Vizsla Silver surges after projecting seven-month Panuco payback

[Pure silver or platinum from the mine that was unearthed was placed on the black sand.]
Oat_Phawat/iStock via Getty Images

Vizsla Silver (VZLA [https://seekingalpha.com/symbol/VZLA]) +13.6% in Wednesday's trading after saying a new feasibility study showed a mere seven-month after-tax payback period [https://seekingalpha.com/pr/20303219-vizsla-silver-delivers-positive-feasibility-study-for-the-panuco-project] for its flagship Panuco silver-gold project in Mexico.

Vizsla (VZLA [https://seekingalpha.com/symbol/VZLA]) said the feasibility study "provides a robust case for developing the Panuco silver-gold project as a high-margin, underground precious metals mine with low initial capital requirements and rapid payback," adding that it is advancing permitting and project financing initiatives.

Based on a 5% discount rate, Panuco now has an after-tax net present value of $1.8 billion, an internal rate of return of 111% and a seven-month payback period of seven months, according to the new study, which assumes US$35.50/oz silver and US$3,100/oz gold.

Vizsla (VZLA [https://seekingalpha.com/symbol/VZLA]) said the study demonstrates the project will produce more than 20 million silver equivalent oz annually over the first five years, averaging 17.4 million oz over the life of the project, significantly exceeding the production profile outlined in the July 2024 preliminary economic assessment.

"The study builds upon the strong economics outlined in the Panuco PEA, published in the summer of 2024, indicating that Panuco can become the next large-scale silver-primary producer in Mexico," Vizsla (VZLA [https://seekingalpha.com/symbol/VZLA]) President and CEO Michael Konnert said.

Shares of silver producers are rising across the board as silver futures surged more than 5% on Wednesday.

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