Santacruz Silver Mining (SCZ) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $73.3 million, up 4% year-over-year, with net income surging 1,348% to $21.0 million and adjusted EBITDA at $26.8 million, reflecting strong operational efficiency and cost control.

• Cash and investments totaled $57.8 million, a 691% increase year-over-year, and working capital rose 303% to $60.3 million.

• Net income growth was driven by higher silver and zinc prices, favorable macroeconomic trends, stable production, and cost optimization.

• A one-time deferred income tax expense in Q1, related to IAS 21 and Bolivian exchange rates, impacted comparability; underlying profitability remains strong.

• Despite a 15% year-over-year production decline due to water inflow at Bolívar, cost reductions and diversified sourcing supported profitability.

Financial highlights

• Revenue grew 4% year-over-year to $73.3 million; gross profit up 59% to $25.3 million.

• Net income reached $21.0 million, a 1,348% increase year-over-year; adjusted EBITDA up 68% to $26.8 million.

• Cash and investments totaled $57.8 million, up 691% year-over-year; working capital at $60.3 million, up 303%.

• Cash cost per silver equivalent ounce sold decreased 10% year-over-year to $19.48; AISC per ounce down 8% to $22.95.

• Silver equivalent ounces produced fell 15% year-over-year to 3,547,054 due to water inflow at Bolívar, with remediation on track for Q4 recovery.

Outlook and guidance

• Remediation at Bolívar mine is underway after water inflow, with production expected to normalize by Q4 2025.

• Management expects stable production for 2024, with a slight increase possible in 2026; Q4 is typically the strongest quarter.

• Soracaya project is set for significant development, aiming for permitting next year and eventual production of 4 million ounces of silver annually.

• No dividends or share buybacks planned for 2024; focus remains on organic growth and strengthening the balance sheet.

• Focus remains on operational efficiency, balance sheet strength, and sustainable long-term growth.