Santacruz Silver Reports 2025 Results: Operational Gains Offset by Mine Flooding

Santacruz Silver's 2025 revenue rose 15% to $326.4M with strong margins, but a mine flood cut production by 11%. Full recovery is expected by Q4 2026.

Santacruz Silver Mining Ltd. presented its complete 2025 financial results in a live investor webinar today, led by its CEO and CFO. The annual figures reveal a mixed performance, with significant improvements in revenue and operating profitability being tempered by a severe production disruption caused by a flooding event at a key mine.

Favorable Market Conditions and Operational Margins

The broader market environment appears supportive for the silver producer. According to industry forecasts, the global silver market is in its sixth consecutive year of a supply deficit, with above-ground inventories continuing to decline. Analysts at J.P. Morgan Research project an average silver price of $81 per ounce for 2026, which is more than double the average price the company realized in 2025. Such a price increase, if realized, would substantially widen Santacruz's already improved operational margins.

Financially, the company posted a 15% increase in annual revenue, which reached $326.4 million. Its adjusted EBITDA nearly doubled to $104.6 million, while the gross margin jumped by 91%. Operationally, Santacruz maintained a solid margin on each ounce sold. The average realized price was $39.00 per silver equivalent ounce, against All-in Sustaining Costs (AISC) of $30.81, leaving a profit margin of approximately $8.19 per ounce.

Production Challenges and Recovery Timeline

Despite the stronger top line and margins, total production fell by 11% to 14.4 million silver equivalent ounces for the year. This decline was primarily driven by a water inflow incident in May 2025 at the Bolivar mine, which restricted access to the high-grade Pomabamba and Nané zones for several months. Consequently, silver production dropped by 17% and zinc output by 8%.

A clear turnaround began in the fourth quarter of 2025. Bolivar's throughput increased by 22% quarter-over-quarter, and silver equivalent production surged by 34% compared to Q3. Management anticipates a gradual normalization throughout 2026, with a full return to planned production rates expected by the fourth quarter of this year. The first concrete indication of this recovery pace will come with the Q1 2026 results, scheduled for release on April 30, 2026. This will represent the first full quarter with Pomabamba and Nané operating as planned.

Net Income Context and Forward Projects

The company's net income for 2025 was reported at $42.2 million, representing a 74% decrease from the prior year. It is important to note that this comparison is skewed, as the 2024 result was exceptionally inflated by a one-time gain from a purchase price adjustment and favorable currency movements.

Looking ahead, Santacruz is advancing its Soracaya project in Bolivia. The project holds an estimated 34.5 million ounces of silver in inferred resources. The necessary environmental and operating permits are expected in the third quarter of 2026, with a production start slated to follow in Q4 of the same year.