SCZ: Strengthened Margins; Cost Optimizations Ongoing
What you need to know:• Santacruz reported 2025 revenue of $326.4M (+15% YoY) and 2025 adjusted EBITDA of $104.6M (+99% YoY), driven by a 36% increase in average realized prices.
• Q4 cash costs and AISC came in at $36.92/oz and 46.42/oz, which included higher ore purchase costs at San Lucas, and lower ounces sold from the Bolivar flooding.
• SCZ enters 2026 with $66.7M in cash and is well-positioned to benefit from Bolivar’s recovery and strengthened margins.
This morning, Santacruz Silver (SCZ:TSXV, SCZM:NASDAQ) announced Q4 and 2025 results. Revenue grew 15% YoY to $326.4M and adjusted EBITDA nearly doubled to $104.6M, supported by an increase in the average realized silver price. Q4 costs came in above our estimates, impacted by higher ore purchase costs at San Lucas and ongoing plant improvements at Zimapan, though higher realized prices more than offset this. With Bolivar’s recovery tracking ahead of schedule and silver prices currently well above last year's realized levels, we see an opportunity for further margin growth heading into 2026. We are maintaining our BUY rating and our target price of C$34.20/share on Santacruz Silver.
Financial Highlights
• Q4 revenue came in at $102.8M (+26% YoY) vs. our estimate of $112.8M. 2025 revenue was $326.4M (+15% YoY), driven by a 36% increase in the average realized silver price to $39/oz, which more than offset the 22% decline in AgEq ounces sold.
• Gross profit for the quarter was $36.1M (+43% YoY), implying a gross margin of 35% vs. 31% in Q4/24. Full-year gross profit was $109.4M (+91% YoY), with gross margin expanding to ~33.5% from ~20% in 2024.
• Q4 cash cost was $36.92/oz, and AISC was $46.42/oz vs. our estimates of $22.45/oz and $27.38/oz, respectively. 2025 cash cost came in at $24.93/oz (+14% YoY) and AISC at $30.81/oz (+18% YoY).
• Adjusted EBITDA for 2025 came in at $104.6M (+99% YoY) vs. our estimate of $134.5M. OCF (before WC) for the year was $129.9M vs. $95.8M in 2024.
• Q4 net income was a loss of ($4.6M), driven by an $11.5M FX loss and CVR revaluation costs. FY net income was $42.2M (-74% YoY), with the decline entirely due to a non-recurring, non-cash Glencore restructuring gain in 2024.
• SCZ ended the quarter with $60.9M in cash and marketable securities and $72.2M in debt.
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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