Q2 2026 - 10Q

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# Q2 2026 - 10Q

Source: https://sunshinesilvermining.com/wp-content/uploads/2026/08/SSMR-Q2-2026-10Q-Final.pdf
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# Q2 2026 - 10Q
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TABLE OF CONTENTS
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________
FORM 10-Q
________________________________
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2026
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____ to ____
Commission file number 001-43325
________________________________
Sunshine Silver Mining & Refining Company
(Exact name of registrant as specified in its charter)
________________________________
Delaware 85-3794822
(State or other jurisdiction of incorporation or
organization) (I.R.S. Employer Identification No.)
2209 Big Creek Rd
Kellogg, Idaho 83837
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (208) 783-1700
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common stock, par value $0.001 per share SSMR New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant
to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files). Yes ☑ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting
company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Large accelerated filer o Accelerated filer o
Non-accelerated filer ☑ Smaller reporting company ☑
Emerging growth company ☑
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No ☑
As of August 12, 2026, the number of outstanding shares of the registrant's common stock, par value $0.001 per share, was
143,726,603.
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TABLE OF CONTENTS
Table of Contents
Page
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS 3
Part I - Financial Information 4
Item 1. Financial Statements 4
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 15
Item 3. Quantitative and Qualitative Disclosures About Market Risk 21
Item 4. Controls and Procedures 21
Part II - Other Information 23
Item 1. Legal Proceedings 23
Item 1A. Risk Factors 23
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 23
Item 3. Defaults Upon Senior Securities 23
Item 4. Mine Safety Disclosures 23
Item 5. Other Information 23
Item 6. Exhibits 23
SIGNATURES 25
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TABLE OF CONTENTS
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of
historical fact contained in this report, including statements regarding our future results of operations and financial position, business
strategy, plans, and objectives of management for future operations, are forward-looking statements. In some cases, you can identify
forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “predict,” “project,”
“target,” “will,” or the negative of these terms or other similar expressions. These forward-looking statements include, but are not
limited to, statements regarding: our ability to successfully advance and restart mining and milling operations at the Sunshine Mine; the
expected timing, execution, and success of our planned late 2028 production restart; the timing of completion of our Sunshine Mine
Feasibility Study and the related final investment decision; the timing of completion of feasibility studies with respect to the new
Antimony Plant and the refurbishment of the existing Silver-Copper Refinery, the timing for completion of the ongoing 50,000-meter
drilling program; our plans for decommissioning the existing mill; our plans for a new mill designed to process up to 2,000 tonnes per
day; our ability to initiate restart of our operations without an environmental impact study; and our expectations regarding the
maintenance of our current permitting status and ability to secure the outstanding and ongoing permits required; the potential
production capacity and products from the Silver-Copper Refinery; and the potential processing profile and capacity of the Antimony
Plant.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results,
performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by
the forward-looking statements. These risks include, but are not limited to:
• our lack of historical operating revenues and difficulties in achieving profitable operations;
• our lack of Proven Mineral Reserves or Probable Mineral Reserves and the uncertainties around the calculation of Mineral
Resource estimates;
• changes in metal prices;
• the speculative nature of mineral exploration efforts;
• the requirement to obtain additional financing to bring the Sunshine Mine into production;
• risks associated with establishing new mining operations and the risks and hazards inherent in the mining industry;
• competition for skilled labor, mining equipment and supplies;
• labor relations;
• health and safety impacts including in connection with public health crises;
• our ability to obtain, maintain and renew environmental, construction and mining permits;
• future legislation and changes in laws and regulations; and
• other risks and hazards association with exploration, development and mining operations.
More detailed information regarding applicable risks and uncertainties is included in the section titled “Risk Factors” in our Form S-1
filed with the SEC on May 11, 2026, as amended. Many of these factors are beyond our ability to control or predict. Given these
uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements. The forward-looking statements
made in this report relate only to events as of the date on which the statements are made. We undertake no obligation to update public
forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated
events, except as required by law
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TABLE OF CONTENTS
Part I - Financial Information
Item 1. Financial Statements
Sunshine Silver Mining & Refining Company
Condensed Consolidated Balance Sheets
Unaudited, expressed in United States Dollars
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2026 2025
$ $
ASSETS
Current assets
Cash and cash equivalents 288,722,323 30,975,991
Prepaid expenses 878,628 1,282,034
Materials and supplies inventory 567,240 377,269
Other current assets 753,426 888,640
Total current assets 290,921,617 33,523,934
Restricted cash 275,039 275,039
Property, plant and equipment, net 44,392,824 34,290,542
Intangible assets 750,000 750,000
TOTAL ASSETS 336,339,480 68,839,515
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable 5,876,548 2,562,528
Accrued liabilities 5,753,925 2,218,413
Note payable 231,526 683,135
Total current liabilities 11,861,999 5,464,076
Reclamation obligations 1,873,574 1,814,600
TOTAL LIABILITIES 13,735,573 7,278,676
Commitments and contingencies (Note 11)
STOCKHOLDERS’ EQUITY
Preferred Stock, $0.001 par value, 250,000,000 shares authorized at June 30, 2026 and
December 31, 2025, respectively;
nil issued and outstanding at June 30, 2026 and December 31, 2025 — —
Common stock, $0.001 par value, 3,500,000,000 and 150,000,000 shares authorized at
June 30, 2026 and December 31, 2025, respectively;
143,726,603 and 116,509,480 shares issued and outstanding at June 30, 2026 and
December 31, 2025, respectively 143,726 116,509
Additional paid-in capital 557,009,853 266,021,748
Accumulated deficit (234,549,672) (204,577,418)
Total Stockholders’ Equity 322,603,907 61,560,839
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 336,339,480 68,839,515
The accompanying notes are an integral part of these condensed consolidated financial statements.
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TABLE OF CONTENTS
Sunshine Silver Mining & Refining Company
Condensed Consolidated Statements of Operations and Comprehensive Loss
Unaudited, expressed in United States Dollars
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Three months ended June 30, Six months ended June 30,
2026 2025 2026 2025
$ $ $ $
Sales — 35,258 — 75,948
Operating expenses:
Exploration — 71,062 — 71,062
Pre-Development 10,174,386 3,210,578 17,574,714 4,321,485
General and administrative 6,868,471 2,177,709 12,467,274 3,791,708
Depreciation and amortization 348,136 138,064 713,569 271,097
Cost of goods sold — 19,884 — 39,799
Accretion expense 29,487 27,687 58,974 55,375
Operating loss (17,420,480) (5,609,726) (30,814,531) (8,474,578)
Other income (expense):
Interest expense (6,425) (1,437,789) (16,622) (2,614,916)
Interest income 706,141 2,596 858,899 4,292
Total other income (expense) 699,716 (1,435,193) 842,277 (2,610,624)
Income and mining tax expense — — — —
Net and comprehensive loss (16,720,764) (7,044,919) (29,972,254) (11,085,202)
Basic and diluted loss per share of common stock (0.13) (0.08) (0.25) (0.13)
Weighted average number of basic and diluted shares of
common stock outstanding 123,986,712 85,439,630 120,268,751 85,439,630
The accompanying notes are an integral part of these condensed consolidated financial statements.
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TABLE OF CONTENTS
Sunshine Silver Mining & Refining Company
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit)
Unaudited, expressed in United States Dollars
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)
Common Stock
Number of Additional
common Paid-in Accumulated
shares

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