Abra Silver Up 45% YTD - More To Come? | John Miniotis and Jimmy Connor

Jimmy Connor Aug 14, 2026 16:31

Summary

Diablillos' DFS posts a $4.2B Canadian after-tax NPV at conservative $50 silver and $3,650 gold — robust economics investors can actually underwrite.

AbraSilver is one of the few mid-tier developers holding Argentina's RIGI — locking in 30 years of tax, FX, and duty stability.

With ~$70M cash after the raise, the company is mixing term debt, a silver or gold stream, and equity to fund the $720M capex build.

Diablillos targets Q4 2029 first production, with peak output of 19M ounces silver per year — set to be the largest primary silver mine globally.

Phase Six step-out drilling continues alongside construction prep, leaving room for resource growth and a possible expansion study.

Strategic 4% shareholder that maintained its stake by participating pro-rata in AbraSilver's recent oversubscribed $50M equity raise.
The guest frames Kinross's continued participation as a sign of ongoing support as AbraSilver advances toward a final construction decision in April 2027.

DFS delivered a $4.2B CAD NPV (5% discount) and over 40% after-tax IRR, with a 1.7-year payback, based on conservative $50 silver and $3,650 gold price assumptions.
The Diablillos project in Salta/Catamarca, Argentina holds ~250Moz silver and ~2.5Moz gold (~500Moz silver-equivalent), with provincial environmental approvals and federal RIGI approval now in place.
Phase one targets first production by Q4 2029 at a $720M initial capex, with a 25-year mine life, ~9,000 t/day throughput, and AISC of ~$20/oz silver-equivalent.
The oversubscribed $50M raise added less than 2% dilution and lifted cash to ~$70M; a larger debt/stream/equity package for the $720M capex is targeted by year-end.
Phase Six step-out drilling continues, including a recent July intercept of 100m at 220g/t silver and 0.7g/t gold at Oculto West, with a resource update planned for next year.

Top takeaway Frames the interview around AbraSilver's shift from explorer to developer, pressing for specifics on DFS economics, production mix, and upcoming catalysts.
Highlights the stock's 45% YTD gain and probes the institutional breadth of the recent $50M raise, signaling close attention to financing ahead of the larger construction package.