Vizsla Silver's Panuco Project Feasibility Study Projects $1.8 Billion NPV and 111% IRR, Driving Bullish Upgrade

Vizsla Silver Secures Bullish Rating on Panuco Project Economics

Vizsla Silver Corp. (VZLA) has seen its investment rating upgraded to bullish, moving up from a previous Hold rating, following the release of a highly favorable Feasibility Study (FS) for its flagship Panuco project in Mexico. The upgrade is primarily driven by the project’s exceptional projected financial metrics and supportive tailwinds in the silver market.

Key Financial Metrics Signal High Profitability

The FS outlines a compelling economic case for the Panuco project, projecting substantial returns based on a silver price of $35.50 per ounce. The most material data point from the study is the calculated post-tax Net Present Value (NPV) at a 5% discount rate, which stands at a robust $1.8 billion. This figure is complemented by an impressive Internal Rate of Return (IRR) of 111%, indicating a rapid payback period and high capital efficiency for the mine.

• Average Annual Production: The project is expected to yield 17.4 million ounces of silver equivalent (Moz AgEq) annually.
• Post-Tax NPV5%: $1.8 billion.
• IRR: 111%.
• Silver Price Assumption: $35.50/oz.

The robust feasibility study confirms Panuco as a world-class silver asset with industry-leading economics, justifying the move to a bullish rating.

Financing and Production Timeline

The company appears well-positioned to execute the project development plan. VZLA has secured its financing needs through a combination of existing liquidity and the issuance of $300 million in convertible notes. This secured capital is crucial for advancing the project toward its operational phase.

The current timeline targets the commencement of production in the second half of 2027 (H2 2027). The strong financial projections and secured funding mitigate significant development risks, allowing Vizsla Silver to proceed at full speed toward its goal of becoming a major silver producer.

Market and Sector Implications

The positive results from the Panuco FS arrive amid strong market momentum for precious metals, particularly silver. The projected 17.4 Moz AgEq annual output positions Vizsla Silver to be a significant contributor to the global silver supply upon reaching full production. The high IRR and NPV figures suggest that the project is highly resilient to potential capital cost escalations or moderate fluctuations in commodity prices, though the current projections are based on a relatively high silver price assumption of $35.50/oz.