Vizsla Resources (VZLA-X)

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

VZLA is a relatively small company, operating as a developer of precious and base metal assets largely focused in the Panuco district in Mexico. The Panuco silver-gold project is considered one of the highest-grade silver primary discoveries in the world, with a relatively low-cost structure compared to competitors (based on the company presentation) and is now trading at 1.3x times' Price/Book.

As VZLA is still in the exploration stage, which is still 3-5 years until the company realizes its value through full production. The type of company is quite speculative, which may offer tremendous returns if the company eventually achieve mining stage. However, we consider the name to be highly volatile, we would prefer to wait until the company starts to generate some revenue and earnings. Insiders own 6%, Franklin Resources owns 13%. It has $52M cash, with a cash burn of $13M in the past year. 
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Stock's malaise this year is due to overperformance last year. He sold half his position, which he calls "the point of no concern".