AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) moved its shares from the TSX Venture Exchange to the Toronto Stock Exchange (TSX) where it began trading today, reported Beacon Securities Analyst Michael Curran in a Feb. 27 research note.
94% Return Implied
Beacon reiterated its Buy rating and CA$6 per share target price on the silver explorer, noted Curran.
Given AbraSilver's share price at the time of the report was about CA$3.10, the target suggests a potential return of 94%.
Better Economics Possible
Curran discussed the definitive feasibility study (DFS) AbraSilver is working on of its Diablillos silver-gold project in Argentina, which it expects to complete in H1/26. The DFS will evaluate some ways the project economics might be improved.
One is to incorporate results of the in-progress 20,000 meter (20,000m) drill program into the resource. Another is replacing/offsetting planned on-site diesel power generation with solar-diesel and/or connecting to the national grid. A third is adding a heap-leach component to the mine plan for processing lower-grade material.
Looking ahead, Beacon estimates start-up of the Diablillos mine will happen in late 2028, noted the analyst.
"We consider AbraSilver to have above average potential to successfully transition from explorer to producer over the next few years," wrote Curran.
Productive 2025 So Far
Curran recapped AbraSilver's major developments thus far this year in addition to its move to the TSX: an updated prefeasibility study (PFS), an equity raise, and a drill result report.
The new Diablillos PFS outlined "a robust project" capable of producing an average of +7,500,000 ounces of silver per year over the mine's 14-year life, reported the analyst.
The company raised CA$58.5 million (CA$58.5M) in gross proceeds, noted Curran, through two private placements, one brokered that generated CA$30M and a second non-brokered with two existing shareholders, Kinross Gold Corp. (K:TSX; KGC:NYSE) and Central Puerto SA, that raised CA$28.5M.
Curran relayed that AbraSilver's February report of Diablillos drill results were notable for the discovery of two new mineralized zones, Oculto East, about 600m east of the main Oculto resource, and Sombra, south of Oculto and east of JAC.
Highlights of this batch of results included:
- 24.5m of 107 g/t silver (Oculto East): hole DDH-24-058
- 22m of 2.78 g/t gold (Oculto East): hole DDH-24-064
- 23m of 55 g/t silver (Sombra): hole DDH-24-062
- 36m of 1.91 g/t gold (Cerro Viejo): hole DDH-24-056
- 81m of 0.25 g/t gold (Cerro Viejo): hole DDH-24-059
Cerro Viejo is 3.5 kilometers northeast of Oculto.
Other Stock Data
At the time of this research report, noted Curran, management and insiders own about 3% of AbraSilver.
The company has CA$65M in working capital and 153 million shares outstanding. Its market cap is CA$474M. Its 52-week range is CA$1.32−3.58 per share.
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- AbraSilver Resource Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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Disclosures for Beacon Securities, AbraSilver Resource Corp., February 27, 2025
Does Beacon, or its affiliates or analysts collectively, beneficially own 1% or more of any class of the issuer's equity securities? ☐ Yes ☒ No Does the analyst who prepared this research report have a position, either long or short, in any of the issuer’s securities? ☐ Yes ☒ No Has any director, partner, or officer of Beacon Securities, or the analyst involved in the preparation of the research report, received remuneration for any services provided to the securities issuer during the preceding 12 months? ☐ Yes ☒ No Has Beacon Securities performed investment banking services in the past 12 months and received compensation for investment banking services for this issuer in the past 12 months? ☐ Yes ☒ No Was the analyst who prepared this research report compensated from revenues generated solely by the Beacon Securities Investment Banking Department? ☐ Yes ☒ No Does any director, officer, or employee of Beacon Securities serve as a director, officer, or in any advisory capacity to the issuer? ☐ Yes ☒ No Are there any material conflicts of interest with Beacon Securities or the analyst who prepared the report and the issuer? ☐ Yes ☒ No Is Beacon Securities a market maker in the equity of the issuer? ☐ Yes ☒ No Has the analyst visited the issuer’s material operation(s)? ☐ Yes ☒ No Did the issuer pay for or reimburse the analyst for the travel expenses? ☐ Yes ☒ No All information contained herein has been collected and compiled by Beacon Securities Limited, an independently owned and operated member of the Canadian Investment Regulatory Organization (CIRO). All facts and statistical data have been obtained or ascertained from sources, which we believe to be reliable, but are not warranted as accurate or complete All projections and estimates are the expressed opinion of Beacon Securities Limited, and are subject to change without notice. Beacon Securities Limited takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report. This report is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell securities discussed herein. Based on their volatility, income structure, or eligibility for sale, the securities mentioned herein may not be suitable or available for all investors in all
Dissemination Beacon Securities distributes its research products simultaneously, via email, to its authorized client base. All research is then available on www.beaconsecurities.ca via login and password.
Analyst Certification The Beacon Securities Analyst named on the report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the company and securities that are the subject of the report; or any other companies mentioned in the report that are also covered by the named analyst. In addition, no part of the research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.
