Thanks for the great question. Currently, the life cycle of the Silver Mine in our model extends to 2035 based on the company’s latest exploration results. Extending the life cycle beyond this is certainly possible through new exploration programs in the longer term, but we have not yet included these in the production forecasts. Thus, for SoS, the forecasts do not have the same perpetual assumption due to the limited life cycle of the mine as for “normal” companies. In practice, that 50 USD/oz applies in the years 2029–2035. On the other hand, the sensitivity refers to the entire forecast period (2026–2035), so in that sense, such a large change would not directly result from that long-term change (note also the high discount rates and their impact in the long term), but it would still be significant. I also emphasize that this sensitivity is based on the euro-denominated prices of silver, with everything else remaining constant. Thus, it should only be regarded as indicative, as a change in only one parameter would not be very likely (e.g., the historically clearly negative correlation between the price of silver and the EUR/USD exchange rate) or their linear change. At the same time, it is also good to remember that forecasts and, through this, sensitivity analysis assume production to stabilize at over 1.3 million ounces per year in the longer term.
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