IVR: Better re-do that economic study for your silver mine… now that the silver price has tripled…

Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 13,714,286 IVR Shares at the time of publishing this article. The Company has been engaged by IVR to share our commentary on the progress of our Investment in IVR over time. This information is general in nature about a speculative investment and does not constitute personal advice. It does not consider your objectives, financial situation, or needs. Any forward-looking statements are uncertain and not a guaranteed outcome.

Another day, another new all time high record close for the silver price:

Now that the silver price in Aussie dollars has almost tripled in the last couple of years...

... any company that is close to building a new silver mine needs to plug in the recent silver price rise into their economic studies.

The studies that show how profitable their mine will be once it is built...

Our silver Investment closest to “start building its silver mine” is Investigator Silver (ASX:IVR).

IVR owns 100% of one of Australia’s highest grade, pure play silver projects, in South Australia.

IVR has a 57M ounce silver JORC resource estimate with an average grade of 73g/t.

(and mineralisation is open at depth and along strike to the south - so the resource could get even bigger)

IVR has already completed a Pre Feasibility Study (PFS) back in 2021 and it's done pretty much all of the required technical and engineering design work, including:

• processing plant designs,
• pit designs
• production scheduling

...all the key info needed to actually build a mine.

The 2021 study delivered some preliminary economics:

• All in Sustaining Costs of A$17.45/oz
• Base case silver price of US$24.70/oz = A$34.30/oz
• A pre-tax Net Present Value (NPV) of $202M and
• free cash of A$487M.

BUT...

The important takeaway is that this economic study was done using a A$34.30 per ounce silver price.

Today the silver price is nearly 3x that of the 2021 price...

~A$89 per ounce...

IVR’s Definitive Feasibility Study (DFS) is expected to be completed in early 2026 (that's not far away now) and use a much higher silver price.

A Definitive Feasibility Study is the most detailed technical and economic study done on a mining project before committing major capital to build a mine.

In a slide in IVR’s most recent presentation, IVR said that a silver price increase >100% (meaning ~A$70 per ounce silver) would add >$1BN in free cash flow to the project economics...

We wonder what today’s ~A$89/oz silver would do to those numbers...

(Source)

An additional free cash of >A$1BN would almost triple the free cash the project generates over its mine life.

MST Senior Analyst Michael Bentley recently released a research report (16th October 2025) on IVR with a price target of 16c - more than double IVR’s current price of ~6.8c.

While the report is very detailed, remember analyst price targets are no guarantee to come true, they are based on a number of assumptions that may prove incorrect.

You can read the whole MST report on IVR here.

You can also watch a short video of IVR CEO Lachlan Wallace speaking to the MST analyst here.

In the MST report, we found an interesting table that shows what MST calculates the impact of different silver prices to be on IVR’s price per share valuation (the silver price was closer to US $45/oz back in October when this report was first published):

Now the silver price is at US$59.5/oz - much closer to $60/oz in MST’s table - implying a value per share for IVR to be 23c:

(source: MST IVR report)

Again, remember analyst price targets are not an exact science, they are based on a number of assumptions that may be incorrect. Never invest in a stock based on a price target alone.

In our meetings with IVR’s management we found them to be quite conservative in general, which we like - but they were happy enough with the MST work to share the above MST “silver price versus IVR valuation” table in the IVR annual general meeting presentation.

(source: IVR AGM presentation slide 8)

The DFS coming early next year could deliver an upgrade to that NPV number in line with one of those implied share prices above (especially if silver keeps running).

Making project financing, development, and getting into construction a whole lot easier.

(Source)

Normally, feasibility studies for advanced stage projects don't really move the needle in terms of share price reactions.

For IVR, we think it will be the first time the market is able to get a sense of how IVR’s project stacks up financially in the new bullish silver environment.

Not to mention all of the changes IVR is doing at the mine design level to make the project more capital efficient.

IVR recently bought on a new Managing Director, Lachlan Wallace, former CEO and MD of Hillgrove Resources where he led the design, permitting, financing and restart of the Kanamantoo copper mine, also in South Australia...

We are backing him to do it again with IVR.

Lachlan is a mining engineer by background - so he will know exactly what needs optimising in the images below (IVR’s pit and processing plant design):

(Source)

We are Invested in IVR because it could be one of the projects that is advanced enough to secure development capital, in a market where development-ready silver assets are hard to find.

Perhaps one of the only other companies as advanced as IVR in Australia was Boab Metals, who just last week managed to secure debt financing for their project for ~A$236M.

(Source)

We think that this financing deal shows the rest of the market there is capital out there willing to fund new developments in the silver space (as long as they are advanced and make sense economically).

Which is good for IVR...

Boab’s project has a total resource of ~53M ounces of silver at an average silver grade of ~35g/t.

IVR’s project has more silver at 57M ounces and at an average grade of 73g/t silver.

(source) (source)

So IVR’s project is bigger and has almost double the grade - IF the capital markets are willing to finance Boab’s project - we think the likelihood of IVR’s getting financed is now looking a lot stronger.

Exploration is also a part of the IVR story

Even though IVR’s project is advanced, we think exploration is still in play for the company.

IVR holds ground to the south-east of its deposit where any new major discoveries, especially if they are high grade, could be plugged into the front end of a development plan and increase the economics of a development scenario.

It could also extend the life of the mine beyond the current 7 years...

Both things are what potential financiers want to see - first because higher grades early in the mine life means a quicker payback on development CAPEX, and second because a longer mine life de-risks the project in the long run.

(source)

IVR recently had two new high priority targets (Athena and Hestia) to its portfolio of regional exploration targets.

The Athena prospect was previously drilled in 2012 and 2013, mostly with no testing of the surrounding geology for precious metals.

Later re-assays from those holes returned intercepts like 5m at 493g/t silver from 71m.

Since then, the prospects haven’t really been explored (especially for silver).

(Source)

At the Apollo prospect, to the north of the Paris deposit, IVR has hits as high as 8m @ 1,262g/t Ag from 149m.

The “Paris Silver Corridor” presents the company with many exploration opportunities as it advances the Paris deposit through to production.

(Source)

We think the upcoming drill programs could bring attention to the IVR story while the permitting process and feasibility studies are progressing in the background.

8 reasons why we Invested in IVR

We initially launched our IVR Investment Memo on the 3rd of October 2025 - check out the full Investment Memo here.

Below we have some updates on each of the reasons:

1. IVR has one of the highest-grade silver projects in Australia

IVR’s project has an estimated 57M ounces of silver at an average grade of 73g/t.

That makes it one of the highest grade primary silver deposits in Australia.

2. IVR project is at the advanced DFS stage

It is hard enough to go and make a mineral discovery, it is even harder to get a mine into production.

For the DFS stage companies that are in the market during a hot commodity cycle, securing project financing can become a whole lot easier.

We like that IVR is at this DFS stage and it can potentially be one of those companies that ‘survives the cycle’ and becomes a mine during this current silver bull run.

We also think that with a running silver price, IVR’s DFS could surprise the market to the upside in terms of project economics.

3. We are investing alongside Jupiter Asset Management

Jupiter Asset Management owned 14% of IVR (before today’s capital raise - that they also went into) and we are following them into the story.

Jupiter is a huge resources fund out of the UK with over £47.1 billion in assets under management.

We have had success investing alongside Jupiter with another silver story Mithril Silver & Gold, which is up 515% from our Initial Entry Price.

Also, Jupiter came into one of our recent silver picks Rapid Critical Metals which is up 111% since our Initial Entry Price.

(past performance is not an indicator of future performance)

Jupiter have been major holders in IVR for years now and have followed their money into IVR’s capital raises - including the most recent one.

UPDATE:

The most recent capital raise is almost complete, with Tranche 1 already issued on the 10th of October and Tranche 2 recently approved at IVR’s general meeting - meaning it should be issued any day now.

4. We think silver could go on a ‘once in a generation’ run to new highs

Silver is now at 14 year highs, and we think it's about to go on a “once in a generation” run to new all time highs... taking all silver stocks with it.

(no guarantees, past performance is not a reliable indicator of future performance)

UPDATE:

When we added IVR to the Portfolio the silver price was ~US$47 per ounce.

Now silver is trading at US$58 per ounce and it looks like the generational breakout is currently happening (so it could keep running).

Of course, it's impossible to predict where the silver price goes next, and we could be wrong on the run continuing.

5. Very few silver stocks on ASX

There are very few silver stocks on the ASX.

Even less ‘pure play’ silver stocks.

If silver runs, there could be a lot of capital chasing silver exposure in only a handful of names.

This scarcity could mean valuations run from where they are now.

6. Exploration upside (three projects that haven’t been systematically drilled)

IVR just did a deal on the ground next door to its 57M ounce JORC resource estimate.

IVR now has a 15km corridor of exploration targets where it can look to make repeat discoveries (similar to its existing deposit).

Drilling so far has shown district scale potential.

7. IVR’s project being designed to work even in the event of a lower silver price

IVR updated its project's resource in 2023 and started working on its Definitive Feasibility Study (DFS) later that year.

The study started when silver prices were trading in the mid US$20 per ounce.

That means IVR has been designing the project to work in a low silver price environment.

The silver price is now more than double where it was when IVR started its DFS.

UPDATE:

IVR’s 2021 Pre Feasibility Study showed an all in sustaining cost for the project of ~A17.45 per ounce.

We expect that number to be different (likely higher) in the upcoming DFS, but at current silver prices close to A$90 per ounce there is plenty of room for IVR’s project to make sense at today’s prices.

8. IVR’s new MD has brought an asset online in South Australia before

Lachlan was previously Managing Director of ASX-listed Hillgrove Resources where he led the design, permitting, financing and restart of the Kanamantoo copper mine...

That project is also in South Australia ~60km south east of Adelaide.

So he knows his way around permitting in South Australia.

We are backing Lachlan to do it all again with IVR’s project, also in South Australia.

Ultimately, we want to see IVR achieve our Big Bet which is as follows:

Our IVR Big Bet:

“IVR takes advantage of the high silver price environment and puts its project into production. At that point, we would expect IVR to be capped at multiples of our Initial Entry Price”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including development risk, country risk and commodity price risk - just some of which we list in our IVR Investment Memo.

Success will require a significant amount of luck. Past performance is not an indicator of future performance.

What do we want to see IVR do next?

Definitive Feasibility Study on Paris silver project 🔄

We want to see IVR complete and release its Definitive Feasibility Study (DFS).

We are hoping to see a big improvement on the A$202M (pre-tax) Net Present Value (NPV) that was delivered in IVR’s last study in 2021.

Here are the milestones we are tracking:

🔄 Pit design

🔄 Flowsheet revision

🔄 Throughput optimisation

🔲 DFS completed

Permitting of the Paris silver project

At the same time as the DFS, we also want to see IVR go through all of the permitting workstreams on its project. We especially want to see the project get a mining license and get an environmental permit granted for the project as soon as possible.

Here are the milestones we are tracking:

🔲 Environmental permits

🔲 Project infrastructure permits

🔲 Mining license granted

Drilling on regional targets🔄

We also want to see IVR drill out the 15km corridor of targets that sit around its 57M ounce JORC resource estimate.

The ultimate success from these drill programs would be a discovery similar to IVR’s existing resource.

IVR expects to be drilling on these targets in the first half of next year (source).

Here are the milestones we are tracking:

✅ Geophys/Geochemistry work
✅ Identify drill targets

🔲 Drilling starts

🔲 Drilling results

What are the risks?

In the short term - given IVR isn’t doing any drilling right now - the key risk is “commodity price risk”.

IVR’s share price will likely fluctuate with movements in the silver price.

If silver’s breakout is only temporary and the price starts falling dramatically, then capital could flow out of silver stocks in general which would impact IVR’s share price negatively.

Commodity price risk

The performance of commodity stocks are often closely linked to the value of the underlying commodities they are seeking to extract. Should silver prices fall, this could hurt the IVR share price.

Source: “What could go wrong” - IVR Investment Memo 03-Oct-2025

Other risks

Like any stock market investment, investing in IVR carries a range of risks that may affect the company’s value. Some risks are identifiable, while others are unpredictable.

IVR’s main asset is the Paris silver project in South Australia. It is at the Definitive Feasibility Study (DFS) stage but is not yet a producing mine. There is a risk the project never reaches production.

The company is pre-revenue and reliant on raising capital to fund development. Any equity raise may dilute existing shareholders, and debt funding may not be available on favourable terms.

Permitting and approvals pose another risk. Mining licenses and environmental permits can take longer than expected or face objections that delay project timelines.

Development risk is also material. Building a mine involves technical, financial, and operational challenges. Cost overruns or delays could hurt the share price.

IVR’s share price has already moved with silver’s recent strength. Current levels may partially reflect anticipated upside, increasing the risk of pullbacks if silver softens or milestones slip.

Finally, market and macro risks apply. A downturn in equity markets or sentiment towards junior explorers could weigh on IVR regardless of company progress.

Investors should carefully consider these risks and seek professional advice before making an investment decision.

Our IVR Investment Memo

You can read our IVR Investment Memo in the link below.

We use this memo to track the progress of all our Investments over time.

Our IVR Investment Memo covers:

• What does IVR do?
• The macro theme for IVR
• Our IVR Big Bet
• What we want to see IVR achieve
• Why we are Invested in IVR
• The key risks to our Investment Thesis
• Our Investment Plan