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Profitable Production Meets Discovery Upside in Mexico: Starcore International Mines

CEO.CA Sep 2, 2026 8:14

Summary

Starcore delivered $0.08 audited EPS for its April 30 fiscal year, with quarter-by-quarter improvement showing full-year results best reflect a mine's peaks and valleys.

Filtration upgrades enable dry-stack tailings — no dam to fail — and about 100 tons per day of carbonaceous ore treatment alongside oxide feed.

A secured community agreement for La Tortilla underpins Mexico's 90-day environmental review, with 14 government questions now being answered.

A property-wide geophysical survey across San Martin's 12,992 hectares should yield drill targets for testing before year-end.

The CEO points to exploration upside — 100% ownership with no NSRs (net smelter return royalties) — since the operation today is not a 200,000-ounce producer.

Key points on Starcore International Mines Ltd

  • The CEO's top emphasis is exploration upside: a completed geophysical survey covering the whole 12,992-hectare San Martin property — 100%-owned with no NSRs and no leverage — is expected to yield drill targets the company will test before the end of 2026.
  • Audited results for the fiscal year ended April 30 delivered 8 cents of earnings per share, which the CEO calls a clear improvement over the prior year, with each quarter improving on the last.
  • Plant upgrades center on filtration and dry-stack tailings rather than a tailings dam, targeting better recoveries and consistent throughput across two ore types from San Martin, with carbonaceous ore treatment now at roughly 100 tons per day alongside the regular oxide ore.
  • At La Tortilla, two hours from San Martin, a newly signed community agreement is described as key: material will be trucked to San Martin's infrastructure for processing, feeding one of three targeted revenue streams over the next 18 to 24 months.
  • La Tortilla permitting is in the MIA environmental assessment: the Mexican government responded within its 90-day service standard with 14 questions, which the company is now in the middle of answering.

Robert Eadie's takeaways

  • Top takeaway His core argument is that Starcore's real story is discovery potential, not current output: two under-explored assets — the large San Martin property and the historic La Tortilla mine, where no modern exploration science has been applied — both sit on ground the company owns 100% with no NSRs and no leverage.
  • He argues annual results are the fairer yardstick because the mine 'ebbs and flows' quarter to quarter, pointing to the 8-cent EPS fiscal year ended April 30 as evidence the company is meeting its goals.
  • He presents the plant work as being about handling different materials: dry-stack tailings via filtration and about 100 tons per day of carbonaceous ore on top of regular oxide feed, to lift recoveries and keep throughput consistent.
  • On La Tortilla, he stresses the community agreement matters because Mexican permitting (the MIA environmental assessment) turns on community support; the government replied within 90 days with 14 questions now being answered.
  • He is candid that San Martin is not a 200,000-ounce producer as it currently stands, framing that gap as exactly why the exploration upside matters.