SILVER VIPER MINERALS, VIZSLA SILVER, AND DISCOVERY SILVER: THREE STALLION COMPANIES FROM THE STABLE OF CANADA'S SUPER INVESTOR ERIC SPROTT

THE TREASURE MAP OF AN INVESTMENT LEGEND

What Warren Buffett is to value investors, Eric Sprott is to the world of precious metals. The 82-year-old Canadian is not just an investor; he is an institution. Sprott has dedicated his life to the search for true value, particularly in gold and silver. In 2010, the former Merrill Lynch analyst founded the Sprott Physical Gold Trust and attracted billions in investments. The ETF was designed to give investors access to physical gold without having to store it themselves. Since then, the Sprott Trusts have grown into a full family of funds, making virtually every treasure buried in the ground—from silver to uranium—investable. In addition, the billionaire invests in junior exploration companies with the potential for world-class discoveries.

He is the man who bought physical silver when others considered it scrap metal. Today, through his investment company 2176423 Ontario, he holds a portfolio of shares in over 60 companies that resembles a treasure map. The current focus is on Mexico, the heart of global silver production. Eric Sprott never bets all on one horse. He owns the entire racing stables.

SILVER VIPER MINERALS: THE HUNTER

One of his most recent investments is Silver Viper Minerals. He established an initial position in July of last year and added to it again in December. The stock price subsequently surged, driven in part by the rise in the price of silver, to a multi-year high of over CAD 2.50. He currently holds a 7.3% stake in the company, which was founded in Vancouver in 2016. In addition, he owns warrants that entitle him to increase his stake to more than 10% at a fixed conversion price of CAD 1.25 per share. When Sprott first bought in, the stock was still trading at around CAD 0.50. In the meantime, the silver euphoria has subsided, and the share price has fallen back to CAD 0.84 (currently EUR 0.52 on German exchanges).

The company's latest announcements seem to have gone unnoticed. A few weeks ago, Silver Viper secured 100% of the Coneto project in the Mexican state of Durango from Fresnillo, one of the world's largest silver producers. The deposit is estimated at 535,000 ounces of gold equivalent, with gold and silver holdings roughly balanced. The purchase price of approximately USD 15 million was paid in full through the issuance of approximately 25.5 million new shares. This makes Fresnillo another anchor shareholder: its stake of around 17% is even larger than Sprott's. In addition, Silver Viper reported sensational drilling results at the La Virginia project, further north in the state of Sonora. In one drill hole, geologists encountered gold grades of up to 183.5 grams per ton of rock (g/t) and silver grades of up to 6,850 g/t. Previously, the management team led by CEO Steve Cope had anticipated values of around 0.8 g/t gold and 35 to 40 g/t silver. Even that was reason enough for analysts at the investment firm Red Cloud Securities as early as September 2025 to set a price target of CAD 2.50 (currently about EUR 1.57), a level that has since been reached. The recent discovery of high-grade deposits was not yet known at that time.

Such announcements are likely to receive greater attention in the US in the future as well. There, the stock had previously been traded only "over the counter" (OTC), but on May 1, Silver Viper moved up to the OTCQX Best Markets segment. While this is still an over-the-counter market, it is the highest trading segment there, which entails several quality requirements. Companies must meet strict transparency standards, submit audited financial reports, and demonstrate compliance with US securities laws. Shell companies and firms at risk of bankruptcy are not permitted in the Best Markets segment; the restrictions on US brokers and portfolio managers for trading in lower OTC segments do not apply there. This makes the stock tradable for US retail investors and smaller institutions. This increases attention from the investment community; news about high-grade gold and silver discoveries is unlikely to simply fizzle out in the future.

VIZSLA SILVER: THE UNICORN

There are plenty of examples in Eric Sprott's portfolio of the path Silver Viper could take. Vizsla Silver, for instance, is the success story every junior miner dreams of. The company, also based in Vancouver, is developing the Panuco Silver-Gold Project in the Mexican state of Sinaloa, located exactly between Durango and Sonora. Production is scheduled to begin as early as 2027. The plan is to produce 17.4 million ounces of silver equivalent annually at estimated production costs of USD 10.61 per ounce. The current silver price is over USD 70 per ounce. This points to an annual revenue potential of USD 1.2 billion and a gross margin of more than 80%.

Thanks to cash reserves of USD 450 million, the construction of the Panuco mine is considered fully funded. Although the stock price has fallen from an annual high of CAD 9.82 to CAD 4.68, the company has reached a market capitalization of more than CAD 1.6 billion—about 20 times that of Silver Viper, whose third major project, Cimarron, a gold and copper deposit, is also located in Sinaloa. Admittedly, Vizsla is still operating at a loss and will likely remain in the red even after production begins next year. But starting in 2028, analysts estimate that profits will be pouring in. A projected 2028 earnings per share (EPS) of CAD 0.50 suggests a price-to-earnings (P/E) ratio below 10. In 2029, earnings per share are expected to more than triple to CAD 1.68. Vizsla was founded in 2017 by Michael A. Konnert, an experienced mining startup specialist who continues to lead the company today. Together with his team, he has proven that it is still possible to find massive new vein systems in Mexico today by essentially "X-raying" old mining districts with new technology.

DISCOVERY SILVER: THE BILLION-DOLLAR CORPORATION

Discovery Silver has taken another decisive step forward. The company is already posting profits, which are expected to more than double this year from CAD 0.22 to CAD 0.50 per share. As with Vizsla, Sprott initially held a stake of just over 10%. In both cases, he has cashed out a small portion to remain below the regulatory 10% threshold. He no longer wishes to be listed as an official insider but continues to hold the shares as a long-term core investment.

Ongoing revenue is generated by the gold mines of the Porcupine Complex in Timmins, Ontario, which Discovery Silver acquired from Newmont in April 2025. According to the company's plans, the Hoyle Pond and Borden underground mines, as well as the Pamour open-pit mine, are expected to produce 260,000 to 300,000 ounces of gold this year. To process the precious metal itself, the Toronto-based group also purchased the Kidd Mine from Glencore in March of this year. It is considered the world's deepest non-ferrous metal mine, extracting copper, zinc, and silver up to 3,000 m below the earth's surface, with indium, selenium, and sulfuric acid as byproducts. Even though the Kidd operations are nearing the end of their economic life, the deal makes sense for CEO Tony Makuch, who was just named "CEO of the Year" by industry service Kitco Mining, because of the existing processing facility.

Makuch plans to use the cash flow from gold production in Ontario to develop one of the world's largest undeveloped silver deposits: the Cordero silver project in the state of Chihuahua, located in northern Mexico. It is scheduled to begin operations in 2028 and, once ramped up, is expected to produce an average of 37 million ounces of silver equivalent per year—representing a revenue potential of over USD 2.5 billion. There is a reason why Sprott and the Canadian companies in his orbit want to focus their activities primarily on Mexico: the silver resources there are among the highest-grade in the world. The previously restrictive regulations for new mining projects have been relaxed under President Claudia Sheinbaum, who has been in office since October 2024.

THREE COMPANIES, ONE COMMON DNA

While the Discovery playbook, with a market capitalization of nearly CAD 7 billion, cannot be readily applied to Silver Viper, two of CEO Tony Makuch's closest confidants have since joined the team in Vancouver:
Longtime CFO Andreas L'Abbé serves as a financial advisor, while Gernot Wober, who was formerly responsible for exploration as vice president at Discovery, is providing his technical expertise. However, it is unlikely that Silver Viper will quietly grow into a billion-dollar valuation; rather, a takeover would be more likely should further outstanding drill results follow. Both the new partner, Fresnillo and one of the larger companies in the Sprott network would be potential candidates. The price potential and risks are highest for Silver Viper, as evidenced by its stock price volatility. Vizsla Silver does not fluctuate as much and will generate profits on its own in the foreseeable future; nevertheless, the stock is anything but a safe-haven investment. Discovery Silver has indeed suffered a price decline of about a third since its January high of over CAD 12.00, but it has not fluctuated more than the silver price, which the stock tends to track. It is the most mature company in this trio—the era of massive price surges is likely over. While Discovery impresses with the security of its volume and Vizsla with the elegance of its discovery, Silver Viper offers the thrill of the hunt. It is no coincidence that Eric Sprott is betting on all three companies. The super-investor does not just buy stocks—he buys geology.