Vizsla Royalties (OTCPK:VROY.F) Conference Transcript

Summary of Vizsla Royalties Conference Call Company Overview - Company: Vizsla Royalties (OTCPK: VROY.F) - Focus: Silver royalties, primarily on the Panuco project in Mexico - Listing: Toronto Stock Exchange (TSX), TSX Venture, OTCQB Key Points Investment Thesis - Threefold Investment Thesis: 1. Project development as Vizsla Silver advances the Panuco project 2. Exploration upside in an underexplored district 3. Timing due to scarcity of tier one silver assets and royalties [1][2][3] Project Development - Feasibility Study: Updated feasibility study announced, targeting first silver production by the end of 2027 [2] - Operational Upside: Significant operational and exploration potential remains [2] - Royalty Structure: - 3.5% net smelter return (NSR) covering 98% of the proposed mine plan - Additional 2% NSR covering other concessions [4][5] Financial Position - Capital Outlay: Project capital outlay estimated at $240 million, with Vizsla Silver having over 2x financing capacity relative to this amount [9] - Market Capitalization: Approximately CAD 300 million with 79 million shares fully diluted [13] Resource Growth - Resource Base: Initial resource of 130 million ounces, with an additional 100 million ounces added through drilling [7] - Production Profile: Expected annual production of approximately 17.5 million ounces, equating to about 550,000 ounces of silver equivalent for Vizsla Royalties [8][9] Exploration Potential - Exploration Area: 93 km of known tested vein strike, with only 8% covered by current economic studies [10] - New Discoveries: Significant discovery at the Animas target with high-grade silver equivalent [11] Development Timeline - Permitting: Environmental permit application submitted, expected approval in H1 2026, leading to construction decision and production timeline [12] Market Dynamics - M&A Activity: Increased consolidation in the mining royalty space, with notable precedent transactions indicating potential acquisition multiples of 1.6-1.8 times [17][18] - Commodity Prices: Current high prices for silver and gold create a favorable backdrop for investment [3][19] Analyst Coverage - Analyst Support: Coverage from notable analysts, with some discrepancies between analyst targets and current market pricing [13][15] Shareholder Structure - Ownership: Vizsla Silver retains a 17% ownership stake in Vizsla Royalties post-spinout [16] Conclusion - Future Outlook: Positive outlook for Vizsla Royalties driven by production growth, exploration potential, and favorable market conditions for silver assets [19]