v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2026
Notes and other explanatory information [abstract]  
SEGMENT INFORMATION

 

22.SEGMENT INFORMATION

 

The Company has identified its operating segments based on the internal reports that are reviewed and used by the chief executive officer and the executive management team, collectively the chief operating decision maker (“CODM”), in assessing performance and in determining the allocation of resources. The Company primarily manages its business by looking at individual producing and developing resource projects as well as the aggregate of the exploration and evaluation properties and typically segregate these projects between production, development, and exploration.

 

Operating segments

 

Management has identified 5 reportable operating segments: the Bolivar mine and processing plant, the Porco mine and processing plant, the Caballo Blanco Group which includes the Tres Amigos, Colquechaquita mines and the Don Diego processing plant, the San Lucas Group which includes the Reserva mine and San Lucas feed sourcing business, Zimapan mine and processing plant, and Corporate and Other activities.

 

The Bolivar and Porco segment revenues, cost of sales, capital expenditures, total assets and total liabilities are presented on 100% basis even though the assets, liabilities, sales and expenses are recorded at 45% in the consolidated balance sheet and statement of comprehensive income because the Company’s interest meets the definition of a joint operation in accordance with IFRS 11 Joint Arrangements. The Illapa Joint Operations elimination column in the tables below shows the removal of COMIBOL’s 55% interest in Illapa’s operating results and assets and liabilities.

 

Under the Association Agreement, Illapa S.A. is the designated operator and holds exclusive, comprehensive responsibility for all technical, financial, labor, legal, and commercial aspects of the operations. The Agreement grants Illapa full control over the mining production chain, including the exclusive right to commercialize concentrates in both domestic and international markets and to manage all related commercial processes. Because the Company is responsible for overseeing all of the operations, the CODM evaluates the performance of the segment on a 100% gross basis.

 

 

SANTACRUZ SILVER MINING LTD.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months ended June 30, 2026 and 2025

(Unaudited)

(Expressed in thousands of US dollars, unless otherwise noted)

 

 

22.SEGMENT INFORMATION (continued)

 

a)Revenues, operating costs and gross profit mining operations and ore processing:

SCHEDULE OF SEGMENT INFORMATION 

Three months ended June 30, 2026  Bolivar   Porco   Caballo Blanco Group   Zimapan   San Lucas Group   Illapa Joint Operation eliminations   Total 
Country  Bolivia   Bolivia   Bolivia   Mexico   Bolivia   Bolivia     
   $   $   $   $   $   $   $ 
Revenues from mining operations   20,082    12,200    24,303    35,973    -    (17,754)   74,804 
Mine operating costs                                 - 
Production costs   (7,919)   (6,063)   (4,942)   (18,013)   -    6,680    (30,257)
Depletion and amortization   (4,573)   (1,455)   (2,083)   (2,862)   -    3,761    (7,212)
Mine operating costs    (12,492)   (7,518)   (7,025)   (20,875)   -    10,441    (37,469)
Gross profit - mining operations   7,590    4,682    17,278    15,098    -    (7,313)   37,335 
                                    
Revenues from ore processing   -    -    -    -    38,654    -    38,654 
Ore processing operating costs                                 - 
Purchased ore & conc. costs   -    -    -    -    (19,194)   -    (19,194)
Ore processing costs   -    -    -    -    (5,072)   -    (5,072)
Depletion and amortization   -    -    -    -    (584)   -    (584)
Mine operating costs    -    -    -    -    (24,850)   -    (24,850)
Gross profit - ore processing   -    -    -    -    13,804    -    13,804 
                                    
Total revenues   20,082    12,200    24,303    35,973    38,654    (17,754)   113,458 
Total cost of sales   (7,919)   (6,063)   (4,942)   (18,013)   (24,266)   6,680    (54,523)
Total depletion and amortization   (4,573)   (1,455)   (2,083)   (2,862)   (584)   3,761    (7,796)
Gross profit – total   7,590    4,682    17,278    15,098    13,804    (7,313)   51,139 

 

Three months ended June 30, 2025  Bolivar   Porco   Caballo Blanco Group   Zimapan   San Lucas Group   Illapa Joint Operation eliminations   Total 
Country  Bolivia   Bolivia   Bolivia   Mexico   Bolivia   Bolivia     
   $   $   $   $   $   $   $ 
Revenues from mining operations   18,229    7,871    18,901    20,577    -    (14,355)   51,223 
Mine operating costs                                   
Production costs   (7,783)   (4,745)   (5,855)   (17,358)   -    6,512    (29,229)
Depletion and amortization   (3,437)   (742)   (1,908)   (1,741)   -    2,917    (4,911)
Mine operating costs    (11,220)   (5,487)   (7,763)   (19,099)   -    9,429    (34,140)
Gross profit - mining operations   7,009    2,384    11,138    1,478    -    (4,926)   17,083 
                                    
Revenues from ore processing   -    -    -    -    22,072    -    22,072 
Ore processing operating costs                                 - 
Purchased ore & conc. costs   -    -    -    -    (9,361)   -    (9,361)
Ore processing costs   -    -    -    -    (3,978)   -    (3,978)
Depletion and amortization   -    -    -    -    (528)   -    (528)
Mine operating costs    -    -    -    -    (13,867)   -    (13,867)
Gross profit - ore processing   -    -    -    -    8,205    -    8,205 
                                    
Total revenues   18,229    7,871    18,901    20,577    22,072    (14,355)   73,295 
Total cost of sales   (7,783)   (4,745)   (5,855)   (17,358)   (13,339)   6,512    (42,568)
Total depletion and amortization   (3,437)   (742)   (1,908)   (1,741)   (528)   2,917    (5,439)
Gross profit - total   7,009    2,384    11,138    1,478    8,205    (4,926)   25,288 

 

 

SANTACRUZ SILVER MINING LTD.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months ended June 30, 2026 and 2025

(Unaudited)

(Expressed in thousands of US dollars, unless otherwise noted)

 

 

22.SEGMENT INFORMATION (continued)

 

Six months ended June 30, 2026  Bolivar   Porco   Caballo Blanco Group   Zimapan   San Lucas Group   Illapa Joint Operation eliminations   Total 
Country  Bolivia   Bolivia   Bolivia   Mexico   Bolivia   Bolivia     
   $   $   $   $   $   $   $ 
Revenues from mining operations   41,111    22,203    48,790    74,739    -    (34,822)   152,021 
Mine operating costs                                   
Production costs   (20,628)   (12,153)   (14,300)   (34,832)   -    16,284    (65,629)
Depletion and amortization   (8,982)   (2,962)   (4,118)   (5,299)   -    7,459    (13,902)
Mine operating costs    (29,610)   (15,115)   (18,418)   (40,131)   -    23,743    (79,531)
Gross profit - mining operations   11,501    7,088    30,372    34,608    -    (11,079)   72,490 
                                    
Revenues from ore processing   -    -    -    -    88,966    -    88,966 
Ore processing operating costs                                   
Purchased ore & conc. costs   -    -    -    -    (52,310)   -    (52,310)
Ore processing costs   -    -    -    -    (13,947)   -    (13,947)
Depletion and amortization   -    -    -    -    (1,191)   -    (1,191)
Mine operating costs    -    -    -    -    (67,448)   -    (67,448)
Gross profit - ore processing   -    -    -    -    21,518    -    21,518 
                                    
Total revenues   41,111    22,203    48,790    74,739    88,966    (34,822)   240,987 
Total cost of sales   (20,628)   (12,153)   (14,300)   (34,832)   (66,257)   16,284    (131,886)
Total depletion and amortization   (8,982)   (2,962)   (4,118)   (5,299)   (1,191)   7,459    (15,093)
Gross profit – total   11,501    7,088    30,372    34,608    21,518    (11,079)   94,008 

 

Six months ended June 30, 2025  Bolivar   Porco   Caballo Blanco Group   Zimapan   San Lucas Group   Illapa Joint Operation eliminations   Total 
Country  Bolivia   Bolivia   Bolivia   Mexico   Bolivia   Bolivia     
   $   $   $   $   $   $   $ 
Revenues from mining operations   39,548    18,057    34,008    43,783    -    (31,682)   103,714 
Mine operating costs                                   
Production costs   (16,030)   (10,146)   (11,515)   (34,165)   -    13,407    (58,449)
Depletion and amortization   (5,760)   (2,083)   (3,865)   (2,858)   -    5,550    (9,016)
Mine operating costs    (21,790)   (12,229)   (15,380)   (37,023)   -    18,957    (67,465)
Gross profit - mining operations   17,758    5,828    18,628    6,760    -    (12,725)   36,249 
                                    
Revenues from ore processing   -    -    -    -    39,895    -    39,895 
Ore processing operating costs                                   
Purchased ore & conc. costs   -    -    -    -    (14,947)   -    (14,947)
Ore processing costs   -    -    -    -    (7,050)   -    (7,050)
Depletion and amortization   -    -    -    -    (1,000)   -    (1,000)
Mine operating costs    -    -    -    -    (22,997)   -    (22,997)
Gross profit - ore processing   -    -    -    -    16,898    -    16,898 
                                    
Total revenues   39,548    18,057    34,008    43,783    39,895    (31,682)   143,609 
Total cost of sales   (16,030)   (10,146)   (11,515)   (34,165)   (21,997)   13,407    (80,446)
Total depletion and amortization   (5,760)   (2,083)   (3,865)   (2,858)   (1,000)   5,550    (10,016)
Gross profit - total   17,758    5,828    18,628    6,760    16,898    (12,725)   53,147 

 

 

SANTACRUZ SILVER MINING LTD.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months ended June 30, 2026 and 2025

(Unaudited)

(Expressed in thousands of US dollars, unless otherwise noted)

 

 

22.SEGMENT INFORMATION (continued)

 

b)Capital expenditures, total assets and total liabilities by operating segment

 

As at June 30, 2026  Bolivar   Porco   Caballo Blanco Group   Zimapan   San Lucas Group   Corporate and other   Illapa Joint Operation eliminations   Total 
Country  Bolivia   Bolivia   Bolivia   Mexico   Bolivia       Bolivia     
   $   $   $   $   $   $   $   $ 
Capital expenditures   7,133    969    4,209    6,638    1,879    -    (4,457)   16,371 
Total assets   144,475    87,786    124,262    95,076    100,476    24,329    (86,223)   490,181 
Total liabilities   (56,485)   (37,288)   (104,460)   (47,218)   (27,615)   (35,118)   31,091    (277,093)

 

As at December 31, 2025  Bolivar   Porco   Caballo Blanco Group   Zimapan   San Lucas Group   Corporate and other   Illapa Joint Operation eliminations   Total 
Country  Bolivia   Bolivia   Bolivia   Mexico   Bolivia       Bolivia     
   $   $   $   $   $   $   $   $ 
Capital expenditures   11,184    1,887    5,097    15,602    3,895    -    (7,046)   30,619 
Total assets   138,287    88,393    136,936    66,534    74,026    26,687    (85,092)   445,771 
Total liabilities   (56,573)   (39,876)   (133,428)   (42,714)   (4,405)   (20,502)   30,785    (266,713)

 

c)Revenues by operating segment, product and major customers

 

Three months ended June 30, 2026  Bolivar   Porco   Caballo Blanco Group   San Lucas Group   Zimapan   Total 
Country  Bolivia   Bolivia   Bolivia   Bolivia   Mexico     
   $   $   $   $   $   $ 
Silver   12,680    4,116    11,494    17,018    24,144    69,452 
Zinc   6,872    8,153    11,660    22,394    12,755    61,834 
Lead   346    266    829    826    2,053    4,320 
Copper   -    -    -    -    4,538    4,538 
Illapa joint operation 55% interest   (11,045)   (6,709)   -    -    -    (17,754)
Provisional pricing adjustments   903    401    1,249    485    (2,438)   600 
Smelting and refining costs   (719)   (736)   (929)   (2,069)   (5,079)   (9,532)
Sales to external customers   9,037    5,491    24,303    38,654    35,973    113,458 

 

Three months ended June 30, 2025  Bolivar   Porco   Caballo Blanco Group   San Lucas Group   Zimapan   Total 
Country  Bolivia   Bolivia   Bolivia   Bolivia   Mexico     
   $   $   $   $   $   $ 
Silver   11,530    2,724    10,816    8,277    10,196    43,543 
Zinc   7,435    5,609    7,703    15,778    8,404    44,929 
Lead   369    302    1,130    956    2,146    4,903 
Copper   -    -    -    -    1,868    1,868 
Illapa joint operation 55% interest   (10,026)   (4,329)   -    -    -    (14,355)
Provisional pricing adjustments   76    18    373    (977)   1,649    1,139 
Smelting and refining costs   (1,181)   (782)   (1,121)   (1,962)   (3,686)   (8,732)
Sales to external customers   8,203    3,542    18,901    22,072    20,577    73,295 

 

 

SANTACRUZ SILVER MINING LTD.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months ended June 30, 2026 and 2025

(Unaudited)

(Expressed in thousands of US dollars, unless otherwise noted)

 

 

22.SEGMENT INFORMATION (continued)

 

Six months ended June 30, 2026  Bolivar   Porco   Caballo Blanco Group   San Lucas Group   Zimapan   Total 
Country  Bolivia   Bolivia   Bolivia   Bolivia   Mexico     
   $   $   $   $   $   $ 
Silver   23,918    7,463    26,447    49,590    50,271    157,689 
Zinc   16,818    15,431    21,471    41,786    23,790    119,296 
Lead   571    359    1,959    3,381    4,261    10,531 
Copper   -    -    -    -    8,706    8,706 
Illapa joint operation 55% interest   (22,611)   (12,211)   -    -    -    (34,822)
Provisional pricing adjustments   1,532    390    869    (865)   (1,885)   41 
Smelting and refining costs   (1,728)   (1,440)   (1,956)   (4,926)   (10,404)   (20,454)
Sales to external customers   18,500    9,992    48,790    88,966    74,739    240,987 

 

Six months ended June 30, 2025  Bolivar   Porco   Caballo Blanco Group   San Lucas Group   Zimapan   Total 
Country  Bolivia   Bolivia   Bolivia   Bolivia   Mexico     
   $   $   $   $   $   $ 
Silver   23,606    7,420    17,401    14,889    21,729    85,045 
Zinc   17,951    11,500    17,016    26,793    18,696    91,956 
Lead   859    820    1,823    1,821    4,503    9,826 
Copper   -    -    -    -    4,099    4,099 
Illapa joint operation 55% interest   (21,751)   (9,931)   -    -    -    (31,682)
Provisional pricing adjustments   245    105    383    (1,077)   3,240    2,896 
Smelting and refining costs   (3,113)   (1,788)   (2,615)   (2,531)   (8,484)   (18,531)
Sales to external customers   17,797    8,126    34,008    39,895    43,783    143,609 

 

During the three and six months ended June 30, 2026 and 2025, the Company had two customers. One customer in Bolivia accounted for 68% and 69% of the total sales revenue for the three and six months ended June 30, 2026 (2025 – 72% and 70%, respectively). The other customer in Mexico accounted for 32% and 31% of the total sales revenue for the three and six months ended June 30, 2026 (2025 – 28% and 30%, respectively).

 

 

SANTACRUZ SILVER MINING LTD.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months ended June 30, 2026 and 2025

(Unaudited)

(Expressed in thousands of US dollars, unless otherwise noted)