Vizsla Silver: A Silver Giant In The Making
A Future Silver Major That Will Earn Its Entire Market Cap In Two Years After First Production At Panuco
Summary
Vizsla Silver VZLA 0.00%↑ is a silver miner with a large land package in Mexico, and they are developing the world class Panuco project, which should produce ~20M oz/year.
They expect first production in the back half of 2027, but recent changes in permitting policy from the Mexican government could give investors a catalyst in the first half of 2026.
The remaining CAPEX expected for the project is low compared to the size of the project, and the expected AISC is just over $10/oz.
If management can execute over the next couple years, the Panuco project is just the start for Vizsla.
There are some risks with owning the stock, including permitting and execution between now and first production, but unless silver collapses back to $30/oz, overvaluation isn’t one of them.
Silver has been on a tear lately, and the calls for $100/oz in 2026 have been growing louder. That means it’s probably time to cool off for a bit heading into 2026, but there is some debate about looking for a short term pullback, and how much that matters if the physical market is asserting itself over the paper market for silver. “If silver has been suppressed for decades, what happens when you get price discovery?” It’s an interesting thought experiment, but I will leave that debate to the experts. Is it overcooked short term after a ~35% run in the last month? Probably, but does the silver train stop at $70 in 2026? I don’t think so. When a commodity breaks out to fresh 45 year highs, what happens to the price over the next three to five years?
Silver miners haven’t kept up, even though they should in theory have more torque. I don’t have a great explanation for silver going from $63 to $66 yesterday and SIL 0.00%↑ and SILJ 0.00%↑ being up 1% and 0.5%, respectively. We will see if Vince Lanci is right and the miners will catch up when the metal itself takes a breather, but the market certainly doesn’t seem overly enthusiastic about the silver miners right now. Half of me is looking at the silver stocks I own like this:
The other half of me knows that it will happen eventually. I have one more stock to write up in the silver basket, but I think having a chunk of silver miners is going to work out pretty well over the next year. My guess is that it will work a lot sooner than that as more investors start to realize what $60 or $70 silver means for the miners.
Vizsla Silver: A Silver Giant In The Making
The bull case on Vizsla Silver VZLA 0.00%↑ isn’t all that complicated. If the management team can execute over the next couple years, you’re looking at a company that is going to be a silver major by the end of the decade. The CEO has said that their goal is to be producing 50M oz/year of silver in the next decade, and their first project is a major step towards that goal. They own three sizable blocks of land in Mexico that are more than 30,000 hectares (~116 square miles), and I think the first project they are developing is worth more than the current market cap of $1.79B.