Skip to main content

5th Silver Mine Going Online | Arturo Préstamo - Santacruz Silver

The Deep Dive Sep 28, 2026 7:44

Summary

Santacruz's CEO argues silver clears $80 within months and moves beyond $100 long term, framing producer economics around a rising metal price.

A dedicated 500-tonne-per-day mill removes San Lucas's milling bottleneck, letting the ore-sourcing operation grow output 8-10% annually.

Treasury grew from $75 million to roughly $120 million since Q2, and the boliviano devaluation trims dollar costs since about 85% of spending is local.

Mines and mills never missed a day through Bolivia's 53-day blockade; rail concentrate exports flowed while trucked tonnes waited out the disruption.

Soracaya targets 300 tonnes per day by December, then ramps toward 2.5-3 million silver-equivalent ounces (output expressed in silver terms) during 2028.

Key points on Santacruz Silver Mining Ltd

  • Soracaya is in the final stage of permitting: the guest targets starting 300-ton-per-day production by December 2026 and ramping toward the mine's 700-ton-per-day design capacity through 2028, at which point it should produce around 2.5-3.0 million ounces of silver equivalent.
  • The company closed Q2 2026 with about $75 million in treasury and, as of the interview in late September 2026, holds roughly $120 million, with the guest saying cash is built weekly across its four producing mines plus the San Lucas ore-sourcing business.
  • A newly acquired 500-ton-per-day mill is being dedicated to San Lucas, which the guest expects to lift output 8-10% above historic levels and expand its core business of buying ore from a few thousand small miners across Oruro and Potosi.
  • The guest calls the boliviano's devaluation a long-run benefit because about 85% of costs are in Bolivia, though it required booking a tax charge in Q2 2026 on US dollars held abroad.
  • During Bolivia's 53-day blockade production never stopped; roughly 5,000 tons of trucked lead concentrate were stockpiled and exported after it ended, and the guest says inventories were back to normal levels in Q3 2026.

Steve Hyland's takeaways

  • Top takeaway The host frames the silver backdrop as a record high near $121 in January 2026, followed by a pullback and partial recovery as of the interview.
  • The host notes Santacruz Silver's stock is up about 1,000% over five years and hopes it rises another 1,000% over the next five.

Arturo Préstamo Elizondo's takeaways

  • Top takeaway Préstamo is very bullish on silver, calling for it to move beyond $80 within months of the interview and beyond $100 in the long run.
  • He argues the boliviano's devaluation is a long-run benefit since about 85% of costs are in Bolivia, with only a near-term Q2 tax impact on US dollars held abroad.
  • He stresses that production never stopped during the 53-day Bolivian blockade and that the stockpiled concentrate backlog was exported in Q3 2026.
  • He frames buying ore from a few thousand small miners in Oruro and Potosi as the essence of the company, now supported by a dedicated 500-ton-per-day mill for San Lucas.
  • He reports the treasury at around $120 million as of the interview, up from about $75 million at the Q2 2026 close, and says cash is building weekly.