The prices of precious metals (gold and silver) have experienced slight pull back in recent months.

For many, particularly leveraged early stage stocks, this suggests a likely return to form in the early months of 2021.

This is especially true for silver stocks, as analysts believe the price of silver is poised to run hot next year.

According to Kitco analyst Peter Hug, “Once industrial demand picks up, more tailwinds for silver will push the metal closer to the $35 to $40 an ounce range next year.”

Thomson Resources (ASX:TMZ) could be positioned to capitalise on this precious metal resurgence, with an existing Gold portfolio and the pending acquisition of two silver assets.

Thomson is a NSW focused explorer, set to acquire 100% of two transformational silver assets in the first months of 2021, with due diligence to be completed in January.

The Webbs Project is Australia’s highest grade undeveloped silver asset and will be complemented by the Conrad Silver Project.

Historical workings show Conrad has a very large “in ground value”; one which the previous owner demonstrated to have value of almost one billion dollars.

Both projects have seen historic silver production and have a resource defined compliant with the JORC Code 2004 as follows:

• Webbs: 1.5Mt @ 345g/t Ag Eq – 16.5 million ounces Ag Eq
• Conrad: 2.65Mt @ 206g/t Ag Eq – 17.5 million ounces Ag Eq

Both silver projects are located in the New England Fold belt in NSW and combined, equate to an acquisition of over 30 million ounces of silver equivalent resources.

The projects will be acquired from the $207M capped Silver Mines Ltd (ASX: SVL), and as part of the acquisition, Silver Mines will hold ~ 19% of the issued shares of TMZ, which will be escrowed for 12 months. Silver Mines Managing Director Anthony McClure will take a board seat as a Non Exec Director.

The company is aiming to start aggressively expanding its silver resource base over the coming months, both organically and via acquisitions.

There is an experienced management team driving this agenda and it has been strengthened by the engagement of Global Ore Discovery, led by Stephen Nano.

Global Ore is assisting with running the due diligence process of on the silver assets and has a history of silver project generations that lead to takeovers.

Thomson stacks up

Thomson has a $30M market cap, and recently raised $6M, so appears well funded for near term exploration.

With the early stage nature of TMZ’s silver ambitions, the company is provided significant leverage to this metal heading into 2021, and compares favourably with other ASX listed silver stocks.

Its closets peer is Investigator Resources (ASX: IVR), which is currently capped at $63M. IVR’s South Australian Paris Silver Project has a resource of 9.3 million tonnes at an average 139 grams per tonne of silver and 0.6% lead for a contained 42 million ounces of silver and 55,000t of lead.

Thomson’s peers also provide a pathway to growth, favourably indicating how the market values silver ounces in the ground.

The company seems severely undervalued compared to its peers on a market cap vs silver grade basis, however once the transaction is completed and resource inventory grows, TMZ is expected to catch up.

Aside from silver, Thomson has a number of quality intrusion related gold systems in NSW and Queensland, where it is undertaking extensive rolling drilling programs that build on previous high grade results.

Silver, with a side of gold

 It is clear that Thomson exhibits ample upside moving into the new year.

TMZ is focused on building a strong silver resource base in 2021, whilst being supported by existing gold assets.

In the coming weeks, the company is set to complete its due diligence to acquire high grade, undeveloped silver assets, with the acquisition to be completed early in 2021.

Minbos Resources Limited (ASX: MNB) last week announced a Memorandum of Understanding (MOU) with the International Fertilizer Development Centre (IDFC), which will work to develop and grow the Small Holder Farmer market in Angola.

The IFDC is an international non-for-profit organisation, dedicated to scientific innovations that increase global food production, protect the environment and empower Small Holder Farmers.

The organisation strives to improve the lives and productivity of Small Holder Farmers, and does so through running country-scale agricultural projects across Africa. These projects introduce farmers to improved agricultural practises, fertiliser technologies and facilitation of market access.

As crop yields grow in Sub-Saharan Africa, so too does the demand for key ingredients of food production such as fertiliser.

A severe demand for reliable sources of fertiliser is imminent, with fertiliser consumption expected to almost double in the next 10 years in Africa.

Minbos has worked in partnership with the IFDC for several years, most notably to help develop the company’s Cabinda Phosphate Product, which included developing market demand in one of the most prospective fertiliser regions globally.

Developing food security in Africa

Minbos is building a nutrient supply and distribution business that stimulates food security in Angola and the broader Congo Basin.

This project has the potential to impact the whole country by boosting fertiliser production and food security.

Indeed, the new MOA with IFDC provides the platform to develop a joint proposal for a multi-year project designed to support the development of the local fertiliser market in Angola.

Angola is one of the world’s great untouched agricultural regions, possessing over 35 million hectares of arable land, high rainfall and some of the lowest rates of fertiliser use globally.

Minbos hopes to leverage the IFDC’s innovative research and market expertise to identify sustainable solutions for soil and plant nutrition for the benefit of Small Holder Farmers, local communities and the environment.

Utilising strategic partners, the IFDC works with national and private parties to create or expand Small Holder fertiliser demand in parts of Angola.

Productivity gains are predicted to cause marketable crop surpluses, encouraging additional farmer investment in fertilisers.

More than four million Small Holder Farmers are expected to be reached by the IFDC Angola project, which will be underpinned by Minbos’ fertiliser production.

The Cabinda Phosphate Project will commence production at 50,000tpa.

Given the large Small Holder Farmer market in Angola and the IFDC’s strong record of delivering high-impact projects which boost fertiliser usage, demand is expected to exceed the nameplate capacity of 150,000tpa.

Commenting on the MOU, Minbos CEO Lindsay Reed said, “As the Company looks to enter production in early 2022, securing market offtake through a program that unlocks value for local Small Holder Farmers and government stakeholders, as well as Minbos shareholders, is key to our successful collaboration.

“This first step in developing a project to establish a new market in Angola marks another milestone for Minbos as we look towards production in early 2022.”