Earnings
Santacruz Silver Reports First Quarter 2026 Financial Results
Silver price windfall delivers a 221% margin surge; Bolivar recovery and cost discipline set the stage for a cash‑rich 2026.
Executive Summary
- Santacruz Silver reported Q1 2026 financial results on May 15, 2026. Revenue of $127.5 M (+81% YoY), net income $28.5 M (+201% YoY) and adjusted EBITDA $42.6 M (+55% YoY).
- Average realized silver price hit $63.30/oz (+128% YoY) while all‑in sustaining cost (AISC) per silver ounce sold climbed to $31.60 (+76% YoY), yielding a realized mining margin of $31.70/oz (+221% YoY).
- Cash and highly‑liquid marketable securities surged to $64.9 M; working capital at $75.9 M.
- The company introduced new non‑GAAP metrics, splitting “mining operations” from “ore processing operations” and moving to co‑product costing (silver, zinc) instead of silver‑equivalent costing.
- Production updates: Bolivar mine recovery from the May 2025 water inflow remains on track for full recovery by Q4 2026; Zimapan (Mexico) is focusing on metallurgical recoveries; San Lucas continues as a strategic ore‑sourcing business.
- No new strategic investments or share issuances were announced.
Material Impact
- The Q1 2026 financials confirm that Santacruz has turned strong silver prices into extraordinary cash flow. The realized mining margin of $31.70/oz represents a step‑change improvement and demonstrates the leverage of its multi‑mine platform.
- However, the results appear to have been largely anticipated: production volumes were already known from the April 16 update (1.34 Moz silver, down 16% YoY), and the sharp 128% jump in realized silver price was implied by spot price action. The $28.5 M net income and $42.6 M EBITDA, while robust, did not deliver a massive positive surprise relative to the strong run‑up in the stock earlier in the year.
- Notably, the share price fell from $13.37 on May 14 to $12.02 on May 15, suggesting that some market participants may have expected even higher earnings or were disappointed by the lack of upward revisions to Bolivar’s recovery timeline. The data shows a “sell‑the‑news” reaction, but that is consistent with material positive information that had been partially priced in.
- Compared to prior guidance, the Q1 run‑rate for revenue and EBITDA exceeds the FY2025 annualized pace, reinforcing the view that 2026 will be a record year. No red flags emerged from the new cost reporting; AISC/oz of $31.60, while higher YoY, is fully covered by the $63.30 realized price.
- Overall, the release is materially positive because it provides concrete evidence of massive margin expansion and balance‑sheet strengthening, even if the short‑term market reaction was muted.
SCZ · Price
Company Overview
- Santacruz Silver Mining Ltd. is a multi‑metal producer with operations in Bolivia and Mexico. Its asset base includes the Bolivar, Porco, Caballo Blanco (Tres Amigos & Colquechaquita) and Zimapan mines, supported by the San Lucas ore‑sourcing and processing business that enhances mill efficiency.
- The flagship project is arguably the Bolivar mine in Bolivia. It was the highest‑margin asset before the May 2025 water inflow event. Full recovery of the high‑grade Pomabamba and Nané veins is expected by Q4 2026 and will be the primary driver of silver output recovery.
- A key growth asset is the Soracaya project (Bolivia), a high‑grade silver/zinc/lead deposit with a compliant resource of 4.14 Mt at 259.76 g/t Ag, 7.23% Pb, 1.23% Zn, where a preliminary mine plan and permitting are underway.
- The company has no single dominant mine; its strength is the diversified portfolio that allowed it to maintain >3.7 Moz AgEq per quarter even while Bolivar was impaired.
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Jun 29, 2026 · 17:31