Precious Metals Portfolio Posts 25% Returns as Gold Leads & Silver Breaks Higher

• Olive Resource Capital has posted approximately 25% returns year-to-date, with $500,000 in net gains since March 31st.
• Strong performance is driven by concentrated holdings in high-conviction gold names like Omai Gold Mines and Troilus Gold.
• Silver exposure is being reevaluated after the pending MAG Silver takeover by Pan American.
• Americas Gold & Silver and Highlander Silver are being considered as new silver investments, each offering unique value propositions beyond silver price torque.

In the latest episode of Compass, Olive Resource Capital executives Samuel Pelaez (President, CEO & CIO) and Derek Macpherson (Executive Chairman) took time to discuss their company’s strong recent performance and forward-looking strategy in the precious metals space. The conversation, filmed on June 11 and framed around Olive’s recently released Q1 performance update (May 26) and May portfolio results (June 9), offered insights into their investment approach amid a dynamic market environment for gold and silver.

Olive Resource Capital (ORC) is a Toronto-based investment issuer focused on public and private resource-stage companies. The firm has carved a niche by backing early-stage mining assets, special situations, and overlooked infrastructure-rich projects. Their hybrid model  -blending liquidity with long-term value exposure - is designed to outperform traditional benchmarks, particularly in volatile resource markets.

Over the past 6 months, Olive has shifted from broad diversification to a high-conviction strategy, concentrating capital in fewer but stronger positions. With an 8 million CAD portfolio and ~25% YTD returns, ORC continues to outperform sector peers and ETFs, validating this more focused approach

Performance to Date - Gold Market Leadership

Gold investments have been the primary driver of ORC's fund's success this year. As Derek McPherson, Executive Chairman of Oliver Resource Capital, notes:

"A couple of key names in there mostly gold names have been the ones that have been outperforming - in particular Omai Gold Mines, where I'm a director, but also Troilus Gold has had a really good run, and we've obviously benefited from the strong drill results of Sterling [Metals Corp]."

‍
Olive Resource Capital’s Significant Precious Metals Investments

Source: Olive Resource Capital Provides Update on Investments

Strategic Investment Approach: Beyond Commodity Beta

Rather than chasing commodity price beta, ORC seeks investments with inherent value drivers that can compound regardless of where gold or silver trades. The team emphasizes strong fundamentals, scalable infrastructure, and proven management as key elements in their selection process. Macpherson states:

"We're not just looking for beta to the silver price. We want something that has strong fundamentals or something that has the ability to increase in value outside of the silver price"

In this view, silver price movements act as accelerants  - not the engine - of value. This has guided ORC’s departure from shallow, high-torque names toward companies that would still perform even if commodity prices stagnate. Their internal analysis avoids ETF-style exposure in favour of fundamental-driven positions where infrastructure is in place, costs are manageable, and leadership has demonstrated operational success.

For example, while many companies in the silver sector - such as Pan American Silver, Hecla, and Coeur - are technically “silver miners,” they derive a significant portion of their revenues from gold, complicating the purity of silver exposure. Even First Majestic, while more silver-weighted, is not a pure-play in the strictest sense.

Mag Silver, until its pending acquisition by Pan American, was a rare Tier 1 silver asset in Mexico that met ORC’s strict criteria. With its likely exit, ORC is being “forced” to reevaluate the entire silver opportunity landscape and find a replacement that fits their framework.

Their disciplined philosophy is a clear departure from short-term silver sentiment trading or passive fund replication. Instead, it prioritizes names that compound value, benefit from commodity tailwinds, and have internal catalysts that make upside more durable.

Compass, Episode 18

Company-Specific Opportunities: America's Gold & Silver and Highlander Silver

With the loss of MAG Silver, ORC has turned its attention to two new opportunities that align with its strategic criteria: Americas Gold & Silver Corporation and Highlander Silver Corp.

Americas Gold & Silver: The Turnaround Thesis

Americas Gold & Silver recently completed a transformational consolidation of its flagship Galena Complex in Idaho, now 100% owned following a strategic deal with Eric Sprott. Sprott, already a major shareholder, has backed the restructuring and brought in renowned operator Paul Huet, former CEO of Klondex and Karora, to lead the turnaround. Pelaez notes:

“This this has all the hallmarks of the Western Australian gold days 10 years ago where smart operators were taking over assets that were underinvested, had a lot of infrastructure on site and some of those names today are up 50x from the time when the deals were put together. It just feels a lot like it...obviously it is extremely dependent on execution but again Paul's coming out of two companies that he rebuilt effectively. Definitely worth giving him the the chance to prove that he can do it again."

The company is shifting mining methods, ramping up exploration, and leveraging existing infrastructure to accelerate output without major capex. It’s a model that has worked before - at Klondex, Karora, and now potentially again.

A deeper discussion of this transformation was featured in a recent Crux Investor interview with Paul Huet and Eric Sprott, where the pair outlined the strategy to reboot Galena and unlock the asset’s latent value. With new management and infrastructure advantages, Olive sees Americas Gold & Silver as a unique mix of operational upside and silver optionality.

Highlander Silver: Drilling Toward Scale

In contrast to the turnaround play at Americas, Highlander Silver represents a high-risk, high-reward exploration model. Backed by heavyweight investors - the Augusta Group and the Lundins - Highlander is advancing a former SSR Mining asset with excellent grades but underexplored scale.

The thesis? Multiply the resource through aggressive drilling across three vectors: at depth, laterally, and regionally. It mirrors the model successfully executed at Solaris Resources, also led at onetime by Highlander CEO Daniel Earle.

"This is effectively an aggressive drill play to try to prove the extent of the system," said Pelaez. “The existing resource is excellent grade  - if they can build tonnage around it, it could turn out to be a pretty exciting story”.

Importantly, Highlander brings institutional-grade backing, strong geological fundamentals, and scalability potential - key for any early-stage bet aiming for multi-bagger upside.

Final Thoughts

Gold continues to anchor Olive Resource Capital’s performance in 2025, but silver’s recent breakout has reopened the question of where best to gain pure, high-quality exposure. With the pending MAG Silver acquisition removing a core position, ORC is exploring new ground - but sticking to its principles.

Whether through America's Gold & Silver's operational renaissance or Highlander’s resource expansion ambition, the focus remains on companies with real levers to create value - infrastructure, leadership, and strategic clarity - with commodity prices serving as tailwinds, not lifelines.

In a sector known for hype and herd behavior, Olive’s approach of doing the work, backing high-conviction bets, and letting fundamentals guide timing stands out as a model for disciplined resource investing