Solitario Zinc Corp. (XPL): Business Model Canvas [Dec-2025 Updated]

You're digging into Solitario Zinc Corp. (XPL) to see how this exploration-focused miner actually makes money, and honestly, their model is all about smart partnerships and high-grade assets, not current sales. As of late 2025, they sit on prime real estate like the Lik deposit with Teck Resources and Florida Canyon with Nexa Resources, which is key because Nexa is footing the bill to feasibility, significantly de-risking your capital exposure. With only about US$8.0 million in cash to fund their own exploration, like the work at Golden Crest, their value proposition hinges on delivering drill success and advancing these joint ventures toward production, which is where their future revenue streams-repayment of construction loans and cash flow splits-will finally kick in. Here's the quick math on how they manage costs while chasing that upside.

Solitario Zinc Corp. (XPL) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fund and advance Solitario Zinc Corp.'s projects, which is crucial for an explorer like this. These aren't just names on a cap table; they are partners providing capital, operational expertise, and de-risking the portfolio. Here's the breakdown of those critical alliances as of late 2025.

The most recent capital infusion came via a non-brokered private placement on June 20, 2025, which brought in a total of US$4.5 million by selling 7,142,855 shares at US$0.63 per share. This move pushed Solitario Zinc Corp.'s cash position to exceed US$9.0 million, directly funding ongoing exploration.

The key strategic investors involved in that financing, and their resulting stakes, are laid out below. This structure shows a reliance on established industry players for validation and funding.

• Newmont Corporation: An existing strategic investor, Newmont Overseas Exploration Ltd. invested US$1.0 million in the June 2025 placement, purchasing 1,587,300 shares. This increased their total holding to 8,453,967 shares, representing a 9.40% equity stake. They also have an amended Investor Rights Agreement, granting them specific rights related to the Gold Crest property.
• Wexford Capital Partners: This new institutional investor committed US$3.5 million in the same placement, acquiring 5,555,555 shares, which equates to approximately a 6.2% interest in Solitario Zinc Corp.

The operational partnerships on the major asset base are structured to leverage the partners' deep operational experience, especially since Solitario Zinc Corp. is carried through significant milestones.

The relationship with Nexa Resources at Florida Canyon is particularly important because it is a carried interest arrangement. Nexa has invested over $60 million to date, including 487 drill holes totaling over 117,000 meters of core. For Solitario Zinc Corp., Nexa funds 100% of all costs through the completion of a feasibility study. If Solitario Zinc Corp. elects for the loan facility for its 30% construction costs, Nexa funds that portion, which is then repaid through 50% of the mining operation's cash flow.

Beyond the major partners, Solitario Zinc Corp. relies on a network of technical service providers to execute its exploration plans. These contractors are essential for converting geological potential into quantifiable resources. For instance, the 2025 exploration plan included significant activity at the Golden Crest project in South Dakota.

• Drilling and Technical Contractors: These firms execute the on-the-ground work.
• The 2025 exploration plan called for up to 8,000 meters of drilling across the Golden Crest and Ponderosa areas.
• Phase 1 drilling was initiated around May 27, 2025, focusing on follow-up of 2024 mineralization and new targets within the approved Golden Crest Plan of Operations.
• Phase 2 drilling at Ponderosa was pending permit approvals as of September 2025.

Finance: draft 13-week cash view by Friday.

Solitario Zinc Corp. (XPL) - Canvas Business Model: Key Activities

You're looking at the core engine of Solitario Resources Corp., the day-to-day work that keeps the lights on and moves projects forward, especially when capital is tight. For Solitario Resources Corp., this means a heavy focus on technical advancement and partner management, since a lot of the heavy lifting is funded externally.

Mineral exploration and resource definition: Focus on high-grade zinc, gold, and critical metals projects.

The Key Activity here is directing exploration to define and expand known high-grade zones, primarily at the Golden Crest gold project, while maintaining the joint ventures. Solitario Resources Corp. budgeted approximately $3,910,000 for full-year exploration expenditure for 2025, with a significant portion directed toward the Golden Crest Project in South Dakota. Exploration expenses for the three months ended September 30, 2025, were reported as $1,645,000. The team is also looking at new opportunities, like the Cat Creek critical metals project, where core drilling is planned for mid-summer 2026. The company's historical success includes discovering over four million ounces of gold and four billion pounds of zinc.

• Golden Crest drilling planned up to 8,000 meters for 2025 in two phases.
• Six of eleven holes in the 2024 Golden Crest drilling intersected multi-gram gold grades.
• Cat Creek Project secured federal and Colorado state drilling permits in late 2025.

Project management and technical studies: Advance Lik and Florida Canyon towards feasibility.

This activity centers on managing the joint ventures where partners are funding the technical studies. At the Florida Canyon zinc project in Peru, the partner, Nexa Resources, is responsible for funding all future costs, including pre-feasibility and feasibility studies, to earn its increased interest. Solitario Resources Corp. holds a 39% interest, which is fully carried through feasibility. At the Lik zinc project in Alaska, the partner, Teck Resources Limited, shares a 50% interest with Solitario Resources Corp. To date, over $80 million has been expended by the partner at Florida Canyon, which includes 526 drill holes totaling 134,416 meters. The Lik project has seen an estimated $40 million in exploration expenditures to date.

Securing permits and community agreements: Essential for continued exploration in Peru and the US.

Maintaining social license to operate is a critical, ongoing task, especially in Peru. Nexa recently signed a community agreement at Florida Canyon that allows for continued exploration on the property through the end of 2025. This agreement also paves the way for the completion of an access road to local communities. For the Golden Crest project, the team is actively working on permitting for new drilling targets; five new high-priority targets were being permitted for 2025 drilling, following the 2024 program.

Investor relations and corporate presentations: Maintain market visibility and secure financing.

Keeping the market informed is key to maintaining the cash position and avoiding dilution. Solitario Resources Corp. reported a net loss of $1.87 million for the three months ended September 30, 2025, and a loss per share of $0.04 for the nine months ended September 30, 2025. Management and Directors hold approximately 8.7% (excluding options) of the Company's 81.6 million shares outstanding. The President and CEO, Chris Herald, was scheduled to present at the Mining Forum Europe on April 2, 2025, and at the HC Wainwright 27th Annual Investment Conference in 2025. The company's cash and short-term investments stood at $4,604,000 at the end of the period covered by the Q3 2025 filing, with working capital at $5,624,000 (as of year-end prior to Q3 2025 report). The 2025 budgeted exploration spend of $3,910,000 was planned to be funded by this cash.

• CEO presentation at Mining Forum Europe: April 2, 2025.
• Management/Director ownership: 8.7% of 81.6 million shares.
• Net Loss (9 months ended Sep 30, 2025): $3.32 million.

Finance: review the cash burn rate against the $3.91 million 2025 exploration budget by end of week.

Solitario Zinc Corp. (XPL) - Canvas Business Model: Key Resources

The Key Resources for Solitario Zinc Corp. (XPL) center on its ownership stakes in high-potential mineral properties and the financial backing to advance them.

Tier-1 mineral assets represent the core tangible value, diversified across gold and zinc in stable jurisdictions.

The Florida Canyon interest is unique because Solitario Zinc Corp. is carried to production through the joint venture arrangement with Nexa Resources.

The 100%-owned Golden Crest Gold property provides a significant exploration upside in a proven gold district.

• Strategic land position in South Dakota's Homestake-Wharf district.
• Homestake-Wharf district has produced approximately 52 million ounces of gold historically.
• Project covers approximately 51.6 square miles.
• Solitario Zinc Corp. completed 11 core holes totaling 4,345.7 meters in its 2024 drilling campaign.

Liquidity is maintained through cash and marketable securities, providing the necessary runway for ongoing exploration activities.

As of September 2025, Solitario Zinc Corp.'s cash balance and marketable securities stood at approximately US$8.0 million.

The company relies on its geological and technical expertise to identify and advance these high-potential deposits.

• Core team for identifying and advancing high-potential deposits.
• Qualified persons, including the COO and a geologic consultant, review technical data.

Solitario Zinc Corp. (XPL) - Canvas Business Model: Value Propositions

You're looking at the core benefits Solitario Resources Corp. offers through its project portfolio and partnership structure as of late 2025. It's about high-quality assets and smart risk management.

Exposure to high-grade, advanced-stage zinc projects in stable jurisdictions (Lik, Florida Canyon).

• Lik Project in Alaska: Joint venture with Teck Resources Limited.
• Lik Indicated Resource: 17.6 million tonnes at 8.07% zinc, 2.68% lead, and 50.1 grams per tonne silver (based on 2022 data).
• Florida Canyon Project in Peru: Joint venture with Nexa Resources S.A.
• Florida Canyon hosts a high-grade zinc deposit, with partner investments totaling approximately $75 million through 526 drill holes.

Reduced capital risk: Nexa Resources funds all costs at Florida Canyon to feasibility, carrying Solitario to production.

This arrangement is a major de-risking factor for Solitario Resources Corp. shareholders. Nexa Resources, the Operator, funds 100% of all costs through the completion of a feasibility study, at which point Nexa earns a 70% interest in the joint venture. Should Solitario Resources Corp. elect to participate in construction, Nexa will finance Solitario's 30% portion via a loan facility. This loan is repaid only through 50% of the resulting net cash flow distributions from production.

Upside potential in gold and silver: 1,445 grams/tonne silver intercept at Golden Crest and significant silver inventory at Lik.

The exploration results provide tangible upside. At the wholly-owned Golden Crest gold project in South Dakota, drill hole GC-012 returned a standout intercept of 1,445 grams per tonne of silver over 1.2 meters. This Phase 1 drilling campaign involved 18 holes totaling 7,000 meters. The Lik zinc deposit carries a substantial silver component, with the Indicated Resource containing approximately 29.1 million ounces of silver, plus another 6.5 million ounces in the Inferred Resource category.

The commodity exposure is diversified across these key assets:

Diversified commodity exposure: Zinc, lead, gold, silver, and new focus on critical metals like molybdenum-rhenium.

Solitario Resources Corp. isn't just about zinc. You get exposure to gold via the 100%-owned Golden Crest project. Furthermore, the company is adding a critical metals angle with the Cat Creek project in Colorado, where surface sampling showed rhenium grades up to 30 gpt. As of late October 2025, the stock price was $0.68, with an analyst consensus of 'Strong Buy' and a 12-month price target of $1.2.

Solitario Zinc Corp. (XPL) - Canvas Business Model: Customer Relationships

You're looking at how Solitario Zinc Corp. manages its key relationships, which for an exploration company, means keeping investors informed and partners engaged while maintaining local support. This is critical because, without capital and land access, the projects don't move forward.

Dedicated Investor Relations

Direct communication is a major focus, especially around project milestones. Solitario Zinc Corp. actively uses news releases and conference presentations to update the market on exploration progress, like the 2025 drilling campaign at the Golden Crest gold project in South Dakota. The President and CEO, Chris Herald, was a consistent presence, presenting at key industry events throughout the year. For instance, Mr. Herald presented a strategic overview and drilling updates at the 37th Annual Mining Forum Americas Conference on September 16, 2025, and previously at the HC Wainwright 27th Annual Investment Conference on September 9, 2025.

The company's financial position, which underpins its ability to communicate and operate, was reported as approximately US$8.0 million in cash and marketable securities as of late 2025. Furthermore, shareholder structure shows that Newmont Corporation held 9.4% of the 90.3 million shares outstanding, while Management and Directors held approximately 8.4% (excluding options). The relationship framework was recently reinforced when shareholders approved an increase in authorized shares to 200 million at the Annual General Meeting on June 19, 2025, which saw participation from holders of 46,809,118 shares. This was shortly after completing a US$4.5 million private placement on June 20, 2025.

Solitario Zinc Corp. maintains an active schedule of direct engagement:

• CEO presentation at the John Tumazos Very Independent Research Conference on December 10, 2025.
• Availability of the September, 2025 Corporation Presentation online.
• Presentation at the Mining Forum Europe on April 2, 2025.

Joint Venture Management

Collaborative, long-term relationships with major miners are central to mitigating exploration risk, especially for the advanced zinc assets. Solitario Zinc Corp. maintains a 50% joint venture interest in the high-grade Lik zinc deposit in Alaska with Teck Resources, which holds the other 50%. Teck acted as the project manager for Lik from 2018 through 2023.

The Florida Canyon zinc project in Peru is held in a joint venture where Solitario Zinc Corp. has a 39% interest, with Nexa Resources holding the remaining 61%. A key feature of this relationship is that Solitario Zinc Corp. is carried to production through its arrangement with Nexa. Nexa can earn a 70% interest by funding all expenditures through to production following a positive feasibility study, after which Solitario Zinc Corp. would repay its financing through 50% of its net cash flow distributions from the project. To date, Nexa has spent over $80 million on the Florida Canyon project, which includes 526 drill holes totaling 134,416 meters of drilling.

Here's a quick look at the structure of these key partnerships:

Community Engagement

Maintaining social license to operate is managed through direct, multi-year agreements supporting local infrastructure. At the Florida Canyon project, a new multi-year community agreement was signed that supports continued exploration through the end of 2025. This agreement specifically paved the way for the completion of an access road to local communities and active project areas, aiming to improve community safety and provide new opportunities for commerce.

The relationship with local authorities and communities is ongoing; Nexa continues to work constructively with local communities on social issues as of 2025. This local support is vital for project advancement, as evidenced by the permitting success in 2023, which approved an expansion of the area permitted for drilling by approximately 500 percent, proposing over 80 new drill sites around the Florida Canyon deposit.

For the Golden Crest gold project in South Dakota, which is on U.S. Forest Service land, exploration is accessible via an existing network of access roads, and the local USFS office is noted as knowledgeable and supportive of modern exploration and mining processes.

Finance: draft 13-week cash view by Friday.

Solitario Zinc Corp. (XPL) - Canvas Business Model: Channels

You're looking at how Solitario Resources Corp. gets its information and capital out to the world, which is critical for an exploration-stage company. The channels here are all about visibility and partnership management, not direct product sales, so the focus is on the market and the joint venture committees.

The primary channel for capital access and market presence is the public stock exchange listing. Solitario Resources Corp. maintains a dual listing, which helps reach a broader investor base across North America. This is where you see the daily pulse of investor sentiment reflected in the trading data.

For disseminating operational news, the company relies heavily on direct communication channels. These are the official conduits for sharing exploration success, which directly impacts investor perception and capital raising ability. The CEO, Chris Herald, is the key messenger here.

• Direct press releases via services like ACCESS Newswire disseminate key operational milestones.
• The corporate website serves as the central repository for all technical reports and news.
• Investor conferences are used to present directly to institutional and retail investors globally.

You can see the activity in these channels clearly from the 2025 schedule. For instance, the CEO presented a strategic overview and the latest drilling results at the 37th Mining Forum Americas Conference on September 16, 2025, following up on earlier presentations at the HC Wainwright 27th Annual Investment Conference on September 4, 2025. This consistent outreach is how they manage market expectations.

The 2025 drilling campaign at the Golden Crest project in South Dakota is a key piece of news flow. The company planned up to 8,000 meters of drilling across the Golden Crest and Ponderosa areas for 2025, kicking off on May 27, 2025. This follows up on the 2024 program, which completed 11 core holes totaling 4,345.7 meters. The metallurgical testing on 2024 core samples showed encouraging gold recoveries, averaging approximately 69% for samples from hole GC-003 and 66% for samples from hole GC-008. A major highlight reported on September 15, 2025, was an intercept of 1,445 grams/tonne silver over 1.2 meters at Golden Crest.

The final, and perhaps most crucial, channel for project advancement is the Joint Venture operating committees. This is where the technical and financial steering of major assets happens with partners. Solitario Resources Corp. manages its key zinc assets through these formal governance structures.

For the Florida Canyon project, Nexa funds all future costs, including drilling and feasibility studies, to increase its stake from 61% to 70%. This structure means Solitario Resources Corp. achieves production without capital risk or equity dilution. The economics look compelling; the Florida Canyon Preliminary Economic Assessment (PEA) Resource Grade was 10% Zn Eq., which is double the grade of Nexa's operating Peruvian mines at 5.0% Zn Eq.. The company's ability to attract and maintain these partnerships is a core channel for advancing its assets to a potential production stage.

Investor sentiment, as reflected by analyst coverage, also acts as an indirect channel for market communication. As of mid-November 2025, the consensus rating based on 2 analysts was a Moderate Buy, with 2 Buy ratings and 0 Hold or Sell ratings. The average target price was 1.500 USD, representing a potential upside of +134.38% over the last close price of 0.6400 USD. Shareholders approved an increase in authorized shares to 200 million at the June 19, 2025, Annual General Meeting, which is a necessary step for future capital needs channeled through the stock exchanges.

Solitario Zinc Corp. (XPL) - Canvas Business Model: Customer Segments

You're looking at the key groups Solitario Zinc Corp. (XPL) serves or relies upon to execute its business plan, which centers on advancing high-grade zinc and gold exploration assets. This segment breakdown is critical for understanding where the company directs its partnership efforts and capital raising.

Institutional investors are a primary target for capital, seeking exposure to the leverage inherent in exploration-stage plays and the potential upside tied to zinc and gold commodity prices. As of late 2025, 25.21% of Solitario Resources Corp. stock was owned by institutional investors. A total of 54 institutional owners have filed 13D/G or 13F forms with the SEC, holding 23,306,929 shares. The company's Market Cap stood at $58.18 million as of December 5, 2025.

Retail investors provide speculative capital, drawn by the potential for high returns if exploration success translates into a significant discovery or a favorable transaction. The company's leadership maintains a stake, with CEO Christopher E. Herald beneficially owning 2,343,667 common shares following a purchase on November 21, 2025. At the Annual General Meeting on June 19, 2025, shareholders participated with 46,809,118 shares, approving an increase in authorized shares to 200 million. The stock price on December 4, 2025, was $0.63 / share.

Major mining companies like Teck Resources Limited and Nexa Resources S.A. are strategic partners, essential for de-risking and advancing the company's Tier-1 assets toward development, as Solitario Zinc Corp. often maintains a carried interest. This structure protects the company from immediate funding dilution for those specific projects.

The key joint venture relationships are detailed here:

Nexa Resources is noted as the world's fourth largest zinc producer, and Teck Resources as the world's third largest zinc miner. The Lik project is situated adjacent to Teck's Red Dog Mine, which is projected to be depleted in 2031.

The Zinc and gold commodity markets represent the ultimate buyers of future high-grade concentrates, driving the underlying value proposition of Solitario Zinc Corp.'s exploration portfolio. The company's focus is on producing high-grade zinc concentrate. Financially, the company reported a net loss of -$4.9 million for the twelve months ending September 30, 2025, and an Earnings Per Share (EPS) of -$0.02 for Q3 2025. As of February 18, 2025, the cash balance and marketable securities stood at approximately US$5.8 million.

The customer segments are further defined by the nature of the assets they are interested in:

• Institutional investors seek exposure to high-leverage exploration plays.
• Retail investors look for high-upside from exploration success.
• Major mining companies seek to acquire or develop Tier-1 assets.
• Commodity markets are the ultimate buyers of future high-grade concentrates.

Solitario Zinc Corp. (XPL) - Canvas Business Model: Cost Structure

The Cost Structure for Solitario Zinc Corp. centers on funding exploration activities, maintaining corporate presence, and managing joint venture obligations.

You should note the specific structure of the Florida Canyon joint venture commitment.

• Nexa holds 61% interest in Florida Canyon, earning up to 70%.
• Solitario's 30% construction cost portion is financed by Nexa via a loan facility.
• Repayment of the construction loan is through 50% of Solitario's net cash flow distributions from production.
• At the Lik Zinc Project, Solitario holds a 50% interest with Teck Resources Limited.

For the nine months ended September 30, 2025, Solitario Resources Corp. reported a net loss of $3.32 million.

Solitario Zinc Corp. (XPL) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of Solitario Zinc Corp. (XPL) as of late 2025. Since this is an exploration-stage company, the current, immediate revenue picture is what you'd expect: almost nothing directly from operations.

Minimal trailing twelve-month (TTM) revenue: Reported as $0 as an exploration-stage company. The financial data available for the trailing twelve months ending September 30, 2025, shows TTM revenue as null. Solitario Zinc Corp. focuses on exploration and development, not production revenue yet. The company's financial activity is dominated by exploration expenses, such as the reported $4,148,000 in exploration expenses for the year ended December 31, 2024, primarily at the Golden Crest project.

The real financial structure here is built around future production and strategic monetization of its assets through joint ventures. Here's the quick math on the key future streams:

Future project loan financing: The primary near-term financial mechanism is tied to the Florida Canyon Zinc Project in Peru, joint ventured with Nexa Resources. Nexa, which is the Operator, will fund all of Solitario Zinc Corp.'s 30% portion of the construction costs under a loan facility, assuming Solitario elects this option. To be fair, Nexa has already spent over $80 million on the project to date, including 526 drill holes.

Future net cash flow distributions: This loan is not a simple debt; it's repaid through production proceeds. Solitario Zinc Corp. will repay the construction loan facility through 50% of its net cash flow distributions generated from the Florida Canyon mining operation. This structure effectively carries Solitario's interest through feasibility and financing to production.

Potential asset sales or royalties: Solitario Zinc Corp. has a history of generating cash from non-operating activities, though this is not a consistent source. You should know that the company has recorded revenue in the past from the sale of mineral properties, assets, joint venture property payments, and the sale of royalties.

The strategy here is to monetize successful exploration projects to larger producers, which de-risks the portfolio for shareholders. For instance, on the Golden Crest project, the underlying owner retained a 2.0% Net Smelter Return royalty, and Solitario Zinc Corp. holds an option to reduce that to 1.0% by paying $1,000,000.

For operational funding in the interim, Solitario Zinc Corp. relies on its balance sheet strength, which as of late 2025, included approximately US$5.8 million in cash and marketable securities.

You can expect revenue streams to look like this:

• No revenue from production until Florida Canyon is built and operating.
• Cash flow from operations will be split 50% to Nexa for loan repayment.
• Potential one-off proceeds from selling royalties or non-core assets.
• Current funding relies on cash on hand, like the reported $4,604,000 in cash and short-term investments at the end of 2024.

Finance: draft 13-week cash view by Friday.