The Vancouver-based miner recorded net income of $3.3 million in the second quarter, compared with a net loss of $8.49 million in the comparable year-earlier period. In the second quarter of 2017, the company booked a significant impairment charge of $5.28 million related to the sale of the Gavilanes property.

During the most recent quarter, Santacruz produced 74,175oz of silver equivalent, a 13% increase over the first quarter, but a 73% decline year-on-year.

The Mexico-based Veta Grande mine reported an 8% increase in tonnes milled and a 5% increase in silver-equivalent head grade, with a smaller contribution from increased tonnes milled at the Rosario project. Compared with the same period of 2017, the decreased production reflects 45% less tonnes milled at the Rosario project and a 24% decrease in the average silver equivalent head grade at Veta Grande.

All-in sustaining cost was $35.48/oz of payable metal, an increase of 44% from $24.62/oz in the same period of 2017 and a decrease of 8% from $38.53/oz per ounce in the first quarter this year.

"Development work in the Zacatecas Mining District at the Garcia, Armados and Navidad mines is on track and expected to reach targeted areas during Q3 2018 at which time an increase in tonnage, grades and mill recoveries is expected. As for the Rosario project, development work at the Membrillo prospect is now at Level 3 in the targeted mineralised area and preparation of production stopes is underway with the aim of being in full production by Q4 2018," COO Carlos Silva said.

The stock had lost about 55% of its value over the past 12 months and is currently trading at about C10c apiece.