• The silver mining sector demonstrated exceptional operational performance in Q2 2025, with multiple companies achieving significant production increases and record throughput levels that reflect successful implementation of productivity enhancement initiatives and technological upgrades.
• Financial positions across the sector strengthened substantially during the quarter, with companies securing enhanced capital access through debt facilities and private placements while maintaining strong cash balances and debt-free operations.
• Exploration activities intensified significantly as companies accelerated drilling programs, completed geophysical surveys, and made strategic executive appointments to support resource expansion and identify new high-grade mineralization targets.
• Production guidance remains on track across the sector for 2025, positioning companies favorably to capitalize on the current advantageous silver price environment through maximized production and improved metallurgical recoveries.
• The sector exhibits compelling investment characteristics through geographic and operational diversification, experienced management teams, and demonstrated ability to achieve production growth while maintaining financial discipline and capital allocation efficiency.

The silver mining sector has delivered compelling evidence of operational strength and strategic positioning in the second quarter of 2025, with multiple companies reporting significant production increases, strengthened balance sheets, and accelerated exploration programs. Recent quarterly results from leading silver producers reveal a sector that has successfully navigated operational challenges while capitalizing on favorable market conditions to drive shareholder value.

Q2/25 Silver Production Growth Across Key Operators

A standout performance from Americas Gold and Silver Corporation, which achieved a remarkable 54% quarterly increase in silver production, reaching 689,000 ounces in Q2/25 compared to 446,000 ounces in the first quarter. This substantial improvement reflects the company's focused operational strategy and successful implementation of productivity enhancement initiatives.

Paul Andre Huet, Chairman and CEO of Americas Gold and Silver, emphasized the significance of these results:

"I am extremely pleased with our very strong second quarter results which were a 54% improvement on the first quarter of this year. After spending significant effort underground at Galena conducting numerous time studies, engineering work, productivity-focused projects and implementing both new equipment and adjusting the mining method, our operation in Idaho delivered a 34% quarter-over-quarter increase – a tremendous result by the team."

The company's success extended beyond its Idaho operations, with the Cosalá Operations in Mexico delivering 103% improvement on the first quarter as the operation progresses on schedule towards the transition into EC120 project later this year.

Avino Silver & Gold Mines continued its track record of consistent performance, producing 645,602 silver equivalent ounces in Q2 2025, representing a 5% increase from the same period in 2024. The company achieved record mill throughput of 190,987 tonnes, a 36% increase over Q2 2024, demonstrating the effectiveness of operational improvements and equipment upgrades.

David Wolfin, President and CEO of Avino, highlighted the operational achievements:

"We are very pleased to report another quarter of strong production at Avino. The second quarter of 2025 saw increased mill availability, which is a direct result of the operational excellence demonstrated by our team during the quarter, as well as the benefits being realized from the upgrades to our mill facilities and spare parts processes that were made in previous periods."

The company's financial position remains robust, with approximately $37 million in cash at June 30th while maintaining a debt-free status excluding operating equipment leases. This strong balance sheet provides significant flexibility for continued investment in growth initiatives.

Santacruz Silver Mining demonstrated the sector's ability to maintain stable production levels despite operational challenges, producing 3.5 million silver equivalent ounces in Q2 2025. The company's diversified asset base across Bolivia and Mexico provided operational resilience when temporary flooding at the Bolivar mine affected certain high-grade stopes.

Arturo Préstamo, Executive Chairman and CEO of Santacruz, explained the company's strategic approach:

"Santacruz maintained robust and stable production levels during the second quarter of 2025, and, notably, San Lucas reaffirmed its strategic importance within the Company this quarter, successfully compensating for the slower production from the Bolivar mine."

Strategic Exploration & Resource Development

Moreover, more silver companies continues development and commitment to future growth is evident in accelerated exploration programs and strategic acquisitions.

Outcrop Silver strengthened its executive team with the appointment of Amandip Singh as Vice President - Corporate Development, bringing over 15 years of experience in exploration, capital markets, and strategic transactions to support the company's growth trajectory. Ongoing driling program has intersected 2.11 metres grading 445 g/t Ag and 2.14 g/t Au (606 g/t AgEq) and 1.88 metres grading 507 g/t Ag at Santa Ana's Los Mangos vein in Colombia.

Ian Harris, President & CEO of Outcrop Silver, outlined the strategic rationale:

"After more than a year of relentless drilling success, we have built the groundwork to deliver significant value through resource expansion and project development at Santa Ana. We've not only built a value growth story on one of the highest-grade primary silver projects in the world, but a platform to think bigger."

Vizsla Silver completed geophysical surveys covering the Copala and Napoleon Vein corridors at its flagship Panuco silver-gold district, identifying new near-surface anomalies that enhance the potential for additional high-grade discoveries. The company has established ambitious exploration objectives for 2025, including completion of over 25,000 metres of exploration drilling.

Michael Konnert, CEO of Vizsla Silver, emphasized the exploration potential:

"Since our initial discovery at Napoleon we have completed over 390,000 metres of diamond drilling, made several new discoveries and outlined a robust, high-grade resource base which serves as the foundation for Panuco Project 1, located in the southwest corner of the district. We are now determined to identify the next epicenter of high-grade mineralization with the potential to host similar resources to that outlined in Project 1."

Enhanced Capital Access & Financial Flexibility

The sector has demonstrated improved access to capital markets and strengthened financial positions.

Cerro de Pasco announced a strong FY2025 financial and operational results with a $24.6M net income following strategic asset sale while advancing technical, environmental, and further permitting activities at Quiulacocha Tailings Project in Peru. For the rest of the year, the company will focus on delivering its Preliminary Feasibility Study (PFS) and unlocking near-term development milestones.

Guy Goulet, CEO of Cerro de Pasco explained the company's strategy and outlook for 2025,

"The past year marks a turning point for Cerro de Pasco Resources. With the sale of the Santander mine, we have removed significant liabilities from our balance sheet and sharpened our strategic focus on advancing our world-class Quiulacocha Tailings Project. The Company is now well-capitalized and strongly positioned to execute on the next phase of development.”

Americas Gold and Silver significantly bolstered its cash position to $61.7 million as of June 30, 2025, an increase of $52.9 million from the previous quarter. This improvement resulted from receiving the first $50 million tranche of a $100 million senior secured debt facility and $11.5 million from a private placement.

This enhanced financial flexibility enables continued investment in operational improvements and growth initiatives. Huet noted: "The strong second quarter production and our significantly bolstered balance sheet have set us up with the resources we need to continue executing on the initial phases of our operational strategy focused on unlocking the massive potential of our asset base for our shareholders."

More companies across the sector have reaffirmed their production guidance for 2025, positioning themselves to capitalize on the current favorable silver price environment. As Avino's production in the first half of 2025 totaled 1.3 Moz silver equivalent, the company is well positioned within its original guidance range of 2.5-2.8 million silver equivalent ounces for the full year.

Furthermore, Santacruz Silver highlighted the importance of the current market conditions:

"Looking at the second half of the year, we remain focused on maximizing silver production and metallurgical recoveries across all our operations, an approach that is especially important in today's favorable silver price environment." - Santacruz Silver's Executive Chairman and CEO Arturo Préstamo

The sector's commitment to operational excellence is evident in continued investments in technology and process improvements. Companies have demonstrated their ability to enhance productivity through equipment upgrades, automation enhancements, and optimization of mining methods. These improvements have resulted in increased mill throughput, improved recovery rates, and enhanced operational efficiency across multiple operations.

The Investment Thesis for Silver

• Strong Production Growth: Multiple companies demonstrating significant quarter-over-quarter production increases achieving general growth in Q2 2025
• Operational Excellence: Record mill throughput and improved recovery rates indicate successful implementation of efficiency improvements and technological upgrades
• Financial Strength: Enhanced cash positions and access to capital provide flexibility for continued investment in growth initiatives and operational improvements
• Exploration Upside: Accelerated exploration programs and strategic acquisitions creating potential for significant resource expansion and new discoveries
• Market Positioning: Companies maintaining production guidance in favorable silver price environment, indicating confidence in operational capabilities and market outlook
• Diversified Asset Base: Geographic and operational diversification providing resilience against localized challenges while maintaining production consistency
• Management Excellence: Experienced leadership teams with proven track records of operational improvements and strategic execution
• Capital Efficiency: Demonstrated ability to achieve production growth while maintaining financial discipline and optimizing capital allocation

The silver mining sector's Q2 2025 performance demonstrates a compelling combination of operational excellence, financial strength, and strategic positioning that creates attractive investment opportunities. Companies have successfully navigated operational challenges while achieving significant production growth, strengthening their balance sheets, and accelerating exploration programs.

The sector's ability to maintain production guidance in a favorable price environment, combined with enhanced financial flexibility and continued investment in operational improvements, positions silver mining companies for sustained value creation. Investors should consider the sector's demonstrated resilience, growth potential, and strategic positioning as key factors supporting investment in silver mining equities.