Developers Can Outperform Producers in the Silver Cycle, and Why New Pacific Metals Corp. (NYSE American: NEWP) (TSX: NUAG) Is Set to Benefit
Disseminated on behalf of New Pacific Metals Corp. (NYSE American: NEWP) (TSX: NUAG) and includes paid advertisement.
- Global supply deficits and rising industrial demand support a long-term case for higher silver prices, though silver remains historically undervalued in real terms, even after recent price appreciation.
- Development-stage companies can offer superior risk-adjusted returns compared with existing producers.
- New Pacific Metals owns two of the world’s largest undeveloped silver deposits, Silver Sand and Carangas.
- Both projects have demonstrated strong economics in technical studies and could jointly produce nearly 19 million ounces per year when developed.
Investors seeking exposure to silver tend to naturally gravitate toward established producers with healthy margins. Yet history suggests that the strongest risk-adjusted returns often come from a different corner of the sector: development-stage companies advancing large, viable deposits toward production. In the current silver market, characterized by supply shortages, robust industrial demand, and long-term underinvestment, developers such as New Pacific Metals (NYSE American: NEWP) (TSX: NUAG) can often provide a clearer path to value creation than miners already in operation.
A recent analysis of global silver developers argues that the metal remains deeply undervalued when adjusted for inflation (https://nnw.fm/Af530 ). While nominal prices briefly touched record highs above US$53/oz this year, the inflation-adjusted high from 1980 would translate to roughly US$187/oz in today’s dollars. That gap underscores how far silver prices remain from past real levels. Compounding this, the gold-to-silver ratio has hovered near 90–100:1 for most of 2025, far above its historical average of about 60:1. By these measures, silver appears relatively inexpensive against both gold and its own long-term pricing.
The supply side tells a similar story. Global silver demand has outpaced supply for five consecutive years, with a projected deficit of 117–149 million ounces in 2025. Industrial use reached a record 681 million ounces in 2024 and continues to rise, driven by solar manufacturing, electric vehicles and electronics. Yet new silver production has been slow to respond. Ore grades have declined more than 50% since 2007, costs of development have risen and output in countries such as the United States, Canada and Australia has fallen sharply from early-2000s levels.
These conditions create an environment where higher silver prices are needed to incentivize new supply. They also highlight an important structural point: most silver is produced as a by-product of mining for other metals. As a result, even substantial increases in silver prices do not necessarily trigger new silver production from existing mines. The shortage of large, undeveloped primary silver projects has become increasingly apparent.
This is where developers, companies with defined deposits advancing toward feasibility, permitting and financing, can offer advantages. They have already completed the highest-risk stage of mining: discovery. Only about one in 1,000 exploration projects becomes an economic deposit. Developers are the survivors of that process, moving through technical studies that determine how and when a project could be built.
Developers often trade at low valuations in the mid-stage “valley” between discovery excitement and the start of construction. During this period, investor attention frequently shifts toward producers with immediate cash flow, leaving development companies undervalued relative to the intrinsic worth of their assets. As developers de-risk their projects, secure permits and publish feasibility studies, value tends to accrete steadily, often sharply as construction nears. Rising metal prices amplify this effect: because a developer’s cost assumptions are fixed in economic models, higher silver prices can dramatically increase project net present value.
Against this backdrop, Canadian exploration and development company New Pacific Metals stands out. The company owns two of the world’s largest undeveloped open-pittable silver deposits, Silver Sand and Carangas. Technical studies published last year showed solid economics for both assets. While neither project is currently producing, their potential combined output, nearly 19 million ounces of silver annually, would exceed that of many established silver companies.
The Silver Sand project is among the most advanced large-scale silver developments globally, with near-surface mineralization suitable for open-pit mining. Carangas offers a different profile: a broad, near-surface silver zone underlain by a substantial gold system, adding optionality in future expansions. The substantial scale of both projects places New Pacific in a rare category: a developer with multiple large deposits capable of supporting long-term production.
The jurisdiction is not without challenges. Bolivia has historically presented complex regulatory and political environments for mining companies, while ranking among the top global silver producers. However, a recent political shift spells good news for the mining sector and New Pacific’s established presence in the country. The inauguration of President Rodrigo Paz last month has reordered the country’s political and economic priorities. Paz outlined a reformist agenda built on “positioning Bolivia in the world,” promoting what he described as “capitalism for everyone,” reducing state bureaucracy, and empowering regional governments, while signaling more collaborative relations with foreign investors.
Meanwhile, structural factors continue to favor higher long-term silver prices. Global solar demand is expected to absorb more than 20% of total silver supply in 2025, up from 10% in 2020. Critical minerals policies in the United States, Canada and Australia are encouraging development of domestic mining capacity, while Chinese production and processing still dominate the global supply chain. As countries push for supply security, large deposits in stable corporate structures become more important.
For investors assessing how to position for the next phase of the silver cycle, the argument for development-stage companies is rooted in timing, scarcity and leverage. Developers offer relatively predictable costs, rising project value as feasibility progresses and significant upside if silver prices continue climbing from historically undervalued real levels. New Pacific Metals sits squarely within that value-creation window. If silver continues moving toward a price level that incentivizes new supply, development-stage assets of this scale may become increasingly central to the sector’s future.
For more information, visit the company’s website at NewPacificMetals.com/welcome.
NOTE TO INVESTORS: The latest news and updates relating to NEWP are available in the company’s newsroom at https://nnw.fm/NEWP
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or republished: http://NNW.fm/Disclaimer
Disseminated on behalf of New Pacific Metals Corp. (NYSE American: NEWP) (TSX: NUAG) and includes paid advertisement.
- Global supply deficits and rising industrial demand support a long-term case for higher silver prices, though silver remains historically undervalued in real terms, even after recent price appreciation.
- Development-stage companies can offer superior risk-adjusted returns compared with existing producers.
- New Pacific Metals owns two of the world’s largest undeveloped silver deposits, Silver Sand and Carangas.
- Both projects have demonstrated strong economics in technical studies and could jointly produce nearly 19 million ounces per year when developed.
Investors seeking exposure to silver tend to naturally gravitate toward established producers with healthy margins. Yet history suggests that the strongest risk-adjusted returns often come from a different corner of the sector: development-stage companies advancing large, viable deposits toward production. In the current silver market, characterized by supply shortages, robust industrial demand, and long-term underinvestment, developers such as New Pacific Metals (NYSE American: NEWP) (TSX: NUAG) can often provide a clearer path to value creation than miners already in operation.
A recent analysis of global silver developers argues that the metal remains deeply undervalued when adjusted for inflation (https://nnw.fm/Af530 ). While nominal prices briefly touched record highs above US$53/oz this year, the inflation-adjusted high from 1980 would translate to roughly US$187/oz in today’s dollars. That gap underscores how far silver prices remain from past real levels. Compounding this, the gold-to-silver ratio has hovered near 90–100:1 for most of 2025, far above its historical average of about 60:1. By these measures, silver appears relatively inexpensive against both gold and its own long-term pricing.
The supply side tells a similar story. Global silver demand has outpaced supply for five consecutive years, with a projected deficit of 117–149 million ounces in 2025. Industrial use reached a record 681 million ounces in 2024 and continues to rise, driven by solar manufacturing, electric vehicles and electronics. Yet new silver production has been slow to respond. Ore grades have declined more than 50% since 2007, costs of development have risen and output in countries such as the United States, Canada and Australia has fallen sharply from early-2000s levels.
These conditions create an environment where higher silver prices are needed to incentivize new supply. They also highlight an important structural point: most silver is produced as a by-product of mining for other metals. As a result, even substantial increases in silver prices do not necessarily trigger new silver production from existing mines. The shortage of large, undeveloped primary silver projects has become increasingly apparent.
This is where developers, companies with defined deposits advancing toward feasibility, permitting and financing, can offer advantages. They have already completed the highest-risk stage of mining: discovery. Only about one in 1,000 exploration projects becomes an economic deposit. Developers are the survivors of that process, moving through technical studies that determine how and when a project could be built.
Developers often trade at low valuations in the mid-stage “valley” between discovery excitement and the start of construction. During this period, investor attention frequently shifts toward producers with immediate cash flow, leaving development companies undervalued relative to the intrinsic worth of their assets. As developers de-risk their projects, secure permits and publish feasibility studies, value tends to accrete steadily, often sharply as construction nears. Rising metal prices amplify this effect: because a developer’s cost assumptions are fixed in economic models, higher silver prices can dramatically increase project net present value.
Against this backdrop, Canadian exploration and development company New Pacific Metals stands out. The company owns two of the world’s largest undeveloped open-pittable silver deposits, Silver Sand and Carangas. Technical studies published last year showed solid economics for both assets. While neither project is currently producing, their potential combined output, nearly 19 million ounces of silver annually, would exceed that of many established silver companies.
The Silver Sand project is among the most advanced large-scale silver developments globally, with near-surface mineralization suitable for open-pit mining. Carangas offers a different profile: a broad, near-surface silver zone underlain by a substantial gold system, adding optionality in future expansions. The substantial scale of both projects places New Pacific in a rare category: a developer with multiple large deposits capable of supporting long-term production.
The jurisdiction is not without challenges. Bolivia has historically presented complex regulatory and political environments for mining companies, while ranking among the top global silver producers. However, a recent political shift spells good news for the mining sector and New Pacific’s established presence in the country. The inauguration of President Rodrigo Paz last month has reordered the country’s political and economic priorities. Paz outlined a reformist agenda built on “positioning Bolivia in the world,” promoting what he described as “capitalism for everyone,” reducing state bureaucracy, and empowering regional governments, while signaling more collaborative relations with foreign investors.
Meanwhile, structural factors continue to favor higher long-term silver prices. Global solar demand is expected to absorb more than 20% of total silver supply in 2025, up from 10% in 2020. Critical minerals policies in the United States, Canada and Australia are encouraging development of domestic mining capacity, while Chinese production and processing still dominate the global supply chain. As countries push for supply security, large deposits in stable corporate structures become more important.
For investors assessing how to position for the next phase of the silver cycle, the argument for development-stage companies is rooted in timing, scarcity and leverage. Developers offer relatively predictable costs, rising project value as feasibility progresses and significant upside if silver prices continue climbing from historically undervalued real levels. New Pacific Metals sits squarely within that value-creation window. If silver continues moving toward a price level that incentivizes new supply, development-stage assets of this scale may become increasingly central to the sector’s future.
For more information, visit the company’s website at NewPacificMetals.com/welcome.
NOTE TO INVESTORS: The latest news and updates relating to NEWP are available in the company’s newsroom at https://nnw.fm/NEWP
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or republished: http://NNW.fm/Disclaimer
