Last Update 19 Jul 26
Fair value Decreased 80%Valuation Update (July 2026)
FCF Multiple Model at US$150/oz and US$200/oz Silver
This is a simplified free cash flow valuation model. Because Silver Storm does not have a current PEA, PFS, FS, or published AISC guidance for La Parrilla, this model uses historical production and historical cash cost data as a rough proxy. It is not a formal valuation, not a target price, and not a guarantee.
La Parrilla FCF Model
Valuation Summary Table
This valuation is aggressive and simplified. It is designed to show silver-price torque, not a guaranteed target price. The real numbers could be much lower if costs are higher, production is lower, recoveries are weaker, taxes are higher, dilution increases, or the restart takes longer than expected.
Silver Storm Mining Ltd. TSXV: SVRS / OTCQX: SVRSF / FSE: SVR
Introduction
Silver Storm Mining Ltd. is a near-term silver restart story focused on Durango, Mexico. Its flagship asset is the 100 percent owned La Parrilla Silver Mine Complex, a past-producing underground silver, lead, zinc, and gold operation located approximately 76 kilometres southeast of Durango City. The company also owns the San Diego project, an advanced exploration silver-zinc project in the Velardeña Mining District.
The bull case is simple: Silver Storm is not trying to build a new mine from scratch. It is trying to restart a past-producing silver complex with major infrastructure already in place. La Parrilla already has a 2,000 tpd processing facility, multiple underground mines, established mining infrastructure, and a history of production under First Majestic. The company says La Parrilla produced over 34 million silver equivalent ounces between 2006 and 2019, and from 2012 to 2018 averaged around 3.52 million silver equivalent ounces per year at historical cash costs of US$8.46 per ounce silver, net of by-product credits.
The strongest part of the story is timing. Silver Storm is targeting a restart of operations at La Parrilla in Q2 2026, subject to further technical evaluations. The company says it is fully financed for rehabilitation and ramp-up, has secured a two-year concentrate offtake agreement with Samsung C&T, and is expanding the sulphide circuit from 1,000 tpd to 1,250 tpd.
The main risk is also very clear. Silver Storm is advancing La Parrilla toward production without a current NI 43-101 reserve, PEA, pre-feasibility study, or feasibility study supporting the production decision. The company itself warns that this creates a higher degree of economic and technical risk than a restart supported by formal reserve and economic studies.
This makes Silver Storm a very interesting but high-risk silver stock. It has infrastructure, past production, strong strategic shareholders, and near-term restart potential. But investors must understand that the company still needs to prove the restart plan can deliver reliable tonnes, grade, recoveries, costs, and cash flow.
Projects / Location / MRE / Grades
Project 1: La Parrilla Silver Mine Complex, Durango, Mexico (Flagship Restart Asset)
Main Asset
La Parrilla is Silver Storm’s flagship project. It is located in Durango State, Mexico, approximately 76 kilometres southeast of Durango City. The property consists of 41 contiguous mining concessions covering 69,478 hectares, according to MarketScreener company data, while the company’s March 2026 presentation highlights a large 38,128-hectare land package for La Parrilla exploration.
This is a past-producing mine complex, not a greenfield exploration project. La Parrilla includes five underground mines around the mill, including Rosarios, La Rosa, San Jose, Quebradillas, and San Marcos, plus the Quebradillas open pit. It also hosts a 2,000 tpd processing facility and significant in-place infrastructure.
This matters because the biggest advantage for Silver Storm is infrastructure. New silver mines are usually expensive, slow, and difficult to permit. La Parrilla already has a processing plant, underground workings, mining history, site access, equipment orders, ventilation upgrades, and an existing production footprint. The company estimates around US$150 million of infrastructure is already in place.
Grade Feel
La Parrilla is not a giant ultra-high-grade pure silver deposit. It is a polymetallic silver-dominant mine complex with silver, lead, zinc, gold, and silver-equivalent value. The March 2026 company presentation states that around 64 percent of indicated gross metal value and around 67 percent of inferred gross metal value is silver.
The updated La Parrilla resource is respectable for a restart scenario. The indicated resource totals 10.8 million silver equivalent ounces, while the inferred resource totals 16.3 million silver equivalent ounces. The company also notes an additional 3.8 million AgEq ounces in pillars excluded from the resource.
The strongest grade zones appear to be in the underground mine extensions. At Quebradillas, the company highlights zones such as C1524 with 500 g/t AgEq over 15 metres, Quebradillas Zone with 523 g/t AgEq, and San Nicolas intercepts including 689 g/t AgEq over 9.4 metres and 547 g/t AgEq. These are the type of underground zones that can support a restart if they convert into mineable stopes with good continuity and dilution control.
La Parrilla Mineral Resource Estimate
The updated La Parrilla Mineral Resource Estimate was prepared by SRK Consulting and is dated March 24, 2025, with the resource as at December 31, 2024.
The resource is not huge yet, but it is located around existing mine infrastructure. That is the key. For a restart, the question is not only resource size. The more important question is whether the company can mine enough accessible, economic tonnes near existing underground development to restart and ramp up cash flow.
La Parrilla Restart Economics
Silver Storm has not published a full PEA, pre-feasibility study, or feasibility study for La Parrilla restart economics. That is important. There is no formal current NPV, IRR, reserve, mine life, AISC, or capex schedule comparable to a normal development-stage silver project. The company itself warns that the production decision is based largely on internal company data and historical operating information, not a current reserve-based technical study.
However, the historical operating data gives a useful starting point.
This historical cost number looks attractive, but investors must be careful. It is not current AISC. It is historical cash cost from a different operating period, under a previous operator, and before current mining inflation. It also does not include all sustaining capital, corporate G&A, financing cost, restart risk, or taxes.
The restart upside is still real. If La Parrilla can return to even part of its historical production profile, Silver Storm could quickly transition from developer to producer. But until commercial restart performance is proven, this remains a higher-risk execution story.
Project 2: San Diego Project, Durango, Mexico (Optionality Asset)
San Diego is Silver Storm’s second major asset. It is located in the Velardeña Mining District in Durango, Mexico, around 75 kilometres southwest of Torreon and 160 kilometres northeast of Durango. The project consists of four mining concessions and covers 91.65 hectares.
San Diego is an advanced exploration silver-zinc project. The company describes it as one of the largest undeveloped silver projects in Mexico. Mineralization consists of high-grade Ag-Pb-Zn veins that widen at depth, plus large endoskarn deposits. The resource estimate is based on approximately 33,000 metres of drilling across 23 zones and veins.
The most interesting part is potential synergy with La Parrilla. Silver Storm says higher-grade structures above 150 g/t AgEq could potentially be processed at La Parrilla, though additional metallurgical testing is required.
San Diego is not the near-term driver. La Parrilla restart is the main event. But San Diego gives Silver Storm a second asset with optionality, district scale, and possible feed potential for La Parrilla if the company can prove metallurgical compatibility and economic trucking or processing synergies.
Project 3: Exploration Upside (La Parrilla District Potential)
Silver Storm has meaningful exploration upside at La Parrilla. The company says the current mineral resource footprint covers less than 790 hectares, or less than 2 percent of the La Parrilla land package.
The company began a 6,000-metre underground drilling program at La Parrilla in January 2026. The goal is to support the current internal mine plan, increase the indicated and inferred resource base, and support the potential restart of operations in Q2 2026.
Exploration upside is important because the current resource is still relatively modest. If Silver Storm can keep converting near-mine zones into mineable inventory, the restart could become more durable. If not, the market may question mine life, scale, and long-term production visibility.
Share Structure / Ownership / Insiders
Capital Structure
Silver Storm’s March 2026 corporate presentation listed the capital structure as of February 25, 2026:
More recent market data showed Silver Storm trading around C$0.59 in mid-May 2026, with a market capitalization around C$466 million and roughly 807.5 million shares outstanding.
Ownership / Insiders
The March 2026 presentation shows First Majestic owning 19 percent, Eric Sprott owning 11 percent, insiders owning 2 percent, and other holders owning 68 percent.
Eric Sprott’s April 2026 early warning report showed he beneficially owned 95,768,929 shares and 13,255,556 warrants, representing approximately 11.9 percent of outstanding shares on a non-diluted basis and 13.3 percent on a partially diluted basis.
This ownership structure is mixed. The positive is that Silver Storm has very strong strategic validation. First Majestic is a major silver operator and former owner/operator of La Parrilla. Eric Sprott is one of the most followed investors in the precious metals sector. The negative is that direct insider ownership is only around 2 percent, which is low.
People / Management
Risks / Catalysts / Timeline
Key Risks
Catalysts
Expected Timeline to Full Production
Valuation Summary
FCF Multiple Model at US$150/oz and US$200/oz Silver
This is a simplified free cash flow valuation model. Because Silver Storm does not have a current PEA, PFS, FS, or published AISC guidance for La Parrilla, this model uses historical production and historical cash cost data as a rough proxy. It is not a formal valuation, not a target price, and not a guarantee.
La Parrilla FCF Model
Valuation Summary Table
This valuation is aggressive and simplified. It is designed to show silver-price torque, not a guaranteed target price. The real numbers could be much lower if costs are higher, production is lower, recoveries are weaker, taxes are higher, dilution increases, or the restart takes longer than expected.
Summary & Quick Scorecard
RT Rating, Commentary
Silver Storm Mining is on our watchlist.
We rated this as 5 out of 5 stars.
Silver Storm is one of the more interesting near-term silver restart stories because it has something most silver juniors do not have: a real past-producing mine, a real mill, real underground infrastructure, a major former operator as a shareholder, Eric Sprott ownership, a Samsung offtake agreement, and a target to restart operations in Q2 2026.
The upside is obvious. If La Parrilla restarts successfully and silver prices stay strong, the market may stop valuing Silver Storm like a speculative developer and start valuing it like a silver producer. That kind of transition can create a strong re-rating.
But this is not a low-risk story. The company has no current reserve, no current PEA, no current PFS, and no current FS supporting the restart. So the market is basically betting on execution. If the restart works, the stock can become a powerful silver torque vehicle. If the restart disappoints, the share structure and lack of formal economics could become a problem. The best way to view Silver Storm is as a high-beta silver restart play. It has strong upside in a silver bull market, but investors should demand proof from the first production, cost, recovery, and cash flow updates.
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