Safi Silver (SF) Q2 2025 earnings summary

Executive summary

• Achieved underground production milestone of 980 tons per day for 30 consecutive days, 13 months ahead of schedule, fulfilling a key agreement and de-risking operations.

• Processed 77,300 tons with a copper recovery rate of 92.1%; current mill capacity is 900–1,000 tons per day, with plans to expand to 60,000 tons per month.

• Strategic shift to focus on high-grade underground ore, pausing open-pit mining to improve copper grade and profitability; commercial underground production declared April 30, 2024.

• Announced plan to sell the Kombat Mine, including the stream and liabilities, to avoid shareholder dilution and unlock capital for new projects.

• Negative adjusted EBITDA of $1.4 million, impacted by pump failure, lower grades, and higher lead content.

Financial highlights

• Produced 2,137,159 lbs of copper at a C1 cash cost of $3.46 per pound; silver production was 33,852 oz.

• Q2 revenue was $7.16 million, down from $10.03 million in the previous quarter.

• Gross profit was negative $2.2 million, compared to positive $1.9 million sequentially.

• Net loss attributable to shareholders was $6.24 million, or $0.16 per share.

• Cash, cash equivalents, and short-term investments totaled $909,000 at quarter end.

Outlook and guidance

• 2025 copper production guidance revised down to 8.3–9.25 million lbs from prior 12.1–13.4 million lbs.

• Expected mined and processed copper grades reduced to 1.52%–1.79%.

• Mill expansion planned to double throughput and reduce costs, with mining at Shaft 3 expected to commence next year.

• Proceeds from the Kombat Mine sale (estimated at $30–$50 million USD) will be used for dividends and to fund exploration at Kalahari and Addana projects.

• No new equity dilution anticipated; transaction subject to shareholder vote, with payout to follow shortly after approval.