Vizsla Royalties Congratulates Vizsla Silver on the Positive Feasibility Study for the Panuco Project
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On November 18, 2025, Vizsla Royalties announced that its partner, Vizsla Silver Corp., has published a positive Feasibility Study (FS) for the Panuco silver-gold project in Mexico. The FS outlines robust project economics, including an after-tax Net Present Value (NPV) at a 5% discount rate of US$1.8 billion and an Internal Rate of Return (IRR) of 111%. These figures are based on metal prices of US$35.50 per ounce of silver and US$3,100 per ounce of gold.
The study projects an average annual payable production of 17.4 million silver equivalent (AgEq) ounces over an initial 9.4-year mine life, with production anticipated to commence in late 2027. Based on its Net Smelter Return (NSR) royalty portfolio, Vizsla Royalties expects to receive approximately 560,000 AgEq ounces annually. The CEO, Michael Pettingell, emphasized the importance of the company's 3.5% NSR on the Copala concessions, which will provide high-grade ore early in the mine life, significantly boosting early economics.
The release of a positive Feasibility Study is a highly material and positive event. It represents the most significant de-risking milestone for the Panuco project to date, moving it from a preliminary economic concept to a detailed engineering and economic plan.
- Progression and Exceeding Expectations: This FS follows a Preliminary Economic Assessment (PEA) from July 2024. The FS demonstrates a substantial improvement in key metrics compared to the PEA, which had projected an after-tax NPV of US$1.1 billion and an IRR of 86%. While the mine life is slightly shorter (9.4 years vs. 10.6 in the PEA), the annual production rate and overall economic returns are significantly higher. This successfully delivers on the timeline for an H2 2025 FS completion, as mentioned in the July 29, 2025 update.
- Confirmation of Asset Quality: The study solidifies the Panuco project as a world-class, high-grade silver asset. For Vizsla Royalties, whose entire value is predicated on this single project, this confirmation is critical. The focus on mining the high-grade Copala zone first, where VROY holds its largest royalty (3.5% NSR), maximizes near-term cash flow potential for the company upon commencement of production.
- Aggressive Metal Price Assumptions: A critical point of analysis is the "base case" metal prices used in the FS: US$35.50/oz silver and US$3,100/oz gold. These are substantially higher than the prices used in the July 2024 PEA (US$26/oz silver, US$1,975/oz gold). While the project's economics are exceptional at these prices, they are very aggressive and optimistic. The project's viability and ultimate profitability are highly sensitive to commodity prices. Should prices not reach these levels, the actual economic returns will be considerably lower. This is a significant risk factor that is masked by the strong headline numbers.
- Path to Production: The FS, combined with the US$220 million financing mandate from Macquarie announced on September 8, 2025, creates a clear and credible path toward a construction decision and production by the targeted late 2027 date. Each of these steps systematically reduces the risk profile of Vizsla Royalties' core asset.
Overall, the news is a major positive catalyst. It provides the market with a high-confidence technical study that underpins the value of VROY's royalty. While the reliance on high metal prices requires caution, the act of completing the FS is a fundamental step forward that should trigger a positive re-evaluation of the company's valuation.
Vizsla Royalties Corp. is a precious metals royalty company whose sole material asset is a portfolio of NSR royalties on Vizsla Silver Corp.'s Panuco silver-gold project in Sinaloa, Mexico. Panuco is a large, high-grade silver and gold district being advanced towards production.
The company's royalty position was significantly enhanced on June 12, 2025, when it completed the acquisition of an additional 3.0% NSR on the core "Silverstone" concessions for US$40 million. This brought its total royalty on these key concessions to 3.5%, which covers the high-grade Copala resource that is central to the early years of the proposed mine plan. The company also holds a 2.0% NSR on other concessions in the district.