Sunshine Silver Mining & Refining Q2 Earnings Call Highlights

Key Points

• Second-quarter loss widened to $16.7 million, or $0.13 per share, as Sunshine accelerated mine development, drilling and feasibility work while absorbing higher public-company expenses.
• The IPO raised approximately $310 million, leaving the company with $288.7 million in cash and no long-term debt at quarter-end. Management expects the proceeds to fund key activities for the next 12 months but anticipates needing additional capital as it approaches production.
• The Sunshine Mine feasibility study is targeted for completion in Q2 2027, with construction potentially beginning in 2027 and first silver production targeted for late 2028. Drilling, underground development and studies for the silver-copper refinery and a potential antimony plant are advancing through 2026 and early 2027.

Sunshine Silver Mining & Refining NYSE: SSMR reported a wider second-quarter loss as it accelerated development work at its Sunshine Mine in Idaho and incurred costs associated with becoming a publicly traded company.

The company posted a net loss of $16.7 million, or $0.13 per share, for the second quarter of 2026, compared with a net loss of $7 million, or $0.08 per share, a year earlier. Chief Financial Officer André van Niekerk said the increase primarily reflected higher pre-development spending, including drilling and technical work supporting three feasibility studies, as well as higher public-company costs.

Pre-development expense rose $7 million from the prior-year period, while general and administrative expense increased $4.7 million, driven by personnel additions, stock-based compensation, and expanded legal and accounting services. Other income and expense improved by $2.1 million from the year-earlier quarter, which van Niekerk attributed to lower interest expense and interest earned on initial public offering proceeds.

IPO Strengthens Liquidity

Sunshine completed its initial public offering during the quarter, raising approximately $310 million, according to Chief Executive Officer Heather White. The company ended the second quarter with $288.7 million of cash, compared with $31 million at the end of 2025, and had no long-term debt as of June 30.

Cash used in operating activities totaled $22.8 million in the first six months of 2026, compared with $7.2 million in the prior-year period. Cash used in investing activities was $9.5 million, up $5.2 million year over year, reflecting investment in mining equipment and infrastructure.

Van Niekerk said IPO proceeds fully fund the company’s key work streams for the next 12 months. However, he said additional capital will be needed over time as Sunshine moves toward production and evaluates its mine-to-refinery plans. The company intends to prioritize debt financing and other non-dilutive capital sources when its feasibility work provides greater clarity on capital requirements.

During the question-and-answer session, van Niekerk said general and administrative expenses are expected to remain elevated through the second half of 2026 before beginning to taper in the first quarter of 2027. He also said exploration and development spending is expected to rise in the third and fourth quarters as work programs ramp up.

Mine Study Targets Late 2028 Production

White said the Sunshine Mine feasibility study remains the company’s central development priority and is expected to be completed in the second quarter of 2027. Subject to a final investment decision, Sunshine plans to begin construction and continue mine development and infrastructure upgrades in 2027, targeting first silver production in late 2028 and a ramp to commercial production in 2029.

The company completed about 1,200 meters of underground development in the first half of 2026. It also commissioned a replacement operating hoist for the Jewell shaft and advanced the decommissioning of existing mill facilities to prepare the site for construction of a new mill.

Sunshine’s current base case assumes processing capacity of roughly 1,000 tons per day. The company is designing a new mill with capacity of up to 2,000 tons per day, which White said would provide flexibility if its resource base and operating plan support greater throughput.

In response to an analyst question, White said mine development during the second half will include continued ramp work in the Sterling Tunnel and upper-country area, both to support pre-production readiness and exploration. The company also plans development work around the 3,100, 2,300, and 1,900 levels to support the first 10 years of the mine plan.

Drilling and Refinery Studies Advance

Sunshine’s 50,000-meter infill drilling program was 60% complete as of July, with three underground drill rigs operating. The work is intended to support the mine feasibility study while also testing near-mine growth potential, particularly in the upper-country area and across multiple vein systems, including the newly identified 10 vein.

White said results from the upper country and other near-mine zones will help inform the company’s evaluation of increasing processing capacity to 2,000 tons per day. The drilling program has transitioned down the Jewell shaft to three additional drill stations, where the next phase will focus on infill drilling.

For the remainder of 2026, Sunshine expects to complete the drilling program, conduct an additional 1,300 meters of underground development, and finish mill decommissioning by year-end. It also plans to begin the Silver Summit project, a multi-phase shaft upgrade designed to provide reliable secondary egress from underground workings.

Separately, Sunshine is conducting feasibility studies on restarting its permitted silver-copper refinery and developing an antimony plant. White said those studies are expected to be completed in early 2027. The company has also hired a management consulting firm to assess strategic options for the refinery and antimony opportunities.

White said the existing refinery has nameplate capacity to produce 10 million ounces of silver annually, while a new antimony facility could potentially produce up to 34.5 million pounds of finished antimony annually. Sunshine is also evaluating toll processing of antimony-bearing concentrates from third parties.

The company said it will evaluate final investment decisions for the refinery and antimony opportunities after the feasibility studies are completed.

About Sunshine Silver Mining & Refining (NYSE:SSMR)

Sunshine Silver Mining & Refining Company operates as a silver mining company principally in the United States. The company is the owner and developer of the Sunshine Mine and the Sunshine Silver/Copper Refinery. Sunshine Silver Mining & Refining Company is based in Kellogg, Idaho.

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