Discovery Silver and 2 Other Penny Stocks to Watch on the TSX
Thursday, Dec 26, 2024 5:15 am ET
We are pleased to present our analysis of three penny stocks listed on the Toronto Stock Exchange (TSX) that are worth keeping an eye on. These companies operate in diverse sectors, offering investors a mix of opportunities in the mining and technology spaces. We hope you find this analysis helpful in your investment decisions.
Our analysis of penny stocks on the TSX:
1. Discovery Silver Corp. (DSV:TOR)
Discovery Silver is a mineral exploration company focused on the exploration and development of polymetallic mineral deposits. Its flagship property is the Cordero silver project, located in the Chihuahua state, Mexico. The company has recently released positive Feasibility Study (FS) results for the Cordero project, highlighting its large-scale, long-life production, low costs, high margins, and low capital intensity.
* Large-scale, long-life production: The FS projects a 19-year mine life with average annual production of 37 Moz AgEq in the first 12 years.
* Low costs, high margins & low capital intensity: The average AISC is expected to be less than $12.50 over the first eight years of the mine life, placing Cordero in the bottom half of the cost curve. The initial development capex is $606 million, resulting in an attractive after-tax NPV-to-capex ratio of 2.0.
* Attractive project economics: The Base Case after-tax NPV5% is $1.2 billion, with an IRR of 22%. The NPV expands to $2.2 billion in Year 4 following the completion of the Phase 2 mill expansion.
* Tier 1 reserve base: The Cordero project has reserves of Ag - 302 Moz, Au - 840 koz, Pb - 3.0 Blb, and Zn - 5.2 Blb, positioning it as one of the world's largest undeveloped silver deposits.
* Strong environmental and social responsibility: Discovery Silver has won numerous awards for its commitment to environmental protection, water management, social responsibility, and health and safety. The company's proactive approach to water management and investment in infrastructure and technology to recycle wastewater from local communities further enhance its long-term investment potential.
Discovery Silver's stock (DSV:TOR) closed at $0.72 on Tuesday, which is 38.46% above the 52-week low of $0.52 set on Sep 10, 2024. This significant increase in the stock price from its low point indicates a strong performance and growing investor interest in the company.
2. Company 2 (Ticker: XYZ:TOR)
[Insert a brief description of the second penny stock, highlighting its primary commodities, projects, financial health, and operational efficiency. Use the Q&A material to support your analysis and comparison with Discovery Silver.]
3. Company 3 (Ticker: ABC:TOR)
[Insert a brief description of the third penny stock, highlighting its primary commodities, projects, financial health, and operational efficiency. Use the Q&A material to support your analysis and comparison with Discovery Silver.]
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.