Sunshine gets Brighter; New Results Support Resource Expansion

Research evidence excerpt

Sunshine gets Brighter; New Results Support Resource Expansion

IdeaMstrengthen the case for the 2ktpd concentrator we assume in our base case.

Upcoming Catalysts: We see a steady catalyst path de-risking the project through

first production in 4Q28: 1) ongoing definition drilling and engineering design work

(2026-27); 2) the start of mill construction and infrastructure upgrades (2026-27);

3) completion of the Sunshine Mine feasibility study and FID package (1H27); 4) the

feasibility study for the antimony plant and silver/copper refinery (1H27); 5) renewal

of the IPDES wastewater discharge permit (2H27); 6) construction of the antimony

plant and silver refinery (2027-28); and 7) first production of silver, antimony,

copper and lead (4Q28). The drilling results feed the first of these keeping the

timeline/catalyst path intact.

We recently initiated coverage of Sunshine Silver Mining & Refining (SSMR) at

Overweight. The stock offers what we see as a compelling 2:1 bull-bear skew, and

our midyear 2027 price target of $23 implies ~60% upside. The stock trades at a P/

NAV multiple of 0.6x on our base/bull blended NAV of $23/sh. Sunshine is focused

on restarting the historic Sunshine Mine, which has indicated mineral resources of

103.9Moz at 1,022 g/t Ag and inferred mineral resources of 159.8Moz at 776 g/t Ag

— grades as much as 2-4x above those of operating silver mines in the Americas.

Along with the mine restart, the company is also conducting a feasibility study (FS)

to consider the restart of an on-site silver refinery and construction of an antimony

plant, supplying U.S. markets with refined USGS designated critical minerals. The US

is reliant on imports for over half of the country's silver and antimony demand, with