Santacruz Silver Reports 55% Revenue Growth in Second Quarter Despite Bolivia Export Disruption

• Revenue reached $113.5 million, up 55% year over year, while Adjusted EBITDA rose 74% to $46.7 million.
• Gross profit increased 102% to $51.1 million from the same quarter last year.
• Cash and highly liquid marketable securities grew 82% to $72.8 million, and working capital rose 43% to $86.1 million.
• Excluding a non-cash valuation adjustment, adjusted net income totalled $17.8 million for the quarter.
• Silver production at the Bolivar mine increased 32% quarter over quarter, with full operational recovery targeted by the fourth quarter of 2026.

Santacruz Silver Mining Ltd. (NASDAQ:SCZM) (TSX.V:SCZ) is a Canada-based company engaged in the operation, acquisition, exploration and development of mineral properties across Latin America. In Bolivia, the company operates the Bolivar, Porco and Caballo Blanco mining complexes, the latter comprising the Tres Amigos and Colquechaquita mines, along with the Reserva mine, which supplies its San Lucas ore sourcing and trading business. The company also holds the Soracaya exploration project in Bolivia and operates the Zimapan mine in Mexico.

Revenue Rises 55% to $113.5 Million as Adjusted EBITDA Grows 74% to $46.7 Million

Revenue for the quarter ended June 30, 2026 totalled $113.5 million, up 55% from $73.3 million in the same quarter last year. The increase was driven mainly by a 118% rise in the average price the company received per ounce of silver sold, to $72.17 from $33.13, together with higher volumes of zinc sold. Gross profit increased to $51.1 million from $25.3 million.

Adjusted EBITDA, a non-GAAP measure of operating profit before interest, taxes, depreciation and amortisation, rose 74% year over year to $46.7 million from $26.8 million in Q2 2025.

The average realized price per ounce of silver sold was $72.17 in the quarter, compared with an all-in sustaining cost of $21.87 per ounce, which reflects the cost to produce and sell each ounce. The resulting realized mining margin of $50.30 per ounce was up from $15.63 in Q2 2025.

Bolivia Blockade and Non-Recurring Items Mask Underlying Strength as Adjusted Net Income Reaches $17.8 Million

During the quarter, road blockades in parts of Bolivia disrupted logistics for approximately 53 days, temporarily constraining the export of concentrates, particularly lead concentrate, which carries most of the company's silver production. Mine output was not interrupted, and production increased at all five of Santacruz's operations, but the export delays meant sales volumes lagged production, adding roughly $17.0 million to inventories. The blockades were resolved by the end of the quarter, and exports have since normalised.

Reported net income for the quarter was $2.0 million, down from $21.0 million a year earlier. A $36.1 million income tax expense arose from two non-recurring events tied to changes in Bolivia's exchange rate and inflation assumptions, while a further $15.8 million non-cash charge reflected a revaluation of contingent value rights (CVRs) owed to Glencore, which are payments that only become due if the zinc price exceeds $3,850 per tonne, a level not reached since the arrangement began in 2024. Excluding this non-cash item, adjusted net income for the quarter was $17.8 million.

Andrés Bedregal, Chief Financial Officer of Santacruz Silver Mining Ltd., said:

"It's important to note that our net income for the quarter was significantly impacted by two non-recurring tax events associated with changes in Bolivia's exchange rate and inflation assumptions, as well as a non-cash fair value adjustment related to the Glencore contingent value rights (CVRs). These items obscure the underlying strength of our operating performance this quarter."

Bolivar Mine Recovery Advances With 32% Quarterly Silver Production Increase, Full Recovery Targeted by Fourth Quarter

Silver production at the Bolivar mine increased 32% quarter over quarter, continuing its recovery from flooding that affected the site in May 2025. The increase was supported by higher processed volumes and improved silver head grades as rehabilitation work at the mine progressed through the quarter.

Across the wider portfolio, production rose at all five of the company's operations, lifting consolidated silver output 17% year over year to 1.57 million ounces. Zinc, lead and copper production also increased, supported by higher tonnes processed at both the mining operations and the San Lucas ore processing business.

Arturo Préstamo, Executive Chairman and Chief Executive Officer of Santacruz Silver Mining Ltd., said:

"At the Bolivar mine, we are on track to achieve full operational recovery and return to full production by Q4 2026, with continued quarter-over-quarter improvement expected in Q3 2026."

Milestones and Next Steps

Santacruz Silver expects to recognise revenue from the concentrated inventory built up during the blockade as shipments are completed. The company is targeting full operational recovery at Bolivar by the fourth quarter, with further quarter-over-quarter improvement expected in the third quarter, and continues to evaluate initiatives to strengthen the San Lucas ore sourcing business. Company executives will discuss the results in a webinar on August 20, 2026.

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