Santacruz Silver Mining (SCZ) AI Stock Analysis

• Market Cap: C$330.95M
• Dividend Yield: N/A
• Average Volume (3M): 780.39K
• Price to Earnings (P/E): 1.6
• Beta (1Y): 1.47
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 455
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Silver
• EPS (TTM): N/A
• Shares Outstanding: 355,855,530
• 10 Day Avg. Volume: 1,361,863
• 30 Day Avg. Volume: 780,389
• PEG Ratio: >-0.01
• Price to Book (P/B): -1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 50.25
• Enterprise Value/Market Cap: 0.09
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.94
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: C$1.60
• Price Target Upside: 72.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ―

Santacruz Silver Mining is on an upward trajectory with strong financial recovery and positive technical momentum. Its significantly low P/E ratio highlights its undervaluation, while recent production improvements signal operational strength. Historical equity challenges are a risk, but overall, the company shows promising growth potential.

Positive Factors

Debt Reduction

Santacruz announced that it plans to accelerate its debt payments to Glencore, saving $40M and cleaning up the balance sheet.

Financial Performance

Santacruz is generating significant cash flow, indicating strong financial performance and stability.

Market Valuation

Santacruz currently trades at a significant discount to its peers, and it is expected that this valuation gap will narrow as SCZ further improves its costs and balance sheet.

Negative Factors

Delayed Financial Reporting

SCZ is also late on its Q1 financial results which will be reported later this week.

Production Estimates

AgEq production came in at 3.7Moz compared to our estimate of 4.5Moz, representing -10% QoQ and -5% YoY.

Production Results

Santacruz reported its Q1/25 production results, missing our expectations due to pronounced seasonality and various operational challenges which have now been resolved.

Santacruz Silver Mining Business Overview & Revenue Model

Company Description

Santacruz Silver Mining Ltd., together with its subsidiaries, engages in the acquisition, exploration, development, and operation of mineral properties in Mexico. The company primarily explores for silver and zinc, as well as lead and copper deposits. It holds interests in the Zimapan Mine that consists of 34 mining concessions covering an area of 5,139 hectares located in Hidalgo, Mexico; and two exploration properties, which include the La Pechuga Property and the Santa Gorgonia Prospect. The company was formerly known as Forte Resources Inc. and changed its name to Santacruz Silver Mining Ltd. in April 2012. Santacruz Silver Mining Ltd. was incorporated in 2011 and is based in Vancouver, Canada.

How the Company Makes Money

Santacruz Silver Mining generates revenue primarily through the sale of silver and zinc concentrates extracted from its mining operations in Mexico. The company processes ore from its mines to produce these concentrates, which are then sold to smelters and metal traders. Key revenue streams include spot sales contracts and long-term agreements with buyers, often based on prevailing market prices for silver and zinc. Additionally, Santacruz Silver Mining may engage in strategic partnerships or joint ventures to enhance production capabilities and optimize resource extraction, contributing further to its earnings. The company's financial performance is significantly influenced by fluctuations in global commodity prices and the operational efficiency of its mining projects.

Santacruz Silver Mining Financial Statement Overview

Summary

Santacruz Silver Mining shows a significant turnaround with improved profitability and cash flow generation. The income statement reflects robust recovery, and the cash flow statement indicates efficient cash management. Despite historical challenges with equity levels, the company is on a positive trajectory, focusing on strengthening its balance sheet.

Income Statement

Santacruz Silver Mining has shown strong recovery and growth in TTM with a significant increase in net income, reflecting improved operational efficiency. Despite a decline in gross profit margin from the previous year, the net profit margin has improved remarkably due to the substantial net income figure. The revenue growth rate has been moderate. However, EBIT and EBITDA margins have shown positive trends, indicating improving profitability.

Balance Sheet

The company's balance sheet reflects moderate financial health. While the debt-to-equity ratio is low due to increased equity, the company has historically struggled with negative equity. The return on equity has improved significantly with positive net income, displaying a turnaround in financial performance. The equity ratio remains healthy, reflecting adequate asset coverage by equity.

Cash Flow

Cash flow analysis shows strong free cash flow growth, supported by robust operating cash flow. The operating cash flow to net income ratio indicates efficient cash generation relative to net income. The free cash flow to net income ratio is positive, suggesting that the company is effectively managing its capital expenditures to enhance cash generation.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
258.93M	251.26M	278.59M	53.33M	33.10M	29.11M
	Gross Profit
32.47M	63.98M	22.87M	10.30M	988.00K	-1.71M
	EBIT
9.29M	7.95M	66.00K	-6.77M	-5.74M	-18.52M
	EBITDA
206.86M	50.70M	4.91M	-815.00K	111.00K	-18.27M
	Net Income Common Stockholders
150.90M	16.15M	-18.51M	-11.56M	-1.49M	-20.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.24M	5.01M	7.38M	5.04M	430.00K	123.00K
	Total Assets
375.96M	339.04M	337.52M	60.91M	32.83M	24.59M
	Total Debt
800.00K	17.77M	22.21M	12.34M	6.76M	8.21M
	Net Debt
-17.44M	12.83M	17.61M	11.40M	6.33M	8.09M
	Total Liabilities
229.00M	333.62M	350.56M	58.18M	42.25M	41.44M
	Stockholders Equity
146.96M	5.42M	-13.04M	2.74M	-9.42M	-16.86M
Cash Flow		Free Cash Flow
26.57M	8.10M	13.60M	-25.07M	-6.45M	445.00K
	Operating Cash Flow
58.97M	29.77M	29.37M	-1.47M	-4.81M	1.79M
	Investing Cash Flow
-31.81M	-23.13M	-2.34M	-21.10M	-2.63M	-1.75M
	Financing Cash Flow
-9.57M	-6.30M	-23.34M	22.90M	7.76M	72.00K

Santacruz Silver Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SCZ, the sentiment is Positive. The current price of 0.93 is above the 20-day moving average (MA) of 0.80, above the 50-day MA of 0.62, and above the 200-day MA of 0.43, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 65.84 is Neutral, neither overbought nor oversold. The STOCH value of 59.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SCZ.

Santacruz Silver Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCZ	72 Outperform	C$330.95M	1.60	223.51%	―	―	―
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%
DV	42 Neutral	C$381.37M	―	-21.78%	―	―	31.39%
APGO	34 Underperform	C$100.62M	―	-49.24%	―	―	-2.14%
SVRS	34 Underperform	C$60.24M	―	-24.57%	―	―	78.62%
SLVRF		$56.37M	―	-7.27%	―	―	―

Santacruz Silver Mining Corporate Events

Santacruz Silver Mining Boosts Production in Q4 2024

Santacruz Silver Mining reported a production of 4,710,013 silver equivalent ounces in Q4 2024, with notable increases in silver output and overall operational performance. The company’s focus on optimizing processes has strengthened its revenue-generating ability, positioning it well for future value creation as it enters 2025.

Santacruz Silver’s Strong Third Quarter Boosts Financials

Santacruz Silver Mining reported a robust third quarter, with a 21% boost in revenue to $78 million and a remarkable 242% increase in EBITDA to $16 million. The company’s cash reserves skyrocketed by 505% to $18 million, driven by stronger silver production and favorable market prices. These financial gains reflect Santacruz’s strategic focus on cost optimization and enhanced operational performance.