Q1/26 Financials Mixed, Galena Remains on Track

Research evidence excerpt

Q1/26 Financials Mixed, Galena Remains on Track

ile AISC of $34.12/oz beat both our and consensus estimates CFPS $0.01 $0.40 $0.65 $0.72↓

of $38.90/oz and $39.97/oz, respectively. Compared to our estimates, this was primarily Silver Eq. Prd 3,397 4,012↑ 6,894↑ 9,096↑

due to lower sustaining and exploration spend at the Cosalá Operations (~$2M vs. AISC ($/oz) $32.95 $33.30↓ $20.40↓ $17.99↓

BMOe ~$6M). Management has reiterated AISC cost guidance ($30-35/oz). Consensus Estimates

Galena Growth Plan. Within the release, management reaffirmed that the operational 2025A 2026E 2027E 2028E

growth plan at Galena remains on track, with additional details on the progress of

EPS $0.24 $0.54 $0.67

these plans previously disclosed. Of particular interest, during the call, management

noted that Phase 2 of the No. 3 Shaft Hoisting upgrades is now complete. This is Valuation

anticipated to increase hoisting throughput by ~150% to ~105stph and total hoisting 2025A 2026E 2027E 2028E

capacity to 1,350stpd. P/E NM 25.1x 14.4x 13.8x

Galena Mining Update. To date, the company has successfully extracted 10 long- P/CFPS NM 16.2x 10.1x 9.1x

hole panels, with three additional long-hole stopes currently in development and EV/EBITDA NM 15.9x 8.7x 7.5x

scheduled for mining in Q2/26 and Q3/26. It was noted that these panels have achieved

QTR. EPS Q1 Q2 Q3 Q4

planned mining widths, leading to mining dilution being in line with underhand cut

2025A $(0.02) $(0.02) $(0.02) $(0.03)and fill mining. With the completion of the paste backfill plant, which is expected to be

commissioned in Q4/26, we anticipate improved long-hole stoping productivity due to 2026E $0.06a $0.05 $0.07 $0.08

an expected improvement of backfill cycle times by ~250%. 2027E $0.10 $0.12 $0.12 $0.12

2028E $0.12 $0.12 $0.12 $0.11