Santacruz Silver Mining (TSXV: SCZ) reported mixed production results for the first quarter of 2026, as a strong recovery at its Bolivar mine in Bolivia was offset by operational headwinds in Mexico.
The company produced 1,341,499 ounces of silver during the quarter, representing a negligible decline from the 1,343,607 ounces produced in the fourth quarter of 2025. While consolidated silver output remained flat, base metal production saw more significant shifts. Zinc production fell 9% to 21,640 tonnes, and lead output dropped 10% to 2,686 tonnes. Copper provided a rare bright spot for base metals, with production rising 7% to 308 tonnes.
The internal dynamics of the portfolio were defined by the ongoing turnaround at the Bolivar mine. Following a major flooding event in May 2025, the asset saw a 28% sequential increase in silver production, reaching 259,635 ounces. This growth was fueled by a 30% jump in silver head grades as miners regained access to high-grade zones. Notably, Bolivar achieved these gains despite the first quarter containing fewer working days due to the Carnival holiday season in Bolivia.
In contrast, the Zimapan mine in Mexico struggled with infrastructure and utility issues. Silver production there fell 10% to 362,863 ounces compared to the prior quarter, while zinc and lead production both tumbled 19%. Management attributed the decline to power interruptions from the national utility, CFE, and delays in completing a ventilation shaft, which restricted access to higher-grade areas of the mine.
The quarterly report also marked a shift in how Santacruz communicates its performance to the market. The company is moving away from silver equivalent figures as a primary metric, choosing instead to focus on individual metal volumes. While the silver equivalent production for the quarter was 2,281,465 ounces, a 21% drop from the prior quarter, management noted that this metric is increasingly distorted by silver price volatility and does not accurately reflect operational health.
Across its other Bolivian assets, performance was stable. The Caballo Blanco Group saw a 6% increase in silver production to 306,888 ounces, while the Porco mine saw silver output dip 14% to 70,708 ounces as operations focused on zinc-rich zones.
Santacruz Silver last traded at $12.43 on the TSX Venture.
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