Santacruz Silver Mining (SCZ) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw a transformative period with the final Glencore installment paid off, eliminating a major liability and strengthening the balance sheet.

• Revenues grew 2% year-over-year to $79.99 million, with gross profit up 28% and adjusted EBITDA up 67%.

• Adjusted EBITDA rose 30–67% year-over-year, driven by favorable silver prices, cost optimization, and Bolivian currency depreciation.

• Net income declined 7% year-over-year to $16.34 million, mainly due to higher foreign income taxes and increased costs.

• Production was steady overall, with strong performance at Caballo Blanco, Zimapán, and San Lucas offsetting lower output at Bolívar due to a significant water inflow event.

Financial highlights

• Revenues reached $79.99 million, up 2% year-over-year and 9% sequentially.

• Gross profit was $20.17 million, a 28% increase year-over-year but down 20% sequentially.

• Adjusted EBITDA rose 67% year-over-year to $19.51 million.

• Q3 ended with $69.20 million in working capital and $59.23 million in cash and marketable securities, both up significantly year-over-year.

• Inventory rose from $38 million in Q2 to $50 million in Q3, mainly due to operational and logistical reasons.

Outlook and guidance

• Remediation at Bolívar is progressing, with production from affected veins expected to resume in February 2026 and full recovery by Q4 2026.

• All-in sustaining costs are expected to revert to the mid-20s range by March or early Q2 next year.

• Positive production trends at Caballo Blanco, Zimapán, and San Lucas are expected to continue into Q4 and 2026.

• Soracaya mine is anticipated to be fully permitted by summer 2026, with commercial production targeted 1.5 years after permitting.