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Vizsla Silver - Panuco Project Update: Site Access, The Path and Timeline To Production

The KE Report Sep 22, 2026 20:45

Summary

Vizsla Silver targets first silver at Panuco around mid-to-late 2028, a slight timeline slip after January's tragedy kept work off site.

Mexican government and military support underpins a planned return to site by end-2026, with roughly $10 million set aside for security.

EPCM (engineering, procurement, construction management) award to M3 and the FLSmidth mill equipment package lock in capital cost certainty before the final investment decision.

Over $400 million in cash covers the full build, and management argues the shares look cheap at about four times NAV (net asset value).

Underground drill bays at Copala aim to convert 25 million inferred ounces, in a district where under 5% of known veins have been drilled.

Key points on Lundin Gold

  • The CEO cites Guillermo Hernandez's background with Lundin Gold at Fruta del Norte as evidence of the geological depth added to the Panuco team.

Key points on Vizsla Silver

  • As of the September 2026 update, the CEO expects Vizsla back on the Panuco site by the end of 2026 and pouring first silver around the midpoint of 2028, possibly toward the end of 2028 - a slight delay from the January security tragedy.
  • The M3 EPCM contract and the FLSmidth equipment contract covering the eight major mill packages are signed, and the CEO says only the mining contract remains, with feasibility-study cost estimates still intact.
  • The company holds just over $400 million in cash, about two times capex, plus roughly $25 million of equity and $10 million of working capital, which the CEO says removes any need for additional financing to build the mine.
  • The CEO cites strong support from the Mexican government and military, says permitting has not been delayed, and expects around $10 million of initial security investment plus $5-10 million going forward, likely including a military installation on site.
  • Two drill bays already installed underground at Copala let the company work toward converting about 25 million inferred ounces into higher-confidence resources, in a district where less than 5% of the veins have been drilled.

Michael Konnert's takeaways

  • Top takeaway Said in September 2026 that Vizsla should be back on the Panuco site by the end of the year and should pour first silver around mid-2028 to late 2028, calling the timeline impact of January's tragedy slight.
  • Argues Vizsla is undervalued at about C$2 billion: with just over $400 million in cash, about two times capex, he says the build needs no additional financing and the shares trade at a steep discount to the roughly 1.7 times NAV at which SilverCrest and Gatos traded in an earlier period.
  • Rejects selling the company: he says its value is far too low for a transaction and his vision is to move Panuco into production with the team Vizsla has hired.
  • Points to cooperation from the Mexican government and military, including a likely on-site military installation within a security plan similar to other secured Mexican mines, as what makes a safe return to site achievable.
  • Sees substantial exploration upside, with about 25 million inferred ounces convertible from two underground drill bays at Copala and the district still largely under-explored after roughly 400,000 metres of drilling.

Cory Fleck's takeaways

  • Top takeaway As host, he frames the update around the January security events, the newly signed contracts, the management additions and valuation, noting the company sits near C$2 billion and well off its highs from earlier in the year.
  • He invites listeners to email follow-up questions, which he says Konnert will address on future KE Report episodes.

Mr. Dave D'antonio's takeaways

  • Top takeaway Konnert presents Dave D'Antonio's hiring as the addition of an extremely experienced underground miner with strong technical skills, part of the team build-out ahead of construction.

Mr. Guillermo Hernandez's takeaways

  • Top takeaway Konnert describes Guillermo Hernandez, previously with Lundin Gold at Fruta del Norte, as a big-picture geological thinker with specific insight into Panuco who can also inspire and lead teams.

Ms. Susy H. Horna's takeaways

  • Top takeaway Konnert introduces Susy Horna as Vizsla's new corporate secretary, joining most recently from Gatos and bringing deep experience with Mexican mining and operating companies.