Starcore Reports Q2 Results
Starcore's Costs Skyrocket to Unsustainable Levels, Erasing Profits and Raising Serious Questions About Operations.
On December 15, 2025, Starcore reported its second-quarter financial results for the period ending October 31, 2025. The company reported a net loss of $710,000, or ($0.01) per share, on revenues of $10.7 million. This marks a significant downturn from the previous quarter's net income.
Operationally, the San Martin mine produced 1,860 equivalent gold ounces at an alarmingly high All-in Sustaining Cost (AISC) of $3,537 per ounce. The Mine Operating Cash Cost was $2,625 per ounce. These cost increases were attributed to ongoing production issues which were detailed in a November 19, 2025 production update, citing clays causing a "preg-robbing" effect and carbon fines contamination.
CEO Robert Eadie stated, "We have been addressing the production issues over this past quarter... We expect that these changes will improve our recoveries and we will return to our previous robust mining and plant operations which will be reflected in the next quarter."
The Q2 results are materially negative and represent a significant operational failure. The AISC of $3,537 per ounce is unsustainable and indicates the company is losing a substantial amount of money on every ounce produced at current metal prices.
This performance is particularly concerning when viewed in the context of recent company statements. In the Q1 results (September 15, 2025), the CEO stated that "operational and recovery challenges" had been "resolved." The Q2 results and the preceding November production update demonstrate that not only were the issues not resolved, but they have materially worsened. - Production Decline: Equivalent gold production fell from 2,130 ounces in Q1 to 1,860 ounces in Q2. - Cost Escalation: AISC ballooned from an already high $3,081/oz in Q1 to a staggering $3,537/oz in Q2. - Profitability Collapse: The company swung from a net income of $927,000 in Q1 to a net loss of $710,000 in Q2.
This repeated pattern of management assuring investors that problems are fixed, only to report worsening results, severely damages credibility.
The sole mitigating factor is the company's cash position of $9.8 million. However, this is not due to operational success but rather a $5 million private placement closed in October 2025 at $0.25 per unit. While this financing was timely in shoring up the balance sheet, it was dilutive and does not solve the core operational crisis at the San Martin mine. The company is now in a race to fix its operations before it burns through this cash buffer.
Given the stock's significant run-up from $0.25 to $0.87 in the months preceding this news, these disastrous operational results create a high probability of a sharp price correction.
Starcore International Mines Ltd. is a junior precious metals producer whose sole source of revenue is its flagship San Martin gold and silver mine in Queretaro, Mexico. The company has recently acquired exploration assets in Ivory Coast (which it intends to spin out into a separate company, EU Gold Mining Inc.) and leased a past-producing silver project, the San Juan Nepomuceno (Tortilla) Project, also in Queretaro, Mexico. The company's financial health is entirely dependent on the operational performance of the San Martin mine.