Post by
zack50 on Dec 19, 2024 1:54pm
In a report titled "Most Eligible Silver Bachelor"...
National Bank Financial analyst Don DeMarco initiated coverage of Vizsla Silver Corp. with an “outperform” recommendation, touting the “sizable” high-grade resource of its 100-per-cent-owned Panuco advanced stage underground silver-gold project in Mexico.
“Vizsla garnered increased prominence after recent acquisitions in the silver sector, notably Gatos Silver, Inc. (TSX: GATO; Restricted) and SilverCrest Metals Inc. (TSX: SIL), and is one of few high-quality silver names next in line for production,” he noted.
Emphasizing Panuco offers ”high-grade, high-margin silver with upside,” Mr. DeMarco also pointed out de-risking of the project is advancing with permitting “in focus.” He said his investment thesis considers a valuation re-rate upon completion of both.
“We also see the opportunity to increase the net asset value (NAV) through exploration driving resource accretion, leading to production growth and/or mine life extensions,” he added. The analyst set a target of $4.75 per share. The current average is $4.59.
“The target multiple considers the robust economics of the Panuco project with an elevated NPV and IRR; strong team; and sizeable land package providing opportunities for cash flow growth and valuation upside, as outlined above,” he explained. “The assigned target multiple also considers the PEA stage and pre-permitting status of the Panuco project.”