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Santacruz Silver Reports Third Quarter 2025 Results

Financials

Santacruz Silver Reports Third Quarter 2025

Results

Vancouver, British Columbia--(Newsfile Corp. - November 27, 2025) -

Santacruz Silver Mining Ltd.

(TSXV: SCZ) (OTCQX: SCZMF) (FSE: 1SZ)

("Santacruz" or the "Company") reports its financial and

operating results for the quarter ended September 30, 2025 ("Q3 2025"). The full version of the

unaudited Q3 2025 financial statements ("Financial Statements") and accompanying Management's

Discussion and Analysis (the "MD&A") can be viewed on the Company's website at

www.santacruzsilver.com

or on SEDAR+ at

www.sedarplus.ca

. All amounts are expressed in U.S.

dollars, unless otherwise stated.

Q3 2025 Highlights

Revenues

of $79.99 million, a 2% increase year-over-year.

Gross Profit

of $20.17 million, a 28% increase year-over-year.

Net Income

of $16.34 million, a 7% decrease year-over-year.

Adjusted EBITDA

of $19.51 million, a 67% increase year-over-year.

Cash & Marketable securities

of $59.23 million, a 225% increase year-over-year.

Working Capital

of $69.20 million, a 186% increase year-over-year.

Cash cost per silver equivalent ounce sold ($/oz)

of $28.62, a 28% increase year-over-year.

AISC per silver equivalent ounce sold

of $35.62, a 30% increase year-over-year.

Silver Equivalent Ounces produced

of 3,424,817, a 30% increase year-over-year

1

.

1.

The Full Q3 2025 production results were released in a news release dated November 3, 2025.

Arturo Préstamo, Executive Chairman and CEO of Santacruz, commented: "Q3 2025 was a

transformative quarter for Santacruz. We paid off the final installment payment to Glencore for the

acquisition of our Bolivian assets, extinguishing the Base Purchase Price obligation. This eliminated a

significant liability and materially strengthened our balance sheet. Even after completing this payoff, we

closed the quarter with $69.20 million in working capital. This quarter, we also continued our trend of

year-over-year gains in profitability and cash generation, highlighted by robust growth in gross profit and

adjusted EBITDA. This performance is a testament to the strength of our business, complimented by

favorable silver prices."

Mr. Préstamo continued: "Operationally, consolidated production remained steady this quarter,

supported by strong performance at Caballo Blanco, Zimapán and San Lucas. These operations helped

offset lower silver output at the Bolívar mine, where a water inflow event in May 2025 impacted two key

production veins, Pomabamba and Nané. Remediation activities are well underway, and recovery work

in both veins is progressing in line with our formal restoration plan. Under this plan, progressive access

and production from Pomabamba and Nané are expected to resume beginning in February 2026, with

volumes increasing throughout the year and full recovery anticipated by the fourth quarter of 2026. On the

costs front, AISC for the quarter increased due to three main drivers: higher ore purchase costs at San

Lucas, related to a stronger metal-price environment, remediation-related expenditures at Bolívar due to

the flooding event, and plant improvement initiatives at Zimapán to enhance metallurgical performance.

Additionally, the appreciation of the Bolivian boliviano, supported by positive market sentiment toward

the newly elected government, contributed to increased costs across our Bolivian operations.

Nevertheless, year-to-date AISC remains in the mid-20s, consistent with our expectations. Looking

ahead, Santacruz remains focused on operational efficiency, maintaining a strong balance sheet, and

delivering sustainable long-term value for our shareholders."

Selected consolidated financial and operating information for Q3 2025, Q2 2025 and Q3 2024 is

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 Third Quarter Highlights

2025 Q3

2025 Q2

Change

Q3 vs Q2

2024 Q3

Restated

(7)

Change

'25 Q3

vs '24 Q3

2025 YTD

2024 YTD

Restated

(7)

Change

'25 YTD

vs

'24 YTD

Operational

Material Processed (tonnes milled)

486,585

480,863

1%

491,260

(1%)

1,439,221

1,462,764

(2%)

Silver Equivalent Produced (ounces)

(1)

3,424,817

3,547,054

(3%)

4,033,214

(15%)

10,660,000

12,075,966

(12%)

Silver Ounces Produced

1,241,929

1,423,081

(13%)

1,703,387

(27%)

4,255,073

4,956,694

(14%)

Zinc Tonnes Produced

21,581

21,148

2%

23,143

(7%)

63,449

71,042

(11%)

Lead Tonnes Produced

2,603

2,773

(6%)

3,027

(14%)

8,094

8,888

(9%)

Copper Tonnes Produced

331

229

45%

270

23%

839

809

4%

Silver Equivalent Sold (payable ounces)

(2)

2,474,103

2,993,136

(17%)

3,601,754

(31%)

8,526,795

10,636,832

(20%)

Cash Cost of Production per Tonne

(3)

100.11

81.95

22%

110.50

(9%)

85.23

99.66

(14%)

Cash Cost per Silver Equivalent Ounce

Sold ($/oz)

(3)

28.62

19.48

47%

22.38

(28%)

21.54

21.74

(1%)

All-in Sustaining Cash Cost per Silver

Equivalent Ounce Sold ($/oz)

(3)

35.62

22.95

55%

27.40

(30%)

26.41

25.53

3%

Average Realized Price per Ounce of Silver

Equivalent Sold ($/oz)

(2) (3) (4)

40.13

32.37

24%

29.86

34%

34.43

27.75

24%

Financial

Revenues

79,989

73,295

9%

78,244

2%

223,598

201,318

11%

Gross Profit

20,166

25,288

(20%)

15,721

28%

73,313

31,976

129%

Net Income

(5)

16,344

20,977

(22%)

17,534

(7%)

46,772

151,642

(69%)

Net Earnings) Per Share - Basic ($/share)

0.05

0.06

(17%)

0.03

67%

0.13

0.41

(68%)

Adjusted EBITDA

(3)

19,509

26,770

(27%)

14,960

30%

73,795

29,608

149%

Cash and Cash Equivalent

40,018

39,997

0%

18,242

119%

40,018

18,242

119%

Working Capital

69,208

60,295

15%

24,191

186%

69,208

24,191

186%

Year to Date Production Summary - By Mine

Bolivar

(6)

Porco

(6)

Caballo Blanco

Group

San Lucas

Group

Zimapán

Total

Material Processed (tonnes milled)

169,181

143,815

171,642

282,218

670,364

1,439,221

Silver Equivalent Produced (ounces)

(1)

1,808,427

1,047,058

2,052,152

2,785,374

2,966,990

10,660,000

Silver Ounces Produced

857,653

318,439

902,576

941,528

1,234,877

4,255,073

Zinc Tonnes Produced

10,394

7,948

11,654

19,690

13,763

63,449

Lead Tonnes Produced

487

396

1,804

1,565

3,843

8,094

Copper Tonnes Produced

N/A

N/A

N/A

N/A

839

839

Average head grades per mine:

Silver (g/t)

176

82

176

124

78

111

Zinc (%)

6.72

5.82

7.24

7.78

2.69

5.02

Lead (%)

0.42

0.39

1.28

0.88

0.73

0.75

Copper (%)

N/A

N/A

N/A

N/A

0.26

0.26

Metal recovery per mine:

Silver (%)

89

83

93

83

74

81

Zinc (%)

91

94

94

90

76

85

Lead (%)

70

69

82

63

79

74

Copper (%)

N/A

N/A

N/A

N/A

47

48

Silver Equivalent Sold (payable ounces)

(2)

1,604,966

850,689

1,643,070

2,106,449

2,321,622

8,526,795

Notes for both tables above:

(1)

Silver Equivalent Produced (ounces) for Q3 2025 have been calculated using prices of $31.41/oz, $2,775.53/t, $2,085.90/t and $9,762.69/t for

silver, zinc, lead and copper respectively applied to the metal production divided by the silver price as stated here.

(2)

Silver Equivalent Sold (payable ounces) have been calculated using the Average Realized Price per Ounce of Silver Equivalent Sold stated in the

table above, applied to the payable metal content of the concentrates sold from Bolivar, Porco, the Caballo Blanco Group, San Lucas Group and

Zimapán.

(3)

The Company reports 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. See ''Non-GAAP Measures'' section below for definitions.

(4)

Average Realized Price per Ounce of Silver Equivalent Sold is prior to all treatment, smelting and refining charges.

(5)

2024 YTD Net Income includes a one-time gain on the adjustment to consideration payable of $133,255 recorded in Q1 2024.

(6)

Bolivar and Porco are presented at 100% whereas the Company records 45% of revenues and expenses in its consolidated financial statements.

(7)

The revenues, gross profit, net loss, net loss per share, Adjusted EBITDA, and working capital deficiency were restated as a result of

corrections made to the 2023 comparatives. Refer to Note 5 in the Q3 2025 financial statements for further details and impacts of the restatement.

Production Results

In the nine months ended 2025, the Company processed 1,439,221 tonnes of ore, producing

10,660,000 silver equivalent ounces. This total includes 4,255,073 ounces of silver and 63,449 tonnes of

zinc. Full Q3 2025 production results were released in a news release dated November 3, 2025.

Q3 2025 vs Q2 2025

In Q3 2025, Santacruz maintained stable consolidated operations despite the full-quarter impact of the

mid-May water inflow at the Bolívar mine, which continued to restrict access to the Pomabamba and

Nané high-grade zones. Bolívar's silver equivalent production declined quarter-over-quarter, driven by

materially lower silver head grades (-53%) and reduced silver output (-57%), while dewatering and

rehabilitation advanced with the commissioning of the fourth pumping line in September and the initiation

of a fifth submersible line.

Despite the pressure at Bolívar, the rest of the portfolio delivered consistent results. Caballo Blanco

increased milled tonnes and achieved higher silver equivalent production, San Lucas contributed

additional volume and supported stable plant utilization, and Zimapán delivered modest gains in silver

equivalent output driven by stronger zinc grades. These operations helped absorb part of the temporary

impact from Bolívar and supported overall quarterly performance.

Q3 2025 vs Q3 2024

Compared with Q3 2024, Santacruz's consolidated production reflected the year over year impact of the

Bolivar flooding event, which continued to limit access to silver high grade zones and resulted in lower

silver output (-73%) and reduced silver equivalent production (-54%). Despite this, the company

sustained a broadly resilient operating profile across it diversified asset base.

Outside of Bolívar, the portfolio showed solid year-over-year production. Caballo Blanco delivered higher

production, supported by stronger grades and better recoveries. San Lucas continued to play a key role

in sustaining throughput at the group level, while Zimapán operated consistently, posting higher zinc

production supported by improved stope development and feed quality. These contributions helped

moderate the impact from Bolívar and provided stability in the consolidated results relative to last year.

Cash Cost and All-in Sustaining Cost per Silver Equivalent Ounce Sold

Q3 2025 vs Q2 2025

Consolidated unit costs increased in Q3, mainly due to the ongoing situation at Bolívar mine and the

appreciation of the Bolivian boliviano. The water inflow at Bolívar continued to limit access to high-grade

zones and required sustained pumping and rehabilitation, driving Bolivar's cash cost to $34.51/oz and

AISC to $50.89/oz. At the consolidated level, cash cost rose to $28.62/oz and AISC to $35.62/oz.

The 31% appreciation of the boliviano during the quarter also increased USD-equivalent costs across all

Bolivian operations. This currency movement reflects greater market confidence in the new government,

which is positive for the broader business environment, although it raises operating costs when

translated into USD.

At San Lucas, higher silver and zinc prices increased ore purchase costs in line with its margin-based

sourcing model, where reported cost per ounce rises with metal prices but margins remain stable.

In Mexico, Zimapán recorded only a modest increase in costs quarter-over-quarter, with cash cost up 1%

and AISC up 7%, reflecting scheduled mine and plant investments aimed at improving metallurgical

recoveries.

Q3 2025 vs Q3 2024

Compared to Q3 2024, consolidated AISC increased to $35.62/oz from $24.27/oz, largely driven by

Bolívar, where the impact of the water inflow and ongoing recovery work pushed AISC to $50.89/oz. The

stronger boliviano also elevated USD-equivalent operating costs year-over-year, again reflecting the

improved political outlook following the change in government.

At San Lucas, higher silver and zinc prices increased ore purchase costs in line with its margin-based

sourcing model, where reported cost per ounce rises with metal prices but margins remain stable.

Zimapán posted a more notable year-over-year increase, with cash cost rising 19% and AISC 27%,

consistent with ongoing mine development at level 960 and plant upgrades intended to improve

recoveries.

Webinar Details

CEO Arturo Préstamo and CFO Andrés Bedregal will present at a webinar hosted by Adelaide Capital

on Friday, December 5th at 2:00 pm ET. Investors and shareholders are invited to participate in the

webinar.

Registration Link:

https://us02web.zoom.us/webinar/register/WN_cpNMhvqCQCWQD42uCAiIyw

.

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

[email protected]

.

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 Q3 2025 Management Discussion and Analysis, which is available

on SEDAR+ at

www.sedarplus.ca

.

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.

'signed'

Arturo Préstamo Elizondo,

Executive Chairman and CEO

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

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 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.

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 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.

To view the source version of this press release, please visit

https://www.newsfilecorp.com/release/276218