Santacruz Silver Mining – Successful Bolivian Promissory Note Offering, Early Repayment Plan To Glencore, Strong Q4 Production Metrics
Arturo Préstamo Elizondo, Executive Chairman and CEO of Santacruz Silver Mining Ltd. (TSXV: SCZ) (OTCQB: SCZMF), joins me to recap key financial and operational updates for the company from newsflow during the first quarter. Santacruz Silver operates 1 mine in Mexico, and 5 mines, 3 mills, and an ore feed-sourcing and metals trading business in Bolivia, as an emerging mid-tier silver and base metals producer.
We start off on the financial side of the business, reviewing the news out on February 27th where its wholly owned subsidiary in Bolivia, San Lucas S.A., successfully completed the first offering of promissory notes, named “Pagarés Bursátiles San Lucas – Emisión 1,” under its San Lucas Promissory Notes Issuance Program. The offering was oversubscribed and sold out in a matter of 15 minutes, for gross proceeds of 70 million Bolivian Boliviano. The notes have a 6.25% interest rate, a maturity date of February 15th, 2026 and are unsecured. It was encouraging to Arturo to see the support from in-country stakeholders in Bolivia.
Next, we reviewed the news out on March 20, that the Company has structured and implemented a plan to exercise its Acceleration Option to satisfy the Base Purchase Price owed to Glencore, by making payments on a schedule that aligns the accelerated timing whilst meeting the Company’s commitment to financial discipline and a strong balance sheet. The plan’s primary objective is to save the Company US$40 million.The Company successfully completed the first component of this plan, an initial payment to Glencore of USD$10 million, on March 20, 2025. Moving forward under the plan, Santacruz will make bi-monthly payments of USD$7.5 million commencing in May 2025 until reaching a total of USD$40 million, with all payments scheduled to be completed by October 31, 2025. This structured plan reflects the Company’s commitment to fulfilling its obligations and achieving cost savings while maintaining financial discipline and strong cash reserves over time.
Then Arturo takes us through the Q4 2024 operational results where 4,710,013 silver equivalent ounces were produced from its Bolivar mine, Porco mine, Caballo Blanco Group of mines and the San Lucas ore sourcing business all located in Bolivia, and the Zimapan mine located in Mexico. Silver production rose by 3% compared to the previous quarter, reaching 1,761,686 ounces.
Q4 2024 Production Highlights:
- Silver Equivalent Production: 4,710,013 silver equivalent ounces
- Silver Production: 1,761,686 ounces
- Zinc Production: 23,357 tonnes
- Lead Production: 2,932 tonnes
- Copper Production: 248 tonnes
If you have any follow up questions for Arturo regarding Santacruz Silver, then please email them in to me Shad@kereport.com.
In full disclosure, Shad is a shareholder of Santacruz Silver at the time of this recording.
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