Santacruz Silver Q2 2026: Revenue Up 55%, But One-Time Tax Hit Slashes Net Income

summarizeSummary

Santacruz Silver reported strong Q2 2026 revenue and EBITDA growth, but net income was crushed by one-time tax and non-cash CVR charges. Road blockades delayed sales, setting up a Q3 inventory drawdown.

check_boxKey Events · Earnings and Guidance · SCZM

• Q2 Revenue and EBITDA Surge

  Revenue rose 55% YoY to $113.5M and Adjusted EBITDA rose 74% to $46.7M, driven by a 118% increase in realized silver price to $72.17/oz.

• Net Income Hit by One-Time Items

  Net income fell 90% to $2.0M due to a $36.1M non-recurring tax expense from Bolivia's floating exchange rate transition and a $15.8M non-cash CVR fair value loss.

• Road Blockades Delay Sales

  53 days of road blockades in Bolivia disrupted concentrate exports, increasing inventories by ~$17.0M; sales are expected to normalize in Q3 2026.

• Subsequent Debt and Equity Activity

  After quarter-end, the company issued BOB 70,000 in promissory notes (Aug 4) and granted 269,000 RSUs, 60,000 DSUs, and 304,000 PSUs (Jul 31).

auto_awesomeAnalysis · SCZM · Energy & Transportation

Operationally, Q2 2026 was a standout quarter for Santacruz Silver, with revenue climbing 55% to $113.5 million and Adjusted EBITDA up 74% to $46.7 million. The bottom line, however, tells a different story: net income fell 90% to $2.0 million, weighed down by a $36.1 million non-recurring tax expense tied to Bolivia's shift to a floating exchange rate and a $15.8 million non-cash loss on the Glencore CVR revaluation. Adding to the quarter's challenges, road blockades in Bolivia for 53 days disrupted concentrate exports, building inventory that should convert to sales in Q3. The company also disclosed subsequent debt and equity grants.