Advance Metals [ASX: AVM]
Metals & Mining
High-Grade Silver Story With Global Discovery Potential
We initiate coverage on Advance Metals (ASX: AVM) with a 12-month target price of A$0.17, representing a ~218% upside from the current share price. Advance Metals offers investors leveraged exposure to silver and gold across Tier-1 jurisdictions in Mexico and Australia. Anchored by 100Moz AgEq in Foreign Estimates in Mexican assets and spectacular gold grades at its Myrtleford and Beaufort Gold Projects in Victoria’s Goldfields, AVM is strategically positioned to deliver substantial resource growth, high-impact discoveries, and long-term value creation.
Expanding a high-grade portfolio across a tier-1 jurisdiction
Advance Metals is rapidly transforming into a growth-focused precious metals company by assembling a portfolio of high-quality, high-grade assets in globally renowned mining regions. In Mexico, Advance Metals controls three cornerstone projects within the prolific Sierra Madre Occidental: Guadalupe y Calvo, Yoquivo, and Gavilanes. Together, they host >100Moz AgEq in Foreign Estimates supported by over 112,000m of drilling. In Australia, the Company holds an 80% JV in the Myrtleford and Beaufort Gold Projects in Victoria’s Goldfields, already delivering spectacular gold grades. Together, these acquisitions provide immediate scale, exceptional exploration upside, and a diversified foundation for long-term growth.
Strong resource base with exceptional discovery upside
The drilling and historic production across Advance Metals’ portfolio highlight the exceptional quality and potential of its assets. At Guadalupe y Calvo, more than 31Moz of silver and 2Moz of gold were produced historically, underscoring the district’s long-standing significance. Today, the project hosts an Indicated resource of 6.43Mt at 128g/t AgEq, equivalent to 26.5Moz AgEq, and an Inferred resource of 3.07 Mt at 345g/t AgEq, equivalent to 34.1Moz AgEq. At Yoquivo, bonanza silver grades, such as 937kt at 570g/t AgEq, highlight scale and continuity. At Myrtleford, spectacular intersections of 7.5m at 47.9 g/t Au and 9.4m at 20.2 g/t Au confirm ultra-high-grade shoots. With Gavilanes remaining underexplored and Beaufort untouched by modern drilling, Advance Metals is uniquely positioned in globally significant belts to deliver resource growth, discoveries, and transformational value creation.
Valuation range of A$0.153–0.190 per share
Using a resource-based peer-comparable-driven methodology, we have valued AVM at a midpoint target of A$0.172/share. This implies a P/NAV of 0.31x and offers a significant upside potential of ~218%. We support this substantial upside given the 100Moz AgEq Silver portfolio strategically located in Mexico’s metallurgically superior Sierra Madre Volcanic Belt. Consistent high-grade step-out drilling is expected to enhance the existing resource base. Further, we anticipate that the rising interest in silver assets will prompt market participants to re-examine Advance Metals stock with renewed interest. It offers a unique opportunity to play silver on the ASX. Notable risks to our investment thesis include fluctuations in commodity prices, metallurgical challenges, and possible delays in project execution.