Vizsla Royalties (VROY.F) Conference Transcript

Summary of Conference Call Records Company Overview - Vizsla Royalties (VROY.F): A single asset precious metals royalty holder with its principal asset being the Canuco Project, which is part of Vizsla Silver's flagship silver and gold development in Mexico [1][2] - Star Gold Corp (SRGZ): A junior mining company based in Nevada focused on the exploration and development of high-quality mineral properties [22] Key Points from Vizsla Royalties - Investment Thesis: The investment opportunity is based on three main aspects: 1. Upside potential as Vizsla Silver advances the Canuco Project towards feasibility and production, expected to start in 2027 [2] 2. Significant exploration upside with 93 kilometers of cumulative vein strike, of which only 8% is included in the current mine plan [3] 3. Scarcity of tier one silver assets, with no other tier one silver royalties outside of the major three royalty companies [3] - Royalty Ownership: Increased royalty ownership on the Panuco asset to 3.5% covering the mine plan and an additional 2% covering exploration potential [4][5] - Financial Position: Vizsla Silver is well-funded with approximately $200 million in cash, allowing for non-dilutive project advancement with a modest capital expenditure (CapEx) of $224 million [7] - Resource Growth: The Panuco project has outlined a global resource base of over 360 million ounces of silver equivalent, with significant potential for further resource expansion [10] - Production Profile: The mine plan indicates production of approximately 20 million ounces in the initial years, dropping to 15 million ounces over the project's life, positioning it among the largest silver mines globally [11][12] - Valuation and Market Position: Current trading at 1.1 times price to net asset value (NAV), with potential valuation upwards of $350-400 million based on recent comparable transactions in the royalty space [19][20] Key Points from Star Gold Corp - Unique Financing Model: Majority of financing comes from directors and officers, differentiating it from other junior mining companies [22][23] - Focus on Main Zone: Concentration on proving enough ore in the main zone to move into production, with an estimated 100,000 recoverable ounces of gold [24] - Economic Viability: Initial PEA conducted at $1,500 gold indicated a net present value (NPV) of $52 million, with projections over $100 million at $2,700 gold [31][32] - Permitting Process: Plan of operation filed on August 6, with expectations for final permits within two years, contingent on completing necessary drilling and environmental studies [28][30][33] - Next Steps: Focus on production water drilling and final engineering plans to expedite the permitting process [34] Additional Important Information - Exploration Potential: Both companies highlight significant exploration upside, with Vizsla emphasizing the potential for additional high-grade mineralization and Star Gold focusing on expanding its resource base [3][13][24] - Market Timing: The current market conditions for silver and gold are favorable, enhancing the potential for cash flow generation and project advancement for both companies [3][20]