Silver
Silver is a precious metal with the highest conductivity of any metal on the planet. From its use as a hard currency to a crucial ingredient in Australia’s green energy future, silver has a storied past and a bright future.
Australia’s first mine, the one that started it all, was a silver-lead mine in South Australia. Two centuries later, Boab Metals Limited(ASX: BML) is proud to be re-invigorating the Sorby Hills Project. As a Western Australian owned lead-silver mining company with strong ties to the Kimberley community, we are committed to delivering metals for a sustainable future.
Australia’s second precious metal
Silver (Ag) is primarily used in industrial applications ranging from solar panels to consumer electronics. As the renewable energy sector continues to mature, demand for silver is expected to rise.
Boab Metals Limited is well positioned to meet this growing demand. Our Sorby Hills Project is the largest undeveloped silver-lead deposit in Australia, with a Resource containing 53 million ounces of silver (14.3m oz payable). (See ASX announcement dated 17 December, 2021).
What is silver
used for?
Silver has the highest electrical and thermal conductivity of any known material. And conductivity isn’t the only attractive property. The metal is robust, malleable, and reflective, making it one of the most useful precious metals in existence.
Efficient energy transfer
Silver’s unsurpassed thermal and electrical conductivity, coupled with its corrosion resistance, makes it virtually irreplaceable in electronics switches. You’ll find silver in most appliances, from small household electronics to large industrial machinery.
Healthcare
Lead’s high density makes it an excellent radiation shield. Lightweight lead aprons protect healthcare workers, while operating X-ray and nuclear equipment containing potentially harmful radiation. Lead is the preferred material used in radiation shielding.
Car electronics
The automotive industry consumes 55 million ounces of silver each year, a figure that’s expected to rise as the EV market grows.
Weights
From SCUBA diving to boat keels to weighted curtains, lead is used as a weight and balance for a wide range of applications. With a relatively high density of 11.29 g/m3, it only takes a little lead to get the job done.
Photographic film
There’s a reason they call it the “silver screen”. Film and photographic paper were among the largest uses of silver over the last two centuries, including cameras, X-Ray images, and photographic prints.
Currency
Silver has been used as a currency and value store for at least 2,000 years. Investing in silver is still common, although it looks very different today, thanks to silver mining stocks, mining ETFs, and hedging silver futures.
Jewellery
Silver’s aesthetic appeal, malleability, durability, and relative scarcity make it appealing for use in fine jewellery. Sterling silver is also used to make cutlery and tableware.
Silver ASX
Humans have been investing in silver for as long as investing has existed. First as a hard currency, value store, and precious metal, and more recently in the form of silver stocks, ETFs and silver futures. Silver’s versatility and value make it appealing to investors of all sizes. From individuals to institutional investors, there is a silver investment strategy to suit all styles.
Silver and sustainability
The renewable energy precious metal Australia’s green energy future depends on silver. Demand for silver in solar panels, electric vehicle components, battery storage and electronics is expected to rise as the world invests in sustainable solutions. What sets Boab Metals Limited apart from other silver mining companies on the ASX Most silver ore in Australia is collected from underground mines. Underground mining is risky, expensive, and labour-intensive. Sorby Hills Project is an open pit mine with established port access on sealed roads, making extracting and transporting the ore safe and economical. The project will also draw renewable energy from the nearby Ord River Hydro Power Station. As we move towards production, Sorby Hills Project is set to become one of the major silver mines in Australia, producing high-grade ore for a sustainable future.
What sets Boab Metals Limited apart from other silver mining companies on the ASX
Most silver ore in Australia is collected from underground mines. Underground mining is risky, expensive, and labour-intensive. Sorby Hills Project is an open pit mine with established port access on sealed roads, making extracting and transporting the ore safe and economical.
The project will also draw renewable energy from the nearby Ord River Hydro Power Station. As we move towards production, Sorby Hills Project is set to become one of the major silver mines in Australia, producing high-grade ore for a sustainable future.
Silver Supply &
Demand
The production and sale of silver is a mature market with silver produced and
refined globally.
Silver Supply
Silver in base metals concentrates, and indeed lead concentrates, is a common form in which silver is extracted and brought to market as a refined product. Silver mine production by source metal is contained in the figure below.
Mined Silver Production by Source Metal in 2021
Source: World Silver Survey 2022
In 2021, global mine silver production was approximately 823 Moz. Mexico was the largest silver producer (197 Moz), followed by China (113 Moz) and Peru (108 Moz). Mined silver production by country/region is contained in the figure below.
Mined Silver Production by Country/Region
Source: World Silver Survey 2022
Silver Demand
The traditional role of silver as a storer of wealth is complemented by increasing industrial demand. Silver is the most conductive metal on earth and its resistance to corrosion makes it ideal for use in solar panels, electrical contacts and printed circuit boards. Industrial demand for silver was forecast in the year 2022 to have increased 6% year on year to a record high level.
In 2021, global silver consumption increased 19% from 2020. U.S. investments in coin and bar silver are the major demand driver as well as industrial demand. Over 55 Mozpa of Silver is used in the electrical connections found in all types of vehicles.
Silver demand by end use is contained in the figure below.
Silver Demand by End Use
Source: World Silver Survey 2022
In the longer term, silver demand is forecast to increase largely due to the increased requirement for photovoltaic cell manufacture. A forecast of Silver Industrial Demand indicators is contained in the figure below.
Silver Demand by End Use
Source: World Silver Survey 2022
