Santacruz Silver Mining (SCZ) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $73.3 million, up 4% year-over-year, with EBITDA at $26.8 million and net profit of $21.0 million, reflecting strong financial performance and operational efficiency.

• Net income surged 1,348% year-over-year, driven by higher metal prices, cost optimization, and improved concentrate quality.

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

• Deferred income tax expense in Q1, related to IAS 21 and Bolivian exchange rates, impacted net profit comparability; underlying profitability remains stable.

• Despite a 15% year-over-year decrease in silver equivalent ounces produced, cost reductions and diversified sourcing supported profitability.

Financial highlights

• Revenue grew 4% year-over-year to $73.3 million; EBITDA at $26.8 million; net profit $21.0 million.

• Cash and investments reached $57.8 million at quarter-end; working capital at $60.3 million.

• 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.

• Cash flow from operations projected at $80 million for the year; EBITDA guidance at $110 million.

Outlook and guidance

• Remediation at Bolivar mine underway after water inflow event; production expected to normalize by Q4 2025.

• Production levels expected to remain stable in 2024, with potential increase in 2026.

• All-in sustaining costs projected at $20–$22/oz for mining operations; minor cost increases possible in Bolivia due to currency devaluation.

• CapEx expected to normalize and decrease after significant Q1 investments; $45 million sustaining CapEx planned over next 18 months.

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