday with more commentary, here’s what we said (apologies for the Dad joke):

Here is what it looks like when a cup and handle continuation pattern plays out:

But this might not happen - markets are not exact sciences.

So far it looks like we are getting some sort of breakout higher.

The question now is will it continue and go to new all time highs?

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

IF the generational cup and handle theory is correct, THEN the silver price COULD move even higher from where it is today.

(it’s a big “IF” of course - we are not charting experts and the silver price can always trend downwards)

A move higher in the silver price should mean more capital flows into our Portfolio Investments with silver exposure...

Our Leverage to a Rising Silver Price - Three ASX Stocks

All four of our silver Investments are currently either drilling OR have assays pending, meaning new results could drop any minute.

Here are the four silver stocks we have in our Portfolio:

1. Sun Silver (ASX: SS1) - the biggest pre-production silver asset on the ASX and in the USA. SS1’s current resource estimate sits at 480M ounces silver equivalent. It could also host a giant antimony resource.
2. Mithril Silver and Gold (ASX: MTH) - 373k ounce gold, 11M ounce silver JORC resource estimate in Mexico. MTH is about to have three rigs on the ground and grow that resource to a ~2.5-3M ounces gold equivalent resource estimate over the next 12-14 months.
3. West Coast Silver (ASX: WCE) - aiming to extend the Elizabeth Hill silver mine. Elizabeth Hill was the highest grade silver mine in Australia when it was last in production in the 1990s. WCE is trying to extend the leftover resources at the mine and hopefully make a repeat discovery on its regional targets.

With not too many silver stocks on the ASX, we think any strong news (drill hits) into this current strong macro thematic (silver) could mean exploration success actually gets rewarded with on market buying from investors.

A deeper dive into our silver Investments: SS1, MTH, WCE

SS1: The largest pre-production silver resource on the ASX

In a nutshell: SS1 is the largest pre-production silver asset on the ASX with a 480M ounce silver equivalent resource.

SS1 is also re-assaying old drillcore to see if its giant silver deposit also hosts antimony.

Location: Nevada, USA
Market Cap: $165M
Cash at Bank: $10.8M at 30th June, $30M raised in July.

Why we like it:

Being the largest pre-production silver asset on the ASX SS1 could become the de-facto silver equity “ETF” on the ASX.

With a 480 million ounces of silver equivalent resource estimate, SS1 is very leveraged to move in the silver price (its share price chart basically tracks the silver price).

SS1 is also re-assaying its deposit to see if it hosts economic quantities of antimony.

Antimony is a critical mineral used in various defence and military applications. The US has no domestic antimony mines and the US government relies heavily on China for its supply.

The “one image” story:

What’s next for SS1: Assays from extensional holes, a resource upgrade to its already giant deposit and maybe even an antimony maiden resource estimate.

Read our latest article: SS1: Highest Grade Antimony Result. So Far...

MTH: Mexican silver, aiming to double its resource estimate

In a nutshell: MTH is drilling with multiple rigs to try and multiply its existing 373k ounce gold, 11M ounce silver JORC resource estimate.

MTH has two rigs on the ground now, and a third is on the way. MTH is aiming to grow the current resource estimate to ~2.5-3M ounces gold equivalent over the next 12-14 months.

Location: Durango, Mexico
Market Cap: $120M
Cash at Bank: A$22.9m (30th June + July 2025 placement)

Why we like MTH:

MTH’s Managing Director John Skeet has successfully delivered gold and silver mining projects before in Mexico.

He was GM of Projects at Bolnisi Gold from when it was a small cap exploration stock to a $1.1BN takeover in 2007.

MTH has only drilled a tiny fraction of the project, with the current resource only covering ~5% of the project area.

MTH is drilling right now to double the size of its existing 373k ounce gold, 11M ounce silver JORC resource and just started drilling one of our favourite silver targets going for a new discovery...

The “one image” story:

What’s next for MTH - Assays from its multi rig drill program. MTH is aiming to double its existing JORC resource AND is currently drilling one of our favourite targets where a NEW discovery could be made.

Read our latest article: MTH Silver and Gold : First Target Area 5 drill holes completed.. results any day now?

WCE: Aiming to build “Elizabeth Hill 2.0” - Australia’s highest grade silver mine

In a nutshell: WCE is aiming to extend the Elizabeth Hill silver mine. This mine was the highest grade silver mine in Australia when it was last in production in the 1990s.

WCE is trying to extend the leftover resources at the mine and hopefully make a repeat discovery on its regional targets.

Location: WA, Australia
Market Cap: $74M
Cash at Bank: $1.4M at 30 June 2025 + $6M raised 24 July 2025.

Why we like WCE:

The Elizabeth Hill mine was the highest grade silver mine in Australia, with historic production using cheap and simple processing methods.

We think that if WCE can find a high-grade near-surface silver resource then it could quickly develop its project into a (hopefully) rising silver price.

WCE also has ~20 regional targets ranked where we are hoping repeat Elizabeth Hills are discovered. This area has had very little modern exploration done on it...

The “one image” story:

What’s next for WCE - Assays pending on the last 6 holes of the company’s 12 hole drill program. WCE is also starting soil sampling and geophysics on regional targets ahead of its next round of drilling.

Read our latest article: WCE hits 2m at 10,049g/t silver

Silver content we are watching, reading and listening to

For anyone who has found themselves deep down in the silver rabbit hole (just like most of our team is), here are some good bits of content we have been listening to/watching over the last few weeks.

In this first one, technical analyst Michael Oliver talks about why he thinks silver is about to go on a big run to new all time highs.

Michael is one of those market players who connects the dots between fundamentals and what a chart is telling someone.

He starts the interview with “I think silver is likely to, between now and year end, or maybe sooner than that, take out its old dual highs at US$50”.

See the full interview here: $40 Silver Signals Severe Collapse In Confidence | Michael Oliver

Of course he could be wrong, technical analysis (chart analysis) isn't an exact science...

Next is an interview with the very well-known mining investor Rick Rule from the Money of Mine team.

Late in the podcast (56:49) Rick Rule gives his bullish take on silver.

He thinks silver could run in the current bull market, and have several consecutive days of large moves, larger than we have seen yet...

Rick even says that ‘the punter community in Australia’ is not yet investing in silver and says that North American investors are more across the space then Aussies... implying that the ASX has some catching up to do in the space?

Listen to the full interview here: Hanging Out in Hated Places with Rick Rule (Money of Mine)

Here’s a few more silver takes that we have gotten value from in recent weeks:

Why Grade Beats Size in Silver Mining | Frank Basa - Nord Precious Metals

Saudi Central Bank Reportedly Takes Historic Stake in Silver ETF - The Deep Dive

US Premiums for Silver and Palladium Are Underpriced, Citi Says - Bloomberg

Department of the Interior releases draft 2025 List of Critical Minerals - U.S. Department of the Interior

For the first time Silver has been put on the draft list to be added to the US critical minerals list.