A Potential M&A Target Trading at a Steep Discount – Valuation Report

*This report and research coverage is paid for and commissioned by Southern Silver Exploration Corp. – See the bottom of this report for other important disclosures rating, and risk definitions. All figures in C$ unless otherwise specified.

Sector: Basic Materials | Industry: Other Precious Metals & Mining

Ticker Symbols:SSVFF – NASDAQ SSV.V – NEO   add buttons like the report via the link

Report Highlights

• SSV’s portfolio consists of four polymetallic projects: Cerro Las Minitas (CLM) and Nazas in Durango, Mexico, as well as Oro and Hermanas in New Mexico, U.S.
• The flagship Cerro Las Minitas (CLM) project hosts a large silver-rich polymetallic resource totaling 303 Moz AgEq, with relatively high-grade silver. At spot prices, silver represents 48% of the resource, followed by zinc and lead at 40%, copper at 8%, and gold at 4%
• A 2024 PEA reported an After Tax-NPV5% of US$931M, and an AT-IRR of 21%, using US$31.5/oz silver vs the spot price of US$34/oz. SSV is trading at just 6% of its NPV. We note that the potential for higher production in the initial years is a key advantage.
• We believe there is resource expansion potential as the deposits remain open laterally, and at depth. SSV is planning a 25,000 m drill program aimed at potentially expanding resources by 10%- 20%.

• With gold/silver trading near record highs, we anticipate increased M&A activity over the next 12 months, as larger companies target juniors to expand  their portfolios. With its large, relatively high-grade silver resource at CLM, and the robust economics outlined in the PEA, we see SSV as an attractive M&A target.
• SSV is trading at a 61% discount ($0.37/oz silver equivalent) vs the sector average of $0.95/oz, based on 100% of measured and indicated resources and 50% of inferred resources.