Aug 14, 2026, 10:29 AM ETBasic Materials

Sinda Ltd. — Second Quarter 2026 Earnings Summary

SINDSINDA LTD

Financial Performance

Reported a net loss of $16.6 million for the three months ended June 30, 2026, compared to a net loss of $2.2 million in the second quarter of 2025.
The increase in net loss was driven by planned growth in exploration and development activities, including the Phase 1 surface drilling program, and incremental general and administrative expenses related to surface drilling programs and IPO preparation.
The company reported zero debt as of the end of the quarter.
Closed the quarter with a cash position of approximately $204.3 million (excluding net proceeds from the Overallotment Option and Concurrent Placement).
Total post-IPO liquidity reached $320.7 million following the exercise of the Overallotment Option and the closing of the Concurrent Placement.

Plans to initiate construction of a 9-kilometer underground exploration decline during the second half of 2026.
Aiming to commence underground drilling (approx. 223,000 meters across 557 holes) toward the latter part of 2026, pending decline access permits.
Targeting the completion of an updated Mineral Resource Estimate by year-end 2026.
The Phase 2 surface drilling program aims to drill an additional 122,000 meters by the end of 2027, with plans to expand the active rig fleet to 18.
Management anticipates a pathway to commercial production requiring limited capital relative to the project's scale, with funding to be sourced through non-dilutive options such as bank debt, project finance, and precious metals streaming or royalties.

Completed Phase 1 of the surface drilling program with 60,810 meters drilled at an average all-in cost (ex VAT) of approximately $247 per meter.
Phase 1 included 33,134 meters of infill drilling at the Dolores vein system and 27,676 meters of step-out exploration drilling across five target areas, including Don Diego.
Identified the New Don Diego Corridor, a potential structural link between the Caracol and Agaves areas, which is currently excluded from existing resource estimates.
Notable drilling results at Don Diego include:
- Hole CEAG-26-062: 3.0 meters grading ~727 g/t AgEq, including 0.5 meters over 3,200 g/t AgEq.
- Hole CEAG-26-063: 7.95 meters grading 462 g/t AgEq.
- Hole CEAG-26-064: 0.8 meters grading 4,137 g/t AgEq.
- Hole CEAG-26-065: 1.05 meters grading 2,826 g/t AgEq.
The project spans 6,200 hectares, with the current resource footprint occupying only 26% of the total area.
Current resource estimates include 369 million silver-equivalent ounces of Inferred Mineral Resources and 16 million silver-equivalent ounces of Indicated Mineral Resources.
Incremental Exploration Targets range from 452 to 484 million silver-equivalent ounces.

Completed its Initial Public Offering (IPO) on the NYSE on June 26, 2026, raising gross proceeds of approximately $213.0 million ($192.9 million net) from the sale of 17,750,000 shares at $12.00 per share.
Underwriters exercised the Overallotment Option on July 15, 2026, purchasing 1,915,328 additional shares for gross proceeds of $23.0 million ($21.4 million net).
Fresnillo plc, a global industry leader, secured a 5.0% ownership stake in Sinda via a concurrent placement on July 27, 2026, purchasing 7,939,544 shares for gross proceeds of approximately $95.3 million ($95.0 million net).
Total gross proceeds from the IPO, Overallotment, and Concurrent Placement amounted to approximately $331.3 million.
The Electrum Group owns approximately 77.4% of the Company's shares following the IPO, and the Company remains a "controlled company" under NYSE governance rules.

Exploration results, particularly at the Don Diego area, are currently qualitative and require further drilling to define a Mineral Resource; there is no assurance that mineralization will be confirmed.
Forward-looking statements regarding liquidity, business strategy, and future operations involve risks, uncertainties, and assumptions that could cause actual results to differ materially.
The project is in the earliest stages of unlocking the Don Diego target, requiring significant additional exploration to validate the district-scale potential.

Executive Chairman Daniel Muñiz Quintanilla described the IPO as a pivotal milestone that put a spotlight on the Sinda project as one of the most important silver-gold discoveries in Mexico and potentially the world.
Management expressed confidence in the long-term potential of the Sinda Project, citing strategic anchor investments from Fresnillo and Franco-Nevada as independent validation of the asset's scale and quality.
CFO Luis Barreto highlighted a strong balance sheet with zero debt and sufficient liquidity to fund aggressive exploration and development plans for the next two to three years.
Management emphasized a focus on responsible development, stewardship, and transitioning Sinda into a world-class producer.

The 9-kilometer underground exploration decline has an estimated budget of $98 million over three and a half years and is designed with production-sized dimensions of 5.5m x 5.5m.
The company received environmental impact authorization for the exploration decline in March 2026, nine months after submission.
The company reported zero safety incidents during the quarter.
Directional drilling during Phase 1 delivered approximately 13.7 kilometers of drilling savings and improved targeting efficiency.
The company secured specialized expertise from leading independent engineering and technical consulting firms across geology, mineral resources, engineering, infrastructure, environmental, and hydrogeological disciplines.