Initiation Report: It‘s early - but Sinda may be Mexico’s next great silver mine

Research evidence excerpt

Initiation Report: It‘s early - but Sinda may be Mexico’s next great silver mine

Sinda (SIND.N)

21 July 2026 Citi Research

Investment Thesis

We rate SIND at Buy with an $18/sh target price. Our Buy rating is based on the

following:

n Sinda is a potential Tier 1 silver asset. The project is located in the prolific

Mexican Silver Belt and has already identified >250moz of resources. There is

significant upside potential to this, in our view; and it is possible that Sinda

could one day support a ~20moz p.a. silver mine. Note: Current resource is only

based on drilling and study of 38% of identified veins.

n There is a clear catalyst path for upward re-rating. This includes future drill

results, resource estimates and a PEA (2027E). Blue-sky valuation upside is

~1/3rd of Fresnillo’s valuation or ~US$7.5bn = ~$50/sh. (Note: this would require

the company to build a 15-20moz mine without major setbacks and there are

many practical risks along the way.)

n Fresnillo has taken a 5% stake in Sinda and could be a future acquirer given its

size & nearby operations.

n Security risks can be a concern in Mexico. But the risk around Sinda appears

relatively lower given its location Guanajuato in central Mexico close to the

industrial base.

n Citi is constructive long-term constructive on silver and precious metals prices

($75/oz in 2027E).

Company Overview

Sinda is developing the Sinda silver project in Guanajuato, Mexico; located in the

Silver Belt one of the world’s most prolific silver-producing regions.

The project hosts a district-scale epithermal silver-gold system characterized by

multiple mineralized structures and strong grades.

The company is majority owned by the Electrum Group with ~80% of the

outstanding shares.