Disseminated on Behalf of: Santacruz Silver Mining Ltd.
- Macro trends favour silver and critical metals
- Santacruz Silver produced 18.7 million silver equivalent ounces in 2024
- Mexico and Bolivia assets are driving cash flow, profitability in 2025
Both silver and zinc are metals in demand right now, thanks to the electrification trend and the large investments in infrastructure that some of the world’s major economies have made in recent years.
Silver is trading at levels not seen since the bull market of the late 2000s and early 2010s, and the world is facing a supply crunch for new zinc deposits.
In this bullish environment for silver and critical metals, Santacruz Silver Mining Ltd. (TSXV: SCZ | OTCQX: SCZMF | FSE: 1SZ) offers potential leverage on the trend. It has producing assets in two countries in Latin America and has been generating strong cash flows from high silver prices and a laser focus on operational efficiencies.
Santacruz Silver is on track to generate over US$110 million in EBITDA in 2025, placing us in a strong cash flow position. This is further reinforced by the fact that Glencore-related payments remain well managed, while we continue to build our treasury.With substantial cash resources available, we are well-positioned to execute on our strategic objectives.
— Arturo Préstamo Elizondo, Executive Chairman & CEO, Santacruz Silver Mining Ltd.
With four producing mines and one ore sourcing company, Santacruz Silver assets are spread between Bolivia and Mexico, two highly productive silver jurisdictions.
Its mining operations include a 45% net cash flow interest in the Bolivar mine in Bolivia (Q1 2025 production: 786,299 ounces silver equivalent), a 45% net cash flow interest in the Porco mine in Bolivia (Q1 2025 production: 367,523 ounces silver equivalent), a 100% interest in the Caballo Blanco group of mines in Bolivia (Q1 2025 production: 659,208 ounces silver equivalent), a 100% interest in the San Lucas ore-feed sourcing operation in Bolivia (Q1 2025 production: 858,514 ounces silver equivalent), and a 100% interest in the Zimapan mine in Mexico (Q1 2025 production: 1,016,585 ounces silver equivalent production).
Collectively, these assets also produced 18.7 million ounces silver equivalent in 2024. With a fairly even split between silver and zinc production, metal and geographical diversity allow Santacruz Silver to spread its risk while taking advantage of the markets for both metals.
The company’s Executive Chairman and CEO, Arturo Préstamo Elizondo, comments: “We operate strong cash-flow-generating assets in both countries and remain committed to their continued growth. Our mines have long-standing production histories, and we aim to consistently replenish reserves at a rate of 1.5 times annual depletion.”
High silver prices, operational efficiencies drive Q1 2025 profits
The 3.7 million silver equivalent ounces Santacruz Silver’s assets generated in Q1 2025 led to solid financial numbers.
For the quarter, the company’s operations produced US$70.3 million in revenues, US$27.5 million in adjusted EBITDA and US$6.3 million in operating cash flow.
The solid profitability and cash flow owed to an average Q1 2025 silver price of US$31.85. In addition, Santacruz Silver benefited from a focus on operational efficiencies that allowed its operations to produce silver and zinc along with small amounts of copper and lead at all-in sustaining costs of US$22.34 per silver equivalent ounce.
Préstamo Elizondo adds: “We’re continually reviewing our costs and looking for ways to improve efficiency, which has increased our margins and is generating significant cash flows for the company. Additionally, a favorable adjustment in the Bolivian bolivar-currency has further contributed to our cost efficiencies in Bolivia.”
Strong cash position facilitates early debt pay down
Those strong cash flows allowed Santacruz Silver to end Q1 2025 with US$32.5 million in cash and cash equivalents.
That is money that the company can use to pay down its debt to Glencore on the Bolivian assets, which it acquired from Glencore in Q1 2022.
Santacruz Silver in Q1 2025 announced an accelerated option agreement with Glencore on that debt. The plan included an initial payment of US$10.0 million on March 20, 2025, a second payment of US$7.5 million on May 6, 2025, and a third payment of US$7.5 million on July 7, 2025. Two bi-monthly payments of US$7.5 million remain, with full cash consideration of US$40 million to be made by November 2025.
Of the deal, Prestamo Elizondo notes: “With a strong treasury in place, our remaining US$15.0 million in balance payments to Glencore are fully secured. Once these are completed in 2025, Santacruz Silver will be effectively debt-free—unlocking a significant opportunity for shareholders, as all operational efficiencies and value creation from that point forward will directly benefit them.”
Préstamo Elizondo is predicting that “Santacruz Silver will generate north of US$110 million of EBITDA in 2025, so cash-flow-wise, we’re very strong.”
Set up for success in the back half of 2025
Looking ahead, Santacruz Silver is positioned to benefit from long-term bullish fundamentals in silver and zinc, driven by green technology, electrification and industrial applications.
The company is committed to growing reserves and extending mine lives on its operations. It will also continue to leverage operational efficiencies and strong silver prices to generate profitability and cash flow.
By the end of the year, Santacruz Silver will have significantly improved its capital structure and financial flexibility. “We’ll keep walking our talk,” Préstamo Elizondo says.
A sign that things really are clicking for the company is its recent upgrade from the OTCQB® Venture Market to the OTCQX® Best Market. The OTCQX is the highest level of the U.S. OTC Markets. Listing companies must meet high financial standards to list on this exchange and the move should help Santacruz Silver increase its visibility with U.S. investors.
In a world very much in need of the metals, Santacruz Silver’s assets in Bolivia and Mexico are producing and offers investors a compelling silver and critical metals story.
To learn more about Santacruz Silver, visit their website or follow them on social media:
