The Unico Silver Ltd (ASX: USL) share price is soaring today after the company released a big quarterly update.
At the time of writing, Unico Silver shares are up 4.78% to $1.095, as the market digests the latest results.
So, let's take a closer look at the announcement.
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What does Unico Silver do?
Unico Silver is a silver and gold explorer with projects in Argentina and Australia.
Its main focus is the Joaquin silver-gold project in Argentina, an advanced exploration asset with existing mineral resources. The company is working to expand those resources and advance the project towards development.
Drilling activity continues to ramp up
In its December 2025 quarterly update, Unico said it continued to increase drilling at the Joaquin project.
During the quarter, the company completed infill and extension drilling to better define the size and quality of the silver mineralisation. Early results pointed to wide zones of shallow mineralisation, which is seen as positive from a future mining perspective.
Unico also began additional technical work during the quarter, including metallurgical testing and geotechnical studies. These are key steps needed as the company works towards more detailed development studies.
A strong cash position
Just as importantly, Unico finished the quarter with a very strong cash balance, giving it plenty of funding to keep moving.
The company ended December with $66.7 million in cash, up from $28.9 million in the previous quarter. This followed a successful capital raising that brought in around $50 million before costs.
During the quarter, Unico spent $9.6 million on exploration and evaluation, reflecting the higher level of drilling and technical work underway.
With more than 6 quarters of funding available at current spending levels, the company appears well funded to continue drilling and advancing its projects without needing to raise more money in the near term.
Silver prices help set the backdrop
The broader market environment has also been supportive.
Silver prices have been strong recently, after hitting record highs this year before easing slightly. At the time of writing, silver is trading around US$93 per ounce, according to Trading Economics.
The rally has been driven by a mix of investor demand, expectations of lower interest rates, and silver's growing use in industrial applications such as solar panels and electronics.
What investors should keep in mind
Unico Silver is still an exploration company, which means it remains high risk. There are a number of things that can disappoint investors, such as drilling results, rising costs, or timelines being pushed back.
That said, today's update showed the company is well funded and making steady progress at a time when interest in silver is growing.
For investors who follow ASX small-cap resource stocks, Unico Silver is one to keep on the watchlist as drilling continues through 2026.
