This is a true quantum leap for Silver Tiger Metals (WKN A2P4YL / TSXV SLVR)! The Canadian company, which is developing the El Tigre silver and gold mine in Sonora, Mexico, reported late Friday evening that – after a long wait – it has now received all permits from the Mexican Ministry of the Environment for the construction of an open-pit mine on the project! (Or as Silver Tiger calls it, the El Tigre Silver and Gold Stockwork Project)
This clears the way for CEO Glenn Jessome to advance the project towards the start of construction as quickly as possible, in compliance with all environmental regulations, as Silver Tiger emphasizes. In various interviews with Goldinvest.de, Mr. Jessome had already emphasized that the talks for the financing required for this are already very advanced.
At current market prices, the net present value of the open-pit mine rises to USD 681.8 million
Silver Tiger had already presented a preliminary feasibility study (Pre-Feasibility) in 2024 on the open-pit part of the planned El Tiger operation, which gives the project a net present value after tax (at a discount rate of 5%) of 222 million US dollars – at a gold price of 2,150 US dollars and a silver price of 26 US dollars! According to the price sensitivity table from the company’s presentation, the NPV5 would be at USD 681.8 million at a silver price of USD 47 per ounce and a gold price of USD 4,000 per ounce – i.e. approximately the current market prices!
And while the internal rate of return of the open-pit project (IRR) after taxes in the PFS is estimated at 40.0% in the base case and the amortization period at 2.0 years, it would be more than twice as high at 47 USD silver and 4,000 USD gold, the IRR coming in at 86.2% and the amortization period at just 1.1 years! In addition the net cash flow after taxes for the open-pit mine is estimated at USD 317.6 million in the base scenario, while it would be USD 923.4 million in the second scenario…
Silver Tiger Opens a Completely New Chapter in the Company’s History
With the receipt of the permits, Silver Tiger Metals can now open a new, extremely exciting chapter in its company history! This first of two decisive catalysts for the company’s development paves the way for the construction of the open-pit mine on El Tigre, which in our view takes CEO Glenn Jessome’s company to a whole new level. We are very excited to see what the news flow of the next few weeks will look like, whether Silver Tiger can actually come up with information on the financing of these works in the near future. (The initial CAPEX is estimated at ~90 million USD). If news about the PEA for the later and even larger underground part of the planned mining operation arrives in the next few weeks and months, the Silver Tiger should, in our view, make another leap!
