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Dolly Varden's Becoming a Silver Unicorn with CEO Shawn Khunkhun · Financial Survival Network

• 0:00
  Speaker 1: What makes Dolly Varden what I describe as a unicorn,
• 0:03
  Speaker 1: a silver unicorn, is the fact that where the project
• 0:06
  Speaker 1: is located. You know, Mexico and Peru are the number
• 0:10
  Speaker 1: one and two silver producing nations on planet Earth. That's
• 0:15
  Speaker 1: where most silver comps. So what makes our projects so special.
• 0:18
  Speaker 1: We have one hundred thousand hactors of prospective ground.
• 0:23
  Speaker 2: Carrie.
• 0:24
  Speaker 1: As this bull market matures, you're not going to be
• 0:26
  Speaker 1: able to get these types of projects. The Financial Survival
• 0:30
  Speaker 1: Network now more than network, the Financial Survival Network.
• 0:39
  Speaker 2: Welcome. This is Financial Survival Network and I'm your host,
• 0:44
  Speaker 2: Carrie Lets. We have a major sponsor update from Sean
• 0:47
  Speaker 2: kun Kuhn, CEO of Dolly Varden Silver and Well, Sewan,
• 0:54
  Speaker 2: I don't know how you've kept still for the past month.
• 0:58
  Speaker 2: I mean when I look at what you've done, and
• 1:00
  Speaker 2: you got the New York American listing which is paid
• 1:05
  Speaker 2: major dividends, stocks up, you got three acquisitions under your belt,
• 1:10
  Speaker 2: you just did a over subscribe financing, and you got
• 1:16
  Speaker 2: a thirty five thousand drill planned that's starting to get executed.
• 1:24
  Speaker 2: Just those are the highlights. I'm sure there's a lot
• 1:26
  Speaker 2: more going on behind the scenes here, but why don't
• 1:29
  Speaker 2: you tell us, like what's going on?
• 1:32
  Speaker 1: Yeah, no, thank you so much, thanks for having me on.
• 1:36
  Speaker 1: As we were saying before we hit record, I've got
• 1:38
  Speaker 1: a great team and a very very very strong technical
• 1:43
  Speaker 1: team and had a great CFO. And you know, look,
• 1:48
  Speaker 1: Dolly Varden, for any of your audience who is new
• 1:53
  Speaker 1: of tuning in for the first time, the company is
• 1:59
  Speaker 1: what I would describe as a bit of a unicorn
• 2:01
  Speaker 1: in that there's only a handful of silver companies. You know,
• 2:05
  Speaker 1: if you talk about the uplisting to the NYC American,
• 2:08
  Speaker 1: there may be ten companies on the New York Sock
• 2:12
  Speaker 1: Exchange that are giving investors exposure to silver. Now Dolly
• 2:16
  Speaker 1: Varden is one of them, but that's a rare group,
• 2:20
  Speaker 1: only ten. And then what makes Dolly Varden what I
• 2:25
  Speaker 1: describe as a unicorn a silver unicorn is the fact
• 2:28
  Speaker 1: that where the project is located. You know, Mexico and
• 2:32
  Speaker 1: Peru are they're number one and two silver producing nations
• 2:37
  Speaker 1: on planet Earth. That's where most silver comes. There's a
• 2:40
  Speaker 1: big mine in Poland that silver is produced as a byproduct,
• 2:44
  Speaker 1: and most of silver commes as a byproduct. So what
• 2:47
  Speaker 1: makes our projects so special? What I've done over the
• 2:50
  Speaker 1: last couple of months is I've taken We've got a
• 2:54
  Speaker 1: really strong resource base, Okay, about one hundred and fifty
• 2:57
  Speaker 1: million ounces of silver equivalent half silver half gold, past
• 3:02
  Speaker 1: producing mines in a prolific mining camp. And we've systematically
• 3:07
  Speaker 1: gone out after going on to the New York Sock
• 3:10
  Speaker 1: Exchange and after having some US investors come into the
• 3:13
  Speaker 1: stock pushing the valuation up. We then use that stock
• 3:17
  Speaker 1: as currency, and we've gone out. And there's Carrie, you
• 3:21
  Speaker 1: know this better than anybody. There's a lot of juniors
• 3:24
  Speaker 1: that are still struggling intrementously, and so those juniors that
• 3:30
  Speaker 1: are have no bid, have no capital. We've gone to
• 3:33
  Speaker 1: those juniors and we've bought their silver projects in the
• 3:37
  Speaker 1: neighborhood in the Golden Triangle, and we've cut really good
• 3:40
  Speaker 1: deals for our shareholders. So what we did we started
• 3:43
  Speaker 1: in April with fifteen thousand hectors of prospective ground with
• 3:48
  Speaker 1: two past producing mines. I stand here today in June,
• 3:52
  Speaker 1: and today we have one hundred thousand hectors of prospective ground. Carrie,
• 3:59
  Speaker 1: as this bullmark it matures, you're not going to be
• 4:01
  Speaker 1: able to get these types of projects like Forget what
• 4:04
  Speaker 1: we paid for them, you just won't be able to
• 4:06
  Speaker 1: get them for any cost. And the fact that we
• 4:10
  Speaker 1: also picked up three pass producing historic some of the
• 4:13
  Speaker 1: highest grade the highest grade silver mine in the Golden Triangle.
• 4:16
  Speaker 1: And the fact that we did all this, you know,
• 4:19
  Speaker 1: we grew by over six and a half times, and
• 4:22
  Speaker 1: we grew with these three pass producing mindes. We did
• 4:25
  Speaker 1: all this for two percent dilution, not a stitch of cash,
• 4:31
  Speaker 1: and for two percent dilution. And if you look back
• 4:35
  Speaker 1: of when we executed these transactions, the silver to gold
• 4:38
  Speaker 1: ratio was one hundred to one. Today it's ninety. And
• 4:43
  Speaker 1: we just launched on the NYC American on the back
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  Speaker 1: of a lot of good results from the twenty twenty
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  Speaker 1: four droll campaign that were coming out in Q one,
• 4:53
  Speaker 1: and we went out and now the market's caught a
• 4:56
  Speaker 1: bid in the last thirty days. But before it caught
• 4:59
  Speaker 1: a bid, we close the transactions. And then on the
• 5:03
  Speaker 1: back of that, we put up a deal and we
• 5:07
  Speaker 1: raised twenty eight point seventy five million dollars at the
• 5:12
  Speaker 1: highest price the company's ever raised money in the history
• 5:15
  Speaker 1: of the company. So we doubled our treasury and again
• 5:19
  Speaker 1: we've done something We've been so fortunate. We've had great shareholders,
• 5:23
  Speaker 1: we've had good results, and we've been very fortunate. Carrie.
• 5:27
  Speaker 1: We're a junior in a tough environment that has yet
• 5:31
  Speaker 1: to do a down round of financing, including this last one.
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  Speaker 2: Well, that is an accomplishment, and you know, it's amazing. You've,
• 5:40
  Speaker 2: you know, more than sixfold increased your land package. And honestly,
• 5:46
  Speaker 2: the stock's doing great. But I don't think the market
• 5:49
  Speaker 2: really has any understanding of this company, or a minimal
• 5:53
  Speaker 2: understanding other than the fact that it's gone up.
• 5:57
  Speaker 1: The market does not understand and yet because what's happened.
• 6:02
  Speaker 1: And I've got a list of companies I track that
• 6:05
  Speaker 1: are silver equities. And as I go through the list,
• 6:10
  Speaker 1: the biggest producers, Okay, this is your your core, your
• 6:15
  Speaker 1: Pan American, your first majestic, Your biggest producers are trading
• 6:20
  Speaker 1: at fifty two week highs. Okay, not all time highs,
• 6:25
  Speaker 1: but fifty two week hihs okay. But apart from your
• 6:29
  Speaker 1: ten primary producers, the big ones, the subcategory, so these
• 6:36
  Speaker 1: are your small producers and your advanced explorers, your juniors,
• 6:40
  Speaker 1: they're not they're trading at you know, sort of the
• 6:43
  Speaker 1: halfway point in terms of their fifty two week low
• 6:46
  Speaker 1: and high, and that tells me that the mark has
• 6:50
  Speaker 1: not come down. So we've got a really good gold price,
• 6:53
  Speaker 1: you know, almost at a record all time high. We've
• 6:56
  Speaker 1: got large gold equities that have been given love because
• 7:00
  Speaker 1: you've got companies like Egnico Eagle, the world's largest publicly
• 7:06
  Speaker 1: traded gold producer, that's got three hundred million dollars a
• 7:12
  Speaker 1: month in free cash flow a month, not a quarter,
• 7:14
  Speaker 1: not a year, a month. We're starting to hear some
• 7:17
  Speaker 1: numbers out of gold companies that rival where some of
• 7:21
  Speaker 1: the big banks were before the GFC. The gold stocks
• 7:25
  Speaker 1: are the new bank stocks, okay. And and for the
• 7:29
  Speaker 1: younger audience, the silver companies are going to be companies
• 7:34
  Speaker 1: like Navidio and like tech sooks. That's that's where we're headed.
• 7:37
  Speaker 1: We're not there yet. It's early days. It's stay one.
• 7:40
  Speaker 1: But my point is the market, like to your point, No,
• 7:43
  Speaker 1: the market is not crediting any of this stuff yet.
• 7:47
  Speaker 1: It's still early days, and it shouldn't be considering there's
• 7:54
  Speaker 1: only been two times in recorded history where silver has
• 7:57
  Speaker 1: been up at this price level. This is the third
• 8:00
  Speaker 1: time in history where silver's been here it's actually never
• 8:03
  Speaker 1: closed a year above thirty five dollars sounds.
• 8:07
  Speaker 2: I know, it's remarkable. And I read an article quite
• 8:11
  Speaker 2: a while ago that Eric Sprott would be the next
• 8:13
  Speaker 2: Elon Musk when the inevitable silver and gold bull markets
• 8:18
  Speaker 2: and as well as base metals copper nickel takes off.
• 8:24
  Speaker 2: And hey, one day I'm going to collect on a
• 8:28
  Speaker 2: bet somebody who told me I was nuts and didn't
• 8:31
  Speaker 2: know what I was talking about.
• 8:33
  Speaker 1: Well, if Eric's Elon, I hope to be Mark Zuckerberg.
• 8:37
  Speaker 2: You'll sell, Okay, So getting do the brass tax here
• 8:43
  Speaker 2: or gold gold or silver tax thirty five thou meters.
• 8:49
  Speaker 2: That's that's locked in. Or do you think you'll go
• 8:51
  Speaker 2: higher than that?
• 8:52
  Speaker 1: Well, we're going a lot higher. We're going a lot higher.
• 8:55
  Speaker 1: And I'm just looking. I'm a process guy, a results
• 9:00
  Speaker 1: I'm a data guy, right, So it's got to be
• 9:02
  Speaker 1: data driven and it's got to be process driven. But
• 9:06
  Speaker 1: there's Look, there's a reason that I took that money,
• 9:12
  Speaker 1: and again we took it from Eric Sprott, we took
• 9:14
  Speaker 1: it from our big shareholders. But I want to be
• 9:16
  Speaker 1: in a position where if the data suggests to go
• 9:22
  Speaker 1: and be more aggressive we do it, and so I
• 9:26
  Speaker 1: would like to see another twenty thousand meters added to
• 9:29
  Speaker 1: this drill program if the data supports it, and it
• 9:35
  Speaker 1: would be the biggest program in the company's history.
• 9:38
  Speaker 2: And you got four drills turning right right now.
• 9:42
  Speaker 1: I got four rigs going. They've been going for a month. Well,
• 9:45
  Speaker 1: actually we started with two rigs on May fifteenth. We
• 9:48
  Speaker 1: brought it in another two at the end of May.
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  Speaker 1: We've had so we've had four rigs turning for a
• 9:53
  Speaker 1: couple of weeks. We've completed about six thousand meters of
• 9:56
  Speaker 1: drilling so far. And we should be in a place.
• 10:02
  Speaker 1: Are you going to be at the Rule symposium in Boca?
• 10:05
  Speaker 2: Absolutely, yes, I will be there out there. Please I'll
• 10:10
  Speaker 2: put a link in the show notes here. Please join
• 10:13
  Speaker 2: Sean and I and many others and Rick. It's always
• 10:17
  Speaker 2: a great event and you want to be there, especially
• 10:21
  Speaker 2: if you're interested in the Dolly Vard.
• 10:24
  Speaker 1: That's right, yeah, no, it's we've seen it. We're in
• 10:27
  Speaker 1: a really good place with the labs right now, good
• 10:29
  Speaker 1: turnaround times. It's early in the season. We got out there.
• 10:33
  Speaker 1: We're one of the first drollers in the district, so
• 10:36
  Speaker 1: you know we'll be ahead of the line.
• 10:38
  Speaker 2: So the acquisitions, you have three of them. Forget me
• 10:44
  Speaker 2: if I don't pronounce them exactly right, Kinskooch Quarter project,
• 10:49
  Speaker 2: and you bought the MTB Metals portfolio, so you alluded
• 10:53
  Speaker 2: to that a while ago that you know, barely any
• 10:57
  Speaker 2: dilution for these acquisitions two percent. That kind of fills
• 11:02
  Speaker 2: in some other holes, some other gaps in the Lamb package.
• 11:07
  Speaker 1: Well, look, I'll tell you the rationale behind the move.
• 11:10
  Speaker 1: So kins Coach, which is a big piece of ground
• 11:14
  Speaker 1: that our largest shareholder, Hackla controls, was a project that's
• 11:19
  Speaker 1: contiguous to our land package, and it was a deal where,
• 11:25
  Speaker 1: you know, for five million dollars in stock, our largest
• 11:28
  Speaker 1: shareholder became an even larger shareholder. So they are now
• 11:31
  Speaker 1: owned fifteen percent. The first twelve and a half percent
• 11:34
  Speaker 1: they owned came through them writing checks into the company,
• 11:39
  Speaker 1: buying equity. The last two percent came through this property divestment.
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  Speaker 1: But they are intrusting our scientists who've proven that they're
• 11:51
  Speaker 1: through the studying of all the geochemistry and all the
• 11:58
  Speaker 1: geophysics and the structural geology and the whole historic mining,
• 12:02
  Speaker 1: have been able to find new silver mines on the
• 12:05
  Speaker 1: property and so HECKL has entrusted our scientists to advance
• 12:10
  Speaker 1: their project, which is a big sign of confidence from
• 12:13
  Speaker 1: America's number one silver producer, the longest, one of the
• 12:17
  Speaker 1: longest listed companies on the NYC. And then the other
• 12:21
  Speaker 1: two transactions were tiny transactions. You know, they totaled a
• 12:29
  Speaker 1: total of about three million dollars, So it all in
• 12:32
  Speaker 1: is an eight million dollars in stock for a company
• 12:35
  Speaker 1: that's got a four hundred million dollar valuation, very very
• 12:38
  Speaker 1: minimal dilution. The other transactions, the straight point transactions. We
• 12:42
  Speaker 1: brought in the Porter Idaho and I think you'll appreciate this,
• 12:47
  Speaker 1: Carrie Dolly Varden today is trading at two dollars an
• 12:51
  Speaker 1: ounce in the ground. We bought Porter Idaho for eight
• 12:55
  Speaker 1: and a half cents in the ground. That's in a
• 12:58
  Speaker 1: creative deal. That's a deal for shareholders. That's a deal
• 13:01
  Speaker 1: where you know, we're taking advantage of the disparity between
• 13:05
  Speaker 1: the larger advanced explorers and the juniors, right, And that's
• 13:09
  Speaker 1: an accreative deal. So that's a deal you do all
• 13:12
  Speaker 1: day long when you could use two dollars announced valuation
• 13:15
  Speaker 1: and buy it an under ten cents. So that's a
• 13:17
  Speaker 1: Smart deal and then the Mountain Boy deal. You know,
• 13:21
  Speaker 1: when we did the deal with Fury and bought Homesteak,
• 13:24
  Speaker 1: Mountain Boys got a really fantastic project called THEA that's
• 13:29
  Speaker 1: contiguous to Homesteak, and we have held off on advancing
• 13:37
  Speaker 1: Homesteak North because we didn't own THEA. And there's some
• 13:43
  Speaker 1: big numbers that the Thea's got, really really big silver numbers.
• 13:47
  Speaker 1: But the whole Mountain Boy portfolio, this is a company
• 13:50
  Speaker 1: that was trading up at sixty seventy million dollar valuation.
• 13:54
  Speaker 1: We bought their whole portfolio for under two million dollars.
• 13:58
  Speaker 2: Interesting going back to kN Skotch is that HECLA effectively
• 14:04
  Speaker 2: outsourced their exploration to you, right, taking a bigger piece
• 14:10
  Speaker 2: of the company. But effectively they're saying that Dolly Varden
• 14:14
  Speaker 2: can do the job better than we can in house.
• 14:18
  Speaker 1: Your word's not mine.
• 14:21
  Speaker 2: Well, through an untrained observer, unsophisticated observer, that's the conclusion
• 14:27
  Speaker 2: that you would reach because they got this land, that
• 14:30
  Speaker 2: they're in the silver business, they've been in it for
• 14:33
  Speaker 2: over one hundred years, and yet they're saying, well, Sean,
• 14:38
  Speaker 2: you take a crack at this.
• 14:40
  Speaker 1: Well, we wouldn't be here if it wasn't for Hacklaw
• 14:44
  Speaker 1: under their previous management, their CEO, Phil Baker. Phil was
• 14:48
  Speaker 1: our biggest advocate supporter funder lead order, great visionary, built
• 14:54
  Speaker 1: a great company there, and I'm really grateful for that support.
• 14:59
  Speaker 1: I think I think now that Heckla is under new management,
• 15:04
  Speaker 1: it's a really exciting time there because they're looking at
• 15:08
  Speaker 1: really you know, focusing on their existing operations, and I
• 15:15
  Speaker 1: think in that moment, there's an opportunity for Dolly Varden
• 15:19
  Speaker 1: to play a role in helping streamline the advancement of
• 15:26
  Speaker 1: this area. We could focus, we could take the lead,
• 15:29
  Speaker 1: and I think it was a win win deal for
• 15:31
  Speaker 1: both companies. I think it was a smart deal for
• 15:33
  Speaker 1: both companies. And those are the transactions that make the
• 15:36
  Speaker 1: most sense. You know, strike Point was looking to focus
• 15:39
  Speaker 1: in Nevada, so now they can focus in Nevada. Mountain
• 15:43
  Speaker 1: Boys looking to focus in Copper in the North, so
• 15:46
  Speaker 1: we took on their silver in all three deals, I
• 15:49
  Speaker 1: think in order to have success, whether it's a financing,
• 15:53
  Speaker 1: whether it's an acquisition, you need to leave something for
• 15:57
  Speaker 1: the other party. And you know, we did this financing
• 16:00
  Speaker 1: and people are saying, Sean, you know your your stock
• 16:03
  Speaker 1: looks like it wants to go to ten bucks. Why
• 16:05
  Speaker 1: would you raise money yet? You know, you know we're
• 16:08
  Speaker 1: raising some of this fow through money at six fifty
• 16:11
  Speaker 1: five seventy five hard dollars at four sixty. Why would
• 16:15
  Speaker 1: you raise money at an average price of five dollars
• 16:18
  Speaker 1: five point fifty when you could you're going to ten bucks?
• 16:21
  Speaker 1: And it's like, well, first of all, it's a catch
• 16:24
  Speaker 1: twenty two. We need capital to advance the project. Number one.
• 16:28
  Speaker 1: Number two, I want the investors that are participating to
• 16:32
  Speaker 1: have some meat left on the bone and experience and
• 16:35
  Speaker 1: be happy shareholders. Happy shareholders are good shareholders, right. You
• 16:38
  Speaker 1: don't want to be in a situation where you go
• 16:40
  Speaker 1: and you raise one hundred million dollars at ten dollars
• 16:42
  Speaker 1: a share and then the stock pulls back to seven
• 16:45
  Speaker 1: fifty and people are upset and they sell selling. Begets selling.
• 16:48
  Speaker 1: So I've always learned in the twenty two years I've
• 16:50
  Speaker 1: been doing this, you know, do it at a time
• 16:52
  Speaker 1: where we're going to be putting out results. There's going
• 16:55
  Speaker 1: to be catalysts. They have a chance to be very
• 16:57
  Speaker 1: happy and to continue to support us.
• 17:00
  Speaker 2: Yes, and I just see the picture here. We don't
• 17:03
  Speaker 2: even need to get into geopolitical just the market itself
• 17:07
  Speaker 2: is really y is really the biggest catalyst. I mean,
• 17:11
  Speaker 2: we've known each other for several years now and you've
• 17:14
  Speaker 2: been making all the right moves, and now it looks
• 17:17
  Speaker 2: like this is the moment. And that's why the uplisting,
• 17:21
  Speaker 2: what perfect timing, the acquisitions and the financing without giving
• 17:26
  Speaker 2: you know, your lowest cost financing yet here in terms
• 17:29
  Speaker 2: of dilution and in terms of cost. So it's looking
• 17:33
  Speaker 2: pretty good here.
• 17:34
  Speaker 1: And I just want to say thanks, Carrie for your support.
• 17:37
  Speaker 1: And I think you know, I think you might have
• 17:39
  Speaker 1: known it before I knew it when we first met
• 17:41
  Speaker 1: where you said, hey, you because you'd known the homestake asset,
• 17:44
  Speaker 1: you'd followed it before we acquired it, and so I
• 17:48
  Speaker 1: think you know you were you were early on you know,
• 17:53
  Speaker 1: the growth of the company and the trajectory of the company,
• 17:55
  Speaker 1: and I think you know you had as much conviction
• 17:58
  Speaker 1: as we did about that. So thanks for your support
• 18:01
  Speaker 1: and look forward to seeing you in Boca.
• 18:04
  Speaker 2: I appreciate that, Sean, and I suggest everybody go over
• 18:08
  Speaker 2: to Dolly Vardensilver dot com sign up for notifications. I
• 18:13
  Speaker 2: get to say a new symbol, which is DVS on
• 18:18
  Speaker 2: the New York Stock Exchange and of course on the
• 18:20
  Speaker 2: tsx V, it's d V and set. We'll see you
• 18:25
  Speaker 2: in Boca.
• 18:26
  Speaker 1: Thanks carry the Financial Survival Network