Santacruz Silver Mining Q1 Earnings Beat Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SCZM?
Source: seekingalpha
- Significant Revenue Growth: Santacruz Silver Mining reported Q1 revenue of $127.53 million, an 81.4% year-over-year increase that exceeded market expectations by $2.28 million, indicating strong performance and demand in the silver mining sector.
- Adjusted EBITDA Improvement: The company achieved an adjusted EBITDA of $42.6 million, reflecting a 55% year-over-year increase, which highlights enhanced operational efficiency and cost control capabilities, thereby laying a solid foundation for future profitability.
- Surge in Silver Prices: The average realized price per ounce of silver sold reached $63.30, marking a 128% year-over-year increase, which not only boosted revenue but also strengthened the company's competitive position in a volatile market.
- Weak Zinc Sales Performance: Although the average realized price for zinc was $3,116 per tonne, a 12% increase year-over-year, the AISC per tonne rose to $2,729, a 32% increase, leading to a 46% decline in realized mining margin for zinc, indicating profitability pressures in this product line.
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Analyst Views on SCZM
Wall Street analysts forecast SCZM stock price to rise
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Current: 9.700
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Current: 9.700
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About SCZM
Santacruz Silver Mining Ltd. is a Canada-based company, which is engaged in the operation, acquisition, exploration, and development of mineral properties in Latin America. The Company specializes in the production of silver, zinc, copper, and lead. The Company's Bolivian operations comprise the Bolivar, Porco and the Caballo Blanco Group, which consists of the Tres Amigos and Colquechaquita mines. The Company's Soracaya exploration project and San Lucas ore sourcing and trading business are also in Bolivia. Its Zimapan mine is in Mexico. Bolivar Mine is an underground silver-zinc-lead mine located in Antequera near Oruro City. Porco Mine produces zinc/silver and lead/silver concentrates and is located 50 kms southwest of Potosi City in Antonio Quijarro province comprised of two underground mining sectors: Central and Hundimiento. Zimapan mine is 34 mining concessions covering an area of around 5,139 hectares, including the highly prospective 337-hectare Santa Gorgonia 1 concession.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Santacruz Silver Mining Q1 Earnings Beat Expectations
- Significant Revenue Growth: Santacruz Silver Mining reported Q1 revenue of $127.53 million, an 81.4% year-over-year increase that exceeded market expectations by $2.28 million, indicating strong performance and demand in the silver mining sector.
- Adjusted EBITDA Improvement: The company achieved an adjusted EBITDA of $42.6 million, reflecting a 55% year-over-year increase, which highlights enhanced operational efficiency and cost control capabilities, thereby laying a solid foundation for future profitability.
- Surge in Silver Prices: The average realized price per ounce of silver sold reached $63.30, marking a 128% year-over-year increase, which not only boosted revenue but also strengthened the company's competitive position in a volatile market.
- Weak Zinc Sales Performance: Although the average realized price for zinc was $3,116 per tonne, a 12% increase year-over-year, the AISC per tonne rose to $2,729, a 32% increase, leading to a 46% decline in realized mining margin for zinc, indicating profitability pressures in this product line.
See More
Santacruz Silver Mining Reports Significant FY Growth
- Financial Highlights: Santacruz Silver Mining reported a GAAP EPS of $0.47 for FY 2023, with revenue reaching $326.82 million, reflecting a 15.5% year-over-year growth that underscores the company's robust performance in the silver mining sector.
- Adjusted EBITDA Surge: The adjusted EBITDA soared to $104.6 million, marking a 99% increase year-over-year, indicating significant improvements in cost control and operational efficiency, which bolster investor confidence for future growth.
- Cash Flow and Liquidity: The company reported cash and highly liquid marketable securities totaling $66.7 million, an 87% increase year-over-year, providing Santacruz with ample financial resources to navigate market fluctuations and pursue expansion plans.
- Silver Price and Margin Growth: The average realized price per ounce of silver equivalent sold was $39.00, a 36% increase year-over-year, while the realized margin per ounce surged to $8.19, reflecting a 209% increase, showcasing the company's successful pricing strategy and cost management efforts.
See More
Santacruz Silver Mining Reports FY2025 Financial Results
- Significant Revenue Growth: Santacruz Silver Mining reported revenues of $326.4 million for FY2025, a 15% year-over-year increase, indicating strong performance in the Latin American silver market despite production challenges.
- Substantial Gross Profit Increase: The gross profit surged to $109.4 million, reflecting a 91% year-over-year increase, showcasing the company's success in cost optimization and operational efficiency, thereby enhancing its financial stability.
- Net Income Decline: Despite revenue and gross profit growth, net income fell to $42.2 million, a 74% decrease year-over-year, primarily due to a significant one-time non-cash gain in 2024, highlighting the need for the company to focus on sustainable profitability.
- Improved Cash Flow Position: Cash and highly liquid marketable securities rose to $66.7 million, an 87% increase year-over-year, providing stronger financial support for future investments and operations.
See More
Global Silver Mine Production Forecast to Increase by 1%
- Silver Production Forecast: Global silver mine production is projected to increase by 1% to 820 million ounces in 2026, a ten-year high driven by new project commissioning in Mexico, Canada, and Morocco, despite a persistent market deficit of 67 million ounces, indicating ongoing supply-demand tensions.
- Surge in Investment Demand: Physical investment demand is expected to surge by 20% to 227 million ounces, reaching a three-year peak, reflecting strengthened investor confidence in silver's dual monetary and industrial roles, which may help maintain prices around $80 per ounce.
- Trinity Project Progress: Americore Resources has completed a 350-kilometer drone-magnetometer survey at its Trinity silver project in Nevada, aiming to integrate historical geophysical records to build a unified structural model, with drilling expected to commence in Q2 2026.
- Resource Estimation Plans: Americore plans to elevate resources from inferred to indicated status through confirmation and expansion drilling, supporting a new mineral resource estimate, showcasing the company's long-term strategic positioning and confidence in silver mining development.
See More
Global Silver Production Forecast to Rise 1% to 820 Million Ounces
- Silver Production Forecast: Global silver mine production is projected to increase by 1% to 820 million ounces in 2026, marking a ten-year high driven by new project commissioning in Mexico, Canada, and Morocco, yet the market is expected to face a 67-million-ounce deficit, indicating ongoing supply-demand tension.
- Surge in Investment Demand: Physical investment demand is anticipated to surge by 20% to 227 million ounces, reaching a three-year peak, reflecting strengthened investor confidence in silver's dual monetary and industrial roles, which may further support silver prices.
- Trinity Project Progress: Americore Resources has completed a drone-magnetometer survey spanning 350 line-km at its Trinity Silver Project in Nevada, aiming to integrate historical geophysical records to advance the resource from inferred to indicated status, laying the groundwork for a new mineral resource estimate.
- Drilling Program Initiation: Americore has begun the permitting process for a drill program set to commence in Q2 2026, targeting confirmation and extension of historical data across both BLM land and fee land managed by the Nevada Division of Environmental Protection, aiming to validate historical data and create potential near-term revenue pathways.
See More
DaVita Reports Strong Q4 Earnings, Shares Surge 21.7%
- Strong Earnings Report: DaVita's Q4 earnings per share of $3.40 exceeded analyst expectations of $3.16, demonstrating robust profitability that enhances market confidence in the company's future performance.
- Sales Beat Estimates: The company reported quarterly sales of $3.620 billion, surpassing the analyst consensus of $3.497 billion, indicating strong competitive positioning and a rebound in customer demand that is expected to drive future revenue growth.
- Significant Stock Surge: DaVita's shares jumped 21.7% to $135.26 on Tuesday, reflecting a positive investor reaction to the financial results, which may attract further institutional interest in the stock.
- Price Target Increase: Barclays raised its price target for DaVita from $143 to $158, indicating analysts' optimistic outlook on the company's growth potential, which could further propel the stock price upward.
See More
Santacruz Silver Mining Q1 Earnings Beat Expectations
- Significant Revenue Growth: Santacruz Silver Mining reported Q1 revenue of $127.53 million, an 81.4% year-over-year increase that exceeded market expectations by $2.28 million, indicating strong performance and demand in the silver mining sector.
- Adjusted EBITDA Improvement: The company achieved an adjusted EBITDA of $42.6 million, reflecting a 55% year-over-year increase, which highlights enhanced operational efficiency and cost control capabilities, thereby laying a solid foundation for future profitability.
- Surge in Silver Prices: The average realized price per ounce of silver sold reached $63.30, marking a 128% year-over-year increase, which not only boosted revenue but also strengthened the company's competitive position in a volatile market.
- Weak Zinc Sales Performance: Although the average realized price for zinc was $3,116 per tonne, a 12% increase year-over-year, the AISC per tonne rose to $2,729, a 32% increase, leading to a 46% decline in realized mining margin for zinc, indicating profitability pressures in this product line.
See More
Santacruz Silver Mining Reports Significant FY Growth
- Financial Highlights: Santacruz Silver Mining reported a GAAP EPS of $0.47 for FY 2023, with revenue reaching $326.82 million, reflecting a 15.5% year-over-year growth that underscores the company's robust performance in the silver mining sector.
- Adjusted EBITDA Surge: The adjusted EBITDA soared to $104.6 million, marking a 99% increase year-over-year, indicating significant improvements in cost control and operational efficiency, which bolster investor confidence for future growth.
- Cash Flow and Liquidity: The company reported cash and highly liquid marketable securities totaling $66.7 million, an 87% increase year-over-year, providing Santacruz with ample financial resources to navigate market fluctuations and pursue expansion plans.
- Silver Price and Margin Growth: The average realized price per ounce of silver equivalent sold was $39.00, a 36% increase year-over-year, while the realized margin per ounce surged to $8.19, reflecting a 209% increase, showcasing the company's successful pricing strategy and cost management efforts.
See More
Santacruz Silver Mining Reports FY2025 Financial Results
- Significant Revenue Growth: Santacruz Silver Mining reported revenues of $326.4 million for FY2025, a 15% year-over-year increase, indicating strong performance in the Latin American silver market despite production challenges.
- Substantial Gross Profit Increase: The gross profit surged to $109.4 million, reflecting a 91% year-over-year increase, showcasing the company's success in cost optimization and operational efficiency, thereby enhancing its financial stability.
- Net Income Decline: Despite revenue and gross profit growth, net income fell to $42.2 million, a 74% decrease year-over-year, primarily due to a significant one-time non-cash gain in 2024, highlighting the need for the company to focus on sustainable profitability.
- Improved Cash Flow Position: Cash and highly liquid marketable securities rose to $66.7 million, an 87% increase year-over-year, providing stronger financial support for future investments and operations.
See More
Global Silver Mine Production Forecast to Increase by 1%
- Silver Production Forecast: Global silver mine production is projected to increase by 1% to 820 million ounces in 2026, a ten-year high driven by new project commissioning in Mexico, Canada, and Morocco, despite a persistent market deficit of 67 million ounces, indicating ongoing supply-demand tensions.
- Surge in Investment Demand: Physical investment demand is expected to surge by 20% to 227 million ounces, reaching a three-year peak, reflecting strengthened investor confidence in silver's dual monetary and industrial roles, which may help maintain prices around $80 per ounce.
- Trinity Project Progress: Americore Resources has completed a 350-kilometer drone-magnetometer survey at its Trinity silver project in Nevada, aiming to integrate historical geophysical records to build a unified structural model, with drilling expected to commence in Q2 2026.
- Resource Estimation Plans: Americore plans to elevate resources from inferred to indicated status through confirmation and expansion drilling, supporting a new mineral resource estimate, showcasing the company's long-term strategic positioning and confidence in silver mining development.
See More
Global Silver Production Forecast to Rise 1% to 820 Million Ounces
- Silver Production Forecast: Global silver mine production is projected to increase by 1% to 820 million ounces in 2026, marking a ten-year high driven by new project commissioning in Mexico, Canada, and Morocco, yet the market is expected to face a 67-million-ounce deficit, indicating ongoing supply-demand tension.
- Surge in Investment Demand: Physical investment demand is anticipated to surge by 20% to 227 million ounces, reaching a three-year peak, reflecting strengthened investor confidence in silver's dual monetary and industrial roles, which may further support silver prices.
- Trinity Project Progress: Americore Resources has completed a drone-magnetometer survey spanning 350 line-km at its Trinity Silver Project in Nevada, aiming to integrate historical geophysical records to advance the resource from inferred to indicated status, laying the groundwork for a new mineral resource estimate.
- Drilling Program Initiation: Americore has begun the permitting process for a drill program set to commence in Q2 2026, targeting confirmation and extension of historical data across both BLM land and fee land managed by the Nevada Division of Environmental Protection, aiming to validate historical data and create potential near-term revenue pathways.
See More
DaVita Reports Strong Q4 Earnings, Shares Surge 21.7%
- Strong Earnings Report: DaVita's Q4 earnings per share of $3.40 exceeded analyst expectations of $3.16, demonstrating robust profitability that enhances market confidence in the company's future performance.
- Sales Beat Estimates: The company reported quarterly sales of $3.620 billion, surpassing the analyst consensus of $3.497 billion, indicating strong competitive positioning and a rebound in customer demand that is expected to drive future revenue growth.
- Significant Stock Surge: DaVita's shares jumped 21.7% to $135.26 on Tuesday, reflecting a positive investor reaction to the financial results, which may attract further institutional interest in the stock.
- Price Target Increase: Barclays raised its price target for DaVita from $143 to $158, indicating analysts' optimistic outlook on the company's growth potential, which could further propel the stock price upward.
See More
