Sinda Ltd. 2026 Q2 Earnings Call

Thank you. Good morning, everyone. I want to welcome you to Sinda's first earnings call. We are proud to share our progress and our vision for the future. I'll start on slide 5. For those of you who are new to our story, we believe to be one of the world's most significant silver discoveries in recent years. It is imperative to understand that Sinda is unique in the silver space. We are a premier single-asset focused pure play situated right on one of the most exciting and important silver rushes in Mexico, which is called Guanajuato Sur by our neighbor, Fresnillo. Sinda is a differentiated silver vehicle, meaning that it has a combination of superlative rich attributes, including grade and scale, quality and quantity. That renders it in the first year of the silver development space.

In a market where high silver grade assets are increasingly scarce, we represent a highly differentiated silver vehicle with concentrator exposure to a tier 1 asset. Sinda made its first discovery in 2017 and now has 369 million ounces of silver equivalent of inferred resources, 16 million equivalent ounces of indicated resources, and an additional 452-484 million silver equivalent ounces in exploration targets. That is approximately 800 million ounces of potential silver equivalent mineralization, and that is on only 38% of the identified veins. This district is clearly exciting, and we believe that we are still in the early days as 74% of our own land position still unexplored. Sinda is the only pure play for investors on what has the potential to be a world-class multi-mine district. We are already drilling hundreds of thousands of meters to bring this amazing new discovery to production over the coming years.

Turning to slide 6, Sinda is in the heart of Mexico's mining belt, surrounded by large, historic, and producing mines. Please look at the expanded box on the right. We are right next to the Fresnillo, Guanajuato, and Pachuca districts, each greater than 1 billion-ounce producers. Together, these three giants have produced more than 4 billion ounces. Turning to slide 7, we can look at how Sinda stacks up to be the next giant of this kind. Sinda lines up well against the top mines in Mexico and Latin America, again, what this chart shows. This is why we believe Sinda will be the next silver giant. Sinda has the potential to be a 1 billion ounce plus deposit and a multi-mine district based on existing resources and our conceptual exploration targets. 1 billion ounce deposits are very unusual and rare.

Whilst we are still early in our exploration efforts, we are already approaching the size of these three giants. But it is not just about size, as grade in mining is king. Let me turn to that on the next slide. Moving on to slide 8. As the top chart shows, our indicated grade is the highest among the highest-grade deposits shown here. Our inferred grade, which is the lion's share of our current resource, starts at 386 gram per ton. As a general rule for vein deposits like Sinda, inferred mineral resource grades are typically lower than measured and indicated grades. This is primarily a function of drill density. Case in point, studies show that Fresnillo, Saucito, and Juanicipio all had M&I grades that were on average 37% higher relative to inferred grades.

We fully expect that Sinda's M&I grades will be in line with this trend following further infill drilling. In fact, the early signs are indeed very positive, and María José Romero will cover those in detail in a few minutes. This brings me to our core strategy. On slide 9, you can see how we are executing a dual track approach. This allows us to both deliver near-term exploration milestones while building a world-class, multigenerational silver district. We are laser focused on advancing Caracol into production by the end of 2031. To get there, we are executing on our surface and underground drilling programs. This includes the development of our exploration decline, which will allow us to explore underground and is also sized for production. Our second track is our long-term value creation engine, which will establish Sinda as a long-life multi-mine producer.

While we build our first mine, we will continue to explore our land package, including testing the 60%-plus of identified vein systems that remain unexplored. This includes expanding through the new discoveries like Don Diego, which could link our two main deposits. Turning now to slide number 10 for a detailed breakdown of the current mineral resource. To date, we have defined two primary deposit areas, Caracol and Agaves. Together they host an inferred resource of 369 million ounces of silver equivalent at an average grade of 386 grams per ton as I've mentioned. It is important to highlight that this resource is based on roughly 230,000 meters of drilling. While this provides a solid foundation, a significant portion of the system remains under-drilled, leaving clear room for lots of expansion. In addition, SRK has identified between 452 and 484 million ounces of silver equivalent as exploration targets.

Areas where mineralization has been intersected along known vein systems, but where additional drilling is required to increase confidence and support formal resource classification. Overall, this supports our view of a robust, high-grade system with meaningful potential for both growth and resource conversion as drilling continues. Now, turning onto slide 11, I want to focus on the truly enormous scale of the opportunity ahead of us. We currently have almost one billion ounces of silver equivalent between the resource base and the exploration targets identified by SRK. What is particularly important here is not just the current resource, but the scale of the opportunity. Again, only 38% of the identified veins have been sufficiently drilled, meaning the majority of the known structures remain underexplored. Furthermore, approximately 74% of the total land package has not been yet drilled at all.

From a geological perspective, for every mapped vein, drilling suggests the presence of approximately four additional blind veins, implying a significant multiplicity of mineral structures not evidenced at surface. We already have a substantial resource base, but the system remains largely open. Now, turning into slide number 12, which highlights the scale of our land package. On the map to the left, the full concession outline is shown with current resource areas highlighted in dark green, Caracol to the northwest, and Agaves to the southeast. The light green areas represent broader exploration targets and near resource exploration zones. Our project has over 6,200 hectares of concessions, and as I've mentioned before, the majority of the land package remains underexplored. Our current exploration strategy is focusing on key target areas such as Don Diego and Domo, where we see strong potential to expand the system.

To support this, our current drilling plan contemplates 345,000 meters of drilling over the next three years, aimed at upgrading and expanding existing resources and step-out exploration targeting new zones. On slide number 13, we want to highlight one of Sinda's key advantages, its infrastructure. This is not a remote project. This is a well-connected asset with clear advantages on cost and execution. As you can see, we are located in a region with established access to skilled workforce, power, airports, roads, rail, and supported by an industrial mining and also a touristic hub. This is a rare advantage for a project of this scale, particularly compared to most projects in Mexico that are in remote areas. This is a real differentiator that will translate into lower capital intensity and more efficient development.

Operations in Mexico are known to be cost competitive, and at Sinda, with the size, the grade, and the team in place, it will not be an exception. Turning to slide number 14, this is a roadmap for unlocking value. This timeline lays out the key operational and technical milestones over the next few years. Delivering this plan will de-risk the Sinda project and drive our NAV as we advance towards 2030 construction and our 2031 production target. In terms of technical reports and key development milestones, we are targeting an updated resource estimate by year-end. This would incorporate our current surface drilling, which should increase the categorization as well as the overall size. On the back of those positive results, we will refresh the resource estimate and incorporate them into an economic study or PEA in the second quarter of next year.