Santacruz Silver Mining (SCZ) Q4 2025 earnings summary

Executive summary

• 2025 was a defining year with revenues up 15% to $326.4 million, profit growth over 90%, and adjusted EBITDA nearly doubling to $104.6 million, despite operational disruption at Bolivar from flooding; diversified assets and San Lucas outsourcing supported resilience.

• Net income declined 74% year-over-year due to a significant non-recurring gain in the prior year, but the company fully extinguished a $40 million Glencore obligation, strengthening the balance sheet and ending the year with $67 million in cash and marketable securities and $63.7 million in working capital.

• Q4 showed strong momentum with $100–103 million in revenue, $30 million EBITDA, and a 9% increase in silver equivalent production, mainly from Bolivar and supported by other assets.

• Operational disruption at Bolivar from flooding reduced total production by 11%, but diversified assets helped maintain profitability.

Financial highlights

• Q4 revenue was $103 million, up 28% sequentially; gross profit was $36 million, up 79% from Q3; operating income was $29 million, up $126 million from Q3.

• Net income was $42.2 million, down from $164.5 million in 2024, reflecting the absence of a prior non-cash gain; Q4 posted a net loss due to non-cash items: $11 million CVR liability revaluation and $2.1 million FX effects.

• Adjusted EBITDA rose 99% year-over-year to $104.6 million.

• Working capital increased 38% to $63.7 million.

• Inventory build-up in lead concentrate due to logistics delayed $16–20 million in revenue recognition, normalizing in Q1 2026.

Outlook and guidance

• 2026 is expected to bring improved production quality, metal recoveries, and operational consistency, with Bolivar and Zimapan as key drivers; Bolivar mine expected to fully recover by Q4 2026, with dewatering ahead of plan.

• Soracaya is in development/ramp-up phase in 2026, with commercial production targeted for 2027.

• CapEx is expected to normalize in 2026, especially at Zimapan, following significant investments in 2025.

• Enhanced MD&A disclosure planned for Q1 2026 to provide clearer performance metrics.

• Strategy centers on lowering mining costs, improving recovery rates, and maintaining operational flexibility.