No valve movement at all...Camshaft..? Im really not sure how the rotating assembly of one of these small gas engines are arranged? Do the valves operate right off the cam lobes? Is there a timing chain that could have broke?
If you have some mechanical aptitude, which it seems you do, why not disassemble the engine and find out if you have a broken camshaft or stripped cam gears (many times they are plastic) and maybe you can get just a cam and gasket set to save the engine but only you know if it is worth the time. The mower could have a lot of hours on it so if it does, consider a new mower.