For the first time ever I’ve found a silver-gold- & copper focused company listed in Sweden that is worth looking at. Filo Mining is a company run by the Lundin Group & the Lundin family trust is by far the largest shareholder. It’s mainly pitched to the market as a copper asset but there’s a lot of gold and silver here. Their main project Filo Del Sol is located in the Atacama Region of Northern Chile and it is in pre feasibility stage.
“…the potential size and scale of the Filo del Sol deposit is unparalleled to any project I have been involved with … Our drill results this season are truly exceptional, and rank amongst the best intercepts of my career.”Lukas Lundin
Filo Del Sol is a low grade deposit and currently has a resource of 181,7 moz silver, 6,2 moz gold & 4,8 billion lbs copper. The PFS shows an annual average production capacity of 8,6 moz silver, 159 koz gold & 67,000 tons of copper over a 13 year mine life. After tax Net present value (NPV) at current metals prices is over $2,5 billion, and Filo Minings market capitalization currently at $250 m. The NPV:MCAP ratio is 10:1.
Such high ratio is in itself reason enough to convince any value investor to buy this stock, but there’s more. The resource is open at depth, there is much more mineralization below the proposed open pit, up to 700 meters (!) below and still open. This mineralization is not included in current PFS.
With 700 meters of mineralization (still open at depth) the resource stands to grow A LOT in next resource estimate. There’s even more… The resource is till open to the east, drill hole VRC093 shows mineralization extends at least 2000 meters east:
The really big upside here is silver, with 8,6 moz/year in production profile and low cost per ounce because of gold & copper, this mine will be a money machine at higher prices of silver. If silver goes to $120/oz they would make a net profit of $1 billion/year (estimated) when they start producing. Filo Mining is one of the best ways to play the next bull market in silver in my opinion.