Safi Silver (SF) Q1 2026 earnings summary

Executive summary

• Entered definitive agreement to sell Kombat Mine for $24M in cash, with additional royalty and production payments, shifting focus to exploration assets in Morocco and Namibia.

• Operations at Kombat Mine paused in January 2025 due to pump failures and flooding; mine placed on care and maintenance.

• Ongoing exploration at Silver Hill, Addana, and Kalahari Copperbelt projects, with new drilling and geophysical surveys underway.

Financial highlights

• Net loss from continuing operations was $1.42M for Q1 2025, compared to $1.21M in Q1 2024.

• Net loss from discontinued operations was $2.31M, up from $1.01M in the prior year.

• Working capital deficit increased to $9.89M at June 30, 2025, from $6.16M at March 31, 2025.

• Cash balance at June 30, 2025 was $1.33M.

• Revenue from Kombat Mine (discontinued) dropped to $0.48M from $10.03M year-over-year due to operational pause.

Outlook and guidance

• Completion of Kombat Mine sale expected to resolve liquidity issues and refocus on exploration assets.

• Planned drilling at Addana and further exploration at Kalahari Copperbelt and Silver Hill.

• Company expects to regain TSXV compliance post-transaction.