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DATE
Thursday, Aug. 13, 2026 at 10:00 a.m. ET
CALL PARTICIPANTS
- Chief Financial Officer - Pieter van Niekerk
- Chief Executive Officer - Heather White
- Chairman of the Board - Dr. Thomas Kaplan
TAKEAWAYS
- Net Loss -- $16.7 million ($0.13 per share), reflecting planned acceleration of development and costs related to operating as a public company.
- Predevelopment Expense -- Increased $7 million year over year, driven by the advancement of three feasibility studies and the infill drilling program.
- General and Administrative Expense -- Increased $4.7 million year over year, due to personnel costs and legal services related to the initial public offering.
- Cash and Cash Equivalents -- $288.7 million at June 30, 2026, compared with $31 million at Dec. 31, 2025, primarily reflecting net proceeds from the initial public offering.
- Indicated Silver Resource -- 103.9 million ounces at 1,022 grams per ton, which management stated is the highest-grade primary silver resource in North America.
- Inferred Silver Resource -- 159.8 million ounces at 776 grams per ton, supporting a projected 24-year mine life.
- Projected Silver Production -- 6.7 million ounces annually in the first five years, which would establish the mine as the second-largest primary silver producer in the United States.
- Net Present Value -- $2.2 billion at $60 per ounce silver, increasing to $3.2 billion at $80 per ounce.
- Infill Drilling -- 50,000-meter program was 60% complete as of July 2026, focusing on raising resource classification for the feasibility study.
- Underground Development -- 1,200 meters completed in the first six months of 2026, aimed at improving access to priority mining areas.
- Refinery Capacity -- 10 million ounces of silver annually at the existing Silver-Copper Refinery, enabling on-site production of finished silver bars.
- Antimony Production Potential -- 34.5 million pounds of finished antimony annually, which could supply up to 60% of annual U.S. demand.
- Operating Activities Cash Use -- $22.8 million in the first half of 2026, reflecting higher development activity levels and G&A expenses.
- Investing Activities Cash Use -- $9.5 million in the first half of 2026, primarily for mining equipment and infrastructure upgrades.
- Infrastructure Investment -- Over $200 million invested since 2010, with a current replacement cost estimated at $600 million.
- Mill Capacity Base Case -- 1,000 tons per day, with feasibility work evaluating a potential increase to 2,000 tons per day.
- Hoisting Capacity -- 3,500 tons per day at the Jewell Shaft following the commissioning of a new primary production hoist.
- Mineral Rights Position -- 9,561 hectares, making the company the largest mineral rights holder in the Silver Valley district.
- H2 2026 Development Goal -- 1,300 meters of additional underground development to establish drill stations and support mine planning.
- Feasibility Study Timeline -- Scheduled for completion in the second quarter of 2027, supporting a planned production restart in late 2028.
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RISKS
- van Niekerk stated, "we expect to require additional capital over time," noting that the company will evaluate financing sources as feasibility work advances and capital requirements become clearly defined.
- White stated that first silver production in late 2028 is "subject to that decision" regarding the final investment decision scheduled for 2027.
SUMMARY
Sunshine Silver Mining & Refining Company (SSMR +7.28%) completed its initial public offering during the second quarter, establishing a financial base to advance the Sunshine Mine toward a planned production restart in late 2028. Management reported that current activities are focused on a 50,000-meter infill drilling program and three concurrent feasibility studies for the mine, a silver-copper refinery, and an antimony plant. The company stated it is evaluating a vertically integrated platform to produce COMEX-deliverable silver and finished antimony to support domestic critical mineral supply chains. Future milestones include the completion of the mine feasibility study in the second quarter of 2027 and a subsequent final investment decision.
- White noted that the United States accounts for only approximately 4% of global mined silver production, emphasizing the strategic value of a new large-scale domestic source.
- Management reported engaging a management consulting firm to conduct a strategic assessment of the Silver-Copper Refinery and Antimony Plant opportunities.
- The company is evaluating a potential increase in processing capacity from 1,000 to 2,000 tons per day based on exploration results in the Upper Country and newly identified 10 Vein.
- The Silver Summit Project involves a multiphase shaft upgrade to provide a reliable secondary egress and additional production hoisting capacity.
- Decommissioning of the existing mill facilities is scheduled for completion by year-end 2026 to prepare the site for new mill construction.
- White stated, "The Shine sits well above the rest," noting that the asset's silver grade is three times the average of other high-grade silver assets globally.
INDUSTRY GLOSSARY
- Silver Valley: A historic mining district in northern Idaho recognized as one of the most prolific silver-producing regions in the United States.
- Indicated Resource: A mineral resource for which quantity and grade are estimated with sufficient confidence to allow for the application of modifying factors in support of mine planning.
- Inferred Resource: A mineral resource for which quantity and grade are estimated on the basis of limited geological evidence and sampling.
- TPD: Tons per day, a measure of the processing capacity of a mill or the production rate of a mine.
- COMEX-deliverable: Silver that meets the specific purity and weight standards required for delivery against contracts on the Commodity Exchange.
- Antimony: A critical mineral used in fire retardants, lead-acid batteries, and high-tech applications, including aerospace and defense.
Full Conference Call Transcript
Operator: Good morning, everyone, and welcome to the Sunshine Second Quarter Earnings Webcast and Conference Call. [Operator Instructions] Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Andre van Niekerk, Chief Financial Officer. Please go ahead.
Pieter van Niekerk: Good morning, everyone, and thank you for joining the call of Sunshine Silver Mining & Refining. Joining me on the call today are Heather White, our Chief Executive Officer; and Dr. Thomas Kaplan, Chairman of the Board. Before we begin, I would like to remind everyone that today's discussion may contain forward-looking statements regarding the company's plans, expectations and future performance. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Please refer to the cautionary statements included in today's presentation and yesterday's press release as well as the risk factors described in our filings with the SEC.
We issued our second quarter 2026 financial and reporting results yesterday after market closed. The earnings release and our quarterly report on Form 10-Q are available on our website and through the SEC's EDGAR database. With that, I'll turn the call over to Heather.
Heather White: Thank you, Andre, and welcome, everyone, to our first quarterly earnings conference call as publicly listed Sunshine Silver Mining & Refining. Beginning on Slide 4, I'm excited to share the progress we are making at the Shine and the opportunity we see both within the existing Sunshine footprint and across our broader land position. As this is our first quarterly call, I'd like to begin by putting the progress we've made into context and address what differentiates Sunshine, why we believe this asset is so well positi