Argentina's Reforms Spark Mining Revival
Argentina's economic reset is drawing attention from miners like AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) , Kobrea Exploration Corp. (KBX:TSX; KBXFF:OTCQB; F31:FSE), and Argenta Silver Corp. (AGAG:TSX.V; AGAGF:OTCQB) , each poised to benefit from the end of capital controls. Read more about changes in the region.
Argentina has embarked on a sweeping economic overhaul that could redefine its role in global capital markets. Under President Javier Milei, the South American nation has taken dramatic steps to stabilize its economy through the dismantling of long-standing currency controls, to reintroduce itself as a viable destination for international investment. While optimism has grown among global investors, significant risks remain.
Economic Stabilization and Policy Reform
Argentina's most notable reform came in April 2025, when the government ended most capital and currency controls (known locally as el cepo), which had restricted access to U.S. dollars since 2019.
According to an April 12 report from The Globe and Mail, the move was made possible by a newly approved US$20 billion loan from the International Monetary Fund (IMF), which aimed to support Argentina's depleted foreign currency reserves and restore macroeconomic stability.
IMF Managing Director Kristalina Georgieva said the program was designed to "consolidate impressive initial gains" and address "remaining macroeconomic vulnerabilities," while praising the government's zero-deficit fiscal stance. President Milei called the decision a "major step forward," asserting that, "We have eliminated the exchange rate controls on the Argentine economy for good."
The IMF agreed to disburse US$12 billion upfront, with another US$2 billion scheduled by June. Reuters reported on April 11 that this initial disbursement was larger than expected, signaling strong institutional support for Milei's reforms. The fund also anticipated that the program would help Argentina "re-access international capital markets" after years of default-driven isolation.
Argentina has also introduced a new floating exchange rate system. Rather than a fully free-floating peso, the country adopted a currency band between 1,000 and 1,400 pesos per U.S. dollar. The band will expand by 1% per month to allow for gradual adjustments. According to the Central Bank of Argentina, this managed float regime was intended to balance market forces while avoiding a sharp devaluation and ensuring a steady reduction in inflation.
The central bank emphasized in its April 2025 update that this system would allow exchange rates to fluctuate based on supply and demand, with the bank intervening only when rates approached the band's limits. The framework aims to anchor inflation expectations and support financial predictability.
Structural Reforms and Capital Access
Beyond currency policy, the removal of the cepo was accompanied by broader regulatory liberalization. The Central Bank of Argentina announced that restrictions on the repatriation of dividends by foreign companies would be lifted beginning with fiscal years starting in 2025. Additionally, payments for imports, services, and intercompany transactions were streamlined, a move intended to facilitate business operations and improve access to foreign capital.
According to the same announcement, the central bank projected a US$23.1 billion increase in liquid reserves for 2025, driven by multilateral lending, repo agreements with global banks, and an extended currency swap with China worth approximately US$5 billion. These funds are expected to support monetary stability and mitigate the risk of a capital flight.
Despite the IMF's backing and regulatory shifts, significant risks persist. Argentina has defaulted on its sovereign debt multiple times and remains the IMF's largest debtor, with approximately US$43 billion outstanding. Reuters noted on April 14 that a total of US$28 billion is expected to flow into Argentina in 2025 from various sources, but investors remain wary due to the country's history of economic volatility.
Leonardo Piazza, chief economist at LP Consulting, warned of an "inflation shock" in the second quarter, while Horizon Engage's Marcelo J. Garc?a told The Globe and Mail that lifting capital controls now represented "a bit of a leap of faith." The risk of capital flight is compounded by pent-up demand for dollars, which could pressure the peso and reverse some early gains in inflation control.
Christopher Ecclestone of Hallgarten & Company described the situation as "a total guessing game," stating that the liberalization could unleash "a tsunami of money out" as companies attempt to recover long-trapped profits.
Inflation remains a central concern. The Argentine National Statistics Institute reported a 3.7% rise in consumer prices in March, up from 2.4% in February, driven largely by food costs. Although President Milei insisted that "inflation will disappear," the near-term path remains uncertain.
As Argentina works to regain investor confidence through sweeping economic reforms and improved fiscal discipline, a number of companies operating in the country have drawn renewed attention. These firms, many of which are directly positioned to benefit from policy shifts such as the removal of currency controls and increased access to foreign capital, offer a window into the opportunities and challenges on the ground. The following spotlights provide a closer look at select companies with active operations in Argentina, highlighting their recent developments, strategic positions, and relevance within this evolving economic landscape.
Kobrea Exploration Corp. (KBX:TSX; KBXFF:OTCQB; F31:FSE)
Kobrea Exploration Corp. (KBX:TSX; KBXFF:OTCQB; F31:FSE) has positioned itself within Argentina's newly opened Western Malarg?e Mining District (WMMD) in Mendoza Province.
Streetwise Ownership Overview*
Kobrea Exploration Corp. (KBX:TSX; KBXFF:OTCQB; F31:FSE)
*Share Structureas of 1/13/2025Source: RefinitivThe district was officially made accessible to exploration and mining in April 2024 following new provincial legislation, marking a turning point for a region long closed to large-scale development. Kobrea now controls a 73,334-hectare land package across seven copper projects located within a globally significant porphyry copper belt that extends into Chile.
In its January 2025 update, the company confirmed that fieldwork was underway, including geophysical, geochemical, and geological surveys. The El Perdido and Elena prospects, both approved for exploration, represent the most advanced targets to date. El Perdido hosts a 2-by-3-kilometer copper-gold-molybdenum porphyry system with a strong subsurface magnetic anomaly, while Elena spans 11,440 hectares with multiple porphyry centers. Only these two areas have been mapped in detail, while the rest of the land package has seen only limited surface sampling and remains completely undrilled.
*Technical Analyst Clive Maund called the land position a "massive district-scale property" in an October 2024 report, noting that each of the seven targets "is a project in its own right." He emphasized Kobrea's advantageous location within the southern portion of the Andean porphyry copper belt - the same geological belt that hosts major Chilean deposits like El Teniente and Rio Blanco-Los Bronces.
The company's position is supported by a five-year option agreement signed in August 2024 to earn 100% ownership of the projects. The 1.5% property-wide nonsmelter return royalty can be fully bought out for US$7.5 million. Kobrea also owns the Upland project in British Columbia, a copper-polymetallic asset covering 5,300 hectares with past-producing VMS mineralization open for expansion.
As of January 2025, Kobrea had 35.35 million shares outstanding and a market capitalization of approximately CA$13.04 million. According to Refinitiv, 91.5% of shares were held by retail investors, with the remaining 8.5% owned by insiders. CEO James Hedalen and VP of Exploration Rory Ritchie each held 1.5 million shares, or 4.24% of the company's equity. No institutional ownership was reported.
Argenta Silver Corp. (AGAG:TSX.V; AGAGF:OTCQB)
Argenta Silver Corp. (AGAG:TSX.V; AGAGF:OTCQB) has been steadily expanding its profile, most recently through a U.S. market uplisting and renewed strategic support from a prominent investor.
Streetwise Ownership Overview*
Argenta Silver Corp. (AGAG:TSX.V; AGAGF:OTCQB)
*Share Structureas of 3/19/2025Source: RefinitivThe Canadian silver exploration company began trading on the OTCQB Venture Market in the United States on January 31, 2025, under the symbol AGAGF, moving up from the OTC Pink Market. The move enhances Argenta's visibility and accessibility to a broader base of U.S. investors.
In addition to expanding its market presence, Argenta holds the El Quevar project in Salta Province, Argentina. According to the company's September 2024 NI 43-101 technical report, El Quevar hosts an Indicated mineral resource of 45.3 million ounces of silver at a grade of 482 grams per tonne (g/t) and an Inferred resource of 4.1 million ounces at 417 g/t silver. The company has described the project as a high-grade, low-tonnage pure silver opportunity with strong expansion potential.
Alongside the uplisting, the company received a notable endorsement from Frank Giustra, who increased his ownership to 15.09% following an open-market purchase of 2.5 million common shares. According to a January 29 news release, Giustra now holds or controls 25.54 million shares and 3,425,000 share purchase warrants. In a statement accompanying the announcement, Giustra said his investment reflected his confidence in Argenta's "vision to unlock the value of high-potential silver assets" and its "disciplined approach to exploration."
On January 30, Peter Krauth of Silver Stock Investor described Giustra's increased stake as "another big vote of confidence," citing his track record with successful mining ventures. Giustra is the CEO of the Fiore Group and has been associated with several major mining companies, including Wheaton Precious Metals, Goldcorp, Endeavour Mining, and Leagold Mining.
According to Refinitiv, management and insiders collectively hold 18% of Argenta's shares. The top shareholders are Frank Giustra (15.09%), Thomas Humphreys (2.73%), and Joaquin Marias (0.31%). The remaining 82% of shares are held by retail investors. No institutional holdings have been reported.
Argenta Silver has 169.21 million shares outstanding and 138.05 million in free float. As of April 2025, the company had a market capitalization of approximately CA$44.88 million. Its shares have traded between CA$0.14 and CA$0.47 over the past year.
AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX)
AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) recently announced the discovery of a large-scale porphyry system at its La Coipita copper-gold-molybdenum project in San Juan Province, Argentina.
Streetwise Ownership Overview*
AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX)
*Share Structureas of 3/24/2025Source: Refinitiv & AbraSilverThe results included 621 meters of mineralization from drillhole DDH-LC25-006, with a standout interval of 114 meters grading 0.70% copper, 0.07 g/t gold, and 81 ppm molybdenum, interpreted as a secondary enrichment zone beginning at 410 meters. This section included 20 meters grading 1.03% copper. Additional intervals included 98 meters of hypogene porphyry mineralization grading 0.55% copper and a deeper 409-meter section grading 0.25% copper, with high-sulphidation epithermal overprinting.
According to the April 24 news release, President and CEO John Miniotis said the findings confirmed "the presence of a well-developed porphyry system with large-scale potential" and marked "a major step forward in unlocking the value of this underexplored district." Stuart McCracken, Teck Resources' Vice President of Exploration, stated that the company was encouraged by the early results and reiterated its focus on building strong local relationships in the Calingasta and San Juan regions.
The La Coipita project, situated within Argentina's Miocene porphyry-epithermal belt, covers over 70,000 hectares at elevations ranging from 3,500 to 4,500 meters. AbraSilver and Teck Resources, under a joint venture agreement signed in January 2024, have completed 3,523 meters of drilling in 2025, including holes 006, 007, and 008, with assays pending for the latter two. Teck has the option to earn an 80% interest by investing US$20 million and making up to US$6.3 million in payments, including an initial US$500,000 cash payment, a US$1 million equity placement, and an additional US$1.5 million due by January 2028.
Parallel to La Coipita, the company has been advancing its flagship Diablillos silver-gold project in Salta Province. On April 9, Peter Krauth of The Gold Advisor described new drill results from Phase IV of the Diablillos campaign as "superb," citing wide and high-grade silver intercepts from step-out holes in areas south and northeast of the current conceptual open pit. These included 63.5 meters at 190 g/t silver and 9.0 meters at 341 g/t silver. Krauth noted the potential for an expanded resource base in the mid-2025 estimate and praised the "continuity and consistency" of mineralization reported by Chief Geologist Dave O'Connor.
AbraSilver's 2025 strategy includes a 20,000-meter Phase V drill program at Diablillos, with targets including the Oculto-JAC corridor and the Cerro Viejo gold prospect. The company recently updated its Pre-Feasibility Study for Diablillos, reporting a base-case project value of US$747 million and a 28% internal rate of return. AbraSilver holds approximately CA$65 million in cash, which it has said will fund the company through a construction decision in 2026.
As of April 2025, AbraSilver's market capitalization stood at approximately CA$480 million, with 152.7 million shares outstanding. According to Refinitiv and company data, share ownership was comprised of 72.2% retail investors, 21.0% management and strategic investors, and 6.8% institutions. Strategic investors include Central Puerto SA, which owns 9.9%, and Kinross Gold Corp., which holds 4%, with both participating in AbraSilver's recent CA$58.5 million financing.
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Important Disclosures:
Argenta Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Kobrea Exploration Corp. and Argenta Silver Corp. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.
* Disclosure for the quote from the Clive Maund article published on October 4, 2024
For the quoted article (published on October 4, 2024), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500.Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts' Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressedClivemaund.com Disclosures
The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.