Vizsla Royalties (OTCPK:VROY.F) 2025 Conference Transcript

Summary of Vizsla Royalties Conference Call Company Overview - Company: Vizsla Royalties (OTCPK: VROY.F) - Business Model: Single asset royalty company holding a precious metals NSR royalty covering Vizsla Silver's Panuco project in Mexico [1] Industry Context - Market Conditions: Current all-time highs in gold prices and 15-year highs in silver prices at $42 per ounce [3] - M&A Activity: Recent precedent transactions in the royalty space suggest significant premiums, indicating a favorable environment for royalty companies [3][12] Core Project Insights - Panuco Project: - Considered the highest grade undeveloped silver primary resource globally [1] - If in production, it would be the third largest silver primary mine in the world [1] - Development stage with a Preliminary Economic Assessment (PEA) published in 2024, targeting first silver production in the second half of 2027 [2] - Resource Base: - Over 365 million ounces of silver equivalent identified, with only 30% of known targets tested [2][5] - PEA mine plan accounts for about 10% of known veins [2] - Financial Position: - Vizsla Silver has over $200 million in cash, no debt, and a project finance mandate for an additional $200 million [5] - Low capital expenditure (CapEx) hurdle of $224 million [5] Production and Exploration Potential - Production Profile: - PEA production profile indicates over 20 million ounces per annum in initial years [6] - Anticipated increase in resource estimates from 156 million ounces in the PEA to 222 million ounces in the upcoming feasibility study, representing a 43% increase at a 5% higher grade [6] - Exploration Upside: - Significant exploration potential exists as all 11 resource structures are open in every direction [8] - Recent discoveries, such as at Animas, support the potential for additional high-grade mineralization [9] Strategic Advantages - Royalty Structure: - Holds a 3.5% net smelter return (NSR) royalty and an additional 2% NSR on exploration concessions [3] - Right of first refusal on any additional royalties created by Vizsla Silver within 24 months [4] - Non-Dilutive Growth: - The royalty model allows for growth without the need for further capital outlay or dilution for shareholders [10] Valuation and Market Position - Valuation Metrics: - Current trading at approximately 1.1 times NAV, compared to acquisition multiples averaging around 1.6 times for similar companies [12] - Potential for re-rating as the project progresses and de-risks [12] - Peer Comparison: - Major royalty players trade at significant premiums, suggesting potential for Vizsla Royalties to be valued higher as the project advances [11] Conclusion - Investment Thesis: - Vizsla Royalties presents a compelling investment opportunity due to its high-quality asset, favorable market conditions, and significant exploration upside [13] - Future Outlook: - Anticipated milestones include the imminent feasibility study and expected permitting approvals, positioning the company for growth as it approaches production [10]