Liberty All-Star Equity Fund reports Q2 2026 revenue of $46M, up 71% YoY, driven by higher silver prices and operational improvements at Galena.
Liberty All-Star Equity Fund reported Q2 2026 revenue of approximately $46 million, a 71% increase year-over-year compared to $27 million in Q2 2025, significantly driven by higher realized silver prices. The substantial revenue growth places the company on a solid trajectory for the remainder of the year, particularly as it begins to realize improved operational efficiencies at its Galena and Kosala projects.
Key Takeaways
- Revenue surged to approximately $46 million, a 71% increase YoY, driven primarily by higher silver prices.
- Average realized silver price for Q2 was $67 per ounce, compared to $34 per ounce in the prior year.
- Net loss narrowed to approximately $5 million or $0.02 per share, an improvement from a net loss of $15 million or $0.06 per share in Q2 2025.
- Adjusted EBITDA increased to approximately $12 million or $0.04 per share, compared to an adjusted EBITDA loss of $4.1 million in Q2 2025.
- Cash costs per silver ounce sold decreased to $25.68, largely due to improved recoveries and higher grades at the Kosala project.
Significant Revenue Growth Driven by Silver Prices
Revenue for the quarter reached approximately $46 million, marking a notable 71% increase compared to $27 million in the same quarter of the previous year. This surge is primarily attributed to the average realized silver price, which saw a substantial rise to $67 per ounce from $34 per ounce in Q2 2025. The increase in revenue illustrates the company’s ability to capitalize on favorable market conditions in the precious metals sector.
| Metric | Q2 2026 | YoY | QoQ |
|---|---|---|---|
| Revenue | $46M | +71% | N/A |
| Average Realized Silver Price | $67/oz | +97% | N/A |
| Net Loss | -$5M | +67% | N/A |
| Adjusted EBITDA | $12M | N/A | N/A |
Operational Improvements at Galena
The operational enhancements at the Galena complex have been integral to the company’s performance. The completion of the number three shaft modernization has increased hoisting throughput from approximately 42 tons per hour to a sustained rate of 85 tons per hour, with peak performance reaching 105 tons per hour. This improvement allows Liberty All-Star to efficiently scale its production, crucial for meeting future demand.
“The upgrades have increased the hoisting throughput... and these upgrades are a critical part of our de-risking and growth plan,” said Paul Hewitt, CEO.
The company also noted that it has made significant progress in waste development at both Galena and its other operations, positioning itself to enhance production rates in the upcoming quarters.
Settling Precious Metals Obligations Strengthens Balance Sheet
A strategic move during the quarter was the settlement of the remaining precious metals delivery obligations, including those to Sprott Mining Inc. and Royal Gold. This settlement simplifies the company’s capital structure and alleviates future cash debt service requirements.
The transactions have removed over $76 million in future variable metal price linked obligations and more than $28 million in annual debt servicing obligations, resulting in only 3.3% dilution to shareholders. This shift is expected to enhance operational execution and silver price performance directly benefiting shareholders.
Guidance and Future Outlook
Management reiterated its guidance for the second half of 2026, indicating confidence in achieving production targets. The company expects to produce 60% of its guidance in the second half of the year, attributed to the ramp-up of operations following infrastructure investments made in Q2.
“Q2 was always designed to be a quarter in which we were going to invest in infrastructure… we’re seeing days of 1,200 tons a day, which is the first time our mine's ever seen that,” stated Hewitt during the Q&A session.
The company is well-positioned to benefit from both increased production capabilities and favorable silver market conditions, as it continues to leverage the high-grade resources at its Galena and Kosala projects.
Frequently Asked Questions
Did Liberty All-Star Equity Fund beat earnings estimates in Q2 2026?
Yes, the company reported a net loss of approximately $5 million, or $0.02 per share, which was better than the previous year's loss of $15 million or $0.06 per share, indicating improved financial performance.
What drove the revenue increase for Liberty All-Star in Q2 2026?
The revenue increase was primarily driven by higher realized silver prices, which jumped to an average of $67 per ounce in Q2 compared to $34 per ounce in the same quarter last year.
How did the production levels change at Galena?
Production levels improved significantly with the completion of the modernization project, increasing hoisting capacity to 85 tons per hour, allowing for more efficient operations.
What are the future plans for Liberty All-Star's operations?
The company plans to continue ramping up production in H2 2026, leveraging infrastructure investments made in Q2 and focusing on enhancing operational efficiencies at Galena and Kosala.
The next quarter will be critical in determining how well the company can translate its operational improvements into sustained growth and profitability.
This analysis is based on public earnings call materials and is not investment advice.
