Earnings

Highlander Silver posts wider quarterly loss as mine generates revenue

The Tip Desk · November 12, 2026 · 3 min read

The company’s net loss widened to US$17.1 million for the three months ended Sept. 30, 2026, as exploration expenses increased.

The mineral-property developer and gold and silver producer Highlander Silver Corp. (HSLV) reported third-quarter revenue of US$37.7 million from its Mercedes Mine and a loss of US$0.08 a share. A year earlier, Highlander Silver had no revenue and reported a restated loss of US$0.03 a share.

The revenue followed Highlander Silver’s February acquisition of Bear Creek Mining Corporation, which held the Mercedes Mine in Mexico and the Corani Project in Peru. The company sold 8,368 ounces of gold and 41,829 ounces of silver from Mercedes during the quarter. Mine-related cost of sales was US$24 million, including production expenses, royalties and other costs.

Highlander Silver reported gross profit of US$17.5 million for the quarter. That figure included a net recovery of US$3.7 million for depletion, amortization and depreciation. The company said a US$17.7 million reversal of depletion previously recognized in the first half offset the quarter’s depletion and depreciation. The reversal followed revised fair values in the Bear Creek purchase price allocation.

Exploration expenses increased to US$22.3 million from US$2.1 million a year earlier, exceeding quarterly gross profit. General and administrative expenses rose to US$3.9 million from US$1.1 million. Those costs included US$1.8 million of share-based compensation, compared with US$350,000 in the prior-year quarter.

Finance costs also rose, reaching US$6.5 million from US$4,000. Interest and other income increased to US$2.1 million from US$126,000, and Highlander Silver recorded US$3.1 million of deferred income tax expense. The company’s quarterly net loss compared with a restated US$3.1 million loss a year earlier.

For the first nine months of 2026, revenue was US$94 million, compared with none in the restated prior-year period. The net loss was US$8.5 million, compared with US$8.2 million a year earlier. The 2026 result included a US$28.5 million gain from remeasuring Highlander Silver’s previously held equity interest in Bear Creek.

Cash and cash equivalents fell to US$68.1 million at Sept. 30 from US$99.3 million at the start of the quarter. During the quarter, Highlander Silver spent US$13 million on property and equipment, placed US$7 million in a short-term investment and made US$3.9 million in deposits on non-current assets.

The company issued 36.2 million shares in the Bear Creek acquisition, with a recorded value of US$257 million net of issue costs. In January, it also issued 8.1 million shares at C$6.80 each in a private placement that raised gross proceeds of US$40 million.

Highlander Silver’s projects include Corani in Peru, acquired through Bear Creek. Its plan for the San Luis Project is to advance it through integrated exploration, environmental and community development programs.