Santacruz Silver is a polymetallic producer, with its core assets being the Bolivar and Porco operations in Bolivia, the Caballo Blanco group of mines in Bolivia, the Soracaya development asset in Bolivia, and the Zimapan mine in Hidalgo, Mexico. Revenue and production are tied to silver, zinc, lead, and some copper. The main topics discussed in this interview were Bolivar’s flooding recovery, near-term production growth, treasury strength, Soracaya permitting, and whether the company can grow without going back to the market.
TL;DR
Santacruz is a cash-generating, multi-mine operator with enough money to fund its 2026 plans internally, while the main operational watch item is still the Bolivar recovery after the 2025 water event. $80 million of cash at year-end, 2026 sustaining capex of $35 million to $37 million, full repayment of the Trafigura loan in January, a remaining zinc-linked CVR capped at $16 million a year, and 2025 full-year production of about 14.4 million silver-equivalent ounces, of which roughly 5.6 million to 6.0 million ounces was actual silver.
What have they done for shareholders lately?
Alberto told me that, at Bolivar, they’ve added pumping capacity, extra piping, hydrogeological work, and redesign work after the flooding event, with about 20% of the previously affected stope areas already back in production and Q4 silver production at Bolivar up 34% from the prior quarter. At Zimapan, he said they pushed development to level 960, bought more than 15 underground units, brought services down to that level, and installed a flash cell circuit to lift silver recoveries. CEO Elizondo also said a new mine inside the Caballo Blanco group was already in production and nearing formal commercial status.
How much money do they have and what are they spending it on?
Tthe company ended the year with about $80 million in cash, no restricted cash, current assets about 1.5 times current liabilities, and no debt apart from revolving facilities and a Bolivian promissory note used mainly for treasury management. Alberto said the Trafigura loan was fully repaid in January, and they do not expect to raise debt or equity unless they do M&A. For 2026, they guided to sustaining capex of roughly $35 million to $37 million across the portfolio, with spending aimed at mine operations, Bolivar recovery work, and production improvements. The other material cash obligation is the Glencore-linked CVR, which only triggers if zinc goes above $3,850 per tonne and is capped at $1.3 million per month, or $16 million per year.
Upcoming catalysts
Technically, the CEO told me investors should watch for a resource estimate update, commercial production from the flash cell circuit at Zimapan, and continued quarter-by-quarter recovery at Bolivar, with full recovery targeted by mid-Q4 2026. Operationally, he said Zimapan throughput should rise from 74,000 tonnes per month at the start of the year to 80,000 tonnes per month by September, while Soracaya is expected to have permits in hand by July and start at 200 to 300 tonnes per day by Q4, with a 900 tonnes-per-day target by the end of 2027. Corporately, he flagged Q4 and year-end financials, regular production updates, a possible commercial-production announcement for the new Caballo Blanco mine, a move to the main TSX board, and a possible share buyback program that management said it wanted in place before summer.
Risks
The near-term risk is execution. They need to finish the Bolivar recovery on schedule, and management admitted the bottleneck is not pumping alone but treating high-pH water before release to nearby communities. There is also plain old metal-price risk, because margins get tight around $24 to $25 silver and $2,400 to $2,500 zinc. On top of that, Soracaya still needs final permitting, Bolivia still has illegal mining in the background, and safety remains a live operating issue across underground mines.
Santacruz Silver CEO Interview
VERY IMPORTANT WARNING
Please note that Santacruz Silver has not paid Resource Talks for the creation of this content. This website is a business that charges for the creation and publication of content. This means there will always be a potential conflict of interest which means you can never rely on anything said herein.
By consuming this content, you acknowledge that Resource Talks and/or its affiliates and/or their personnel may own, have owned, or will own interests in and/or may have a business relationship with some or all companies/entities mentioned/featured in this publication. You further acknowledge that entities which may be referenced or featured in this publication or their related parties may hold an interest in Resource Talks or its affiliates, which may create further conflict of interest.
The information provided herein is general & impersonal in nature and meant for entertainment purposes only. The reader acknowledges and agrees that the information does not constitute a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. The author is not a licensed investment advisor. He is just another talking head on the internet. He might own shares of companies mentioned in this publication. Always assume he doesn’t know much more than a potato does. The mining & exploration space is among the riskiest sectors to invest in. The risk of anything mentioned in this publication is 100% loss of capital. If you don’t read the official documents provided by the company on http://www.SedarPlus.ca, you will lose all of your money.
