The SMID Point

Research evidence excerpt

The SMID Point

Sunshine Silver Mining (SSMR.N) - The Sunshine Mine: An Oldie But A Goodie;

Buy/HR

We initiate coverage on Sunshine Silver Mining (SSMR) with a Buy/High Risk rating

and $18/share target price. SSMR is in the process of restarting the historic

Sunshine silver mine in Idaho. Our TP is based on 1.2x NAV on $54/oz LT silver. Our

Buy/High Risk rating is predicated on Citi’s positive view on LT silver and precious

metals prices, plus a positive view on SSMR which we believe has credible targets

plus exploration upside. We see room for the stock to re-rate higher towards an

established producer multiple as project moves into production. We do not

consider silver and/or antimony refinery in our NAV and these could be

incremental upside as plans firm up.

Buy/High Risk | Target price US$18.00

Alexander Hacking, CFA

Industry

Artificial Intelligence - Citi’s Inference Ahead – Open-Source Moment

As regulators block access to some frontier models and slow the release of others,

open models are gaining momentum as inference needs continue to outstrip

supply, driving enterprises to seek out alternatives to frontier models for specific

use-cases. While benchmarks are limited for measuring value to the enterprise,

our dashboard (Figure 1) shows the intelligence gap between proprietary and

open-weight models has compressed in the past 2 weeks with the release of Z.ai’s

GLM-5.2 model. The shift is fueling investment in startups providing cost-

efficient, open architectures for both software and hardware. While infrastructure

deals continue to cement the industry’s long-term direction, talent constraints

and data center construction challenges will impact the pace of development,

favoring AI talent-dense and compute-dense leaders, even as we expect the