Executive Summary / Key Takeaways

• Vizsla Silver Corp. (VZLA) is rapidly advancing its flagship Panuco silver-gold project in Sinaloa, Mexico, transitioning from an exploration-focused entity to a potential leading silver producer through a dual-track development and exploration strategy.
• The Panuco project boasts robust economics, with a Preliminary Economic Study (PEA) projecting 15.2 Moz AgEq of annual production over a 10.6-year mine life, an after-tax NPV5% of US$1.1B, and an 86% IRR, underpinned by significant measured and indicated resources of 222.4 Moz AgEq.
• Recent substantial financing, including a US$100 million bought deal offering, a US$15 million over-allotment exercise, and a US$220 million project finance mandate with Macquarie, significantly de-risks the project's development and bolsters the company's liquidity.
• Strategic leadership appointments, such as Eduardo Luna as Lead Director, and the acquisition of the Santa Fe Project, which includes a producing mill, enhance operational expertise and accelerate the path to production.
• While currently pre-revenue and operating at a loss, VZLA's strong exploration success, significant resource base, and secured funding position it for future growth, though execution risks inherent in mine development and commodity price volatility remain key considerations.

Unearthing Potential: Vizsla Silver's Strategic Ascent in Mexico

Vizsla Silver Corp. is carving out a significant presence in the precious metals sector, primarily focused on the acquisition, exploration, and development of high-grade silver and gold deposits in Mexico. Incorporated in 2017 and rebranded in 2021, the company has strategically concentrated its efforts on the 100%-owned Panuco-Copala silver-gold project in southern Sinaloa, Mexico. This district, characterized by intermediate to low sulfidation epithermal deposits, represents the core of Vizsla's investment thesis, positioning the company as a challenger in a market dominated by larger, more diversified players.

The broader mining industry is experiencing dynamic shifts, driven by increasing global demand for metals, particularly in electrification and technological advancements. This trend creates a favorable backdrop for companies like Vizsla Silver, which are focused on developing new, high-grade resources. However, the sector also faces challenges related to capital intensity, regulatory complexities, and commodity price volatility. Within this landscape, Vizsla's strategy is a dual-track approach: aggressively advancing mine development at Panuco while simultaneously pursuing district-scale exploration to unlock further value.

Competitive Dynamics and Operational Edge

Vizsla Silver operates within a competitive field of silver and precious metals miners, including established players like Pan American Silver (PAAS), First Majestic Silver (AG), Hecla Mining (HL), and Fortuna Silver Mines (FSM). Compared to these larger entities, Vizsla Silver holds a niche position, emphasizing specialized exploration and development in high-potential, underexplored regions. This focused approach allows Vizsla to be more agile in project development, potentially achieving greater efficiency in targeting high-grade deposits.

While larger competitors like Pan American Silver benefit from economies of scale, diversified assets, and established cash flow generation, Vizsla's strength lies in its targeted expertise and the potential for faster innovation in project development. For instance, First Majestic Silver's integration of technology in extraction processes provides an operational edge, but Vizsla's deep understanding of specific geological structures within the Panuco district could lead to more efficient resource discovery. Hecla Mining's diversified portfolio offers superior financial resilience, yet Vizsla's streamlined focus on silver-gold in Mexico could translate to lower operating costs for its specific projects. Fortuna Silver Mines, with its emphasis on sustainable practices, sets a high bar for operational execution, a standard Vizsla is working towards as it transitions to production.

Vizsla's competitive advantage is rooted in its proprietary exploration expertise and the strategic acquisition of regulatory licenses in Mexico. The company's ongoing exploration programs, including geophysical surveys and test mine development, are critical operational differentiators. These efforts have led to significant discoveries, such as a new high-grade intersection of 897 g/t AgEq over 5.85 meters, including 2,256 g/t AgEq over 1.13 meters, in the northeast of Panuco. This success demonstrates the effectiveness of its exploration methodologies. The appointment of Eduardo Luna, a Mexican mining veteran with experience in developing world-class mines like San Dimas (a direct analogue to Panuco), further bolsters Vizsla's operational and development capabilities, providing invaluable leadership as the company drives the Panuco district into its next phase. These operational strengths contribute directly to Vizsla's competitive moat by enabling efficient resource identification and de-risking the path to production, potentially leading to superior margins from high-grade assets.

The Panuco Project: A Catalyst for Growth

The Panuco silver-gold project is the cornerstone of Vizsla Silver's valuation. An updated mineral resource estimate announced on January 6, 2025, delineated an estimated in-situ combined measured and indicated mineral resource of 222.4 Moz AgEq and an in-situ inferred resource of 138.7 Moz AgEq. This substantial resource base underpins the project's compelling economics, as highlighted by a Preliminary Economic Study (PEA) completed in July 2024. The PEA projected 15.2 Moz AgEq of annual production over an initial 10.6-year mine life, an after-tax NPV5% of US$1.1 billion, an 86% Internal Rate of Return (IRR), and a rapid 9-month payback period, assuming commodity prices of US$26/oz Ag and US$1,975/oz Au.

The company's operational focus is now firmly on advancing Panuco towards production. The Copala test mine program is a major step in de-risking the project, marking a transition from pure exploration to development. Furthermore, the acquisition of the Santa Fe Project in May 2025, which includes a producing mine and an operating 350 tonne per day (tpd) mill, provides immediate production infrastructure and strategic positioning along the highly prospective Panuco – San Dimas corridor. This acquisition is a tangible step towards accelerating production and leveraging existing assets.

Financial Trajectory and Capital Infusion

As an exploration and development company, Vizsla Silver's financial statements reflect its pre-production stage. For the fiscal year ending April 30, 2025, the company reported an annual net income of -$5.69 million and an EBITDA of -$5.51 million. Operating expenses for the same period were $17.60 million, with capital expenditures at -$20.53 million, indicating significant investment in project development.

The company's current ratio of 34.06 in 2025 demonstrates a strong liquidity position, crucial for funding its capital-intensive development plans.

Vizsla Silver has been highly successful in securing the necessary capital to advance Panuco. In June and July 2025, the company completed a US$100 million bought deal public offering, followed by an additional US$15 million from the full exercise of an over-allotment option. This capital was specifically earmarked to propel the Panuco Project through final feasibility and into development. Further solidifying its financial runway, Vizsla Silver entered a US$220 million project finance mandate with Macquarie Bank Limited (MQG) in September 2025 to fund the construction and development of the Panuco project.

These financing achievements are critical milestones, providing the financial muscle to transition from a developer to a producer and mitigating significant funding risks. Cash and cash equivalents stood at $96.10 million as of April 30, 2025, a substantial increase from $27.21 million in the prior year, reflecting these successful capital raises.

Outlook and Key Risks

Vizsla Silver's outlook is firmly centered on bringing the Panuco project into production and expanding its resource base through continued exploration. Management aims to position the company as a leading silver producer, leveraging its high-grade discovery and strategic acquisitions. The company's dual-track strategy, combining mine development with district-scale exploration, is designed to maximize long-term value. Analysts anticipate an EPS of -$0.03 for the fiscal year ending April 2026, reflecting the ongoing development phase before significant revenue generation. The upward trend in earnings estimates and a Zacks Rank #1 (Strong Buy) rating suggest a positive shift in the company's earnings outlook, which could translate into buying pressure and an increase in its stock price.

However, the path to production is not without risks. Forward-looking statements from the company highlight potential challenges, including changes in project parameters, inherent risks in mineral exploration and development, and the availability and cost of financing, labor, and contractors. Fluctuations in commodity prices, foreign exchange rates, and input costs also pose significant threats to project economics. Delays in obtaining permits and approvals, political and regulatory risks in Mexico, and potential environmental impacts are additional factors that could affect the project's timeline and profitability. The company has explicitly stated that a production decision for Panuco will only be made following a feasibility study that demonstrates economic and technical viability.

Conclusion

Vizsla Silver Corp. stands at a pivotal juncture, poised to transition from a promising explorer to a significant silver producer. The Panuco project, with its substantial resource base and compelling PEA economics, forms the bedrock of the investment thesis. The company's strategic focus on high-grade deposits in Mexico, coupled with its operational expertise in exploration and development, provides a distinct competitive advantage against larger, more diversified peers. Recent, successful capital raises have significantly de-risked the project's financing, providing the necessary liquidity to advance towards production.

While the company currently operates at a loss, typical for its development stage, the secured funding, strategic leadership enhancements, and the acquisition of a producing mill underscore a clear path forward. Investors in Vizsla Silver are betting on the successful execution of the Panuco project, which, if brought to fruition as planned, could establish the company as a leading player in the silver market. The key to realizing this potential lies in diligent project execution, effective risk management, and the continued success of its dual-track development and exploration strategy in the dynamic Mexican silver belt.