Santacruz Silver – Strong Q2 2026 Financials & Operations and Ongoing Growth Initiatives This Year

The KE Report Aug 25, 2026

Summary

Santacruz Silver posted strong Q2 results — revenue up 55% YoY — but a $36M Bolivian tax hit and $16M non-cash CVR adjustment masked profitability.

The CVR pays Glencore only when monthly LME zinc exceeds $3,850/t; at current prices Santacruz nets $7-8M for every $1M paid.

Bolivar mine is dewatering toward full production in Q4 2026, while the Soracaya permit should clear in September with first silver by year-end.

First NI 43-101 compliant resource estimate at Zimapan is due next month; maiden drilling at the underexplored Monte Mine is underway.

Management frames Santacruz as undervalued versus mid-tier silver peers, with cash north of $120M and a TSX uplisting due in September.

CEO reports Q2 2026 was a strong quarter with revenue up 55% year-over-year, gross profit up 102%, adjusted EBITDA up 74%, cash and marketable securities up 82%, and working capital up 43%.
All-in sustaining cost per silver ounce sold fell from almost $29 in Q1 to just under $22 in Q2, with the host attributing the margin lift to higher metal prices and improved production metrics.
CEO expects Q3 to look 'very strong' partly because roughly $24-25M of concentrate (about 3,000 tons) was trapped by 53 days of Bolivian road blockages and is now shipping out — about 95% has already left the patios.
Near-term catalysts flagged on the call: TSX uplisting in September 2026, a maiden NI 43-101 resource estimate for Zimapan, and updated resource estimates for the Bolivian mines originally acquired from Glencore.
CEO describes the company as debt-free with treasury 'north of $120M' and frames Soracaya (target 3M oz silver equivalent, 350 tons/day, permits expected early September 2026) as the next organic growth project.

Top takeaway Co-host Cory Fleck frames Q2 2026 around the year-over-year jump in the top-line metrics (revenue +55%, gross profit +102%, adjusted EBITDA +74%, cash +82%) and highlights the AISC improvement from ~$29 to ~$22 per silver ounce as the cost-discipline story.
Fleck argues the trapped Bolivian concentrate 'didn't disappear, just shifted quarters,' reinforcing the Q3 setup, and frames Zimapan's growth path as a 'triple-pronged approach' combining Caraxal drilling, first-time drilling at the Monte Mine, and a maiden resource estimate.

Top takeaway CEO frames Q2 2026 as 'a very strong quarter operationally,' crediting optimization across all mines and the Bolivar dewatering (on track for full production by Q4 2026) as the main drivers.
Defends the headline net income of ~$2.7M by separating out non-cash items: a $16M fair-value mark on the Glencore CVRs (Monte Carlo run by Ernst & Young) and a $36M tax accrual tied to the Bolivian FX revaluation (BOB moved from 6.9 to 11.9 per USD) — both non-operational and not affecting operating cash flow.
Argues the underlying quarter was profitable and Q3 should look 'very strong' on the back of delayed concentrate shipments (~95% already cleared) plus $22M in Mexico final settlements and another ~$25M in Bolivian concentrate.
Promises a maiden NI 43-101 resource estimate at Zimapan plus updated resource estimates for the Bolivian mines, with plans for yearly updates going forward — and flags first drilling in ~15 years at the Monte Mine plus strong intercepts at Caraxal level 960.
On valuation, the CEO argues Santacruz is 'very undervalued' relative to peers on a per-ounce basis and points to the upcoming TSX uplisting, debt-free balance sheet, and the Soracaya build-out (target 3M oz silver equivalent) as catalysts for a re-rate.