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| We are at the very beginnings of a major new metals and mining bull market.
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| Gold has rocketed past $3,600...silver has soared over $40...and as both appear headed much higher, investors are scurrying for the best ways to play this historic opportunity.
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| Smart investors are positioning themselves in silver, which has historically always outperformed gold in a bull market.
Smarter investors are jumping into silver mining stocks, which typically leverage silver itself, thereby stacking leverage on leverage.
But the smartest investors have discovered a power-packed anomaly: a silver royalty company leveraging perhaps the top silver mining company in the world today.
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| It’s Vizsla Royalties (VROY.V; VROYF.OTC) and, as you’re about to see, it combines rare value with even rarer potential.
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| Sitting Atop An Elephant
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| To understand the potential of Vizsla Royalties, you need to understand Vizsla Silver (VZLA.NYSE; VZLA.TO) — a company that is rapidly advancing the world’s largest undeveloped silver project toward production.
In a whirlwind of advancements over the past few years, Vizsla Silver has taken its Panuco silver-gold project in Mexico from a grass-roots exploration target to a massive, multi-hundred-million-ounce development project rich in high-grade silver and gold.
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| It is truly one of the most amazing stories in the recent history of mineral exploration.
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| The first step was securing the remarkable Panuco project, a massive, relatively unexplored silver project spanning over 14 kilometers long — the length of the island of Manhattan.
The project was ripe with high-grade silver-gold veins, and extremely aggressive, mulitiple-drill programs quickly outlined hundreds of millions of ounces in silver-equivalent resources.
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| After a number of updates, that resource now stands at 222 million ounces of measured silver-equivalent, plus another 138 million ounces in the inferred category.
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| Just as impressive, the average silver-equivalent grade is 534 g/t for the measured and indicated resource.
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| The Next World-Class Silver Producer
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| That aggressive exploration program has been matched by an equally aggressive development effort.
Vizsla’s management produced a preliminary economic assessment last year showing just how richly economic this project is. That PEA, based on far lower silver and gold prices of just $26 for silver and $1,975 gold, showed an after tax net asset value of $1.137 billion and an eye-popping internal rate of return of 86%.
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| Those numbers were extraordinary enough to rank Panuco as one of richest undeveloped projects in the world. And at today’s much higher silver and gold prices, those numbers would be far, far higher.
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| In recent weeks, Vizsla Silver has accelerated its progress toward production by advancing its ongoing 10,000-tonne test mining program on its high-grade Copala Vein...raising $100 million in an equity financing...initializing a feasibility study slated for completion later this year...and announcing a $200 million production financing package.
Things are moving so quickly, in fact, that the company is confidently predicting its first silver production in the second half of 2027.
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| Much More To Come
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| All of this is amazing enough, but Vizsla has figuratively just scratched the surface at Panuco.
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| Consider this added potential: Less than 67% of the property has yet been mapped and only 30% of the known vein targets have so far been explored.
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| In addition, the company has quadrupled its land package (now over 40,000 hectares) and has been building a multi-generation pipeline of assets along an exciting new silver belt in Mexico.
If Vizsla Silver isn’t taken out at a rich multiple by a major mining company, it will advance along this path toward becoming a major mining company itself.
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| Adding Value, Potential And Leverage
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| In addition to all of its other advantages, the Panuco project was notably unburdened by underlying royalties.
So, in another brilliant, strategic move, company management decided to carve out royalties on its own project and spin them out to shareholders in a newly listed royalty company.
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| Thus was born Vizsla Royalties.
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| It is a well-known fact that royalty companies trade at a premium to producing companies, since their profit margins are much greater. So carving out a royalty company before a major could attempt to buy-out Vizsla Silver not only gave investors bonus value, but also turbocharged the upside potential.
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| Generational Value, Near-Term Potential
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| Vizsla Royalties currently holds a 3.5% net smelter return (“NSR”) on the current mine plan for Panuco, and a 2% NSR on the remaining exploration concessions across the district.
The result is that VROY shareholders will enjoy rich cash flow — and fat profit margins — once Panuco goes into production the year after next. Plus, it will leverage all of the extraordinary upside from further exploration on the project over the years to come.
The upshot is that Vizsla Royalties is set to be a generational investment that could provide income that will pay for itself many times over.
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| But the royalty company was carefully built to provide another potential bonus: A bonanza return if the company is bought out.
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| The simple fact is, a landmark silver royalty like Vizsla Royalties does not exist anywhere else in the market.
There’s been a spate of mergers and acquisitions in the royalty space, at rich premiums. If mineral royalties alone command these premiums, can you imagine what a singular silver royalty would garner?
Putting aside the growth potential of Panuco...the steep trajectory of the silver price...and the growing market enthusiasm, recent royalty acquisitions at between 1.6-1.9 times NAV could project to a take-out price of double Vizsla Royalties’ current valuation, or more.
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| Perfect Project...Perfect Timing
...Perfect Way To Play It
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| If the silver market is on fire (and it is), then adding a premier silver royalty company like Vizsla Royalties to a metals and mining portfolio could be akin to throwing gasoline on that fire.
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| The key points to remember are not just the very significant leverage that Vizsla Royalty adds to a silver company that’s already leveraging silver...which is already leveraging gold...
...But also that Vizsla Royalties represents long-term value with the near-term potential of a possible take-over at any time.
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| It all adds up to an opportunity that smart investors will look into now, before silver advances much further.
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| CLICK HERE
To Learn More about Viszla Royalties Corp.
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