Santacruz Silver: Operational Resilience Meets Favorable Market Dynamics

Santacruz Silver's 2025 EBITDA nearly doubled to $104.6M despite a production dip, fueled by strong silver prices and cost control. The company is debt-free and poised for a recovery.

Despite facing a significant operational challenge, Santacruz Silver Mining Ltd. reported a remarkably strong operational performance for the 2025 fiscal year. The company nearly doubled its adjusted EBITDA, a feat made more impressive by a 17% decline in silver production caused by a flooding event at its Bolivar mine. This financial strength was primarily fueled by a supportive movement in the price of silver.

A Closer Look at the Financials

On the revenue front, Santacruz posted a 15% increase to $326.4 million for the year. The adjusted EBITDA figure saw a dramatic 99% surge, reaching $104.6 million, while gross profit jumped 91% to $109.4 million. Net income, at $42.2 million, showed a 74% decrease. However, this comparison is skewed by the prior year's results, which were artificially inflated by a one-time gain from a purchase price adjustment and favorable foreign exchange effects.

A clearer picture emerges from the per-ounce metrics. The company achieved an average selling price of $39.00 per silver equivalent ounce, against All-in Sustaining Costs (AISC) of $30.81. This resulted in a margin of approximately $8.19 per ounce, representing a substantial 209% year-over-year improvement driven by efficiency gains and cost optimization initiatives.

Bolivar Mine's Recovery Path

In May 2025, a flood impacted the high-grade Pomabamba and Nané zones within the Bolivar mine, restricting access for much of the year. While Santacruz processed 1.945 million tonnes of ore—a volume comparable to 2024—its total silver equivalent output fell by 11% to 14.4 million ounces.

A decisive turnaround began in the fourth quarter. Bolivar's throughput increased by 22%, and silver equivalent production rose 34% compared to the third quarter of 2025. Full restoration of the mine's capacity is scheduled for the fourth quarter of 2026. Concurrently, the company is advancing its Soracaya project in Bolivia, which hosts an estimated 34.5 million ounces of silver in inferred resources. Permitting is targeted for completion by Q3 2026, potentially allowing production to commence before the year ends.

Structural Tailwinds in the Silver Market

The broader market environment is providing considerable support. 2026 marks the sixth consecutive year of a projected global silver supply deficit. Industrial demand, led predominantly by the photovoltaic sector, now accounts for over half of total silver consumption. Furthermore, since January 2026, China has implemented a new licensing system that restricts silver exports, tightening physical supply worldwide. Analysts at J.P. Morgan forecast an average silver price of $81 per ounce for 2026—more than double the average price seen in 2025.

Santacruz enters this favorable period with a strengthened balance sheet, having become debt-free following the full repayment of its obligations to Glencore. The upcoming Q1 2026 report, expected in May, will be a key indicator of whether Bolivar's operational recovery is fully translating into production figures, with the Pomabamba and Nané zones anticipated to be fully operational.