On Friday, Dundee Precious Metals (DPM) announced a $1.3B takeout bid for Adriatic Metals and its producing Vares silver mine in Bosnia and Herzegovina, which compliments DPM’s existing Balkan exposure.

The rationale is clear as the mine adds to DPM’s production and reserve life, weighing the NAV more heavily towards cash flows - which trade at a premium. It also adds exploration upside via the 4,400-hectare land package owned by Adriatic.

It’s the second big silver deal from a Canadian miner recently, following Pan American’s $2.1B bid for MAG silver in May. With silver up more than 25% YTD and the gold-to-silver ratio sitting at historically high levels, it may not be the last.