Investors
Royalty FAQ’s
What is a mining royalty?
Royalty Payment = Royalty Rate × Mine RevenueExample: Vizsla holds a Net Smelter Royalty (NSR) on the Panuco Project. If Panuco generates $100M in revenue and Vizsla’s NSR is 2%, Vizsla would receive $2M.
Royalty Payment = Royalty Rate × Mine Revenue
Example: Vizsla holds a Net Smelter Royalty (NSR) on the Panuco Project. If Panuco generates $100M in revenue and Vizsla’s NSR is 2%, Vizsla would receive $2M.
How is it different from owning shares?
Shareholders depend on company profits and stock price. Royalty holders like Vizsla receive payments directly tied to mine production or sales, providing more predictable cash flow.
What types of royalties does Vizsla hold?
Vizsla focuses on high-quality royalties, including NSR (Net Smelter Return) and other agreements, providing exposure to revenue after certain costs are deducted.
Why do mining companies grant royalties?
Royalties allow operators, like Vizsla Silver at Panuco, to fund exploration and development without diluting ownership or taking on debt.
What’s the difference between a royalty and a streaming agreement?
Royalty: Vizsla earns a percentage of revenue or production.
Streaming: The right to buy metals at a fixed price below market, which Vizsla does not currently engage in.
Are royalty payments affected by commodity prices?
Yes. Since royalty payments are tied to mine revenues, rising commodity prices generally lead to higher returns for Vizsla.
Why invest in Vizsla Royalties?
Vizsla offers:
- Exposure to a world-class asset (Panuco – largest undeveloped high-grade silver resource)
- Cash flow from NSRs
- Upside from silver price increases
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