David Stein

Kuya Silver - Q2 Financial Results and Growth Outlook

• Top takeaway Stein argues Kuya is on track to be cash flow positive at Bethania by early next year at current silver prices, calling the outcome predictable from existing guidance
• He frames Q2 financials as a transition story — higher operating expenses and mine development costs offset by concentrate revenue — and characterizes the quarter as a progress report on the way to bigger outcomes
• Stein describes the less than $2 million Q2 cash decline as a positive, given the heavy investment in underground development, hiring, and preparation for the second-half exploration drill program at Silverking
• He commits to deploying roughly $5-8 million of the cash balance through year-end, split about half on mine development and half on drilling, and tells viewers not to worry about needing to return to the market
• Once cash flow positive, Stein intends to expand the mine, fund more exploration, and pursue cost-lowering initiatives to turn Bethania into a large silver mine, telling patient investors they should be rewarded within a couple more quarters

Q2 results reflected higher operating expenses as Bethania ramps up, partly offset by initial concentrate revenue. Silver output rose in Q2, but stockpiled concentrate left sales for July, holding reported revenue flat. Kuya Silver ended Q2 with $25.5M cash after funding underground development and H2 drilling plans. Management forecasts burning $5-8M through year-end, split between mine development and exploration drilling. CEO Stein expects cash flow positive by early 2026 at current silver prices, fueling expansion plans.

Kuya Silver - Q2 Production Growth at Bethania and High-Grade Sampling at Silver Kings

• Top takeaway Frames the Q2 production record as one milestone in a much longer ramp-up, expecting results to keep improving through year-end 2026 and into 2027 as underground infrastructure is completed and more stopes come online.
• Argues that grade and recovery volatility at small mining rates will smooth out toward the resource average once 10-15 stopes are active simultaneously at the 350 tpd phase-one target, since recoveries correlate strongly with grade.
• Highlights the purpose-built Bethania plant as a separate, longer-term silver-recovery lever — expecting to squeeze a few extra percentage points of recovery, especially for silver, once that plant is commissioned, on top of the grade-driven recovery trend.
• Positions Silver Kings' surface stockpiles and tailings (notably the frontier tailings grading ~74 g/t Ag and the Kerr Lake mill stockpile carrying silver plus cobalt) as a low-capex, low-geopolitical-risk 'free' Canadian optionality beyond the Bethania upside.
• Outlines a sequenced Silver Kings plan: drive the homogeneous tailings to a resource estimate first with parallel metallurgical work, then address the nuggety blast stockpiles, with the medium-term ambition of a production decision that could add several hundred thousand to a million ounces of silver per year.

Kuya Silver posted record Q2 production at Bethania, with June averaging 68 tons per day on the way to the 350 tons-per-day phase-one target. Bethania silver-equivalent grades climbed from about 6 ounces per ton early in Q2 to 6.6 in June, with recoveries improving to 82%. Contractor onboarding is the key lever for hitting 350 tons per day; current sales keep the balance sheet strong ahead of Q2 financials. Silver Kings surface sampling in Ontario returned up to 168 grams per ton silver and 0.36% cobalt, pointing to a possible low-capex production add. Frontier tailings at 74 grams per ton silver date from 60-100 years ago and could be re-run with modern metallurgy at $5M-$20M capex.