Santacruz Silver Mining (SCZ) Q3 2024 earnings summary

Executive summary

• Q3 2024 production reached 4.6 million ounces of silver equivalent, with 1.7 million ounces of pure silver and significant zinc output; annualized, this equates to 7 million ounces of silver and 150,000 tons of zinc concentrate.

• Revenue for Q3 2024 rose 21% year-over-year to $78 million, driven by higher silver prices and increased sales volumes from Bolivian and Mexican mines.

• Adjusted EBITDA surged 242% year-over-year to $15.8 million, reflecting operational improvements and favorable metal prices.

• Operations span four producing assets (three in Bolivia, one in Mexico) and an ore sourcing business, providing geographic and operational diversification.

• Strategic restructuring of the Bolivian and San Lucas operations improved recoveries, concentrate quality, and operational efficiency, with no additional CapEx required.

Financial highlights

• Q3 revenues were $78 million, EBITDA nearly $16 million, operating cash flow $21 million, and cash equivalents at $18 million.

• Gross profit doubled year-over-year to $14.8 million in Q3 2024.

• Net income reached $4.1 million, reversing a $4.3 million loss in Q3 2023.

• All-in sustaining costs rose to $27.40/oz in Q3, driven by increased investments and higher ore costs at San Lucas; expected to normalize in Q4.

• Average realized price per ounce of silver equivalent sold rose 18% year-over-year to $29.86.

Outlook and guidance

• Production volumes are expected to increase across all mines in 2024, with higher silver and copper output anticipated in Mexico.

• Operational efficiencies and productivity improvements are projected to further enhance margins and output.

• All-in sustaining costs are expected to revert to the year-to-date average as recent investments yield benefits.

• Focus remains on disciplined cost optimization and productivity improvements at mines and milling facilities.

• Enhanced silver recovery processes at the Don Diego facility are expected to drive consistent performance and maximize resource value.