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AbraSilver Resource – Key Takeaways From The Definitive Feasibility Study and Future Value Drivers

The KE Report Jun 24, 2026

Summary

AbraSilver's feasibility study confirms a fully permitted, construction-ready silver project with 41.9% IRR and after-tax NPV worth 4.2x its initial capital.

AISC (all-in sustaining cost — what it really costs to produce an ounce) of $20 per ounce ranks Diablillos among the world's lowest-cost silver projects.

Management says first-phase output of 20 million silver-equivalent ounces a year would make Diablillos the largest primary silver mine globally.

A final investment decision is targeted for Q2 2027 with first production before end-2029, and financing news expected by late Q3.

The CEO argues the shares trade near half of NAV (net asset value — a project's per-share worth), with heap leach and expansion upside ahead.

Key points on Coeur Mining

  • The guest claims AbraSilver's phase-one production of over 20 million ounces would exceed Coeur's silver output, arguing the large silver producers each mine less than 20 million ounces per year from multiple operations.

Key points on Hecla Mining Company

  • The guest argues AbraSilver's early-years output of over 20 million ounces with gold on top would be more than Hecla currently produces, saying these large-scale producers fall short of 20 million ounces of silver annually from multiple mines.

Key points on AbraSilver Resource

  • The guest CEO calls the June 22 definitive feasibility study a company-transforming moment that moves AbraSilver from explorer to developer, with phase-one economics of C$4.2 billion after-tax NPV, an IRR over 40%, and payback under two years.
  • The DFS converts most of the measured and indicated resource into roughly 365 million ounces of proven and probable silver-equivalent reserves (over 180 million ounces of silver), estimated at $29.50/oz silver and $2,800/oz gold — a figure he says would top 400 million ounces at spot prices.
  • Phase one is a 9,000 tonne-per-day, tank-leach-only operation with a 24-year mine life, targeting over 20 million ounces of annual silver-equivalent production in the early years, which the guest says would make it the largest primary silver mine in the world.
  • Management aims to announce a financing package of equity, debt and possibly a stream for the roughly $720 million initial capex by late Q3 or early Q4 2026, keeping a final investment decision on track for Q2 2027, and says the company is building the project itself rather than entertaining a sale.
  • Growth levers beyond the DFS remain: a heap leach PEA is due by the end of June 2026, throughput expansion scenarios of 13,000–18,000 tonnes per day are under study, the final Catamarca permit is expected imminently, and phase six drilling keeps adding gold, silver and copper.

Shad Markowitz's takeaways

  • Top takeaway He argues AbraSilver has undeniably moved into the developer category and now sits at a construction-decision point, among the most advanced silver-gold projects anywhere with RIGI approval, permits and the DFS in place.
  • He contends discounted cash flow gives little credit for production beyond roughly year 10 to 15, so the project's 24-plus-year mine life makes a throughput expansion study the sensible next step rather than running a 30-plus-year plan.
  • He stresses the DFS covers the tank-leach circuit only, so the heap leach study, potential plant expansion, ongoing phase six drilling and the years 15–35 of resource all remain unpriced growth levers.
  • He raises the build-versus-takeover question directly, noting a bankable-stage study is when larger producers start paying attention, and discloses that he holds AbraSilver shares.