Silver Tiger (TSXV SLVR / WKN A2P4YL) has completed a previously announced capital increase in a so-called bought-deal procedure and raised gross proceeds of CAD 28.8 million. According to the company, the amount includes the fully drawn 15% over-allotment option. The funds are primarily intended to flow into exploration at the El Tigre silver-gold project in the Mexican state of Sonora, as well as for general corporate purposes. In light of this, the analysts at Desjardins have updated their valuation model prior to the publication of an underground PEA (Preliminary Economic Assessment).
Silver Tiger: Financing Secures Exploration until the Start of New Programs
With the completion of the placement, Silver Tiger will receive net proceeds of approximately CAD 27.0 million; a total of approximately 40 million new common shares were issued. As of the end of the second quarter of 2025, the company also had CAD 15 million in cash. Silver Tiger plans to explore El Tigre to expand into previously less explored areas north and south of the known vein trend. According to the company’s planning, the start of this program is scheduled for the fourth quarter of 2025.
The measures aim to further sharpen the geological understanding of the system and define potential extensions of the existing resource base. Important for investors and observers: El Tigre remains the focus of all short-term operational activities of Silver Tiger, while the approval and planning work for the open-pit and underground development is progressing in parallel.
El Tigre Underground: Key Data and Assumptions in the Updated Model
Desjardins currently values the future underground component of El Tigre with an NPV (5%) of US$261 million, with underground mining scheduled to begin in 2029. This would mean that underground production would start approximately two years after the planned start of the open-pit mine. In the model assumption, free cash flows from the open-pit mine flow into the financing of part of the underground development.
For the underground investments (capex), Desjardins calculates a total of approximately US$165 million, including a Phase 2 expansion of the processing plant in 2031. This expansion envisages an increase in throughput from 800 tonnes per day (tpd) to 1,600 tpd. The model is based on a resource base of 35 million ounces of contained silver (Ag) and assumes a total production of 31.7 million ounces of silver equivalent (AgEq) over the life of the underground mine (LOM) of twelve years.
The modeled total operating costs (AISC) for underground mining are US$22.52/oz (co-product basis). Over the LOM, Desjardins expects revenues of approximately US$1.25 billion, which would account for approximately 75% of the modeled mine revenues. These key figures are assumptions of an external model; the actual parameters may change as the studies and approvals progress.
Approvals, PEA and Construction: Timeline from the Fourth Quarter of 2025 to 2026
Desjardins cites two milestones as short-term catalysts for Silver Tiger that could occur in the fourth quarter of 2025: firstly, the granting of the open-pit mining permit for El Tigre, and secondly, the publication of the underground PEA. After receiving the open-pit mining permit, the analysis house expects Silver Tiger to complete the overall financing of the project and begin the construction phase in a timely manner. In its timeline, Desjardins models the start of construction for the first quarter of 2026.
The model estimates an initial investment requirement of US$91 million for the initial open-pit mine. According to the model calculation, the staggered approach – first open-pit, then underground – is intended to partially cover the capital requirements using internal funds and at the same time structure the ramp-up curve of the production. Here too, it should be noted that these are model assumptions that will be specified in the course of technical studies and official processes.
Valuation and Market Classification of Silver Tiger in a Developer Comparison
In the relative valuation, Desjardins sees Silver Tiger at a price/NAV (P/NAV) ratio of 0.20x and thus close to the average of covered developer peers (0.22x). Against the backdrop of the updated assumptions – including the new price deck and the discounted cash flows for the underground component – the analysts are raising their target price for Silver Tiger to CAD 1.40 (previously CAD 0.90).
For classification: P/NAV is a common key figure for comparing development projects in the commodities sector, especially when there is no operative cash flow yet. Changes to valuation parameters – such as metal price assumptions, capital costs (capex), operating costs (AISC) or timelines – can significantly move the calculated NAV. Similarly, approvals, financing decisions and future study results for El Tigre can influence analysts’ views on Silver Tiger.
Conclusion: With the completion of the CAD 28.8 million financing, Silver Tiger has laid the foundation for expanding exploration at El Tigre in 2025 and at the same time advancing the study work on the underground development. The coming months will be dominated by regulatory decisions (open-pit mining permit) and the publication of the underground PEA – two events that should further sharpen the project profile and concretize the further roadmap to the targeted start of construction in 2026.
