Salazar's Undervalued Stake
Salazar Resources' Ecuador El Domo project stake is now worth more than double its market capitalization.
A single mining stake held by Salazar Resources (TSXV: SRL) is now worth nearly three times what the entire company trades for on the stock market. The company holds a 25% interest in the El Domo copper-gold-silver project in Ecuador — and a new independent report puts that stake's value at over US$143 million, according to Clinton News Record.
Salazar's total market cap has hovered between C$50 million and C$70 million through July 2026, on roughly 265 million shares outstanding. That means the El Domo stake alone is worth two to three times what investors are paying for the whole company.
El Domo's Value Just Jumped 121% in New Report
An independent technical report gave the El Domo project an after-tax net present value of US$573 million at an 8% discount rate. That is a 121% jump from the 2021 feasibility study. Salazar owns 25% of the project, which puts its share of that value at about US$143 million, according to Stratford Beacon Herald.
To put that in plain terms: one asset inside Salazar is worth nearly three times more than the entire company's market value. Investors buying the stock at current prices are getting the El Domo stake at a steep discount — plus everything else the company owns on top of it.
Salazar Pays Nothing to Build El Domo Mine
Here is the key detail that makes this stake unusual. Salazar holds its 25% interest on a "fully carried" basis through to commercial production. That means Salazar does not have to pay any construction or development costs. Silvercorp Metals Inc., which owns the other 75%, funds and operates the project, according to Clinton News Record.
A fully carried interest is rare. Most junior mining companies have to raise money and dilute shareholders just to keep their share of a project alive. Salazar avoids that entirely at El Domo. It simply waits for the mine to reach production and then starts collecting its cut of the profits.
Silvercorp Runs the Operation in Central Ecuador
Silvercorp Metals is the operator and majority owner of El Domo, holding 75% of the joint venture. The project sits in central Ecuador and targets copper, gold, and silver. Silvercorp is an established mining company, which reduces the operational risk that often plagues junior exploration plays, according to Ottawa Sun.
Ecuador has become an increasingly active mining jurisdiction in recent years. El Domo is one of the higher-profile projects in the country. With a major partner funding the build and a fresh valuation doubling the project's worth, the timeline to production is the key variable investors are watching.
Market Cap Gap Signals a Potential Mispricing
Salazar's market cap range of C$50 million to C$70 million tells a stark story. The El Domo stake alone, at US$143 million, dwarfs that figure even before currency conversion. That gap is what analysts call a "mispricing" — when an asset is worth more than the company selling it, according to Fort Saskatchewan Record.
Salazar also holds other assets beyond El Domo. Those are essentially free at the current stock price, if the El Domo valuation holds. The big question is whether the market will close that gap as the mine moves closer to production and the new NPV figures get wider attention.
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