Thoughts on Argenta Silver (TSXV: AGAG)
Frank Giustra has some deals that are very legit real projects that later get acquired at huge premiums and go into production as very successful and profitable mines. Other times he will have companies that we can only describe as more "promotional" type of plays.
One example of a real gold project he helped advance was the Los Filos gold project in Mexico that he acquired in 2017 and later sold to Equinox Gold (EQX). Los Filos became one of the largest gold mines in all of Mexico. Who originally discovered Los Filos? David M. Jones co-founder of Minaurum Gold (TSXV: MGG).
By contrast, Frank Giustra’s Argenta Silver (TSXV: AGAG) seems more like a promotional play. They paid only US$3.5 million for El Quevar less than one year ago, yet today AGAG already commands a market cap of CAD$178.28 million. Although their intercepts may look impressive on paper, El Quevar has complex mineralogy including sulphosalts like tennantite–tetrahedrite and enargite–luzonite, along with galena, sphalerite, and bismuthinite. Such complex mineral assemblages can significantly impede silver recovery using standard flotation or leaching techniques.
Adding to the concern, the company’s 2024 MD&A disclosed elevated levels of arsenic, antimony, and bismuth in the flotation concentrate. These impurities not only pose environmental handling risks but also lead to penalties and treatment challenges when marketing the concentrate.
In other words, while Giustra has proven himself with certain world-class mining deals, Argenta Silver’s El Quevar acquisition has more red flags than green lights. Investors should carefully weigh whether this is another Los Filos-type opportunity or simply a story stock trading on hype rather than long-term economic potential.
By comparison, Minaurum Gold (TSXV: MGG)’s flagship Alamos Silver Project has consistently demonstrated strong metallurgical recoveries in testing of up to 94% silver and 96% gold (click here to read their April 9, 2024, press release with recovery details). Minaurum's Alamos Silver Project is already fully permitted for production and in December 2024, the company signed 29‑year, extendable ejido community agreements with the La Aduana and Tetajiosa ejidos covering 100% of the core project area and secured unanimous approval from those communities.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA has received compensation from MGG of US$30,000 cash for a three-month marketing contract and previously received US$30,000 cash for a three-month marketing contract which has since expired. This message is meant for informational and educational purposes only and does not provide investment advice.
