VRIC 2025 Notes

Posted 1/21/2025

Panel: My 15 Must-Own Silver Miners

Coeur Mining

Hecla Mining

Pan American Silver

First Majestic Silver

Endeavour Silver

Fresnillo

Hochschild Mining

Aya Gold & Silver

Avino Silver

Silvercorp Metals

Gogold Resources

Vizsla Silver

Discovery Silver

Silver Tiger

Silver Storm Resources

Impact Silver

Insiders: Managment/Board 10%

Zacualpan District: 100 targets on 50,000 acre property (dozens of past producing mines)

Zacualpan: Two mills.

Plomosas has high grade zinc, plus gold targets. They are drilling.

Most of Plomosas has not been explored, and has strong surface samples (gold and silver).

Currently high ASIC, but cost should come down as they add production at Plomosas.

They are very exited about the potential at Plomosas.

Avino Silver & Gold

La Preciosa production begins in 2025: It will lower their AISC.

$26M cash/ No debt

Shares: 141/152

Avino mine: long life expected

371M oz AGEQ

Oxide tailings project is advancing

Banyan Gold

7M oz, likely growing to 10M oz (a model shows potentially 20M oz).

Valued under $6 oz at 8M oz.

PEA coming in 2025. The NAV will be huge vs their $44M FD mkt cap.

Excellent location in the Yukon.

The CEO own 4% of shares and doesn't want to sell below $1.50 CAD. Currentlly at 18 cents CAD.

The will continue de-risking the project converting inferred into M&I, and a PFS.

Someone will buy this project, but at a much higher valuation.

Silver Tiger

El Tigre project (70K acres)

Sonora (Northern Mexico). Good place to mine.

282M oz at 120 gpt AGEQ

Phase 1 open pit: PFS released. $87M capex to produce 4M oz AGEQ (including 9M oz AG and 400K oz AU) with a $14 AISC.

40% IRR at $2150 gold and $26 silver. 2-Year payback. 18-Month buiild. Construction likely in 2025 if they get a permit.

Phase 2 under ground. PEA due in 2025. 79M oz at 180 gpt AG. Likely 6M oz AGEQ, taking them to 10M oz AGEQ.

Excellent underground exploration potential to add ounces.

Freegold Ventures

Currently 20M oz at .9 gpt. With a lower cut-off, the deposit could be 30M oz.

One single huge open pit.

Growing in size. Expanding south and southwest.

It's has a legitimate 40M oz target at higher gold prices.

They have been working on the EIS, but it is years away from being submitted.

Permitting will take at least 5 years.

They are trying to remove US Government leases. This will take about 2 years if they are successful. Part of the lease is State of Alaska, and part is US Government, which is more time consuming to permit.

The will continue to explore aggressively.

A PFS will be released in 2026.

They are woking on metallurgy, which has been very promising. They likely won't need a Pox auto-clave.

Current FD mkt cap is $300M. At 30M oz. It would currently be valued at $10 oz.

Insiders hold over 50% and are not likely to sell for less than $100/oz.

First Majestic Silver

With the Gatos deal now completed, their AISC should drop to around $20 in Q1.

Let's do the 2025 FCF math at a few silver prices.

31M oz x ($30 - $25) = $155M

31M oz x ($35 - $25) = $310M

31M oz x ($40 - $25) = $465M

The Gatos deal has not sped up their plans for restarting JC. It's currently tentatively planned for 2027.

Without JC, they will produce around 31M oz AGEQ. With JC, they will produce around 37M oz AGEQ.

So, it's a long wait until we get to 37M oz.

I'm hoping that higher gold prices in 2025 change their plans for JC and they put it on a fast-track for a restart.

Vizsla Silver

Panuco (65,000 acres) in Mexico

350M oz at 450 gpt AGEQ. Growing in size.

Only 30% of known veins explored. Over 100 targets.

PEA: $225M capex to produce 15M oz AGEQ at 3300 tpd at $10 AISC.

1 Year payback. $1.5B NAV at $31 AG.

Feasibility due in 2025.

Construction planned for 2026.

Production planned for 2027.

$92M in cash and no debt.

$594 FD mkt cap, but still very cheap.