Santacruz Silver Mining Ltd. (NASDAQ: SCZM)

Santacruz Silver Mining Ltd. is a Latin American mining company engaged in the acquisition development and operation of mineral properties in Bolivia and Mexico. The company specializes in the production of silver, zinc, lead and copper operating four producing mines and an ore feed sourcing business. Its asset portfolio includes the Bolivar Mine Porco Mine Caballo Blanco Mining Complex San Lucas Group and the Soracaya exploration project in Bolivia as well as the Zimapan Property in Mexico. In 2025 the company processed 1,945,261 tonnes of ore and produced 14,399,019 ounces of silver equivalent, 87,295 tonnes of zinc, 11,094 tonnes of lead and 1,126 tonnes of copper.

The company generates substantially all of its revenue from the sale of silver and zinc concentrates with additional income from lead and copper concentrates. In 2025 total revenues amounted to $326,382,000 representing a 15 percent increase over the prior year. All metals are sold in concentrate form to two well known international concentrate buyers. Production from the Bolivian mines is exported to Chile while output from the Zimapan Property in Mexico is exported from Mexico.

The company operates through the following segments.

• Bolivar Mine: This segment operates the Bolivar mine under an association agreement with COMIBOL entitling the company to forty five percent of the profits while it managed production of 2,374,121 ounces of silver equivalent, 14,367 tonnes of zinc, 674 tonnes of lead and no copper in 2025.

• Porco Mine: This segment operates the Porco mine under the same agreement with COMIBOL focusing on zinc production and yielded 1,377,234 ounces of silver equivalent, 10,675 tonnes of zinc, 504 tonnes of lead and no copper in 2025.

• Caballo Blanco Mining Complex: This segment operates the Tres Amigos and Colquechaquita mines and the Don Diego processing plant producing 2,782,260 ounces of silver equivalent, 16,063 tonnes of zinc, 2,573 tonnes of lead and no copper in 2025.

• San Lucas Group: This segment comprises the Reserva mine and the San Lucas ore sourcing and trading business supplying third party ore to plants and generating 3,881,319 ounces of silver equivalent, 27,419 tonnes of zinc, 2,264 tonnes of lead and no copper in 2025.

• Soracaya Project: This segment is an exploration stage initiative with no production to date aimed at advancing the project through permitting and development toward future production.

• Zimapan Property: This segment operates the Zimapan mine and processing plant in Hidalgo Mexico producing 3,984,086 ounces of silver equivalent, 18,771 tonnes of zinc, 5,080 tonnes of lead and 1,126 tonnes of copper in 2025.

Santacruz operates in a highly competitive mining industry where it vies for properties, skilled personnel, and capital against larger diversified producers and junior explorers. The company’s ability to secure future assets depends on developing its current holdings, identifying attractive prospects, and accessing financing on reasonable terms. Its competitive stance hinges on cost efficiency relative to global peers and maintaining financial stability through metal price cycles. Because Santacruz concentrates on silver and zinc it gains advantages when those metals rise but faces disadvantages when they fall compared with firms that have broader base metal exposure. The company’s relatively low cash cost of production at $95.80 per tonne in 2025 underscores its cost disciplined approach.

The company sells its concentrate to two well known international concentrate buyers. Specific names are not disclosed in the filing. Production from the Bolivian operations is exported to Chile for one buyer while output from the Zimapan Property in Mexico is exported from Mexico for the other buyer. These buyers are major global traders of base metal concentrates providing steady offtake agreements for the company's output.