Arturo Préstamo Elizondo, Executive Chairman and CEO of Santacruz Silver Mining Ltd. (TSXV: SCZ) (OTCQB: SCZMF), joins me to recap the key record Q1 2025 financial results along with a comprehensive review of all operations.  Santacruz Silver operates 1 mine in Mexico, and 5 mines, 3 mills, and an ore feed-sourcing and metals trading business in Bolivia, as an emerging mid-tier silver and base metals producer.

Q1 2025 Highlights

• Revenues of $70.3 million, a 34% increase year-over-year.
• Gross Profit of $27.9 million, a 6882% increase year-over-year.
• Net Income of $9.5 million, a 93% decrease year-over-year1.
• Adjusted EBITDA of $27.5 million, a 2202% increase year-over-year.
• Cash and cash equivalents of $32.5 million, a 706% increase year-over-year.
• Working Capital of $51.7 million, a 7530% increase year-over-year.
• Cash cost per silver equivalent ounce sold ($/oz) of $17.84, a 16% decrease year-over-year.
• AISC per silver equivalent ounce sold of $22.34, a 8% decrease year-over-year.
• Silver Equivalent Ounces produced of 3,688,129, a 5% decrease year-over-year.

 Q1 2025 Production Highlights:

• Silver Equivalent Production: 3,688,129 silver equivalent ounces
• Silver Production: 1,590,063 ounces
• Zinc Production: 20,719 tonnes
• Lead Production: 2,718 tonnes
• Copper Production: 279 tonnes
• Underground Development: 10,135 meters

Arturo discussed the very strong revenues, gross profit, cash and cash equivalents,  adjusted EBITDA, and working capital up substantial in year-over-year metrics. In addition their cash costs and All-In Sustaining Costs (AISC) numbers came down in a meaningful way due to a combination of factors from mine optimization work paying off, to favorable currency exchange rates, and the positive impact of paying down the Glencore loan early. 

Additionally, there was better setup with San Lucas ore-feeding business absorbing the Reserva Mine ore to blend with ore from the small-scale miners, and with it not being blended with Tres Amigos and CQCQT. This made Caballo Blanco much more efficient with better metals recoveries, as well as the San Lucas operations improving efficiencies.

The water issues at Bolivar were limited to just this quarter and resolved and the reason Zimapan was higher cost this quarter was because they just bought some new equipment to optimize operations (like 3 new Scoop trams), and to take advantage of the higher-grade 960 Level.  Those were both one-off effects taken in Q1, but resolved for Q2 and moving forward for the balance of the year.

Wrapping up we reviewed the plan in place to exercise its Acceleration Option to satisfy the Base Purchase Price owed to Glencore, by making payments on a schedule that aligns the accelerated timing whilst meeting the Company’s commitment to financial discipline and a strong balance sheet. The plan’s primary objective is to save the Company US$40 million. The Company successfully completed payments to Glencore of USD$17.5 million by the end of Q1, and will be paying the remaining of USD$22.5 million by October 31, 2025.

If you have any follow up questions for Arturo regarding Santacruz Silver, then please email them to me Shad@kereport.com.

• In full disclosure, Shad is a shareholder of Santacruz Silver at the time of this recording, and may choose to buy or sell shares at any time.

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