Dolly Varden is attracting attention due to its promising exploration and development activities in the silver-rich regions of British Columbia. Read on to find out what experts are saying about the company's place among future silver mining projects.
Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) is engaged in exploration and development activities in the silver-rich regions of British Columbia. The Company's efforts and strategic land holdings are located in the historic Golden Triangle region, known for its significant silver mines.
With growing demand for precious metals driven by industrial uses and investment interests, Dolly Varden's recent exploration activities are positioned to meet these growing market needs, according to analysts and newsletter editors. information.
Why the money?
Katsusa Research praises the place of money 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: more than 50% of silver is used for industrial needs, powering sectors ranging from electronics to metallurgy.”
These sentiments were echoed by Market Watch in an April 17 reportt, explaining: “Silver has outpaced gold so far this year, and an annual report from the Silver Institute predicts that the metal's global market is on track for a fourth annual supply deficit consecutive.
The same day, Yahoo! Finance had similar views on moneywriting in an April 17 report: “The use of silver in industrial applications reached a new high in 2023 for the third consecutive year, according to data released Wednesday by the Silver Institute, a nonprofit industry organization . »
Market expert opinion
In a May 6 report, technical analyst Clive Maund said: “It looked increasingly likely last week that the sector correction had run its course, and gold and silver are starting the week strong. So it looks like another major rally will begin imminently in many gold and silver (and copper) prices. stocks.” In that report, Maund listed Dolly Varden as a silver stock likely to move higher.
Marcus Giannini of Haywood Securities, in a report dated May 13saw bright things for mining projects.
Gianni said: “While we believe discovery opportunities within the land package remain an important catalyst for future value creation. (for Dolly Varden), we also consider the current endowment of defined gold and silver resources as a starting point for a modest underground and conventional mining and processing scenario. In that report, Gianni gave Dolly Varden a Buy rating, with a price target of CA$2.40 per share.
In March, 321Gold founder Bob Moriarty looked at how Dolly Varden ownership could help make it a valuable asset for investors.
Moriarty pointed out: “One factor that could really ignite Dolly Varden Silver stock is the tight ownership structure. Institutions own 47%, Fury Gold Mines owns 22% of the Homestake deal, Hecla Mining owns 15% with an eye on 19.9%, and Eric Sprott owns 9%, leaving a float of just 7%. to individual investors. »
Jeff Clark of TheGoldAdvisor.com also saw value in Dolly Varden, particularly in the management team. In a report dated April 15. Clark said Streetwise“I became very interested, bought the stock and recommended it on The Gold Advisor. And it's been great ever since. I'm a huge fan of Shawn KhunKhun. He literally turned this company around from a small project into a giant that has grown and will become much bigger.
Stuart McDougall, analyst at Research Capital Corp., in a report published on April 29, 2024addressed Dolly Varden's target price.
He said: “We are increasing our target price from CA$1.35/share to CA$1.45/share to reflect our expectations of a 25% increase in existing project resources, net of a number of shares higher for CA$25 million in equity financings completed since then. our latest update and for our assumptions about future actions, evaluated in the context of the current market,” McDougall said.
Shareholding and sharing structure
According to Dolly Varden presentation to investors, 48% of the company is owned by institutional investors, including Fidelity Management & Research Company LLC, Sprott Asset Management LP, US Global Investors Inc. and Delbrook.
44% are with strategic investors. 19% is owned by Fury Gold Mines. 15% is owned by Hecla and Eric Sprott owns 10% himself.
The rest, or 8%, belongs to individual and wealthy investors.
The company has 283 shares outstanding, a market capitalization of CA$296 million, and cash of CA$21 million.
According to Market Watchthe company trades over a 52-week period between CA$0.58 and CA$1.16.
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Important Disclosures:
- Dolly Varden is a Streetwise Reports billboard sponsor and pays SWR a monthly sponsorship fee of between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their households) own securities of Dolly Varden.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and does not constitute a solicitation for any investment. Streetwise Reports does not provide general or specific investment advice and the information contained in Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult their personal financial advisor and conduct their own comprehensive investment research. By opening this page, each reader agrees to Streetwise Reports' terms of use and full disclaimer. Streetwise Reports does not endorse or recommend the activities, products, services or securities of any company.
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