Santacruz Silver Mining (TSXV:SCZ) - Record Results and 2026 Growth Outlook

Arturo Prestamo, Executive Chairman and CEO of Saracruz Silver (TSXV:SCZ), joined the podcast to discuss the company's record 2025 financial results and its 2026 growth outlook. The company reported revenues of $326 million and EBITDA of $104 million, with cash on hand reaching $70 million. Key drivers included strong silver prices, operational efficiencies, and progress in dewatering the Bolivar Mine in Bolivia, which had been impacted by flooding. Production at Bolivar is ramping up, with Q4 2025 showing a 34% increase in silver output, and full recovery expected by Q4 2026. Simapan Mine is also seeing improved production and recovery rates, while new assets like Sorakaya are preparing for phased production starting in Q4 2026. The company plans a 10% production increase in 2026, driven organically through existing assets and new developments. Saracruz is also refining its reporting by separating San Lucas’s margin-based operations from overall all-in-sustained-cost (AISC) calculations to improve transparency. The company maintains a conservative capital structure, with a strong treasury, no debt, and plans to pursue a share buyback after upgrading to the TSX. It is also exploring M&A opportunities across the Americas, though remains disciplined and focused on accretive, value-adding deals. Both Mexico and Bolivia are viewed as stable jurisdictions, with positive regulatory developments in Bolivia and ongoing improvements in Mexico’s security and governance. Saracruz continues to emphasize operational excellence, financial discipline, and long-term sustainable growth. Key takeaways include: (1) Bolivar Mine recovery is on track, with full production expected by Q4 2026; (2) 10% production growth in 2026 will come from existing mines and new assets like Sorakaya; (3) Transparent reporting changes will improve investor understanding of AISC and margin performance; (4) Conservative capital allocation and strong treasury position support long-term resilience; (5) Share buybacks are planned post-TSX graduation; (6) M&A is on the radar but only for accretive, value-enhancing opportunities; (7) Bolivia’s local debt market offers a scalable, low-cost funding channel; (8) Both Mexico and Bolivia remain viable and strategic operating jurisdictions with improving risk profiles.