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    SSMR
    Earnings call· Jun 2026(Q2 FY26)

    Sunshine Silver Mining & Refining Q2 FY26 earnings call SSMR

    Aug 13, 2026 Source

    Executive summary

    Sunshine Silver Mining & Refining Company Q2 FY26 — Successful IPO Funds Path to Production of High-Grade Silver

    Sunshine Silver Mining & Refining Company reported its first quarterly earnings as a public company, highlighting a successful IPO that raised $310 million to fund its near-term development. The company is advancing its high-grade silver resource, leveraging existing infrastructure and permits for a planned return to production in late 2028. While costs increased due to accelerated development and public listing, management remains focused on execution and evaluating vertical integration opportunities for critical minerals.

    Highlights

    5
    • Successfully raised approximately $310 million through IPO, fully funding key work streams for the next 12 months.

    • Mine hosts North America's highest-grade primary silver resource: 103.9 million ounces indicated at 1,022 grams per ton and 159.8 million ounces inferred at 776 grams per ton.

    • Existing infrastructure, with an estimated replacement cost of $600 million, and major permits in hand derisk the path to production.

    • Treasury sits at a robust $288.7 million at the end of Q2 2026, up from $31 million at December 31, 2025.

    • Targeting first production in late 2028, aiming to be the second-largest primary silver producer in the United States.

    Concerns

    5
    • Net loss increased to $16.7 million ($0.13 per share) in Q2 2026 compared to $7 million ($0.08 per share) in Q2 2025.

    • Predevelopment expense increased by $7 million from Q2 2025, driven by feasibility studies and drilling.

    • G&A expenses increased by $4.7 million in Q2 2026 due to increased personnel, stock-based compensation, and public listing costs.

    • Cash used in operating activities was $22.8 million during the first 6 months of 2026, up from $7.2 million in the prior year period.

    • Cash used in investing activities was $9.5 million in the first 6 months of 2026, an increase of $5.2 million.

    Guidance & targets

    10
    CategoryTargetConfidence
    Sunshine Mine Feasibility Study completion
    Q2 2027
    high materiality
    High
    First production
    late 2028
    high materiality
    High
    Ramp-up to commercial production
    2029
    medium materiality
    High
    Antimony Plant and Silver-Copper Refinery feasibility studies completion
    early 2027
    medium materiality
    High
    Underground development
    additional 1,300 meters
    medium materiality
    High
    50,000-meter infill drill program completion
    by year-end 2026
    medium materiality
    High
    Mill decommissioning completion
    by year-end 2026
    medium materiality
    High
    Silver Summit Project (hoist room upgrade and hoist redrive)
    through balance of 2026
    medium materiality
    High
    Corporate G&A expenses
    level off starting in 2027
    low materiality
    Medium
    Exploration and development spending burn rate
    increase in Q3 and Q4 2026, then taper off in Q1 2027
    medium materiality
    Medium

    Operational metrics

    22
    Net loss
    $16.7 millionvs $7 million in Q2 FY25
    Q2 FY26

    Primarily due to planned acceleration of development activities and costs associated with preparing for and operating as a publicly listed company.

    Net loss per share
    $0.13vs $0.08 in Q2 FY25
    Q2 FY26

    Reflects the increased net loss for the quarter.

    Predevelopment expense increase
    $7 million
    Q2 FY26 vs Q2 FY25

    Primarily related to the advancement of three feasibility studies, including the ongoing infill drilling program and associated technical work.

    G&A expense increase
    $4.7 million
    Q2 FY26 vs Q2 FY25

    Primarily due to increased personnel costs, stock-based compensation, and expanded legal and accounting services for public listing.

    Other income expense improvement
    $2.1 million
    Q2 FY26 vs Q2 FY25

    Primarily due to lower interest expense and interest earned on IPO proceeds.

    Cash used in operating activities
    $22.8 millionvs $7.2 million in H1 FY25
    H1 FY26

    Reflects higher activity level, infill drilling, and G&A expenses.

    Cash used in investing activities
    $9.5 millionincrease of $5.2 million over H1 FY25
    H1 FY26

    Reflecting increased investment in mining equipment and infrastructure.

    Treasury balance
    $288.7 millionvs $31 million at Dec 31, 2025
    Q2 FY26

    Increase primarily reflects net proceeds received from initial public offering.

    Underground development completed
    1,200 meters
    H1 FY26

    Part of ongoing efforts to advance the work required to return the Sunshine Mine to production.

    Infill drilling program completion
    60%
    as of July 2026

    The program is in support of the feasibility study and longer-term growth strategy, with focus on Upper Country and new drill stations.

    Mill throughput (base case)
    1,000 tons per day
    current base case

    Assumed for current base case mine plan.

    Mill throughput (potential increase)
    2,000 tons per day
    potential

    Designing for greater capacity provides flexibility to increase throughput as resource base and operating plan evolves, supported by drill results.

    Silver-Copper Refinery nameplate capacity
    10 million ounces
    annually

    Existing permitted refinery, restart could allow production of COMEX-deliverable silver on site.

    Antimony Plant potential production
    34.5 million pounds
    annually

    If achieved, could supply up to approximately 60% of U.S. annual demand.

    Antimony Plant potential US demand supply
    60%
    annually

    Potential supply of U.S. annual demand if 34.5 million pounds are produced.

    Net Present Value (NPV) at $60/oz silver
    $2.2 billion
    current

    Based on today's silver price of approximately $60 per ounce.

    Net Present Value (NPV) at $80/oz silver
    $3.2 billion
    potential

    Illustrates leverage to silver price.

    Existing infrastructure investment
    $200 million
    since 2010

    Investment in maintaining and modernizing infrastructure.

    Existing infrastructure replacement cost
    $600 million
    today's dollars

    Estimated replacement cost of existing infrastructure.

    Mineral rights land position
    9,561 hectares
    current

    Largest mineral rights landholder in the Silver Valley, with untapped district-scale exploration potential.

    IPO proceeds raised
    $310 million
    Q2 FY26

    Successfully raised through the offering, bolstering shareholder register.

    US share of global mined silver production
    4%
    current

    Highlights the strategic importance of increasing domestic silver production.

    Industry KPIs

    5
    MetricValueDetails
    By product credits
    Reserve life new supply24 yearsyears
    Growth project CAPEX first production
    Ore grade recovery drilling by deposit1,022 grams per tong/t
    Production sales volume by metal and by mine6.7 million ouncesounces

    Capital programs

    7
    Sunshine Mine Feasibility Studyunderway

    Cornerstone of the development plan, bringing together technical, economic, and risk analyses to support a financial investment decision.

    Antimony Plant Feasibility Studyunderway

    Separate feasibility study evaluating the development of the Antimony Plant, with a strategic assessment by a management consulting firm informing its findings.

    Silver-Copper Refinery Feasibility Studyunderway

    Separate feasibility study evaluating the restart of the Silver-Copper Refinery, with a strategic assessment by a management consulting firm informing its findings.

    50,000-meter infill drill programunderway
    Spent to date: 60% complete as of July

    Benefit: Increase confidence in resources, uncover near-mine potential, inform evaluation of increased processing capacity to 2,000 tons per day.

    Central component of the feasibility study and longer-term growth strategy, with 3 active drill rigs underground.

    Underground developmentunderway
    Period spend: 1,200 meters in H1 2026

    Benefit: Establish additional drill stations, improve access to priority mining areas, support feasibility-level mine planning.

    Continued underground development, with an additional 1,300 meters targeted for the remainder of 2026, focusing on Upper Country and key mine levels (3,100, 2,300, 1,900).

    Mill decommissioningunderway

    Benefit: Prepare site for construction of a new mill designed to process up to 2,000 tons per day.

    Advancing the planned decommissioning of existing mill facilities.

    Silver Summit Projectunderway

    Benefit: Ensure reliable secondary egress from underground workings.

    Multiphase shaft upgrade, including hoist room upgrade and hoist redrive through 2026, with broader upgrades planned through 2027.

    Risks & headwinds

    4
    Increased net loss due to accelerated development and public company costsQ2 FY26

    Net loss of $16.7 million in Q2 2026 vs $7 million in Q2 2025; $0.13 per share vs $0.08 per share.

    Mitigation: Focused on managing liquidity and deploying capital in a disciplined manner against milestones; corporate G&A expected to level off in 2027.

    Increased predevelopment and G&A expensesQ2 FY26

    Predevelopment expense increased by $7 million; G&A expenses increased by $4.7 million in Q2 2026.

    Mitigation: G&A expected to level off starting in 2027 (tapering Q1 2027); predevelopment spending is tied to advancing feasibility studies and drilling.

    Increased cash burn from operating and investing activitiesH1 FY26

    Cash used in operating activities was $22.8 million in H1 2026 vs $7.2 million in H1 2025; cash used in investing activities was $9.5 million in H1 2026, up $5.2 million.

    Mitigation: IPO proceeds of $310 million fully fund near-term activities; financing strategy focused on prioritizing debt financing and non-dilutive sources for future capital needs.

    Need for additional capital for future developmentBeyond next 12 months

    Expect to require additional capital over time as feasibility work advances and capital requirements become clearly defined.

    Mitigation: Financing strategy focused on prioritizing debt financing and non-dilutive sources of capital; evaluating timing and structure as feasibility work advances.

    What to watch in Q3 FY26

    5

    50,000-meter infill drill program completion

    by year-end 2026
    Current60% complete as of July 2026
    Target100% complete

    Why it matters

    Completion of the drill program is crucial for the Sunshine Mine Feasibility Study and informing potential increased processing capacity.

    For the remainder of 2026, our focus will be on execution. We expect to complete our 50,000-meter infill drill program in support of the Sunshine Mine Feasibility Study.

    Q&A highlights

    2

    Can you provide more color on mine development plans for the second half of the year, including gallery/tunnel expansion, and an update on SG&A and predevelopment/exploration expenses for H2 2026 and early 2027?

    Mine development will ramp up in the Sterling Tunnel (Upper Country) for preproduction and exploration, and continue downshaft in key areas (3,100, 2,300, 1,900 levels) to support the first 10 years of the mine plan. Corporate G&A is expected to level off starting in 2027 (tapering in Q1 2027), while exploration and development spending will increase in Q3 and Q4 2026 before tapering off in Q1 2027, leading to an overall increased burn rate.

    On the development side of things, yes, we are ramping up. We will continue to pursue development, both up in the Sterling Tunnel. So that's the Upper Country area. We are going to continue with ramp development aggressively through the second half of the year, both for development for preproduction readiness purposes as well as for exploration build-out of the Upper Country. I would say, in addition to that, we will be continuing downshaft development as well in key areas that support the first 10 years of the mine plan.

    asked by Carlos De Alba · answered by Heather White

    2 min read6 chapters

    Detailed Narrative

    01

    Successful IPO and Financial Foundation

    Sunshine Silver Mining & Refining Company completed its initial public offering in Q2 FY26, successfully raising approximately $310 million. This capital infusion has bolstered the company's treasury to $288.7 million, up from $31 million at the end of 2025, providing the financial foundation to fully fund key work streams over the next 12 months without requiring additional capital. The IPO also attracted top-tier institutional holders, enhancing the company's public market visibility.

    02

    High-Grade Resource and Long Mine Life

    The Sunshine Mine is positioned as North America's highest-grade primary silver resource, boasting 103.9 million ounces of indicated silver resources at 1,022 grams per ton and 159.8 million ounces of inferred silver resources at 776 grams per ton. This high-grade profile is three times the global average for high-grade silver assets. The current resource base is projected to support a generational 24-year mine life, with an envisioned throughput of 1,000 tons per day delivering 6.7 million ounces of payable silver annually in the first five years.

    03

    Derisked Path to Production with Existing Infrastructure

    The company benefits from existing infrastructure in Idaho's Silver Valley, which has seen over $200 million in investment since 2010, with an estimated replacement cost of $600 million today. Coupled with major permits already in hand for mining, milling, and refining operations, these advantages provide a derisked pathway toward the planned return to production in late 2028. The feasibility study, expected in Q2 2027, will integrate technical, economic, and risk analyses to support a final investment decision.

    04

    Significant Exploration Potential and Throughput Expansion

    An ongoing 50,000-meter infill drill program, approximately 60% complete as of July 2026, is uncovering significant near-mine exploration potential, particularly in the historically under-mined Upper Country. Remarkable results from this program are reinforcing conviction in potentially doubling mill throughput from the current base case of 1,000 tons per day to 2,000 tons per day. The company also holds a 9,561-hectare mineral rights position, offering untapped district-scale exploration opportunities to expand its resource base.

    05

    Integrated Critical Minerals Platform Opportunity

    Sunshine is evaluating the potential to build a vertically integrated U.S.-based mine-to-refinery platform. This includes restarting the existing Silver-Copper Refinery, which has a nameplate capacity to produce 10 million ounces of silver annually, enabling on-site production of COMEX-deliverable silver. Additionally, the company is assessing the development of a permitted Antimony Plant with the potential to produce up to 34.5 million pounds of finished antimony annually, which could supply approximately 60% of U.S. annual demand, supporting domestic critical mineral supply chains.

    06

    Strategic Importance for U.S. Critical Mineral Supply

    Silver's recent addition to the U.S. list of critical minerals underscores its importance to the American economy and national security. With the U.S. currently accounting for only about 4% of global mined silver production, bringing Sunshine online would introduce a new large-scale domestic source of this essential mineral. This aligns with national priorities for secure and resilient supply chains, contributing to energy infrastructure, electronics, and defense sectors.

    AI-generated summary of the company’s earnings call. Not investment advice.