SSMR: Return of the Silver Valley king: Initiating at Sector Perform

Research evidence excerpt

SSMR: Return of the Silver Valley king: Initiating at Sector Perform

ure and key permits in hand, partially de-risking the

path to production in 2029. Sunshine is backed by an operational-focused Production:$5/lb copper.RBCe long-term commodity forecasts: $55/oz silver, $15/lb antimony,

management team and Electrum (58% holder), who acquired the asset in Electrum is the controlling shareholder with a 58% pro-forma ownership

2010, with the company investing >$200M since. We estimate $800M in AllPricedvaluesas ofin priorUSD unlesstradingotherwiseday's marketnoted.close, EST (unless otherwise noted).

total spend to first production including both mine and refinery.

Antimony refinery provides vertical integration and critical minerals

optionality, but standalone value contingent on toll-feed: Sunshine's

concentrate carries elevated antimony, making on-site refining logical for

reliable marketing. We include the proposed 35Mlbs/year refinery in our

valuation at $15/lb Sb adding ~$0.3B (15% of NAV). Economics are highly

leveraged to securing long-term 3rd party feed (Sunshine represents ~5% of

capacity). If secured and operating at scale, we see potential for standalone

value at critical minerals multiples (10–20x EBITDA), implying ~$1.2B at 15x.

Premium valuation already reflected in shares with required execution

to follow: We value Sunshine at 1.5x our NAV8% estimate ($10.68/sh

at RBCe prices: $55/oz silver, $15/lb antimony), above covered precious

metal developers at 0.8x NAV. On consensus assumptions ($50/oz, 5%),

Sunshine trades at 1.0x NAV compared to silver developers (0.5x), mid-

cap producers (0.7x), and large-cap producers (1.3x). We believe Sunshine’s

unique combination of primary silver exposure and critical minerals

optionality in the U.S.