Santacruz Silver Wraps Up 2025 Debt-Free With a Stronger Balance Sheet and Growing Cash Position

• Revenue grew 15% year over year to US$326.4 million, with gross profit rising 91% to US$109.4 million.
• Adjusted EBITDA reached US$104.6 million, up 99% from 2024, as silver prices and operational efficiencies improved margins.
• The margin earned per silver-equivalent ounce sold rose 209% to US$8.19, from US$2.65 in 2024, reflecting the gap between the average selling price and total production cost per ounce.
• Cash and liquid securities ended the year at US$66.7 million, up 87%, following the full repayment of all debt owed to Glencore.
• Working capital grew 38% to US$63.7 million, with full Bolivar production recovery expected by Q4 2026.

Santacruz Silver Mining Ltd. (NASDAQ: SCZM | TSXV: SCZ) is a Vancouver-based, Latin American-focused mining company focused on producing silver, zinc, lead, and copper. In Bolivia, it runs the Bolivar, Porco, and Caballo Blanco mining complexes, the latter comprising the Tres Amigos and Colquechaquita mines, along with the Reserva mine and the Soracaya exploration project. In Mexico, the company operates the Zimapan mine.

Full Glencore Debt Repayment and an 87% Jump in Cash Mark a Transformational Balance Sheet Milestone

Santacruz finished 2025 without any outstanding debt to Glencore, completing a financial commitment that originated with the acquisition of its Bolivian mining assets. The full repayment removed a long-standing obligation from the balance sheet and freed up the company's cash flows for other purposes.

By year-end, cash and highly liquid marketable securities, a category that includes US treasury notes and bills that can be converted to cash quickly, totalled US$66.7 million, up 87% from the prior year. Of that, US$44.3 million was held in cash and US$22.5 million in short-term securities. Working capital, which is what remains after subtracting near-term liabilities from near-term assets, rose 38% to US$63.7 million.

Arturo Prestamo, Executive Chairman and CEO, said:

"Last year was a milestone year for Santacruz, highlighted by our full debt repayment to Glencore, materially strengthened balance sheet, and growing treasury position, while continuing to strengthen our presence as a leading silver producer in Latin America."

Revenue Rises 15% to US$326.4 Million With Adjusted EBITDA Nearly Doubling as the Silver Price Margin Surges 209%

Higher silver prices throughout 2025 pushed the average realised price per silver-equivalent ounce to US$39.00, up 36% from US$28.74 in 2024. A silver-equivalent ounce is a standard industry measure that converts all metals produced, including zinc, lead, and copper, into a single silver-denominated figure using prevailing metal prices. Against a total production cost of US$30.81 per ounce, known as the all-in sustaining cost or AISC, the company earned a margin of US$8.19 per ounce compared with US$2.65 in 2024, a 209% improvement.

This fed through to the income statement. Revenue reached US$326.4 million, up 15%, while gross profit jumped 91% to US$109.4 million. Adjusted EBITDA, which stands for earnings before interest, taxes, depreciation, and amortisation and is used as a measure of recurring operating profitability, nearly doubled to US$104.6 million from US$52.6 million in 2024. The cost of processing ore per tonne also fell 5%, from US$101.35 to US$95.80, indicating improved site-level efficiency over the year.

Net income came in at US$42.2 million, which appears lower than 2024's US$164.5 million. However, that prior-year figure included a one-time, non-cash accounting gain tied to the restructuring of the Glencore agreement and was not recurring operating income. On an adjusted basis, operational profitability in 2025 was materially ahead of 2024.

Multi-Asset Portfolio Offsets Bolivar Flooding Impact With Full Production Recovery on Track for Q4 2026

In mid-May 2025, an unexpected water inflow at the Bolivar mine in Bolivia restricted access to the higher-grade Pomabamba and Nane mining areas for a significant portion of the year. Total silver-equivalent production fell 11% to 14.4 million ounces, and silver output specifically declined 17%. Because fixed operating costs were spread across fewer ounces sold, the all-in sustaining cost per ounce rose from US$26.09 to US$30.81 year over year.

The company's other mines continued operating through the disruption. San Lucas grew throughput by 14%, supporting cost absorption across the group. Zimapan, the company's highest-volume operation, increased silver-equivalent production by 5% on higher zinc output. Caballo Blanco contributed consistently throughout the year. Together, these operations kept the company profitable and cash-generative despite the reduced output from Bolivar.

Recovery at Bolivar is already underway. In Q4 2025, the mine's throughput rose 22% and silver-equivalent production increased 34% compared to Q3 2025, as conditions in the affected areas improved. Management expects gradual quarter-over-quarter improvement through 2026, with full production recovery anticipated by Q4 2026. 

Executive Chairman and CEO Arturo Prestamo noted that

"the dewatering program is progressing ahead of plan and driving consistent quarter-over-quarter improvements throughout the year."

What Comes Next

With the Glencore debt cleared and silver margins at their widest in recent years, Santacruz's stated priorities for 2026 centre on operational efficiency across all five producing assets. At Zimapan, capital has already been directed towards improving metallurgical recoveries, the rate at which metals are extracted from ore, and concentrate quality. The Soracaya project in Bolivia is being advanced towards production. As Bolivar progressively returns to full capacity through the year, management expects output to recover and per-ounce costs to improve alongside it.

Executive Chairman and CEO Arturo  Prestamo outlined his priorities for 2026:

"In Bolivia, we remain focused on operational strength, cost discipline and processing plant efficiencies at our three producing mines and ore feed sourcing company, while advancing Soracaya towards production. In Mexico, we are improving metallurgical recoveries and concentrate quality at Zimapan, which is our highest-volume operation. With key capital already invested in Zimapan, these initiatives are expected to support continued operating improvements this year."

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