Episode Details

Interview with Arturo Préstamo Elizondo, Executive Chairman & CEO of Santacruz Silver Mining Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/santacruz-silver-tsxvscz-bolivar-recovery-and-tsx-uplisting-drive-2026-growth-strategy-10585

Recording date: 24th September 2026

Santacruz Silver Mining Ltd. (TSX:SCZ, NASDAQ:SCZM) is a multi-asset silver and zinc producer with four producing mines in Bolivia and Mexico, an ore feed sourcing business and a development asset. Higher silver prices have transformed its financial profile. The company realised an average of $76.33 per silver ounce sold in the first half of 2026, more than double the prior-year figure. First-half revenue rose 68% to $241.0 million and adjusted EBITDA rose 64% to $89.2 million.

The near-term operating story rests on three assets. At Bolivar, recovery from the May 2025 flood is progressing. Q2 2026 silver output rose 32% on the previous quarter, and management expects full dewatering in Q4 2026. A review of historical records identified two blocks grading 400 to 500 g/t silver. These have been drilled and modelled, and production is planned for early 2027. Management estimates they could add 8% to 10% to Bolivar's output.

At San Lucas, the company has acquired a dedicated mill in the Potosí district. This removes the conflict between third-party ore processing and the company's own mines. Management said the move frees around 500 tonnes per day of capacity on average, equivalent to roughly 15-20% at Porco.

At Zimapan in Mexico, drilling in a previously untested area has found zones grading around 200 g/t silver and 7% zinc. From 2027 this material should raise head grades toward 100 g/t silver and lift throughput from 74,000 to 80,000 tonnes a month. Combined, the three assets are expected to deliver around 10% production growth in 2027.

Soracaya is the main development catalyst. It hosts an Inferred Resource of 4.14 million tonnes at 260 g/t silver. Permits are expected within weeks and first production is targeted for December 2026. Management said the mine could produce close to 2.5 million ounces at full capacity. Because the resource is Inferred only, execution risk is higher than at the producing mines.

The balance sheet is strengthening quickly. Cash and marketable securities were $72.8 million at 30 June 2026, and the CEO said the figure was close to $120 million near the end of the third quarter. All organic growth is being funded from cash flow.

Capital allocation is the key strategic question. Management has ruled out a dividend for now and is seriously reviewing two acquisitions. Its criteria are a producing asset with more than 3 million ounces of silver or gold equivalent output, located in the Americas, preferably underground and narrow-vein. A precious metals acquisition would also reduce the company's reliance on zinc, which contributed 40.3% of first-half revenue.

Bolivar and Porco operate under a joint operation with state miner COMIBOL that runs until 2028, under which Santacruz receives 45% of profits. Bolivia carries political and regulatory risk, and earnings remain highly sensitive to the silver price. Near-term milestones include the Q3 production release, the Soracaya permit decision, the Bolivar dewatering and any announcement on the two potential acquisitions.

View Santacruz Silver's company profile: https://www.cruxinvestor.com/companies/santacruz-silver-mining

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