A New Silver Producer With $25 Million in Cash & Samsung in Its Corner

By Sean Brodrick Reviewed by: Jim Nelson

One of the things I like about the New Orleans Investment Conference is I can stumble onto undiscovered bargains.

For example, I found a silver producer trading at a price-to-net-asset-value (P/NAV) of about 0.46. That’s about half — or less — of more established silver miners.

What’s more, this new producer is ramping up production; it has $25 million in cash and it already has an offtake agreement with Samsung!

I learned all this in my chat with Felix Shafigullin, investor relations manager of Silver Storm Mining (SVRSF, “D-”). It’s a small silver company with very big ambitions.

You can watch my video interview with Felix. 

He’ll tell you more about Silver Storm's plans and what investors should watch as the company expands its production.

Silver Storm is an interesting story because it's transitioning from developing mineral resources to producing silver. 

Now, management aims to accelerate production dramatically in 2027.

The centerpiece of that transformation is the La Parrilla Silver Mine in Durango, Mexico, which Silver Storm acquired from First Majestic Silver (AG, “C+”).

When Silver Storm picked up La Parrilla, it was a past-producing mining complex with existing infrastructure, including underground workings and a processing plant. 

That gave Silver Storm a significant advantage over junior miners that must build their operations from scratch.

Production restarted in the second quarter of 2026, and the company is now ramping up operations. 

Its goal is to reach an annualized production rate of 3 million silver-equivalent ounces by the first quarter of 2027.

And the restart is already delivering results. 

On Nov. 9, Silver Storm reported that La Parrilla had shipped 1,570 dry metric tonnes of lead-silver concentrate and 1,362 tonnes of zinc concentrate through Sept. 30, generating revenue from concentrate sales.

The property currently contains approximately 30 million silver-equivalent ounces in mineral resources. 

If the project is producing 3 million ounces a year, that’s a 10-year mine life.

Importantly, mineralization remains open at depth, meaning additional exploration could expand the resource and potentially extend the mine's productive life.

And La Parrilla is only part of the story.

Silver Storm also controls the San Diego Project, another substantial silver-focused property in Mexico.

This is a large-scale development opportunity with an indicated resource of approximately 55 million silver-equivalent ounces, plus another 155 million silver-equivalent ounces in inferred resources.

That makes San Diego one of the largest undeveloped silver-zinc resources in Mexico.

The company is drilling to expand those resources and advance future underground development. 

San Diego could eventually provide Silver Storm with a second major production source, giving the company room to grow well beyond its initial La Parrilla targets.

Meanwhile, Silver Storm has strengthened its financial position.

The company reports approximately $25 million in cash, with the potential for additional funding as holders exercise warrants that are already in the money.

Silver Storm has also secured an important commercial relationship with Samsung C&T, which has agreed to purchase 100% of La Parrilla's silver and zinc concentrate production during the contractual supply period.

The arrangement also includes a $7 million prepayment financing facility, providing additional financial support as the mine ramps up.

Sure, Silver Storm still needs to demonstrate that it can reach its production targets on schedule, control costs and convert its mineral resources into profitable output.

But with an operating mine, a substantial development pipeline, cash in the bank and a major international offtake partner, Silver Storm has several ingredients that could make it an interesting silver growth story.

All the best, 

Sean Brodrick