Aug 14, 2026 earnings call — Q2 production ramp and Boumadine PEA update
Company reported revenue for Q2 2026 of $97 million and production of 1.7 million ounces silver equivalent.
Revenue $0.1B (est $0.1B) · EPS $0.23 (est $0.36)
Key quotes
"Q2 average is 3,900 tonnes a day compared to the previous quarter at 3,600 tonnes a day and to last year, same quarter-over-quarter was 3,000 tonnes a day, and that we know the nameplate was 2,700."
"At the same time, the updated PEA is being completed as we speak and will be ready for publication early in September as we all come back from Labor Day weekend."
"The big highlight of the quarter was the new zone that we discovered parallel to the main zone where we had an intercept of 51 meters at 890 gram per tonne silver equivalent."
Analyst Q&A 2
Open pit stripping and underground mining speed
Q (Bryce Adams · Desjardins): He asked how much the Zgounder strip ratio will rise in Q3–Q4 and for 2027, and whether stripping will be accelerated next year. He also asked about expected underground mining rates and whether Q3 silver sales will catch up to production.
A: Year-to-date the open pit strip is around a strip of 10. They expect the strip to increase to around 16 in the next 6 months and to land the year closer to 13, aligned with long-term plans; a planned pushback could be done this year or early next year. Underground is being slowed to focus on developing lower sublevels; current underground is about 1,200 to 1,500 tonnes per day and extra crushing and an ore sorter will help sustain mill throughput. On silver, the LBMA average for the quarter was $73 and Zgounder was a bit over $68; 1/3 of quarterly production was sold low in June, remaining Zgounder inventory has been sold in July, and they expect catch-up in Q3 and Q4, especially at Boumadine.
"We expect the strip to increase to around 16 in the next 6 months, and we expect to land the year closer to 13, which is quite aligned with our long-term expectation for the open pit." — Raphael Beaudoin
Crusher impact, Boumadine study, water supply
Q (Justin Chan · SCP Resource Finance): He asked if adding a crusher would raise long-term throughput or just maintain upper 3,000–4,000 tonnes per day. He also asked whether the Boumadine updated PEA will change throughput or the open-pit/underground split, and whether water supply is sufficient after the wet season.
A: They said Zgounder is not missing a crusher and the nameplate is 2,700. The added tertiary crusher aims to stabilize the mill at 3,850 tonnes per day and could allow modest increases; they already see some days above 4,000 but not yet as a full-quarter average. The updated PEA focuses on the new resource, NSR calculation and payables so materially the project remains similar; any large scope changes would come in a feasibility study. On water, reservoirs are full, Phase 2 tailings added storage, river flows continue, and water is not a concern in the short and medium term.
"the tertiary crusher was part of our commitment to stabilize the mill at 3,850 tonnes per day, and we're already there." — Raphael Beaudoin