Vizsla Royalties (VROY ) Emerging Growth Conference 82 summary

Key project highlights and development milestones

• Holds a 2% net smelter return royalty on the Panuco project, one of the largest undeveloped high-grade silver assets globally, targeting first silver production by late 2027.

• Updated resource in January 2024 increased measured and indicated resources by 43%, now at nearly 223 million ounces at higher grades, supporting a robust feasibility study due later this year.

• Project features low capital intensity (US$224 million), rapid payback (nine months), and high margins, with a projected post-tax NPV5 of CAD 1.1–1.5 billion and IRR up to triple digits at current metal prices.

• Exploration upside remains significant, with only 8% of 93 km of mapped veins included in current plans and 160 drill-ready targets identified.

• Permitting submitted in February 2024, with approval expected in 12 months, and project financing underway, marking a year of de-risking and potential re-rating.

Business model, financials, and shareholder structure

• Operates as a single-asset royalty company spun out from Vizsla Silver, providing exposure to silver and gold with reduced operational risk.

• Trades on OTCQB and TSX Venture, with about 35 million shares outstanding and a market cap of CAD 60–70 million; cash position is over CAD 7.5 million with a low annual burn of CAD 500,000.

• Top shareholders include Franklin Templeton, Sprott Group, and company insiders, with Vizsla Silver retaining about 30% ownership.

• Analyst coverage from Canaccord Genuity (CAD 3.50 target) and Raymond James (CAD 2.25 target), with shares trading near CAD 2.

• Growth strategy focuses on incremental expansion within the district, leveraging competitive advantages and minimizing dilution.

Market positioning and valuation outlook

• Royalty companies typically trade at higher PNAV multiples than operators; current valuation is 0.75x NAV, with precedent transactions in the sector supporting potential re-rating to 1.2–1.8x NAV.

• Recent M&A activity, such as Triple Flag's acquisition of Origen Royalties and Royal Gold's purchase of Great Bear Royalties, highlights strong demand for high-quality single-asset royalties.

• Scarcity of tier-one silver assets and recent acquisitions in Mexico increase the strategic value of the Panuco royalty.

• Management and board have deep alignment and experience, with shared leadership between Vizsla Silver and Royalties.

• U.S. listing recently achieved, aiming to broaden investor base and liquidity.