Santacruz Silver Mining Ltd. Common Shares (SCZM) Earnings
Santacruz Silver Mining Ltd. Common Shares is expected to report next earnings on November 13, 2026 (in NaN days), with a consensus EPS estimate of $0.22. SCZM has beaten EPS estimates in 1 of its last 2 reported quarters (average surprise -46.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 20, 2026 | $0.37 | $0.02 | -94.6% | $113M | -5.6% |
| May 19, 2026 | $0.30 | $0.31 | +1.6% | $128M | -2.1% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 20, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Overall Operating Performance - Q2 2026 was a strong quarter, with broad-based production improvements across all company assets, and solid progress in the first half of 2026 overall - Consolidated mining throughput increased 7% quarter over quarter, demonstrating widespread operational efficiency gains ### Bolívar Mine Performance - Bolívar led silver production growth, with an 84,000 ounce production increase quarter over quarter, supported by an 11% increase in tons milled and 17% higher silver head grades from new mining areas - The mine watering and main ramp rehabilitation program remains on schedule and on budget, with full production recovery targeted for Q4 2026 - Two additional high-grade silver zones left from previous operations have been identified and added to 2027 mining plans, positioning Bolívar to exceed prior production levels after full recovery ### Other Operating Mine Performance - Simapan (Mexico): Silver recoveries improved 10% quarter over quarter; zinc head grades and zinc recoveries both improved 9%, driving consolidated zinc production growth; capex investments in new flotation circuits have started delivering recovery benefits, and the mine has reached the planned Level 960 with new production stopes already online - Caballo Blanco: Silver production increased 6% quarter over quarter, with 5% higher silver head grades - Porco: Tons processed increased 15% quarter over quarter, with silver head grades up 21% - San Lucas: Tons processed increased 22% quarter over quarter, driving a 20% increase in silver production, marking meaningful progress in scaling the operation ### Financial Performance Core Highlights - Reported Q2 2026 revenue increased 55% year over year, gross profit nearly doubled, adjusted EBITDA increased 74%, and realized mining margin per silver ounce sold rose from ~$16.16 to over $50 - The company ended Q2 with $73 million in cash and highly liquid securities, and total cash balances have since grown beyond $100 million after collecting outstanding inventory and accounts receivable - Silver all-in sustaining costs declined 24% quarter over quarter to $21.87 per ounce, driven by higher silver output per ton processed and stronger byproduct credits from higher copper and lead production ### Q2 Export Disruption - 53 days of road blockades in Bolivia temporarily constrained concentrate exports in Q2, leading to a build-up of 7,800 tons of concentrate inventory (6,000 tons zinc, 1,700 tons lead) valued at ~$24 million - As of the call, 97% of this blocked inventory has been sold, with the remainder expected to sell in Q3 2026, and concentrate inventories have returned to normal levels ### Soracaya Organic Growth Project - Permitting remains on track for Q3 2026, with initial 300 tons per day production targeted for the end of Q4 2026 - Underground equipment has already arrived on site, and teams are being assembled for mine development; the project is expected to produce up to 3 million silver equivalent ounces annually once operational
Guidance
- Bolívar mine full production recovery remains on track for Q4 2026, maintained from prior guidance - Soracaya permitting and initial production guidance is maintained: permits expected in Q3 2026, 300 tons per day initial production by end of Q4 2026 - Management expects continued production and efficiency momentum across all operations through the balance of 2026, positioning the company for a strong start to 2027 with new high-grade production at Bolívar - The ILPA Joint Operation Agreement extension for Bolivia's Porco mine is in the final administrative legislative steps in Bolivia, with approval expected shortly and extension through July 2043 - Management confirmed disciplined, value-accretive M&A will continue to be pursued as part of long-term growth strategy
Segment performance
The transcript does not break out formal financial performance (absolute revenue or revenue contribution percentages) by individual product or mining segment. It only reports consolidated production metrics: Q2 2026 consolidated silver production increased 17% quarter over quarter, and zinc production increased 7% quarter over quarter. The company has multiple operating mines (Bolívar, San Lucas, Simapan, Porco, Caballo Blanco) and the Soracaya development project, but no disaggregated financial performance data is provided in the transcript.
Risks & headwinds
- Road blockades in Bolivia can temporarily disrupt concentrate exports and create inventory build-ups, though the company demonstrated prepared risk mitigation that prevented operational shutdowns during the 53-day Q2 2026 blockade - Bolivian exchange rate and inflation volatility can create one-time non-cash and non-operating impacts to reported net income, though the recent exchange rate regime reset creates a one-time taxable gain that will not repeat - The VAT refund process in Bolivia and Mexico remains administratively complex and slow, leading to a structural accumulated receivable balance of $74 million as of Q2 end, though collections are ongoing and management is working to accelerate the process - Future zinc price volatility impacts the fair value of the Glencore contingent value right (CDR) liability, requiring non-cash fair value adjustments to reported net income even when no cash payment is due - Nominal interest rates on Boliviano-denominated debt have risen alongside local monetary tightening, though the natural currency hedge and reduced dollar-value of the debt offset much of this impact
Analyst Q&A
Q: How would you characterize Santa Cruz's Q2 2026 and H1 2026 operating performance across its assets? /
A: Q2 was a strong quarter with broad-based solid progress across all operations, with 17% higher consolidated silver production and 7% higher zinc production quarter over quarter. Bolívar led growth, with its watering and rehabilitation program on schedule for full recovery in Q4 2026, and two new high-grade zones added to 2027 plans. All other mines also delivered improvements in throughput, grades, or recoveries, positioning the company to build momentum through the rest of 2026.
Q: Why was Q2 reported net income much lower than underlying operating performance would suggest, and what are the impacts of the non-operating items? /
A: The low net income is driven by two one-time non-operating items: a $15.8 million non-cash fair value loss on the Glencore CDR, and a one-time taxable foreign exchange gain from Bolivia's shift to a floating exchange rate. The CDR loss is only an accounting adjustment, no cash is paid unless zinc prices exceed $3,850/ton, and any CDR payments would coincide with much higher zinc revenue for the company. The exchange rate related tax is a one-time reset that will not repeat, and the new floating regime is viewed as a positive long-term development for the company.
Q: How much of the Q2 blocked concentrate inventory has been monetized, and what is the outlook for Q3 sales? /
A: Q2 blockades left 7,800 tons of concentrate inventory (valued at $24 million) that could not be exported. As of the call, 97% of this inventory has been sold, recovering ~$23 million, with the remaining small portion to sell in Q3. Inventories have normalized, and after collecting additional outstanding receivables from Mexican operations, total company cash balances now exceed $100 million.
Q: What is the status of the ILPA Joint Operation Agreement extension for Porco that expires in 2028? /
A: A renewal agreement has already been signed with the company's Bolivian partner, approved at all prior administrative steps, and is now in the final review stage before the Bolivian General Assembly. The extension will extend the agreement through July 2043, with an existing automatic renewal clause for after that date, and the process is just a routine administrative step that is expected to be completed shortly.
Q: What type of M&A assets is Santa Cruz targeting for future growth? /
A: Management only pursues value-accretive acquisitions that benefit all shareholders. The company is focused on assets where its operating team can add operational value, prefers assets with a reasonable mine life, and will maintain a disciplined approach to any deal.