Valued at a market cap of $1.14 billion, Santacruz Silver Mining (TSXV: SCZ) stock is down 46% from its 52-week high. Despite the ongoing pullback, it has returned nearly 700% over the past three years.
Santacruz Silver is a mining company that posted record numbers in 2025 due to elevated commodity prices. I think this cheap Canadian stock is a compelling buy for patient investors willing to hold through the noise.
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Is this TSX mining stock a good buy?
In 2025, Santacruz grew revenues by 15% and almost doubled its earnings before interest, taxes, depreciation, and amortization (EBITDA), which rose 99% year over year. The company also fully paid off the Glencore base purchase price obligation, saving US$40 million in future payments and eliminating long-term debt from its balance sheet.
It ended 2025 with US$66.7 million in cash and marketable securities, which include treasury bills and treasury notes.
However, a water flooding event at the company’s flagship Bolivar Mine in Bolivia temporarily disrupted production. Notably, its ore feed-sourcing business, San Lucas, stepped in to keep Bolivar’s milling facility running at full capacity throughout the disruption, thereby offsetting production losses and absorbing fixed costs.
By the fourth quarter, Bolivar was on the road to recovery, as silver-equivalent production at the mine jumped 34% quarter over quarter.
“The company really demonstrated the strength of our business platform,” CEO Arturo Préstamo Elizondo said during a recent earnings webinar.
A diversified asset base
Santacruz operates four mines across Bolivia and Mexico, plus San Lucas and an exploration asset called Soracaya.
- The Mexican operation at Zimapan received significant capital investment in 2025, including a new flash-cell circuit for the lead-processing plant.
- That single investment cost about US$2.5 million and is now generating roughly US$700,000 per month in additional revenue through improved silver recoveries. The payback period is around three to four months.
- Management expects Zimapan’s capital spending to normalize by mid-2026 as those investments begin to pay off.
- Meanwhile, Soracaya, a high-grade silver exploration and development asset, is targeting initial small-scale production by late 2026, with commercial production expected in 2027.
Silver is a precious metal and is also a critical input for solar panels, electric vehicles, and other green technology applications.
Global demand for silver in industrial uses has been climbing steadily, and many analysts expect that trend to continue for years.
Santacruz produced 14.4 million silver equivalent ounces in 2025 despite a disrupted year at Bolivar. With that mine ramping back up through 2026, production should improve quarter over quarter.
The company is also working toward a TSX up-listing from the TSX Venture Exchange, which could open the stock to a much broader pool of institutional investors. Management has flagged a share-buyback program as a near-term priority once the up-listing is complete, which they believe the current share price more than justifies.
Is the TSX mining stock undervalued?
Analysts tracking Santacruz Silver Mining forecast free cash flow to expand from $48.5 million in 2025 to $108 million in 2027. If Santacruz Silver stock is priced at 15 times forward earnings, it could surge 40% over the next 12 months.
For investors hunting for a cheap Canadian stock with real assets, a clean balance sheet, and multiple catalysts on the horizon, Santacruz Silver deserves a close look.
