By: Dr. Ryan Long
New Pacific Metals’ CEO Andrew Williams recently caught up with Red Cloud Securities’ Timothy Lee to discuss the company’s progress to date and its plans for next year. We have summarized the key points from the webinar below, but if you would like to view the full video, you can use this link:
Video 1: Red Cloud Securities Webinar
Red Cloud Securities
Current Status of the Business
New Pacific’s journey into Bolivia started in 2017 with an exploration concept known as Silver Sand. In the six years following its entry into the country, New Pacific has taken the Silver Sand Project from a concept, through the discovery process and resource establishment, and into preliminary economic assessment (PEA). This is an impressive development timeline for any project, but to do this for what is one of the most significant primary silver discoveries of the last decade is very impressive.
The PEA, which was completed in January of this year, defined the potential for a mine that could produce 171 million ounces of silver over a 14-year life of mine, generating a post-tax net present value of US$726 million at a very low all-in-sustaining cost (AISC) of US$10 per ounce.
New Pacific was not content to just become a one-project business, and in 2021, it acquired the Carangas Silver-Gold Project, also located in Bolivia. In just two years since acquiring the project, New Pacific has advanced Carangas through the discovery process and resource establishment and is now preparing to complete a PEA at the project.
New Pacific is well funded with US$28 million in cash and no debt. The Company also has a strong, supportive, and long-term shareholder base with Silvercorp Metals holding 27.4%, Pan American Silver holding 11.6%, institutions holding 15.8%, and management holding a collective 7.2%.
Geopolitical Climate
Bolivia’s ruling party, the Movement Towards Socialism Party, has a leadership contest ahead of the next Presidential election in 2025. Both current President, Luis Arce, and former President, Evo Morales, are both standing. New Pacific has operated in the country under both presidents and is confident in its ability to operate under any future governments.
At a local level, New Pacific has an established and experienced corporate social responsibility team located in Bolivia. This team systematically works with the local communities on the ground, building trust, and educating on the company’s plans as it advances its projects.
What’s Next?
At Silver Sand, New Pacific is planning to complete a pre-feasibility study (PFS) in the first half of next year, alongside completing an environmental impact study and is working to secure a mining production contract from the relevant governmental bodies.
At Carangas, all eyes will be drawn towards the PEA, which is also due to be completed in the first half of next year. This study will give us our first indication of the potential returns this project can generate and will be an important milestone for the company
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