A Look At Blackrock Silver (TSXV:BRC) Valuation After New Tonopah West Permit And Drill Program Mobilization

Why Blackrock Silver Is Back on Investors’ Radar

Blackrock Silver (TSXV:BRC) is drawing fresh attention after two key Tonopah West updates: the award of a Class II Air Quality and Surface Disturbance Permit, and the mobilization of drill rigs for large resource expansion programs.

See our latest analysis for Blackrock Silver.

The latest Tonopah West permit and drill mobilization news comes after a very strong run, with a 90 day share price return of 120.93% and a 1 year total shareholder return above 4x. However, the 7 day share price pullback of 7.32% suggests some momentum cooling at a CA$1.90 share price.

If this kind of project driven move has your attention, it could be a good moment to see what other precious metal names are doing through our 28 elite gold producer stocks.

With a share price that has already multiplied over the past year, a fresh permit in hand, rigs turning and auditors flagging going concern risk, is Blackrock Silver still mispriced or is the market already baking in future growth?

Most Popular Narrative: 93.7% Undervalued

At a last close of CA$1.90, the most followed narrative on Blackrock Silver points to a fair value of CA$30, a very large gap that turns the spotlight onto Tonopah West and its long term potential.

Under a sustained $100/oz silver price environment, Tonopah West demonstrates the potential for multi-billion-dollar operating enterprise value, even after applying 7% annual operating cost inflation. After assuming 50% dilution, implied per-share values range from approximately $20 to $40 per share across 10× to 20× EBITDA multiples.

Read the complete narrative.

Curious how a pre revenue explorer gets to that kind of number per share, even after heavy dilution assumptions and cost inflation baked into the model? The narrative leans on production rates, margin assumptions and valuation multiples that are usually associated with much larger producers. If you want to see exactly which operating metrics and pricing inputs sit behind that CA$30 handle, the full story joins the dots in a way the headline share price does not.

Result: Fair Value of CA$30 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this hinges on a pre revenue explorer with no current cash flow, so any delay in Tonopah West permits or heavier than expected dilution could quickly challenge that CA$30 narrative.

Find out about the key risks to this Blackrock Silver narrative.

Next Steps

If this sounds compelling or concerning, it is worth reviewing the facts yourself and deciding promptly where you stand. You can start with our 4 important warning signs.

Looking for more investment ideas?

If Blackrock Silver has sharpened your focus, do not stop here. Broader context across sectors and styles can help you spot opportunities you might otherwise miss.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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