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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Santacruz Silver Mining Ltd. (SCZ:TSX; SCZM:NASDAQ) has finalized the purchase of a 500-tonne-per-day (tpd) milling facility in Bolivia, consisting of two 250-tpd processing circuits, each using selective flotation technology to recover lead and zinc with high silver grades, according to a September 18 release.

The facility will process ore supplied exclusively by San Lucas, the company's wholly owned Bolivian subsidiary, adding capacity to support further growth in its third-party ore-sourcing business.

Moving San Lucas material to the new plant will free up capacity at Santacruz's three existing processing facilities, letting the company accelerate mine development and increase output from its own Bolivian operations without competing internally for available milling capacity, the company said. The facility sits about 5 kilometers from the Reserva mine within the Caballo Blanco group, offering logistical benefits as Santacruz expands its Bolivian asset portfolio.

The acquisition strengthens the company's vertically integrated operating structure by giving it greater flexibility and control over processing third-party ore. Combined with its current plants, the new facility expands Santacruz's processing infrastructure in a key operating district and supports its longer-term production and mine development objectives.

Santacruz expects to commission the facility in the fourth quarter of 2026 and reach commercial production by year-end. Commissioning will involve testing and fine-tuning the milling and selective flotation circuits before gradually increasing throughput toward commercial operations. The company expects total capital requirements of approximately US$14 million, including the acquisition, commissioning, and costs associated with reaching commercial production.

"This acquisition is a win-win for Santacruz's operating platform," said Executive Chairman and CEO Arturo Prestamo. He said the additional 500 tpd of milling capacity will allow San Lucas to expand volumes while creating room at existing plants for ore from Santacruz's mines, letting both the mining and processing sides of the business grow without milling constraints.

"The new facility also creates a significant opportunity to accelerate growth across our Bolivian operations," Prestamo added. He said the expanded processing capacity, combined with mine development, operational improvements, and greater ore availability, should support continued production increases across the company. Santacruz expects higher consolidated production in 2027, while San Lucas is positioned to increase its standalone output, highlighting the scalability of the company's vertically integrated Bolivian platform.

Under the transaction terms, Santacruz has paid US$4.6 million toward the US$9.2 million purchase price, with the remaining US$4.6 million due November 8, 2026, one month after the company expects to receive the facility on October 8, 2026. The company will also allocate another US$4.8 million toward milling upgrades and working capital through commissioning and the start of commercial production.

From Top of Venture 50 to Toronto's Main Stage

Santacruz began trading on the Toronto Stock Exchange at market open on September 21, graduating from the TSX Venture Exchange under its existing ticker, SCZ.

"Graduating to the Toronto Stock Exchange will mark a significant milestone in Santacruz's journey," said Executive Chairman and CEO Arturo Préstamo Elizondo. "Since first listing on the TSX Venture Exchange more than a decade ago, we have transformed the Company into a stronger, more diversified business." He added that the move reflects the execution of the company's long-term strategy and should enhance its profile, improve access to institutional capital, and support its goal of becoming a leading Latin American silver and zinc producer.

Atrium Research's Ben Pirie maintained a Buy rating and CA$27-per-share target price on the stock.

The shares were voluntarily delisted from the TSXV after market close on September 18. Shareholders don't need to exchange share certificates, warrant certificates, or direct registration system advices, or take any other action related to the transition.

Santacruz remains a reporting issuer under Canadian securities law and continues trading on the Nasdaq Capital Market under SCZM, with its CUSIP (80280U205) and ISIN (CA80280U2056) unchanged.

The graduation caps a breakout stretch for Santacruz on the Venture exchange. In February, the company was named the top-ranked company on the 2026 TSX Venture 50, the TSXV's annual ranking of its best-performing issuers, after posting a 1,103% share-price gain and 1,137% growth in market capitalization during 2025.

"To be named the #1 ranked company on the 2026 TSX Venture 50 is an extraordinary honor and marks a transformative year for Santacruz," Préstamo said at the time, calling it validation of the company's strategy in Bolivia and Mexico.

Analyst Sees More Room to Run for Silver Miner

The purchased plant contains two 250-tpd processing circuits, each fitted with selective flotation systems for recovering lead (Pb) and zinc (Zn) with high-grade silver (Ag), and sits about 5 kilometers from the company's Reserva mine, according to an updated research note on September 18 by Atrium Research's Ben Pirie. The facility will process San Lucas ore exclusively, creating room for further expansion of Santacruz's third-party ore-sourcing business while freeing up capacity at its three existing mine processing plants. Pirie maintained a Buy rating and CA$27-per-share target price on the stock.

Santacruz will pay US$9.2 million for the facility, with US$4.6 million already paid. The company expects to take possession of the plant on October 8, with the remaining US$4.6 million due on November 8. Santacruz has earmarked another US$4.8 million for mill upgrades and working capital through commissioning and the start of commercial production, putting total investment in the added capacity at roughly US$14 million. With US$72.8 million in cash and highly liquid marketable securities at the end of the second quarter and pre-working-capital operating cash flow of roughly US$50 million per quarter so far in 2026, Pirie expects the acquisition to add capacity without placing significant pressure on the balance sheet while supporting higher San Lucas output and greater processing flexibility across Bolivia.

Santacruz expects to commission the plant during the fourth quarter and reach commercial production by year-end, the updated note said. The process will involve testing and refining the circuits before ramping up throughput. Alongside ongoing portfolio improvements that have generated sequential operating gains, the company expects consolidated production to increase in 2027. The new facility should enter commercial production as Bolivar approaches full recovery, targeted for the fourth quarter of 2026, while Soracaya is also expected to begin contributing production. The analyst forecasted approximately 11.5 million ounces (Moz) silver-equivalent (AgEq) in 2026 and 13.0 Moz AgEq in 2027, with estimates subject to further review as the company advances its growth projects.

Moving San Lucas ore into the new facility should let the third-party sourcing operation expand while removing a processing bottleneck for Santacruz's own Bolivian mines, which have been competing with San Lucas for available capacity. Because San Lucas operates under an established margin structure, opening additional room for the mining operations could support greater output from the company's higher-margin business and provide increased exposure to stronger metal prices. The upcoming TSX listing is also expected to raise the company's visibility as this growth strategy develops.

Key catalysts include continued progress at Soracaya, targeted for the fourth quarter of 2026; Bolivar reaching full recovery in the same period; and the new Bolivian mill entering commercial production, also targeted for the fourth quarter.

Santacruz holds exposure to four diversified multi-metal assets, reducing reliance on a single mine or commodity, Pirie noted. Since acquiring and refinancing three operations from Glencore in 2022, the company has focused on operational improvements, with most major capital expenditures now complete. Over the past three years, Santacruz shares have recorded a 1.4x beta to silver prices, providing substantial sensitivity to movements in the metal. Pirie also noted that Santacruz continues to trade at a considerable valuation discount to other silver producers.

The Catalyst: Silver Holds in US$60–US$70 Range as Sixth Deficit Looms

Silver remained volatile but confined to a narrow range early Monday as traders continued to look for direction, with interest rates remaining one of the market's primary influences, Christopher Lewis wrote for FX Empire on September 21. U.S. rates stayed relatively high despite edging lower early in the session, while silver traded near its 50-day and 200-day EMA indicators. Both averages have flattened out, pointing to limited momentum in either direction.

The US$60 area remains an important floor for silver, while US$70 represents a major barrier on the upside. The metal has largely moved within that range since June, leaving the market waiting for a catalyst capable of producing a more decisive move. Persistent energy-driven inflation is also making it harder for silver to build sustained upside momentum.

Higher interest rates can weigh on silver because investors have more incentive to hold interest-bearing assets rather than incur the costs of owning and storing physical metal. While elevated rates generally create a headwind for precious metals, the underlying reason for those higher rates also matters.

The current inflation backdrop is unusual: energy costs, rather than the U.S. dollar alone, are playing a major role. Silver often reacts strongly to dollar movements, but the present environment places greater emphasis on interest rates and the yields available on assets such as two- and 10-year U.S. Treasuries. For now, the metal's uneven trading pattern remains intact, with little indication that the sideways action is about to end.

Silver's fundamentals point to a market that's been tightening for years. The Silver Institute's World Silver Survey 2026, compiled with London-based Metals Focus, projects a sixth consecutive annual supply deficit in 2026, with the shortfall widening to roughly 46.3 Moz from 40.3 Moz in 2025, according to Investing News Network's Giann Liguid, who wrote on April 21. Total demand is expected to dip about 2% to 1.11 billion ounces as mine supply stays roughly flat — a combination that keeps drawing down above-ground stockpiles rather than closing the gap.

Much of that demand is structural rather than speculative. Industrial fabrication alone consumed roughly 657 million ounces of silver in 2025, close to 58% of total global demand, spanning solar panels, electric vehicles, semiconductors, and the buildout of AI data centers, according to an analysis by Muflih Hidayat for Discovery Alert on August 29. Roughly 70% of global silver production comes as a byproduct of copper, lead, and zinc mining, meaning higher silver prices alone don't necessarily unlock much new supply, per a separate piece by Hidayat for Discovery Alert on April 16. At the same time, retail investment in coins, bars, and exchange-traded products has surged, adding a second source of demand that competes directly with industrial users for the same physical metal, according to Liguid's INN report.

Ownership and Share Information¹

Santacruz Silver Mining Ltd. has a market cap of CA$1.18 billion, with 92.99 million shares outstanding. The company's 52-week range is CA$6.86-CA$23.90.

Institutions own 22% of shares, while management and insiders own 16%. The rest is retail.

Common Investor Questions

What did Santacruz Silver announce on September 18? The finalized purchase of a 500-tonne-per-day milling facility in Bolivia, consisting of two 250-tpd selective flotation circuits designed to recover lead and zinc alongside high silver grades. The facility will process ore exclusively from San Lucas, the company's wholly owned Bolivian subsidiary.

Why does this acquisition matter? It frees up capacity at Santacruz's three existing Bolivian processing plants, letting the company grow both its own mine output and its third-party ore-sourcing business without the two competing for the same milling capacity.

What happened with the company's stock listing on September 21? Santacruz graduated from the TSX Venture Exchange to the main Toronto Stock Exchange, continuing to trade under the ticker SCZ. The move follows the company topping the 2026 TSX Venture 50 ranking in February, after a 1,103% share-price gain and 1,137% market-cap growth in 2025.

What does Atrium Research's Ben Pirie think of the deal? Pirie maintained a Buy rating and CA$27 price target, saying the company's roughly US$72.8 million in cash and highly liquid marketable securities and strong quarterly operating cash flow should let it absorb the acquisition without straining its balance sheet. He forecasts about 11.5 million ounces silver-equivalent production in 2026 and 13.0 million in 2027.

What other catalysts is the market watching? Continued progress at the Soracaya project, the Bolivar mine reaching full recovery, and the new Bolivian mill reaching commercial production — all targeted for the fourth quarter of 2026.

What's the broader silver market backdrop? Silver is trading in a range between roughly US$60 and US$70, with the Silver Institute projecting a sixth consecutive annual supply deficit in 2026 (about 46.3 million ounces), driven by industrial demand from solar, EVs, semiconductors, and AI data centers, alongside surging retail investment in coins, bars, and ETPs.