Santacruz Silver Posts 81% Revenue Growth and Tripled Net Income in Q1 2026

• Revenue of $127.5 million in Q1 2026, up 81% compared with Q1 2025.
• Net income of $28.5 million, a 201% increase year-over-year, with basic earnings per share of $0.31 versus $0.03 in Q1 2025.
• Adjusted EBITDA of $42.6 million, up 55% year-over-year.
• Cash and highly liquid marketable securities of $64.9 million at quarter-end, up 100% year-over-year, after paying $31.5 million in taxes during the quarter.
• Realised mining margin per silver ounce sold of $31.70, a 221% increase year-over-year.

Santacruz Silver Mining Ltd. (NASDAQ: SCZM / TSXV: SCZ) is a Canadian-based silver and zinc mining company with operations across Latin America, engaged in the operation, acquisition, exploration, and development of mineral properties. In Bolivia, the company runs the Bolivar, Porco, and Caballo Blanco mining complexes, and operates San Lucas, an ore sourcing and processing business that purchases ore from independent miners and processes it through the company's facilities. In Mexico, Santacruz operates the Zimapan mine, its highest-volume operation. The company also holds the Soracaya exploration project in Bolivia. Silver and zinc are its primary revenue-generating metals, with lead and copper produced as secondary by-products.

Q1 2026 Financial Results and Strong Performance Across Key Metrics

Santacruz reported revenue of $127.5 million for the first quarter of 2026, an 81% increase compared with Q1 2025 and a 24% increase from Q4 2025. Gross profit rose 54% year-over-year to $42.9 million, and Adjusted EBITDA, which measures operating earnings before interest, taxes, depreciation and amortisation, grew 55% to $42.6 million. The increase in revenue was driven primarily by the average realised silver price, which came in at $63.30 per ounce compared with $27.80 per ounce in Q1 2025, a 128% increase.

Net income for the quarter was $28.5 million, a 201% increase from $9.5 million in Q1 2025, with basic earnings per share rising to $0.31 from $0.03. The company paid $31.5 million in taxes during the quarter. Cash and highly liquid marketable securities, which includes US treasury notes and bills, totalled $64.9 million at the end of Q1 2026, up from $32.5 million a year earlier. Working capital stood at $75.9 million, a 47% increase year-over-year.

CEO Arturo Préstamo commented:

"Combined with our stable AISC this quarter, the stronger silver price environment drove robust margins of $31.70 per silver ounce sold, a 221% increase year-over-year. This reinforces the strength of our cash flow generation across our operations, reflecting both a stronger commodity environment and the operating discipline we have embedded across every asset. It is also important to highlight that after paying $31.5 million in taxes during this first quarter, we ended Q1 2026 with a healthy cash and highly liquid marketable securities position of $64.9 million, providing Santacruz with the financial flexibility to continue funding operational improvements while maintaining a strong treasury position."

The all-in sustaining cost (AISC) per silver ounce sold, which covers the full cost of production including sustaining capital expenditure, was $31.60 in Q1 2026.

Updated Non-GAAP Performance Measures and Enhanced Reporting Framework

Starting in Q1 2026, Santacruz revised its non-GAAP performance measures and updated how it presents production and cost data. A key change is the separation of mining operations from ore processing activities. Mining operations cover Bolivar, Porco, Caballo Blanco, and Zimapan, where ore is extracted from company-owned properties. The San Lucas segment purchases ore from third-party miners and processes it through the company's facilities, generating lower margins because the cost of purchased ore reflects prevailing metal prices. Presenting these two segments separately allows each to be assessed on its own cost and margin profile.

The company has also moved from reporting costs per silver equivalent ounce to a co-product methodology. Under the previous approach, all metal production was converted into a single silver-based figure using current metal prices. Under the co-product method, production costs are allocated proportionally between silver ounces sold and zinc tonnes sold, the two metals that each account for more than 30% of the company's revenues. Lead and copper, which together represent less than 10% of revenues, are treated as by-products, with their revenues credited against the net cost of silver production. The company will continue to publish silver equivalent and zinc equivalent production figures as supplemental context, and all changes have been applied retrospectively to prior periods.

CEO Arturo Préstamo commented:

"The new presentation better reflects Santacruz as a silver and zinc co-product producer, while separately highlighting San Lucas as a margin-based ore sourcing and processing business that supports plant utilisation, fixed-cost absorption and operating flexibility. We believe this enhanced reporting framework provides a more complete basis for investors to assess production, costs, margins and cash generation across the Company."

Operational Performance Update and Bolivar Mine Recovery Progress

Total silver production across mining and ore processing activities was 1.34 million ounces in Q1 2026, broadly unchanged from Q4 2025 and down 16% from Q1 2025. Silver production from mining operations alone reached approximately one million ounces, a 2% increase over Q4 2025. Zinc production from mining operations was 14,496 tonnes, down 10% quarter-over-quarter, with lower output at Zimapan and Caballo Blanco as the primary contributing factors. The San Lucas segment processed 94,767 tonnes during the quarter, producing 341,405 silver ounces and 7,144 zinc tonnes.

Year-over-year, silver production from mining operations declined 23%, largely due to the impact of a localised water inflow event at the Bolivar mine in May 2025. Zinc production from mining operations was broadly stable year-over-year, declining 1% to 14,496 tonnes, while total zinc production including ore processing rose 4% to 21,640 tonnes. The average realised silver price of $63.30 per ounce, against an AISC of $31.60 per ounce, produced a realised mining margin of $31.70 per silver ounce sold, compared with $9.89 per ounce in Q1 2025.

CEO Arturo Préstamo added:

"At Bolivar, the recovery of the areas affected by the May 2025 localised water inflow event continues to advance. We remain focused on restoring production while maintaining operating discipline, with Q4 2026 still targeted for Bolivar's full recovery. Across Bolivia, our priorities remain focused on operational stability, cost control and plant performance, with San Lucas continuing to play a strategic role in supporting plant utilisation, fixed-cost absorption and margin contribution through third-party ore sourcing."

In Mexico, the company is directing capital toward improving metallurgical recoveries and concentrate quality at Zimapan, with improvements expected to continue through 2026.

Conclusion

Near-term milestones include the continued recovery at Bolivar, with full restoration of production targeted for Q4 2026, and ongoing capital investment at Zimapan focused on metallurgical performance. The revised reporting framework introduced this quarter has been applied retrospectively to allow period-on-period comparisons going forward.

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