Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) is a mineral exploration company concentrated on advancing its 100%-held Kitsault Valley Project in British Columbia's Golden Triangle. According to the company, " the project hosts a high-grade mineral resource of silver and gold and is considered prospective for hosting further precious metal deposits."
Why Silver?
In the unprecedented times that have been the past few years, investors have been putting their faith in precious metals, and silver seems to stand the test of time.
People trust silver more than other less tangible investment opportunities; as such, silver has been a widely appreciated commodity in the investment world.
According to Business Insider, "Silver is seen as a safe haven investment in uncertain times, a hedge against inflation and stocks."
This precious metal has been on the rise over the past few years, and Dolly Varden Silver Corp. is reaping the benefits.
Analyst and Newsletter Coverage
The mineral exploration company has had a myriad of coverage for years, and a positive outlook is customary.
In January, Rick Mills of Ahead of the Herd listed Dolly Varden as one of his top seven picks for 2022. In this, he said, the Kitsault Valley project would "benefit from synergies when developed into a mine." It seems the company has not disappointed.
Analysts Stuart McDougall of Research Capital has been a fan of the company for a while now. In a Feburary 27, 2022 report, he reiterated his Speculative Buy rating in light of the company completing its acquisition at Homestake Ridge.
Mark Reichman of Noble Capital Partners reported these results, giving the company an outperform rating and a CA$0.70 target price on November 23, which Dolly Varden has already surpassed.
Dr. Geordie Mark of Haywood has also been covering the company.
"We see multifaceted opportunities for Dolly Varden [Silver], which has clear value accretion and rerating equity potential over the near to midterm on drill bit and other related news," he wrote in an October 21 report.
Then on November 7, Mark wrote, "we see significant growth potential around the Kitsol vein and a similarly oriented epithermal vein system to the north (e.g.,) Wolf, which, with the 2022 exploration data, elevate the understanding of geological controls and potential continuity of precious metals mineralization on the project area."
You can click "See More Live Data" in the data box above to view more of what these three are saying.
New Drill Results
Dolly Varden has also been in the news repeatedly with compelling results.
On November 21, 2022, the company announced it " had dramatically extended the limits of silver mineralization at the Wolf vein through wide-spaced stepout drilling."
Haywood Capital Markets took it further and gave the company a Buy rating and a CA$1.60 target price.
Mark Reichman of Noble Capital Partners reported these results, giving the company an outperform rating and a CA$0.70 target price on November 23, which Dolly Varden has already surpassed.
Haywood Capital Markets took it further and gave the company a Buy rating and a CA$1.60 target price.
Highlights of this included:
- DV22-311: 412 g/t Ag over 12.80 meters, including 2.15 meters, grading 1,646 g/t Ag, 2.38% lead, 3.10% zinc, and 0.10 g/t Au;
- DV22-316: 551 g/t Ag over 9.80 meters, including 3.60 meters, grading 1,049 g/t Ag, 1.19% lead, and 0.29% zinc.
On November 29, 2022, the company reported new drill results at its Homestake property.
Shawn Khunkhun, the president and chief executive officer of Dolly Varden, commented that "Our 2022 drill program has truly been exceptional.
The recently acquired Homestake Ridge deposit has delivered more high-grade gold and silver values, commonly with strong copper mineralization."
Two notable holes were:
- HR22-328: 75.13 grams per ton gold (75.13 g/t Au), 2,337 g/t silver (Ag) and 0.23% copper (Cu) over 1.77 meters (1.77m) starting about 163m downhole, followed shortly after by 216 g/t Au, 113 g/t Ag and 0.48% Cu over 0.5m
- HR22-330: 54.1 g/t Au, 4,890 g/t Ag and 0.11% Cu over 0.39m starting 112m downhole, followed shortly after by two closely spaced intervals averaging 74.8 g/t Au and 20 g/t Ag over 0.39m and 33.8 g/t Au and 14 g/t Ag over 0.81m
Analyst Believes Now is the Time to Buy
In light of the results, analysts Stuart McDougall commented that "the update follows ones from the adjoining Dolly Varden claims and, in our view, demonstrates equally compelling high-grade potential."
Dr. Geordie Mark said, "We believe that now is the right time for leverage in precious metals through investment in Dolly Varden.
After this, McDougall reiterated that he is maintaining his Speculative Buy rating and CA$1.35 target price.
Dr. Geordie Mark said, "We believe that now is the right time for leverage in precious metals through investment in Dolly Varden Silver due to the collective asset position now held on the Kitsault Valley Project area and the upside potential being germinated through the 2022 exploration program via drilling and maturation of system genesis insight for future targeting."
Ownership and Share Structure
According to Reuters, Fury Gold Mines Ltd. (FURY-T) is the largest shareholder owning 25.80%, with 59.50 million shares. Other top shareholders include 2176423 Ontario, Ltd., which owns 11.11% at 25.63 million shares, Hecla Mining Co. (HL:NYSE), which has 10.71% with 24.71 million shares, and Sprott Asset Management LP., which has 5.15% at 11.87 million shares.
Dolly Varden Silver has a market cap of CA$193.71 million and 230.61 million shares outstanding, of which 119.42 million are free floating. It trades in the 52-week range between CA$0.40 and CA$0.88.
Want to be the first to know about interesting Silver investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.
Subscribe
Disclosures:
1) Katherine DeGilio wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Dolly Varden Silver Corp. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dolly Varden Silver Corp., a company mentioned in this article.
