Santacruz Silver Reports Second Quarter 2026 Financial Results

Santacruz Silver Mining Ltd. (SCZ) reported second-quarter 2026 revenue of $113.5 million, a 55% increase year-over-year but an 11% decline from the $127.5 million recorded in the first quarter. Gross profit reached $51.1 million, up 102% year-over-year and 19% quarter-over-quarter. Adjusted EBITDA came in at $46.7 million, representing a 74% year-over-year gain and a 10% quarter-over-quarter rise.

Reported net income was $2.0 million, down 90% year-over-year and 93% quarter-over-quarter. The decline was primarily driven by a $36.1 million income tax expense and a $15.8 million non-cash CVR fair value loss. Management highlighted an adjusted net income of $17.8 million when excluding the CVR loss.

Silver production totaled 1,573,100 ounces, up 17% from the first quarter. While the company’s data table indicates an 11% year-over-year increase, the CEO’s commentary in the release described the growth as 17% year-over-year.

Operations were not disrupted, but 53 days of Bolivian road blockades delayed concentrate exports, resulting in approximately $17 million of additional inventory on the balance sheet. Management stated that exports normalized in the third quarter of 2026 and that the Bolivar mine remains on track for a full production recovery by the fourth quarter of 2026.

Santacruz Silver Mining Ltd. (SCZ) released its quarterly earnings report, though much of the operating narrative had already been disclosed in its July 28, 2026 production release. The company reported real margin expansion, with realized silver mining margin per ounce sold reaching $50.30, a 222% year-over-year increase, while all-in sustaining costs (AISC) declined 24% quarter-over-quarter.

Despite these strong unit margins, the company did not report net income or strong cash flow for the quarter. This discrepancy was attributed to Bolivian tax effects, the CVR revaluation, and deferred concentrate sales.

The stock had already rallied from $8.36 on July 17, 2026 to $12.26 on August 14, 2026, a gain of approximately 47%, prior to this earnings release. This movement suggests the market had already priced in strong Q2 operating performance and the expected Q3 drawdown of deferred sales. The release did not raise guidance or change the Bolivar recovery timetable.

Santacruz Silver Mining Ltd. operates a diversified portfolio of silver, zinc, lead, and copper assets across Latin America. Its Bolivian holdings include the Bolivar, Porco, and Caballo Blanco groups, which encompass the Tres Amigos and Colquechaquita operations, as well as the Reserva mine, which supports the company’s San Lucas ore sourcing and trading business. In Mexico, the company operates the Zimapan mine, while the Soracaya exploration project in Bolivia represents its primary growth initiative.

The company completed a 4-for-1 share consolidation in December 2025 and began trading on Nasdaq under the ticker SCZM in January 2026. While Bolivar and Porco are reported on a 100% operational basis, Santacruz Silver Mining records only its 45% interest in the Illapa business, with COMIBOL holding the remaining 55%.