Kuya Silver

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Stein, president, CEO and director of, Cunha Silver, David. You reset the clock to 20 minutes. Oh no. OK. And You ready? OK, thanks everyone. all right, so Cuya Silver, we're a, silver producer, just, starting up our mind, so it's a very exciting phase. We're really at the inflection point where we go from being, you know, kind of a, a junior to, you know, a significant producer of silver and more importantly, significant producer of cash flow. So I'm going to, I'm, my background way, way back as a geologist, but I'm gonna do this whole presentation without mentioning a rock or a mineral. And we're going to instead focus on silver and cash flow. And how we're going to grow this company, you know, into a very, very large, meaningful silver producer over the next few years. So to start off, we've got 3 silver focused projects. However, the vast majority of our value of our focus of management is on Peru. That's where our mine is. But you know we do have a couple other projects. Canada is an exploration project. We have a whole district in a past producing silver camp and then in Saudi Arabia we have a JV, fully funded by our Saudi partner there, so no cash outlay for us, but a lot of upside if it, if it works out. So the CI advantage is first of all is that we're one, we have one of the richest, silver deposits in terms of that's in production, and we're getting 90% of the revenue of our revenue from silver so that alone makes us very unique, you know, most silver companies out there, you know, are looking at more like 50-60% silver if you're lucky, so we have, we give you investors if they like silver and they like cash flow, we're, we're a great name to own there. in my opinion, in my experience, the biggest risk you have in mining is time, the time value of money, and so, but the fact that we're already producing, we have all our permits, it, and we're in a mining friendly jurisdiction, that already makes us very low risk. we also have, more than $25 million on the balance sheet today, so we're fully financed for our entire growth, trajectory, which I'll show you in a second. We've got a multi-year growth plan. So as we ramp up today, or this year, we've got more growth in 27, more growth potentially in 28 through 30, and I'll show you, so it's not just a one-off story. This is something that, you know, can really grow over the next five years, and the valuation upside, let me mention that before we go on. You know, most of our peers, our larger cash flowing peers are trading at between 10 and 20 times EBITDA, and, When I talk about the production and the cash flow that we have in a, in a couple of slides, just keep that in mind because you'll see that the upside for us is, you know, 5 to 10x in the short term and, you know, much higher in the long term. All right, before, before I get into the, the, the, the, the growth plan, the Bethania mine, is a rich silver mine on its own. So what I did is I put together a slide where I strip away all the gold, silver, or sorry, gold, copper, lead, zinc from all the other. mines, everyone reports a silver equivalent, but this is just silver. So if you compare us just silver against our our silver mining peers, you can see we have, we have, you know, quite a higher grade by, by quite a margin there. a lot going on with the company right now. A lot of very exciting catalysts. In the first quarter we announced the acquisition of the plant that we've been using, so we've been, we've been tool milling or renting a plant to use as we ramp up the mine. We're gonna buy it. We should close that very soon in the next few weeks. We also announced an expanded drilling program, much, much more aggressive than we previously were, were planning to do, but we have the cash to do it, so why not? it's a good silver market. We've got tons and tons of vein targets on our property, so we're gonna start to drill, drill baby drill, right now actually, and then for the second half of the year, 20,000 m. so looking now into Q2, closing the, the acquisition, that's, that's a, an, an important next step for us. We're gonna have Q1 operational updates to how much we produced. Silver tonnage processing, all that, all that good stuff we'll report that in the next few days. We'll have a, we'll, we'll put it up get updated guidance, our year-end audit audited report, Q1 financials will be in May. I think that will maybe surprise some people because they'll see that, you know, the mine is, is already, you know, looking pretty strong financially even in Q1 with limited production. And we're, we'll have first drill results from the, from the, from the mine later in the quarter, from underground drilling and then a Silver Kings project update. That's our Canadian project. Here's where we're located in central Peru. There's a big lead zinc belt here, just, east of Lima up in the mountains. the city of Guancayo, you can see there, that's a, a city of half a million people, about 3 hour drive from our mine. You can see where the Camilla plant is. That's the one we're buying. It's about 150 kilometers away by truck. so we truck our ore there, we process it there, and then we drive the concentrate to Lima where we sell it at the port. It's the most important slide in the deck right here. If, if there's one thing you remember, it's the 10,000 plan. So this is our plan to grow our resources and our free cash flow over the next several years. 100 million ounces of silver resources. This is a target, OK, so we don't have it yet, and $100 million a year of free cash flow, and right now we're targeting by 2028. That's really silver price dependent, but based on silver at $75 that is completely achievable. So phase one is what we're working on right now in 2026, where we've got the Camilla plant, we've got the, the, the ramp up to 350 tons per day. 350 tons per day at our expected grade should produce about 1.5 million ounces of silver a year. so we'd have that throughout 2027. And, although our, our PEA is now very out of date, it's we did, we completed it 4 years ago, I would say given inflation and other things, you know, we would expect our cash are all in sustaining costs to be probably $20 to $25 an ounce. So let's say $25 if we're selling our silver at $75 we've got 50, 50 ounces per, 50 ounces of margin on that. $50 per ounce of margin on that, so that would be $75 million a year of potential EBIDA, if we produce 1.5 million ounces a year. 2027, we're going to double production again. How? We're going to build the Bethania plant. So that's the plant we, we intended to build years ago, but, you know, the markets were very tough in 2022, 203, 2004, so we were, we never built it and now we have the cash, we will have the cash flow to build it. So we'll build it next year and that will double our production to 700 tons per day, double our silver production to about 3 million ounces a year by beginning of 2028. so that would give us about 100 million EBITDA, 150 million EBITDA, sorry. So after tax, you're, you're over 100 million, after tax, in, in Peru there. So that's the plan. The other side of the 10,000 plan is obviously the exploration. We have to do a lot of drilling starting this year to achieve 100 million ounces, but we are up for it. Fortunately, we found many, many silver vein systems on our property, and the mine itself has a lot of upside as well. So let's kind of skip to that. So here's our entire property. the mine is, is located there by the green square. the green squares actually where we're permitted to build the mill. The, the, the, the Bethania plants already permitted. So the Bethania mine is the first vein system we found because it was already a mine when we, when we bought it. But then, over the last few years when times were tough, what we did is. Low cost, you know, acquiring properties around us, staking properties, and then going in the field and looking for vein systems that we, that our geologists can find at surface. And we found 6 of them so far. You can see the, the yellow stars on that map. And as we zoom in on those yellow stars, you can see the veins we've outlined, all the samples we've taken, hundreds of samples across the property. Now, the furthest one away from the mine is only 4 kilometers, so these are all relatively close together, all trucking distance. In the future, to the, to where the mill's gonna be, and, this is, you know, this is where we're gonna drill for the next 5, 10 years starting right now, so we'll do a lot of drilling at the Bethania mine as well as we'll start in the second half of this year drilling some of these regional, zones as well, these regional vein systems, like Carmelitas, Maine, maybe Miacocha, Tito, we'll probably pick one or two this year and then we'll do, you know, more in the, in the following years. our current resource 14 million, so that's what we have to turn into 100 million over the next few years through, through, aggressive exploration. We have a very simple vertical silver vein system here, multiple veins all in a kind of close area on the, on the mine property. that's what we inherited. We've done a bit of exploration on this since, but it's been very limited. and, and, and very little in the last few years. So, so that's a big change for us. Having the cash now to really explore is a big game changer in terms of evaluation for us or value for us. Now looking at the long section on the mine, we've got the entire resources in that red triangle there. and then right now we're drilling the first kind of I call them slabs, 50 m slabs below, so we drill a fence of holes below the resource that will add resource below as we go vertical, vertically deeper, and it will also convert some of our inferred into indicated above. That helps us with the mining plan and it also gives us more resources and it's very easy, low risk drilling. Along here as we get closer to me, you go, you go to the east and we have a continuation of the vein system. We really don't know much of what's going on beyond about 500 m of strike length here, because again, we haven't drilled, but we know on surface there's another vein cluster, about 500 m away, so very likely it all connects up together and that will be part of the drill drilling program as well. So looking top down you can see the mine area is where we're mining. So that's our, our entire mine, our entire resource is all in that small area. It's about 500 m across, 350 m north to south, and then we've got that entire zone which actually looks bigger when you look at the veins from, from top down. It looks like an even bigger zone, the hilltop zone, that we haven't, haven't explored yet. So that's, that's coming as well. So, so that's the Bethania M area, which, which alone we think is, you know, tens of millions more ounces. And then each of our other vein systems, there's two on this map, could be, you know, just as big or even if they're half the size, it's all gonna help us to get to that 100 million plus target. Mia Coach is a really exciting one because we've got really high grades there. It's, it's, it's down here. A very dense vein system, which I like to see. and then the other four are, there's 3 on that map, there's 1 on that map. Those are about 3 kilometers west. That one's 1.5 kilometers to the south. So again, everything close together, And you know this is, this is relatively easy exploration. The veins come to surface. You just drill them at depth to see the, the thickness, the grade, start to put together a volume, and you know we should be able to get resources on here fairly quickly, probably by early 2027. All right, I won't talk very much about the Silver Kings project just to say that we have a, you know, this big land package in a historical silver district. There was a big rush, kind of like the California Gold Rush, but for silver in, in our area about 120 years ago in the early 1900s. lots of mining happened in the early part of the 20th century and then basically this, this area has gone kind of dead from an exploration point of view until, until now. We were very successful making a new discovery a few years ago. We, we didn't see much, you know, kind of credit for it in our share price as, as we continued to, to flush it out, so we stopped drilling. What we're doing right now is, we're doing a. we stopped drilling for now. We, we're drilling, we're, we did a metallurgical sampling program, so we're gonna see if we can process and recover silver and cobalt from some of the dumps that, that are outside of the mine, and outside of all the mines that we have on our properties as well as the tailings, and, you know, basically see if we can do, get some silver production without doing any mining. that would be very exciting and be a very interesting kind of side project for us. Keep in mind there's zero value in the stock for, for this, so anything we can do with it, is gonna be upside. And then Saudi Arabia again we're we're drilling with our partners' money, very successful so far. We've got a back in right up until April of next year. So what happens is we can reimburse 40% of the exploration costs and that would move us to from 5 to 45%. we'll see how things go. We're just about to start the next drill program right now, and we're mobilizing that in Saudi Arabia right now. So, if the results are good, obviously again, that's, it's upside for us and not really no downside. So to just to wrap up, this is our cap structure, got 190 million shares out, as I said before, 25 million. USD in cash, some recent research coverage, which is exciting. We're finally kind of hitting the, you know, hitting the market there after many years of being ignored and, we've got, building a good shareholder base, but I know, I know there's many more to come. And that's it. So I think I've got about 3 minutes for questions. Great, thanks, David. any questions coming from the audience? There's a question right here. You're CSE listed, is there any plan to move forward? Yeah, so, CSE has been great for us. I'm really a proponent of that exchange. with that being said, we're, you know, we're now 160 million Canadian market cap, sort of pushing 200. We're definitely looking at the TSX main board as the next step for us, and so we're, that, that's where we would go, as a next step. And then I think eventually when our stock gets a little higher in share price, we'd be, we'd like to list in the US as well, but with. Pardon, time frame. We won't, we won't be doing the TSXV. We would go to the main board on the TSX, late this year, maybe early next year, yeah. Yeah, there's a question up here, please. Now the Camilla plant you're gonna close it coming up the next month or two and right now you are a part of the production at the Camilla plant, you know, let's assume you're 25% there's room for expansion. When do you think you're going to, fully fill that plant and I obviously we have expansion plans in Bethania, but. It kind of seems interesting if you can kind of comment about, you know, processing that facility on other people's products. Is it cash flow or is it intelligence or both, right? Yeah, so I, I think what you're getting to is, is that while we're ramping up Bethania, we can continue to do some toll milling at the Camilla plant and we are likely gonna do that. So, you know, once we close the acquisition, which, you know, we're, we're, we're pushing to do that like in the next few weeks here, we will get kind of, we'll, we'll get, we'll get the, the contracts of who the other, users are. And we can obviously talk to them and and see what they wanna do now. I like, I really like this as a now we won't be able to process toll mill forever because we're gonna need that entire capacity probably in the second half of this year, but we'll have a few months, maybe, maybe, maybe two quarters where we can process other mines in the area. The cash flow will be very modest, very minor, but it does give us a kind of an interesting corporate development opportunity because we'll see the grades and the and the mineralogy of what some of these other mines are producing in the area. And if there's something that's silver rich, especially that's gonna, you know, we're gonna wanna talk to them and potentially, you know, do a deal, right? Great, yeah, one more question here. Could you share some more light on your project in Saudi Arabia? it's the first time I heard about Saudi Arabia and silver. Is there any other mines in Saudi Arabia being developed? And can you maybe share some information why the partner has chosen you as the drilling partner? OK, I don't know if I can answer that in 30 seconds, but, the partner chose us because we've been actively engaged in the region more from an investment point of view. We were. We have, we have shareholders in the UAE and Saudi Arabia, so we've been going there for 4 or 5 years and so it was through that network we were kind of invited to participate in this project with the Saudi partner who does not, is not a mining company, they're a conglomerate that made, you know, oil, oil services, real estate, etc. etc. the usual kind of things, so mining is very new for them. we're very, you know, great opportunity to help them out and, and something that's good for Kuya as well. Saudi is mostly known for gold mines. They have quite a few gold mines, mostly operated by their state-owned company called Madden. some very, very big impressive discoveries that have been made in the last 20 years there. but in terms of the foreign direct investment, it's very new. There's not much to show for it yet just because it's too, it's, it's too early, right? The, the, these projects only started being explored maybe 3 years ago, and there's definitely silver potential, copper potential, gold potential, maybe other metals as well. Great, thanks, David, for a very good presentation.