Sinda Q2 Earnings Call Highlights

Sinda (NYSE:SIND) outlined plans to accelerate drilling, advance an underground exploration decline and update its mineral resource estimate by the end of 2026, as the silver exploration company held its first earnings call following its June listing on the New York Stock Exchange.

Executive Chairman Daniel Muñiz Quintanilla said the company is pursuing a dual-track strategy: advancing its Caracol deposit toward a targeted production start by the end of 2031 while continuing exploration across its broader Mexican land package to establish what management believes could become a multi-mine silver district.

The company began trading on the NYSE on June 26 and raised $331 million in gross proceeds through its initial public offering, the underwriters’ overallotment option and a concurrent private placement with Fresnillo. Franco-Nevada also made a strategic anchor investment, according to management.

Resource Base and Exploration Potential

Sinda said its Caracol and Agaves deposit areas contain 369 million silver-equivalent ounces of inferred resources at an average grade of 386 grams per ton, along with 16 million silver-equivalent ounces of indicated resources. The resource estimate is based on roughly 230,000 meters of drilling.

Management said SRK has identified an additional 452 million to 484 million silver-equivalent ounces in exploration targets. Muñiz Quintanilla said the company has identified nearly 800 million silver-equivalent ounces of potential mineralization when combining current resources and exploration targets, though he emphasized that only 38% of identified veins have been sufficiently drilled and about 74% of Sinda’s land package remains unexplored.

The company holds more than 6,200 hectares of concessions in Mexico’s Guanajuato Sur area, near the Fresnillo, Guanajuato and Pachuca mining districts. Management cited the project’s access to roads, rail, power, airports and a skilled workforce as potential advantages for development and capital efficiency.

“We are laser focused on advancing Caracol into production by the end of 2031,” Muñiz Quintanilla said, adding that the company expects to use continued surface drilling and planned underground access to support resource conversion and future mine development.

Drilling Program Advances

Vice President of Operations María José Romero said Sinda completed nearly 61,000 meters of phase-one drilling between October and June, expanding its active drilling fleet from six to 15 rigs during the period.

The campaign included more than 33,000 meters of infill drilling at the Dolores vein system within the Caracol deposit, where the company tightened drill spacing to a 50-by-50-meter grid. Romero said the results confirmed continuity, validated grade distribution and supported the company’s geological interpretation. She said most veins assayed above 500 grams per ton silver equivalent, with some intercepts reaching up to 14 kilograms per ton silver equivalent.

Sinda also drilled nearly 28,000 meters of step-out exploration, including nearly 17,000 meters at the Don Diego corridor and close to 11,000 meters at regional targets including Domo.

Don Diego is a roughly 4-kilometer corridor between Caracol and Agaves. Management said drilling from both deposit areas has returned encouraging mineralized intercepts and may support the view that the corridor could connect the two systems. One cited intercept in the Agaves extension returned just over three meters grading approximately 727 grams per ton silver equivalent, including half a meter grading more than 3,200 grams per ton silver equivalent.

Romero said Don Diego is not included in the company’s current mineral resource estimate or its previously outlined exploration targets. While describing the results as promising, she said it remains too early to estimate the potential size of a resource in the corridor. Sinda expects to evaluate whether some Don Diego results can be incorporated into exploration targets in its year-end resource update.

Phase Two and Underground Development

For the second half of 2026, Sinda plans nearly 67,000 meters of drilling, which would bring total drilling for the year to nearly 128,000 meters. The phase-two program will continue infill work at Caracol, begin infill drilling at Agaves and conduct step-out exploration across priority targets.

Romero said the planned drilling mix for phase two is approximately 60% infill drilling and 40% exploration drilling. Chief Financial Officer Luis Barreto said the company expects exploration spending to increase as it accelerates work, with more than half of its 122,000-meter post-IPO surface drilling program scheduled for the next two quarters. Muñiz Quintanilla said drilling costs are approximately $234 per meter.

The company also plans to begin construction of an exploration decline in the second half of 2026. Sinda received environmental impact authorization for the decline in March, nine months after submitting its application. Romero said the company began its contractor tender process in May, has received bids within its budget expectations and is evaluating proposals while completing additional tests before selecting a contractor.

Management said the decline is designed to provide underground access for infill drilling and resource conversion and is sized to potentially support future production. Muñiz Quintanilla said Sinda currently has the permits and capital it needs for the next two to three years, with future permitting expected to focus on mine construction and operating facilities.

Technical Studies and Industry Collaboration

Sinda is targeting an updated mineral resource estimate by year-end 2026, followed by a preliminary economic assessment in the second quarter of 2027. The company then plans to target a pre-feasibility study by the end of 2028, ahead of its construction target around 2030.

During the question-and-answer session, Muñiz Quintanilla said Sinda has an information-sharing agreement and technical collaboration with Fresnillo, which owns a 5% investment in the company. He said both companies are focused on the Guanajuato Sur district, while emphasizing that Sinda remains independent.

“Going public in June was not the finish line,” Muñiz Quintanilla said. “It was merely the beginning of our next chapter.”

About Sinda (NYSE:SIND)

We hold title to, or have exploration and exploitation rights on, five contiguous mining concessions covering a large-scale, high-grade, silver-gold greenfield discovery located in the historic Guanajuato epithermal silver belt of Mexico (the “Sinda Property” or the “Project”). The Sinda Property is a large primary silver asset that we believe has the potential to be a globally significant mining operation. The Sinda Property is located approximately 22 miles (35 kilometers) from the colonial city of San Miguel de Allende in the Mexican state of Guanajuato, approximately 180 miles (290 kilometers) northwest of Mexico City and 28 miles (45 kilometers) southeast of the Guanajuato Mining District, in close proximity to several of the world's largest and historically most productive silver deposits and mines.

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