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Santacruz Silver Mining Ltd (TSE:SCZ)
:SCZ

Santacruz Silver Mining (SCZ) AI Stock Analysis

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Santacruz Silver Mining

(SCZ)

Rating:72Outperform
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 Management
Santacruz announced that it plans to accelerate its debt payments to Glencore, saving $40M and cleaning up the balance sheet.
Operational Efficiency
Continued optimization and improved efficiencies are expected at its Bolivian assets.
Valuation
SCZ is trading at just 2.0x 2025E CF compared to small/mid-cap silver producers.
Negative Factors
Financial Reporting
SCZ is also late on its Q1 financial results which will be reported later this week.
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 (SCZ) vs. iShares MSCI Canada ETF (EWC)

Santacruz Silver Mining Business Overview & Revenue Model

Company DescriptionSantacruz Silver Mining Ltd. is a Canadian-based mining company engaged primarily in the acquisition, exploration, and production of mineral properties, with a focus on silver and zinc. The company operates in the precious metals sector, managing multiple mining projects in Mexico, including the Zimapan Mine and the Rosario Project. Santacruz Silver Mining is committed to sustainable and efficient mining practices, aiming to deliver high-quality silver and base metal products to the global market.
How the Company Makes MoneySantacruz 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
65
Positive
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
55
Neutral
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
70
Positive
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.
BreakdownTTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income Statement
Total Revenue258.93M251.26M278.59M53.33M33.10M29.11M
Gross Profit32.47M63.98M22.87M10.30M988.00K-1.71M
EBITDA206.86M50.70M4.91M-815.00K111.00K-18.27M
Net Income150.90M16.15M-18.51M-11.56M-1.49M-20.57M
Balance Sheet
Total Assets375.96M339.04M337.52M60.91M32.83M24.59M
Cash, Cash Equivalents and Short-Term Investments18.24M5.01M7.38M5.04M430.00K123.00K
Total Debt800.00K17.77M22.21M12.34M6.76M8.21M
Total Liabilities229.00M333.62M350.56M58.18M42.25M41.44M
Stockholders Equity146.96M5.42M-13.04M2.74M-9.42M-16.86M
Cash Flow
Free Cash Flow26.57M8.10M13.60M-25.07M-6.45M445.00K
Operating Cash Flow58.97M29.77M29.37M-1.47M-4.81M1.79M
Investing Cash Flow-31.81M-23.13M-2.34M-21.10M-2.63M-1.75M
Financing Cash Flow-9.57M-6.30M-23.34M22.90M7.76M72.00K

Santacruz Silver Mining Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.09
Price Trends
50DMA
0.77
Positive
100DMA
0.62
Positive
200DMA
0.48
Positive
Market Momentum
MACD
0.08
Positive
RSI
66.25
Neutral
STOCH
89.47
Negative
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 1.09 is above the 20-day moving average (MA) of 1.01, above the 50-day MA of 0.77, and above the 200-day MA of 0.48, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 66.25 is Neutral, neither overbought nor oversold. The STOCH value of 89.47 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSFVI
76
Outperform
C$2.75B12.3212.07%30.33%
TSFVI
76
Outperform
C$2.75B12.3212.07%30.33%
TSSCZ
72
Outperform
C$387.88M1.88223.51%
62
Neutral
$10.27B9.83-0.18%2.87%2.21%-32.50%
TSEDR
55
Neutral
$1.98B-14.41%4.45%-3193.40%
TSEDR
55
Neutral
$1.98B-14.41%4.45%-3193.40%
TSUSA
53
Neutral
$776.30M-95.94%23.63%22.43%
TSUSA
53
Neutral
$776.30M-95.94%23.63%22.43%
TSIPT
42
Neutral
$82.62M-11.62%36.99%-153.27%
TSMSV
39
Underperform
C$14.65M5.436.17%49.01%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SCZ
Santacruz Silver Mining
1.09
0.71
186.84%
TSE:IPT
IMPACT Silver
0.30
0.03
11.11%
TSE:FVI
Fortuna Mining Corp
8.96
2.11
30.80%
TSE:FVI
Fortuna Mining Corp
8.96
2.11
30.80%
TSE:USA
Americas Gold and Silver
1.19
0.86
260.61%
TSE:USA
Americas Gold and Silver
1.19
0.86
260.61%
TSE:EDR
Endeavour Silver
6.83
1.22
21.75%
TSE:EDR
Endeavour Silver
6.83
1.22
21.75%
TSE:MSV
Minco Silver
0.24
0.03
14.29%

Santacruz Silver Mining Corporate Events

Business Operations and StrategyFinancial Disclosures
Santacruz Silver Mining Boosts Production in Q4 2024
Positive
Jan 30, 2025

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
Nov 26, 2024

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 31, 2025