Santacruz Silver Mining (SCZ) Nordic Funds and Mines Conference 2024 summary

Strategic overview and recent developments

• Operates four producing mines and one trading company across Bolivia and Mexico, targeting mid-tier silver and base metals status.

• Completed a major restructuring of Bolivian asset acquisition from Glencore, reducing future payment obligations to a single $40 million payment due November 2025, with options for annual installments.

• Retained value-added tax credits (~$58 million) and concentrate inventory ($9 million), and eliminated a 1.5% NSR, improving transaction terms.

• Maintains strong community relations and sustainability practices aligned with UN standards, investing nearly $2 million in Bolivian initiatives this year.

• Focused on increasing institutional investor awareness and maintaining a clean balance sheet with no bank debt, aside from Glencore and a small Trafigura obligation.

Financial position and liquidity

• Current liquidity stands at approximately $140 million, with $20 million in cash and access to a $60 million bond program and $25 million in unused revolving credit.

• Actively collecting value-added tax credits, expecting a $15 million inflow before December.

• All mines are cash flow positive, with Q4 adjusted EBITDA near $17 million.

• Sustaining capital expenditures are funded from internal cash flow, with plans to pay Glencore ahead of schedule.

• No significant currency risk due to natural hedging; most costs in local currencies, revenues in USD, benefiting from local currency depreciation.

Operational highlights and mine performance

• Produces about 20 Moz silver equivalent annually, with the strongest output in Bolivia during Q4.

• Bolívar Mine features modern infrastructure and significant geological upside, producing 1 Moz silver equivalent quarterly.

• Porco Mine, with a 500-year history, is improving efficiency by reverting to artisanal mining methods, maintaining profitability.

• Caballo Blanco group increased output via new interconnecting ramps, enhancing ore extraction and mill efficiency.

• Zimapán Mine in Mexico leverages automation for high-volume, low-cost production, with new high-grade zones boosting head grades.