Santacruz Silver Mining (SCZ) Q2 2026 earnings summary

Executive summary

• Q2 and H1 2026 saw strong operating performance, with consolidated silver production up 17% quarter-over-quarter and 11% year-over-year, and broad-based operational improvements across all assets.

• Revenues reached $113.5 million in Q2 2026, up 55% year-over-year, with gross profit up 102% and Adjusted EBITDA up 74% year-over-year.

• Net income was $2 million, down 90% year-over-year and from $28 million in Q1, mainly due to non-cash and one-time items including non-recurring tax events and a non-cash CVR revaluation.

• Road blockades in Bolivia disrupted concentrate exports for 53 days, increasing inventories but not affecting production; most inventory has since been monetized.

Financial highlights

• Gross profit for Q2 2026 was $51.1 million, a 102% increase year-over-year.

• Adjusted EBITDA was $46.7 million, up 74% year-over-year.

• Cash and highly-liquid marketable securities totaled $72.8 million at quarter-end, with treasury now exceeding $100 million after inventory normalization.

• Working capital stood at $86.1 million, a 43% increase year-over-year.

• Net income excluding the non-cash CVR adjustment would have been $17.8 million.

Outlook and guidance

• Bolivar mine expected to fully recover by Q4 2026, with new high-grade areas incorporated into 2027 plans.

• Soracaya permits expected in Q3, with initial production (300 tpd) by end of Q4 and full production targeted by end of next year.

• Expectation to realize deferred concentrate sales in H2 2026 as export logistics normalize.

• Focus remains on sustaining all-in costs near $21/oz and delivering a strong Q3.

• Continued focus on optimizing operations and increasing production across the portfolio.