A Look At Silver Storm Mining’s Valuation As La Parrilla Expansion Moves Toward Potential Restart

Why the La Parrilla expansion matters for Silver Storm Mining (TSXV:SVRS)

Silver Storm Mining (TSXV:SVRS) has completed delivery of eight new 1,000 ft3 flotation cells to its La Parrilla Silver Mine Complex in Durango, Mexico, with two already installed and six scheduled for completion in early 2026.

Once fully integrated with existing equipment, these cells are expected to increase the sulphide flotation circuit capacity from 1,000 tpd to 1,250 tpd, supporting the company’s plans for a potential restart of the La Parrilla operation.

See our latest analysis for Silver Storm Mining.

At a share price of CA$0.68, Silver Storm Mining has seen strong recent momentum, with a 30 day share price return of 23.64%, a 90 day share price return of 223.81%, and a 1 year total shareholder return above 4x, as investors react to progress at La Parrilla and interest in its Mexican silver assets.

If you are looking beyond a single mining story, it could be a good moment to broaden your search and check out fast growing stocks with high insider ownership for other potential ideas.

With the share price at CA$0.68 and recent returns very strong, yet trading below the CA$0.28 analyst price target, should you see Silver Storm as mispriced value, or has the market already baked in future growth?

Most Popular Narrative: 98.5% Undervalued

Based on the most followed narrative, Silver Storm Mining’s fair value of CA$45.00 sits far above the last close at CA$0.68, creating a wide valuation gap to unpack.

La Parrilla Production:

• FCF/oz = $100 – $18 = $82/oz.

• Total FCF = 3M x $82 = $246M/year.

San Diego Production:

• FCF/oz = $100 – $18 = $82/oz.

• Total FCF = 8M x $82 = $656M/year.

Valuation (10x FCF):

• La Parrilla: $2.46B.

• San Diego: $6.56B.

• Total Market Cap = $2.46B + $6.56B = $9.02B.

• Stock Price: $9.02B / 200M = $45.10/share.

Read the complete narrative.

According to RockeTeller, this fair value hangs on aggressive free cash flow per ounce, hefty production assumptions, and a rich valuation multiple applied to those cash flows. Curious how sensitive that CA$45.00 figure is to silver prices, recovery rates, and the timing of both projects ramping up? The narrative lays out the full playbook behind that 98.5% discount call without holding back on the numbers.

Result: Fair Value of CA$45 (UNDERVALUED)

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

However, this hinges on San Diego reaching meaningful production and La Parrilla restarting as planned, and any delay, financing hurdle, or weaker project economics could quickly challenge that story.

Find out about the key risks to this Silver Storm Mining narrative.

Build Your Own Silver Storm Mining Narrative

If you are not fully on board with this storyline or prefer to weigh the numbers yourself, you can test your own assumptions and build a fresh thesis in just a few minutes by starting with Do it your way.

A great starting point for your Silver Storm Mining research is our analysis highlighting 4 important warning signs that could impact your investment decision.

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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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