David Wolfin
CEO
Avino Silver & Gold Mines Ltd.
/
Expert Contributor

Positioned for the Green Energy Revolution

By David Wolfin | Fri, 12/17/2021 - 12:53

We see the changes all around us, we hear about it everywhere we go, everywhere we shop, every television program we watch, where we live, and where we work. The concern for the climate is global and leads many conversations today. Additionally, this is the topic that government leaders around the world are attending summits to discuss.

Many countries have set net zero pledges for 2050, which means that over the next 29 years you will see a very large and deliberate global transformation to renewable energy.

At Avino Silver & Gold Mines we share this ambition and have begun implementing modern technologies and techniques that align with this goal and will continue to search for ways to do our part over the coming decades.

Generally, miners will be focusing on cutting greenhouse gas emissions, moving to solar panels, looking for ways to use clean energy and decarbonizing. Some will shift to Battery Electric Vehicles (BEVs) for their mine site vehicles, moving their fleets away from diesel.

What does this green energy revolution mean for Avino and other silver miners? We believe that the green energy revolution is already pointing to an increase in demand for silver, and although other metals will be needed, we think that silver will play a key role. Vehicles, solar panels, electronics and even medicine are just a few of the industrial applications for silver and this list will undoubtedly continue to grow. Look at your desk right now, look at what you drive, what you wear, what recreational toys you have, and the phone(s) you use. Did you ever wonder how these are made and what materials are in them?

Silver is an extremely useful precious metal. It is used in solar technology, electronics, soldering and brazing, engine bearings, medicine, cars, water purification, and jewelry.

Therefore, if by 2050 net zero is to be achieved, then it stands to reason that mining of silver is crucial to the future’s green energy shift. There will be monumental upgrades needed worldwide to power all the electric products that will be in use. Silver and other metals, such as copper, will be in high demand. 

We believe that mining will be the only way to meet this demand. More mines will need to be discovered, permitted, financed, and developed. Discovering a new mine and bringing it into production could take from 10 to 20 years, so this time lag from discovery to production may lead to supply delays, and if supply can’t keep up, this in turn means that prices will go up.

The industrial global demand for silver is real and could see the silver price rise in the near future, with huge demand growth anticipated. Silver miners will benefit as the sheer volume of silver needed to keep up with the demand of electric vehicles alone will be a boon. The stock prices of silver miners should rise as demand for the metal grows and owning the silver producers will be the best leverage to metals.

At Avino, we are exploring and optimizing our operations. With the restart of production and our recent announcement of the acquisition of the nearby La Preciosa property, we are looking to expand and position the company to benefit from the future growth in demand. The acquisition enhances Avino’s consolidated NI 43-101 mineral resources to over 235 million silver equivalent ounces (AgEg) proforma and that adds significance to Avino’s leverage to silver.

The green energy revolution is here and is part of the global awakening for a safer and brighter future. The goals of net zero emissions are admirable, but this can’t be achieved without something to replace the ways of the past. Silver will be a key player in the brighter future, which also means that the mining of silver is absolutely vital right now and moving forward.

At Avino we look forward to playing an important part in the journey toward a greener future.

Photo by:   David Wolfin