Big Tariff to Do, Markets, Mag Silver buyout
AYA, BFG
Of course the big news today for markets was a pause in U.S. and China tariffs. They agreed to pause all tariffs for 90 days while negotiating a comprehensive trade deal. The U.S. said its tariffs on Chinese goods would be 30 percent, instead of 145 percent. China’s rate on American goods will be 10 percent, down from 125 percent. China was thought to be a tough hold out, perhaps not so!!!!!
I have been critical of the tariff narrative and the Trump panic and bashing. My outlook, was let's see what happens, maybe Trump's plan could work. It is now looking more so that the Trump Administration can successfully use the tariff trade tool to negotiate better trade deals. We still have not seen many actual deals yet to know if this can be a real success but the one announced with the U.K. was positive. The U.K is not a big deal when it comes to the U.S. trade deficit but China certainly is. Let's see what happens. Now that U.S./China have announced a pause, maybe Canada is not far off.
Trump is not going to fix the huge U.S. trade deficit but he can definitely improve it and get a better deal for America. Just like markets had knee jerk reactions to tariff announcements, they had one on the tariff relief news today. Markets are up big and gold down about $100. Gold is still within my consolidation range but the S&P 500 might break resistance to the upside.
The S&P 500 is currently above the 200 day MA and a slightly higher high. However, if markets stay around current prices and at end of day we still have a doji candle, the market is set up for a downward reversal pattern if we get a down day tomorrow (red candlestick). That is what I expect, but an up day tomorrow would confirm the upside break out.
News over the weekend that Pan American Silver is buying out Mag Silver. Both are on our list.
Mag Silver - - - TSX/NY:MAG - - - - Recent Price - $25.50
Entry Price - - - - - - - Opinion - sell
Pan American and MAG Silver announced that they have entered into a definitive agreement whereby Pan American will acquire all of the issued and outstanding common shares of MAG pursuant to a plan of arrangement. MAG is a tier-one primary silver mining company through its 44% joint venture interest in the large-scale, high-grade Juanicipio mine, operated by Fresnillo plc, who holds the remaining 56% interest in the Juanicipio joint venture.
Under the terms of the Transaction, MAG shareholders will receive total consideration of approximately $2.1 billion representing $20.54 per MAG share, based on the closing price of Pan American’s common shares on the New York Stock Exchange on May 9, 2025. Consideration will be comprised of a mix of cash totaling $500 million and 0.755 Pan American shares per MAG share, subject to proration. The consideration represents premiums of approximately 21% and 27%, respectively, on a prorated basis to the closing price and the 20-day volume weighted average price of MAG’s common shares on the NYSE American ending May 9, 2025.
We already own Pan America, so I am suggesting to sell Mag Silver. We have a 55% gain and MAG has set a new high on the chart. I am planning on adding another silver stock on our list to replace Mag Silver. Stay Tuned, here is our current list of silver stocks.
Selection List - paid subscribers only
AYA Silver - - - TSX:AYA - - - - - Recent Price - $10.00
Entry Price - $11.43 - - —- - - Opinion – buy
Last Friday, AYA put an update out on their mine ramp up
Operational highlights:
Mine ramp-up continues to exceed expectations, with 2,750 tonnes per day (tpd) mined in April, 2025.
Mill throughput and availability in April are above expectations, averaging 3,025 tpd at 98-per-cent availability.
Recovery rates improved in May.
Clear path to 89-per-cent recoveries identified with corrective actions under way, focused on stabilizing and optimizing oxygen production.
Key actions under way:
A specialized contractor has mobilized on site to restore full capacity of the oxygen plant, with improvements expected over the coming weeks.
Direct collaboration was initiated with the oxygen plant equipment supplier, to fast-track long-term performance enhancements.
Once the oxygen plant reaches designed capacity, it is expected that recoveries will improve to reach feasibility study recovery rates.
Conclusive tests conducted on plant tailings to confirm feasibility study leaching parameters.
"Our fundamentals are strong, the ramp-up is on track, and the results are showing -- mine production is up 64 per cent since January," said Benoit La Salle, president and chief executive officer. "We've seen a recovery improvement in May, and April's performance confirms that we're maximizing throughput, strengthening free cash flow and driving down costs. We are pleased to reaffirm our 2025 guidance."
I thought we bought close to a bottom when the stock dropped under $12 from $19, but it went a bit lower and we have a double bottom around $8.70.
Giant Mining - - - CSE: BFG, OTC: BFGFF - - - Recent Price - $0.30
Entry Price $0.45 - - - - - - Opinion - buy
Today BFG announced an update on Hole MHB-36. MHB-36 is the fifth and final hole of the 2025 diamond core drilling program, at the Majuba Hill Porphyry Copper-Silver-Gold Deposit, Nevada. The hole was completed to 1100 feet (335.3 m). MHB-36 intersected visual disseminated and vein-hosted chalcopyrite mineralization within the targeted breccia zone, beginning at a downhole depth of 650 ft (198 m). Mineralization was observed intermittently continuing beyond 905 ft (274.32 m).
I believe this is the most important hole of the program because it is testing a new area, the South Resistivity Anomaly. Should this drill hole return some decent assays, it could greatly expand the project.
The Company further announces it is fully funded for a follow-on drill program at Majuba Hill. Where the stock goes from here, will depend on drill results. Looking at the chart, the downside is probably around $0.15 and the upside a breakout to around $0.60.
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