Vizsla is just above a strong support line at $1.00. Vizsla has discovered enough silver that at a market cap of $252 million, Vizsla could arguably be worth more dead than alive. No, they are not in any trouble. They will raise money in the next year, but they are healthy. Capex to build a processing mill and building infrastructure is estimated at about $150 million. Link to Finviz VZLA chart and news.
Vizsla is at price support, at best consolidating a downward trend. We are not buying for technical reasons. We are buying value – assets on the cheap. Leverage will come from silver prices rising on a significant amount of silver in the ground. Not from leverage on borrowed money. A better way to compound for wealth building.
Vizsla Silver – A must own silver prospect. Why would we say that?
Vizsla Silver has the potential to be the largest silver producer in the world. Yes, there is a lot of work to be done to prove that statement. Here are some of the characteristics at Vizsla:
- District Size scale – seven kilometers wide and fourteen kilometers long.
- Close to power, roads and water. Seventy miles east of Mazatlan, Mexico on the main road between Mazatlan and Durango.
- Width of discovered veins. Vizsla has discovered wide veins of high grade silver ore. It is one thing to discover a high grade, but high grade at width, is far better. Greater than three meters width, is spectacular.
- High Grades – It is getting boring finding one kilo (1,000 g/t) of silver in a ton of dirt. 50 g/t of silver is considered High Grade. 1,000 g/t and higher is considered a bonanza by Lobo Tiggre, metals newsletter writer. Vizsla has many multiples of 1,000 g/t discoveries.
- Link to headline news follow at their web site. Note grades and width of discovery in the different press releases. A great discovery as example: 1,011 g/t AgEq over 12.52 metres.
- Noted precious metals speculator, billionaire and co-founder of Sprott Inc (SII) $34.29, Rick Rule has started accumulating shares as noted on LinkedIn.
- Management is led by noted geologist and mining executive, Craig Parry. Parry & team at Inventa Capital have multiple natural resource interests including Skeena’s Eskay Creek (SKE) $4.37, also mentioned by LOTM. September 14, 2022.
“Vizsla Silver (VZLA) – Will This be the World’s Largest Silver Mine?” 16 minute vid
Vizsla & Matt Gordon of Crux Investor dated September 18, 2022. Paid promotion, but great info on the company. You want to own a company with a good PR plan!
What is the catalyst for a higher price?
- Before year-end 2022, Vizsla will release a new Resource Update. The results are expected to be extremely good. If the stock has not rallied by this release, we believe the Resource Update will show the shares are “too cheap.”
- Demand for silver is greater than supply in the silver industry. Demand driven by expanding solar and Electric Vehicles build out will take demand to higher levels that we have today. This will drive silver prices higher.
- Inflation and loss of purchasing power of the US Dollar. Silver would have to more than double in price to get back to its $50 high in 1980. Silver is the cheapest physical asset in the world.
LOTM’s Price goal and plan: Our target price in Vizsla, is not a short-term goal. In three to five years, we expect Vizsla’s price can increase three to five fold. We are looking for a price in the 44.00 to six dollar range. That would average a non-compounded, 100% annually. The price could be subdued for a six to eighteen month period then, Whoosh higher three to five times in six months. It is the nature of the micro-cap mining companies. You sell into that whoosh on a stage-out basis.
Risk management:
Buy with Dollar-cost-averaging up to a price of $1.50 – pause in buying at $1.50 unless shifting to a trading perspective with part of the holding. Begin scaling out of the position at price above $2.24 at a rate of 20% of the remaining share position, sold at each new 50% target level above cost. Example: Sell 20% of shares held at $2.24. If your cost is $1.20 then 50% of cost would be $0.60. The next number to sell 20% of remaining shares is at $2.84. Continue to do this as the stock increases until you have recovered 100% of funds invested. You are an investor in Vizsla at prices under $1.50. Accumulate on price weakness to what is a full position for you. Price moves in miners comes in a whoosh. Three to five-fold moves can happen in a six month window. Scale out of the position on this whoosh. The challenge is we never know how high, high is. Scaling out on the rally, at a 20% of remaining share rate, gets you out of the would’a, could’a, should’a anxiety fix.
Bought at the current price, and held longer-term, I believe it will be difficult to lose money on Vizsla, unless you are forced to sell at lower prices. Vizsla has a lot of silver in its assets, literally finding more each month and has a very large property grow into. The odds – the probability of higher silver prices in the next year or two is high. The future is very bright for Vizsla Silver.
Vizsla Silver is a LOTM: Ten Under $10 for the Double, position.
Good fortune.
Written September 28, 2022, by Tom Linzmeier for Tom’s Blog at www.LivingOffTheMarket.com
Accounts related to LOTM and Tom Linzmeier can & will, buy or sell securities at any time.
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* An account related to LOTM holds a position in this security.
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