Canaccord Genuity analyst Michael Pettingell sees Vizsla Silver Corp.’s flagship Panuco silver-gold project in Sinaloa, Mexico as an “emerging discovery” that shares main key characteristics with SilverCrest Metals Inc.’s
“While still early days, we highlight similarities with respect to district consolidation, grade interval profiles and distribution, path to development and regional upside potential,” he said. “As such and given the current delta in market capitalization between the two companies (approximately $280-million vs $1.8-billion), we see considerable potential for Vizsla to re-rate by applying the same playbook SilverCrest used at Las Chispas,” he said.
Accordingly, Mr. Pettingell initiated coverage of the Vancouver-based company with a “speculative buy” rating in order to " to reflect both the financing risk associated with a non-revenue-generating company, and the technical risk associated with a project for which feasibility has yet to be demonstrated.”
decre) advanced-stage Las Chispas project“While still early days, we highlight similarities with respect to district consolidation, grade interval profiles and distribution, path to development and regional upside potential,” he said. “As such and given the current delta in market capitalization between the two companies (approximately $280-million vs $1.8-billion), we see considerable potential for Vizsla to re-rate by applying the same playbook SilverCrest used at Las Chispas,” he said.Accordingly, Mr. Pettingell initiated coverage of the Vancouver-based company with a “speculative buy” rating in order to " to reflect both the financing risk associated with a non-revenue-generating company, and the technical risk associated with a project for which feasibility has yet to be demonstrated.”
“The past-producing Panuco project is situated along a prolific mineral trend in western Mexico that hosts the majority of the country’s epithermal and porphyry deposits,” he noted. “With recent drilling now demonstrating high-grade mineral continuity along two separate near-surface vein structures, we view Panuco as the next emerging discovery in the silver space.”
Seeing Vizsla “well positioned to execute” with $93-million in cash and led by a “young, dynamic team,” Mr. Pettingell set a target of $4 per share, exceeding its Wednesday closing price of $2.35.
Earlier this week, PI Financial’s Philip Ker, the other analyst covering the stock, gave it a “buy” rating and $3.25 target.
“We view the Napoleon discovery on the high-grade Panuco silver-gold project in Sinaloa, Mexico demonstrating property wide potential for an extensive resource that could support an attractive, low-cost operating scenario,” said Mr. Ker. “We believe that as Panuco matures and cash flow from its existing mill becomes more imminent, that Vizsla will be a bona-fide M&A target.”