Key Points
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Operational performance improved: Q2 consolidated silver production rose 17% quarter over quarter and zinc production increased 7%, while silver all-in sustaining costs fell 24% to $21.87 per ounce. Bolivar’s dewatering and rehabilitation program remains on schedule, with full recovery targeted for Q4.
Exports delayed sales but largely recovered: Bolivia’s 53-day road blockades left more than 7,800 tons of concentrate in inventory, temporarily reducing recognized sales. About 97% of the inventory had been sold by the webinar, generating nearly $23 million and helping lift treasury holdings above $100 million.
Growth initiatives remain on track: Santacruz expects Soracaya permits in Q3 and plans to begin small-scale production by the end of Q4, with potential annual output of up to 3 million silver-equivalent ounces. Management is also pursuing renewal of the Illapa joint operation through 2043 and evaluating acquisitions of producing mines.
Santacruz Silver Mining (NASDAQ:SCZM) said its second-quarter operating performance improved across its portfolio, with higher silver and zinc output, while temporary export constraints in Bolivia delayed some sales into subsequent periods.
During the company’s Q2 results webinar, Executive Chairman and CEO Arturo Préstamo Elizondo said consolidated silver production rose 17% quarter over quarter and zinc production increased 7%. He attributed the silver increase primarily to the Bolivar mine, where production rose by 84,000 ounces as tons milled increased 11% and silver head grades improved 17%.
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Bolivar’s recovery remains tied to a dewatering program that Préstamo said is proceeding on schedule and on budget. The company continues to rehabilitate the main ramp toward lower levels and prepare stopes for mining, with full recovery still targeted for the fourth quarter. Santacruz has also identified two high-grade areas that had previously been left behind and incorporated them into its mining plans for next year.
Operational gains across portfolio
Management said operating improvements extended beyond Bolivar. At Zimapán, silver recoveries improved 10%, while zinc head grades and recoveries each increased 9%. Caballo Blanco increased silver production by 6%, supported by a 5% improvement in silver head grades. Porco processed 15% more tons and reported a 21% rise in silver head grades.
Read More: Santacruz Silver Mining Q2 Earnings Call Highlights
