Santacruz Silver Mining Ltd. reported a 55% year-over-year revenue increase to $113.46 million in the second quarter of 2026, driven by higher silver and zinc production across its operations. Adjusted EBITDA rose 74% to $143.84 million on a trailing twelve-month basis, while gross profit margin expanded to 40.78%, nearly doubling from the prior year.
Net income declined to approximately $2 million from about $28 million in the first quarter of 2026, reflecting a $15.8 million non-cash fair-value loss on Glencore contingent value rights (CVRs) and a $36.1 million income tax expense tied to Bolivia’s exchange-rate regime and inflation adjustments. The company held $73 million in cash and marketable securities at quarter-end, with treasury balances exceeding $100 million after subsequent collections.
Production growth was broad-based, with consolidated silver output rising 17% quarter-over-quarter and zinc output increasing 7%. The Bolivar mine saw silver production jump by 84,000 ounces, supported by an 11% rise in milling and a 17% improvement in silver head grades from dewatered areas. Dewatering activities remain on schedule for full recovery by the fourth quarter of 2026, with two additional high-grade zones identified for next year’s budget.
All-in sustaining costs for silver fell 24% quarter-over-quarter to $21.87 per ounce, while realized mining margins expanded to just over $50 per ounce sold, compared with about $16 a year earlier. Inventory delays from Bolivian road blockades affected 7,800 tons of concentrate, valued at roughly $24 million, though management noted 97% of this inventory has been sold, with the remaining 3% expected to clear in the third quarter.
The company’s Glencore CVR liability stood at $35 million, reflecting a contractual cap of about $1.33 million per month payable only when LME zinc prices exceed $3,850 per ton. Zinc averaged approximately $3,400 per ton during the quarter. On the operational front, the Soracaya project secured permits in the third quarter, with initial production targeted for the end of the fourth quarter at roughly 300 tons per day, scaling to full capacity in 2027.
Santacruz’s stock initially slipped 1.13% to $8.75 following the report but later rebounded to close at $9.76, up 2.31% for the session. The shares have delivered a 162% return over the past year, with a 52-week range of $3.77 to $17.65.
