New Pacific Metals Corp. (NYSE American: NEWP) (TSX: NUAG) is strategically positioned to meet the increasing global demand for silver, driven by industrial and renewable energy sectors, through its two undeveloped open-pit silver projects in Bolivia. The company's Silver Sand and Carangas projects are among the largest of their kind globally, with the potential to produce nearly 19 million ounces of silver annually once operational.
The Silver Sand project, with a projected annual output of 12 million ounces of silver over a 13-year mine life, boasts a post-tax net present value of US$740 million and an internal rate of return of 37%. Similarly, the Carangas project is expected to produce 6.6 million ounces of silver annually, with additional gold potential at depth. These projects highlight New Pacific's capability to become a leading primary silver producer.
Global silver demand, particularly for industrial applications such as photovoltaic solar panels and electric vehicles, underscores the importance of New Pacific's projects. With industrial uses accounting for 83% of annual silver demand, the company's focus on silver production is timely and critical. The development of these projects could significantly impact the silver market, offering a sustainable supply to meet future demands.
New Pacific's progress in Bolivia's permitting process and the backing by major players in the precious metals market, including Silvercorp Metals and Pan American Silver, further solidify the company's position as a key future supplier of silver. This development is not only crucial for the global silver market but also represents a significant opportunity for Bolivia's mining sector revitalization.
