Research from Atrium Research, Atrium Research Corporation

Atrium Research

Research from Atrium Research

Atrium Research Corporation

Atrium Research provides institutional quality issuer paid research on public equities in North America. Our investment philosophy takes a 3-5 year view on equities currently being overlooked by the market. Our research process emphasizes understanding the key performance metrics for each specific company, trustworthy management teams, unit economics, and an in-depth valuation analysis. 

Our research product includes in-depth initiation reports, research notes, thematic research pieces, and company fact sheets.

Equity Bottom-Up

Santacruz Silver Mining / Equity Bottom-Up

<ul>
<li>Santacruz reported Q3 revenue of $80.0M (+2% YoY) vs. our estimate of $78.8M, representing 2% growth YoY.</li>
<li>Cash costs and AISC came in above our expectations due to higher ore purchasing costs for San Lucas, flooding at Bolivar, and plant improvements at Zimapan.</li>
<li>We believe these are all transitional.</li>
</ul>


Santacruz reported Q3 revenue of $80.0M (+2% YoY) vs. our estimate of $78.8M, representing 2% growth YoY.
Cash costs and AISC came in above our expectations due to higher ore purchasing costs for San Lucas, flooding at Bolivar, and plant improvements at Zimapan.
We believe these are all transitional.


SCZ: Soft Q3 Financials; Still Too Cheap Relative to Cashflow

<ul>
<li>Santacruz reported its Q3/25 production results, missing our expectations mostly due to continued flooding at Bolivar.</li>
<li>AgEq production came in at 3.4Moz compared to our estimate of 3.9Moz, representing -3% QoQ and -15% YoY.</li>
<li>While the quarter was weak from a production standpoint, SCZ is still poised to generate large cashflow due to significant increase in the silver price (rising from $34/oz in July to $47/oz at the end of Q3).</li>
</ul>


Santacruz reported its Q3/25 production results, missing our expectations mostly due to continued flooding at Bolivar.
AgEq production came in at 3.4Moz compared to our estimate of 3.9Moz, representing -3% QoQ and -15% YoY.
While the quarter was weak from a production standpoint, SCZ is still poised to generate large cashflow due to significant increase in the silver price (rising from $34/oz in July to $47/oz at the end of Q3).


SCZ: Soft Q3 Production Due to Flooding at Bolivar

<ul>
<li>Santacruz has initiated development and full production permitting at its 100%-owned Soracaya Project in Bolivia’s Potosí Department, following the completion of the $40M accelerated option with Glencore that consolidated full ownership of its Bolivian portfolio.</li>
<li>The high-grade, silver-rich Soracaya Project hosts an Inferred Resource of 4.14MT grading 31.6% ZnEq, 1.23% Zn, 7.23% Pb, and 260 g/t Ag, supported by ~29km of drilling across 90+ holes.</li>
<li>We are increasing our target price to C$3.10/share based on multiple expansion in the sector.</li>
</ul>


Santacruz has initiated development and full production permitting at its 100%-owned Soracaya Project in Bolivia’s Potosí Department, following the completion of the $40M accelerated option with Glencore that consolidated full ownership of its Bolivian portfolio.
The high-grade, silver-rich Soracaya Project hosts an Inferred Resource of 4.14MT grading 31.6% ZnEq, 1.23% Zn, 7.23% Pb, and 260 g/t Ag, supported by ~29km of drilling across 90+ holes.
We are increasing our target price to C$3.10/share based on multiple expansion in the sector.


SCZ: Soracaya Advancing with Mine Planning and Permitting

<ul>
<li>Santacruz announced the successful completion of the fourth and fifth payments ($15M), including the final installment, to Glencore.</li>
<li>This marks the satisfaction of the $40M Acceleration Option to complete the acquisition of the Company’s Bolivian assets.</li>
<li>With these payments behind it, SCZ is well-positioned to allocate cash toward growth initiatives, M&amp;A, and returning capital to shareholders, building on its proven success with the Bolivian portfolio acquisition.</li>
</ul>


Santacruz announced the successful completion of the fourth and fifth payments ($15M), including the final installment, to Glencore.
This marks the satisfaction of the $40M Acceleration Option to complete the acquisition of the Company’s Bolivian assets.
With these payments behind it, SCZ is well-positioned to allocate cash toward growth initiatives, M&amp;A, and returning capital to shareholders, building on its proven success with the Bolivian portfolio acquisition.


SCZ: Satisfies Acceleration Option for Bolivian Assets

<ul>
<li>Santacruz reported Q2 revenue of $73.3M (+4% YoY) vs. our estimate of $72.1M on a 15% decline in produced ounces.</li>
<li>However, cost reduction was a theme for the quarter, with cash costs coming in at $19.48/oz vs. our estimate of $22.6/oz.</li>
<li>This led to adjusted EBITDA of $26.8M compared to our estimate of $21.0M and $16.0M reported in Q2/24.</li>
</ul>


Santacruz reported Q2 revenue of $73.3M (+4% YoY) vs. our estimate of $72.1M on a 15% decline in produced ounces.
However, cost reduction was a theme for the quarter, with cash costs coming in at $19.48/oz vs. our estimate of $22.6/oz.
This led to adjusted EBITDA of $26.8M compared to our estimate of $21.0M and $16.0M reported in Q2/24.


SCZ: Another Quarter of Strong Cashflow & Lower Costs

Canada

Santacruz Silver Mining Ltd. explores and mines for silver ores. The Company develops, operates and discovers silver mining assets throughout Mexico.

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Santacruz Silver Mining (SCZ CN)

SCZ: Soft Q3 Financials; Still Too Cheap Relative to Cashflow

Cash costs and AISC came in above our expectations due to higher ore purchasing costs for San Lucas, flooding at Bolivar, and plant improvements at...

Atrium Research

SCZ: Soft Q3 Production Due to Flooding at Bolivar

Santacruz reported its Q3/25 production results, missing our expectations mostly due to continued flooding at Bolivar. AgEq production came in at...

Atrium Research

SCZ: Soracaya Advancing with Mine Planning and Permitting

The high-grade, silver-rich Soracaya Project hosts an Inferred Resource of 4.14MT grading 31.6% ZnEq, 1.23% Zn, 7.23% Pb, and 260 g/t Ag, supported...

Atrium Research

SCZ: Satisfies Acceleration Option for Bolivian Assets

Santacruz announced the successful completion of the fourth and fifth payments ($15M), including the final installment, to Glencore.

Atrium Research

SCZ: Another Quarter of Strong Cashflow & Lower Costs

Santacruz reported Q2 revenue of $73.3M (+4% YoY) vs. our estimate of $72.1M on a 15% decline in produced ounces. However, cost reduction was a...

Atrium Research

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