Santacruz Silver Produces 3,424,817 Silver Equivalent Ounces in Q3 2025, Comprising of 1,241,929 Ounces of Silver, 21,581 Tonnes of Zinc, 2,603 Tonnes of Lead, and 331 Tonnes of Copper

On November 3, 2025, Santacruz Silver announced its Q3 2025 production results, reporting consolidated production of 3,424,817 silver equivalent (AgEq) ounces. This comprised 1,241,929 ounces of silver, 21,581 tonnes of zinc, 2,603 tonnes of lead, and 331 tonnes of copper from its operations in Bolivia and Mexico.

The CEO, Arturo Préstamo, stated that the quarter "fully captured the impacts" of the water inflow event that occurred at the Bolivar Mine in May 2025, which restricted access to high-grade silver areas. The company is increasing pumping capacity at Bolivar and now expects production from the high-grade zones to resume in February 2026 and ramp up through the remainder of that year.

The Q3 production figures represent a material negative development for the company. - Production Decline: AgEq production of 3.42M oz is a 3.5% decrease from Q2 2025 (3.55M oz) and a 6.9% decrease from Q1 2025 (3.69M oz). It is also a significant 26% drop from Q3 2024's production of 4.64M oz. This trend of declining production is a serious concern. - Timeline Slippage: The most critical aspect of this release is the revised timeline for remediation at the Bolivar mine. In the Q2 results (August 21, 2025), management expected production to "normalize by Q4 2025." The new guidance pushes the resumption of high-grade mining to February 2026, with a gradual ramp-up thereafter. This is a significant delay of at least one full quarter, which will negatively impact Q4 2025 and Q1 2026 revenues and cash flows more than previously anticipated. - Contradicts Positive Narrative: This operational setback contrasts sharply with the company's recent positive corporate developments, such as completing the accelerated payments to Glencore and pursuing a NASDAQ listing. While the balance sheet is much stronger, the inability to resolve a key operational issue on the previously stated timeline highlights execution risk and undermines management's credibility.

The news is material and negative as it confirms ongoing operational struggles and pushes out the expected recovery, leading to lowered expectations for near-term financial performance.

Santacruz Silver is a silver-focused mining company with producing assets in two jurisdictions: Bolivia and Mexico. - Bolivia: The company operates the Bolivar, Porco, and Caballo Blanco mines, as well as the San Lucas ore sourcing and processing business. These assets were acquired from Glencore and form the core of the company's production base. Bolivar appears to be a flagship asset, given the outsized impact of its operational issues on consolidated results. - Mexico: The company operates the Zimapan Mine. - Growth Project: The Soracaya Project in Bolivia is a high-grade, silver-rich development asset that the company considers a "cornerstone growth project." It has an initial mineral resource estimate and the company is advancing it towards a production decision.