Santacruz Silver Mining Ltd (TSX-V:SCZ, OTC:SZSMF) reported a sharp jump in second-quarter profit as lower costs and operational efficiencies helped offset weaker production at its Bolivar mine.
The Canadian miner posted net income of $21 million for the three months ended June 30, up 1,348% from a year earlier.
Revenues rose 4% year-over-year to $73.3 million, while adjusted EBITDA climbed 68% to $26.8 million.
Cash and investments swelled nearly sevenfold to $57.8 million, with working capital rising 303% to $60.3 million. The company cut its cash costs per silver equivalent ounce sold by 10% to $19.48 and its all-in sustaining cost (AISC) by 8% to $22.95.
"Our second quarter results reflect the strength and stability of Santacruz's business model,” CEO Arturo Préstamo said in a statement. “We achieved solid revenue growth and significantly improved profitability, with net income and adjusted EBITDA both showing substantial gains.”
Production slipped 15% to 3.55 million silver equivalent ounces, hurt by a mid-May water inflow at Bolivar that limited access to high-grade zones. Santacruz said contributions from its San Lucas ore sourcing business and efficiency gains at Caballo Blanco helped cushion the impact.
The company expects Bolivar output to normalize by the fourth quarter as remediation work continues.
In the first half of 2025, Santacruz produced 7.2 million silver equivalent ounces, including just over 3 million ounces of silver and nearly 42,000 tonnes of zinc.
Shares of Santacruz were up nearly 12.4% on Thursday afternoon in Canada.