Santacruz Silver Reports First Quarter 2025 Results
Santacruz Silver Reports First Quarter 2025
Results
VANCOUVER, BC
,
June 12, 2025
/CNW/ -
Santacruz Silver Mining Ltd.
(TSXV:SCZ)
(OTCQB:SCZMF) (FSE:1SZ) ("Santacruz" or the "Company") reports its financial and operating
results for the quarter ended
March 31, 2025
("Q1 2025"). The full version of the Q1 2025 financial
statements ("Financial Statements") and accompanying Management's Discussion and Analysis (the
"MD&A") can be viewed on the Company's website at
w
ww.santacruzsilver.com
or on SEDAR+ at
www.sedarplus.ca
.
All amounts are expressed in U.S. dollars, unless otherwise stated.
Q1 2025 Highlights
Revenues
of
$70.3 million
, a 34% increase year-over-year.
Gross Profit
of
$27.9 million
, a 6882% increase year-over-year.
Net Income
of
$9.5 million
, a 93% decrease year-over-year
1
.
Adjusted EBITDA
of
$27.5 million
, a 2202% increase year-over-year.
Cash and cash equivalents
of
$32.5 million
, a 706% increase year-over-year.
Working Capital
of
$51.7 million
, a 7530% increase year-over-year.
Cash cost per silver equivalent ounce sold ($/oz)
of
$17.84
, a 16% decrease year-over-
year.
AISC per silver equivalent ounce sold
of
$22.34
, a 8% decrease year-over-year.
Silver Equivalent Ounces produced
of 3,688,129, a 5% decrease year-over-year
2
.
___________________________
1. The decrease in Net Income is related to an extraordinary gain recorded in Q1 2024 from the adjustment to the consideration payable. Please refer to Note 10 of the financial
statements for further details.
2. The Full Q1 2025 production results were released in a news release dated June 9, 2025.
Arturo Préstamo, Executive Chairman and CEO of Santacruz, commented: "Q1 2025 represents a
strong beginning to the year, reflecting our continued emphasis on operational efficiency and financial
discipline. We achieved a notable year-over-year improvement in profitability and cash generation,
with gross profit, and adjusted EBITDA all registering substantial growth. These results underscore
the strength, flexibility, and scalability of Santacruz's business model. We remain firmly focused on
driving long-term value through disciplined capital allocation and a commitment to safety and
operational excellence."
Mr. Préstamo continued, "We maintained a strong liquidity position at quarter-end, closing with
$33
million
in cash and cash equivalents. This was achieved despite a
$10 million
payment under the
voluntary acceleration plan and the settlement of more than
$19 million
of 2024 current income tax.
These outcomes reflect the strength of our underlying cash flows and our prudent approach to
financial management, which continue to support our strategic priorities as we strengthen our
balance sheet integrity. Backed by a seasoned team in
Mexico
,
Bolivia
, and
Canada
, along with a
flexible and efficient operating model and a strong track record of execution, we are well-positioned
to take advantage of today´s metal prices and keep delivering sustainable, long-term value for our
shareholders."
Selected consolidated financial and operating information for Q1 2025 and Q1 2024 and Q4 2024
are presented below. All financial information is prepared in accordance with International Financial
Reporting Standards ("IFRS"), and all dollar amounts are expressed in thousands of US dollars,
except per unit amounts, unless otherwise noted.
2025 First Quarter Highlights (CNW Group/Santacruz Silver Mining Ltd.)
2025 First Quarter Production and Costs per Mine (CNW Group/Santacruz Silver Mining Ltd.)
Production
In Q1 2025, the Company processed 471,773 tonnes of ore, producing 3,688,129 silver equivalent
ounces. This total includes 1,590,063 ounces of silver and 20,719 tonnes of zinc.
Q1 2025 vs Q4 2024
In Q1 2025, ore processed was slightly lower than in Q4 2024, reflecting the typical seasonal
slowdown, particularly across Bolivian operations, as well as scheduled mine sequencing and
temporary constraints that modestly impacted throughput. Notably, Zimapán had a 3% increase in
processed mineralized material, supported by sustained operational efficiency and continuous
optimization efforts. Silver equivalent production was 10% lower, primarily due to reduced head
grades and throughput. Silver output declined by 10%, while zinc production was 11% lower,
consistent with the expected mine plan for the quarter. Despite these lower volumes, the Company
remained focused on maximizing margins by prioritizing higher-silver-content zones. With temporary
constraints now resolved and silver prices trending favorably, operations are well-positioned to
deliver strong cash flow generation throughout the year.
Q1 2025 vs Q1 2024
In Q1 2025, consolidated operational performance remained stable year-over-year, with total tonnes
processed virtually unchanged compared to Q1 2024. Silver equivalent production was 5% lower,
reflecting the impact of temporary operational constraints and expected ore body variability at
certain Bolivian operations. Despite these factors, silver output remained flat, supported by higher
silver head grades at key operations and improved metallurgical recoveries, particularly at the
Caballo Blanco Group. Zinc production decreased by 9%, primarily due to lower throughput and
head grades at Porco and Caballo Blanco, partially offset by strong results at Zimapán, where zinc
output rose 23% year-over-year. Zimapán also led overall growth, increasing material processed by
9% and silver equivalent production by 14%, highlighting its operational improvements, as we
develop and prepare level 960 now with all required underground equipment at site. The strategic
reorganization of the Caballo Blanco and
San Lucas
, particularly the reallocation of Reserva mine's
output, also contributed to improved metallurgical efficiency and stable margins. These results
highlight the flexibility provided by the Company's diversified asset base and its focus on maximizing
recoveries.
Cash Cost and All-in Sustaining Cost per Silver Equivalent Ounce Sold
Starting
January 1, 2025
, Bolivian operations adopted a new exchange rate methodology supported
by IAS 21, replacing the fixed official rate (6.96 BOB/USD) with a market-based spot rate (average
12.20 BOB/USD) obtained from banks. Under IAS 21, entities should estimate a spot rate at which
an orderly exchange transaction would take place between market participants under prevailing
economic conditions. Recording BOB denominated transactions in USD using the market-based rate,
provides a more accurate representation of the economic reality of the underlying transactions.
Q1 2025 vs Q4 2024
Costs improved notably in Q1 2025 when compared to Q4 2024, with consolidated cash cost and
AISC per silver equivalent ounce sold decreasing to
$17.84
and
$22.34
, respectively, from
$22.38
and
$27.83
. This improvement was mainly driven by the Bolivian operations (Bolívar, Porco, Caballo
Blanco, and
San Lucas
) which reported significant reductions across all cost metrics. Caballo Blanco
Group saw the most considerable improvements. In contrast,
Zimapan's
AISC increased from
$27.13
to
$34.32
/oz, as a significant portion of its annual capital budget was deployed during Q1 to
accelerate key investments aimed at increasing future production at
Carrizal
mine level 960.
Q1 2025 vs Q1 2024
Compared to Q1 2024, there were substantial cost improvements during Q1 2025. Consolidated
cash cost decreased from
$21.19
to
$17.84
/oz, and AISC from
$24.27
to
$22.34
/oz. The most
notable improvements came from Caballo Blanco, where AISC dropped significantly due to better
metallurgical performance as a consequence of achieving improvements and efficiencies at
underground and milling operations. Zimapán, however, recorded an increase in AISC to
$34.32
/oz
(from
$22.59
), as a substantial portion of its budgeted CAPEX was executed in Q1 to bring forward
investments that support higher production in upcoming quarters at
Carrizal
mine at level 960.
Webinar Details
CEO
Arturo Préstamo
and Interim CFO Andrés Bedregal will present at a webinar hosted by
Adelaide Capital on
Thursday, June 19th
at
2:00 pm ET
. Investors and shareholders are invited to
participate in the webinar.
Registration Link:
https://streamyard.com/watch/FayzTiuRwtTm
.
The webinar will also be live-streamed on the Adelaide Capital YouTube Channel, where a replay
will be available after the event:
https://bit.ly/adcap-youtube
.
Questions can be submitted during the session or in advance to
.
Qualified Person
Qualified Person Garth Kirkham P.Geo. an independent consultant to the Company, is a qualified
person under NI 43-101 and has approved the scientific and technical information contained within
this news release.
About Santacruz Silver Mining Ltd.
Santacruz Silver
is engaged in the operation, acquisition, exploration, and development of mineral
properties across
Latin America
. In
Bolivia
, the Company operates the Bolivar, Porco, and Caballo
Blanco mining complexes, with Caballo Blanco comprising the Tres Amigos and Colquechaquita
mines. The Reserva mine, whose production is provided to the
San Lucas
ore sourcing and trading
business, is also located in
Bolivia
. Additionally, the Company oversees the Soracaya exploration
project. In
Mexico
, Santacruz operates the Zimapán mine.
Non-GAAP Measures
The financial results in this news release include references to non-GAAP measures, which include
Cash Cost of Production per Tonne, Cash Cost per Silver Equivalent Ounce Sold, All-in Sustaining
Cash Cost per Silver Equivalent Ounce Sold, Average Realized Price per Ounce of Silver Equivalent
Sold, and Adjusted EBITDA. These measures are widely used in the mining industry as a benchmark
for performance but do not have a standardized meaning and may differ from methods used by
other companies with similar descriptions. The data is intended to provide additional information and
should not be considered in isolation or as a substitute for measures of performance prepared in
accordance with GAAP. For a reconciliation of non-GAAP and GAAP measures, please refer to the
"Non-GAAP Measures" section in the Company's Q1 2025 Management Discussion and Analysis,
which is available on SEDAR+ at
www.sedarplus.ca
.
'signed'
Arturo Préstamo Elizondo,
Executive Chairman and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward Looking Information
This news release includes certain statements and information that may constitute forward-looking
information within the meaning of applicable Canadian securities laws. Forward-looking statements
relate to future events or future performance and reflect the expectations or beliefs of the
management of the Company regarding future events. Generally, forward-looking statements and
information can be identified by the use of forward-looking terminology such as "intends",
"expects" or "anticipates", or variations of such words and phrases or statements that certain
actions, events or results "may", "could", "should", "would" or will "potentially" or "likely" occur.
This information and these statements, referred to herein as "forward-looking statements", are not
historical facts, are made as of the date of this news release and include without limitation,
statements regarding the Company's payment of the Acceleration Option.
These forward-looking statements involve numerous risks and uncertainties and actual results
might differ materially from results suggested in any forward-looking statements. These risks and
uncertainties include, among other things, risks that the Company may not have sufficient funds to
exercise the Acceleration Option, risks related to changes in general economic, business and
political conditions, including changes in the financial markets, changes in applicable laws, and
compliance with extensive government regulation, as well as those risk factors discussed or
referred to in the Company's disclosure documents filed with the securities regulatory authorities in
certain provinces of
Canada
and available at
www.sedarplus.ca
.
There can be no assurance that any forward-looking information will prove to be accurate, as
actual results and future events could differ materially from those anticipated in such statements.
Accordingly, the reader should not place any undue reliance on forward-looking information or
statements. The Company undertakes no obligation to update forward-looking information or
statements, other than as required by applicable law.
SOURCE
Santacruz Silver Mining Ltd.
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For further information:
For further information please contact: Arturo Préstamo, Santacruz Silver
Mining Ltd., Email: [email protected], Telephone: +52 81 83 785707; Andrés Bedregal,
Santacruz Silver Mining Ltd., Email: [email protected], Telephone: +591 22444849
CO: Santacruz Silver Mining Ltd.
CNW 18:58e 12-JUN-25