• Kashyap Sriram

Sell Vizsla Resources (VZLA.V)

Stocks Mentioned: Vizsla Resources (VZLA.V), Discovery Silver (DSV.V)


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Time to close out the trade in Vizsla Resources (VZLA.V). The company put out a maiden mineral resource estimate on 2/28 and then proceeded to restate it on 3/2. Not a good sign. The company says:


"An internal review of the estimate identified a miscalculation made by an independent consultant in the conversion of lead and zinc grades into the silver equivalent calculation. This in-turn lifted lower grade zones above the economic cut-off, adding tonnes to the resource but lowering the overall grade. Today's restatement corrects this, and the resource remains extremely robust. Vizsla management acknowledges and apologizes for the miscalculation and will publish data along with the technical report within 30 days to allow investors to independently confirm the resource estimate. "


While this may well be smoke without fire, the stock is well off its highs and the RSI is turning down, in contrast to other silver explorers which are just starting to perk up. Valuation wise, Discovery Silver (DSV.V), is cheaper and at a more advanced stage. I think it's best to cut VZLA today, taking advantage of the rally in silver. Our entry was at C$2.26 on 10/1/2021 so we are just about breaking even.


This content was originally published as part of Against All Odds Research.



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