Southern Silver Exploration Corp.
PEA Delivers 44% Higher NPV / Trading at a Substantial Discount
Published: 6/24/2024
Author: FRC Analysts
Sector: Basic Materials | Industry: Other Precious Metals & Mining
Ticker Symbols:SSVFF - NASDAQ 🔹SSV.V - NEO 🔹
Rating and Key Data
| Metrics | Value |
|---|---|
| Current Price | CAD $0.28 |
| Fair Value | CAD $0.6 |
| Risk | 5 |
| 52 Week Range | CAD $0.11-0.34 |
| Shares O/S (M) | 292 |
| Market Cap. (M) | CAD $85 |
| Current Yield (%) | N/A |
| P/E (forward) | N/A |
| P/B | 2.3 |
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Report Highlights
- SSV has completed an updated Preliminary Economic Assessment (PEA) on its 100%-owned Cerro Las Minitas (CLM) project in Mexico. CLM is one of the largest undeveloped silver-rich polymetallic projects in the world.
- The PEA reported an After Tax-NPV5% of US$501M, and an AT-IRR of 21%, using US$23/oz silver vs the spot price of US$31/oz. SSV is trading at just 12% of the NPV.
- Compared to the 2022 PEA, NPV increased by 44% due to the inclusion of new resources from a 2023 resource update, and a higher throughput rate, resulting in increased annual production. This was partially offset by the impact of higher CAPEX.
- We believe there is resource expansion potential as the deposits remain open laterally, and at depth. Management is exploring options to advance the project, including resour
