Starcore Reports Q1 Results

Starcore International Mines Ltd. (SAM) reported unaudited first-quarter fiscal 2027 results for the three months ended July 31, 2026. The company posted revenue of CAD $10.498 million, an increase of 21.6% from CAD $8.636 million in the first quarter of fiscal 2026. Income from mining operations rose 17.8% to CAD $2.235 million, compared to CAD $1.897 million in the prior-year period. Net income reached CAD $3.052 million, or $0.03 per basic and diluted share, up from CAD $0.927 million, or $0.01 per share, in the same quarter last year.

EBITDA for the quarter was CAD $3.686 million, representing a margin of 35.1%, compared to 17.6% in the previous year. The company held CAD $8.0 million in cash and reported working capital of CAD $11.3 million. Production figures, previously released on August 17, showed output of 2,008 ounces of gold equivalent (AuEq), a decrease of 5.7% year-over-year.

New cost disclosures for the period included mine operating cash costs of US$3,180 per equivalent ounce and all-in sustaining costs (AISC) of US$3,940 per equivalent ounce. CEO Robert Eadie stated that production is expected to “continually improve over the next quarters.”

Starcore International Mines Ltd. (SAM) released financial details on August 17, supplementing previously announced production numbers. The company reported a net income that more than tripled year-over-year, with an EBITDA margin jumping to 35.1%. However, the quality of earnings was impacted by a significant change in administrative expenses. The current quarter benefited from an administrative recovery of CAD $415k, compared to an expense of CAD $1.502m in the prior-year quarter, representing a CAD $1.917m swing.

When normalizing administrative expenses to the prior-year level, EBITDA would be approximately CAD $1.8m, resulting in an EBITDA margin of about 17%, which is roughly flat year-over-year. The most notable negative development involves rising costs. All-in Sustaining Costs (AISC) increased 27.9% year-over-year to US$3,940/EqOz. Mine operating cash costs rose 27.2% to US$3,180/EqOz, and cash cost per tonne increased 31.6% to US$129.

Despite reporting a net income of CAD $3.1m, cash reserves declined from CAD $12.3m at the end of FY2026 to CAD $8.0m, a decrease of CAD $4.3m. The income from mining margin was 21.3%, slightly below the 22.0% recorded in Q1 FY2026, indicating that higher metal prices were largely offset by increased costs.

Starcore International Mines Ltd. is a Mexico-focused precious metals producer. Its principal producing asset is the San Martin gold mine in Queretaro, Mexico, while the La Tortilla silver project in Queretaro serves as a development asset. The company has also undertaken non-core actions, including the sale of the Ajax property in British Columbia and the spin-out of Côte d’Ivoire assets to EU Gold Mines Inc. Starcore trades on the TSX under the ticker SAM and is qualified for OTCQX under SHVLF.