SCZ: Q4 Production Highlights Strong QoQ Improvement
What you need to know:• Santacruz reported Q4/25 production of 3.74Moz AgEq, up 9% QoQ and beating our 3.48Moz by 7%, driven by strong recovery at the Bolivar Mine.
• Bolivar production of 565.7Koz increased 34% QoQ from 420.6Koz as recovery plans continue to progress.
• Q4 production also included strong quarters from Caballo Blanco, San Lucas, and Zimapán, beating our estimates by 10%, 10%, and 14%, and demonstrating the strength of SCZ’s multi-asset portfolio.
This morning, Santacruz Silver (SCZ:TSXV, SCZM:NASDAQ) announced Q4/25 production results from its operating mines and San Lucas ore sourcing business, which totalled 3.74Moz AgEq, marking a 9% QoQ increase from 3.42Moz in Q3 as a result of a significant recovery at the Bolivar Mine, combined with strong performances across the portfolio. Silver-equivalent production in the quarter included 1.34Moz Ag, 23.8Kt An, 3.0Kt Pb, and 0.3Kt Cu. In 2025, consolidated production totalled 14.4Moz AgEq versus 16.2Moz in 2024 (-11%) due to Bolivar’s May flood. Sustained QoQ production growth at Bolivar is expected through this year with full recovery by Q4/26. We are maintaining our BUY rating and increasing our target price to C$34.20/share (previously C$12.40/share, or C$3.10/share pre-consolidation) on Santacruz Silver.
Production Highlights
Bolivar Mine
In Q4, the Bolivar Mine processed 63Kt of ore (+22% QoQ, -18% YoY) and produced 565.7Koz AgEq (34% QoQ, -34% YoY), made up of 202.2Koz Ag, 4.0Kt Zn, and 0.2Kt Pb. The strong QoQ improvement resulted in a 16% beat to our 488.7Koz AgEq forecast, which also included a 22% QoQ increase in silver grades to 108 g/t. YoY production was impacted by the May flooding. Recovery plans continued to progress on schedule; however, access to the highest-grade Pomabamba and Nané vein areas remain partially constrained. Full recovery is anticipated from both areas by Q4/26.
Porco Mine
In Q4, Porco produced 330.2Koz AgEq versus our 440.0Koz forecast (-25%). Porco processed 51.4Kt of ore (+5% QoQ), and zinc production of 2.7Kt increased 10% QoQ as the mine plan continues to focus on zinc-rich zones, with zinc recoveries remaining strong at 94%. Silver production declined 11% QoQ to 82.0Koz.
Caballo Blanco Group
At Caballo Blanco, Q4 production of 730.1Koz AgEq increased 3% QoQ from 707.5Koz, driven by a 1% QoQ increase in ore processed to 63.1Kt and stronger base metal output. Silver production was largely stable at 289.5Koz (-2% QoQ), while zinc and lead production increased 7% QoQ each, supported by modestly higher grades and solid recoveries. Quarterly results exceeded our 662.3Koz AuEq forecast by 10%.
Santacruz Silver Mining is engaged in the operation, acquisition, exploration and development of mineral properties in Mexico, with a primary focus on silver, but also including gold, zinc and lead. Co. is focused on meeting and maintaining its primary production objective of producing approximately 1.5 million silver equivalent ounces on a yearly basis at its producing property, the Rosario Mine. In addition, Co. is exploring three other mineral properties, being the San Felipe Project (an advanced stage project), the Gavilanes Project (an exploration project), and the El Gachi Property (an early stage exploration project).
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