VANCOUVER, BC, Aug. 15,
2024 /CNW/ - Santacruz Silver Mining
Ltd. (TSXV: SCZ) ("Santacruz" or "the Company") reports
its financial and operating results for the second quarter ("Q2")
of 2024. The full version of the financial statements and
accompanying Management's Discussion and Analysis (the "MD&A")
can be viewed on the Company's website at www.santacruzsilver.com
or on SEDAR+ at www.sedarplus.ca.
Q2 2024 Highlights
- Processed 500,755 tonnes of material in the quarter: 971,504
tonnes in the first half 2024;
- Produced of 4,819,552 silver equivalent ounces in the quarter:
9,297,674 silver equivalent ounces in the first half of 2024,
including:
- 1,671,359 ounces of silver in the quarter: 3,253,308 in the
first half of 2024;
- 25,052 tonnes of zinc in the quarter: 47,899 tonnes in the
first half of 2024;
- Cash cost per silver equivalent ounce sold of $22.25 in the quarter: $21.89 in the first half of 2024;
- AISC per silver equivalent ounce sold of $24.74: $24.47 in
the first half of 2024;
- Revenue of $70,485,000 in the
quarter: $123,074,000 in the first
half of 2024;
- Adjusted EBITDA of $8,852,000 in
the quarter: $8,637,000 in the first
half of 2024.
Arturo Préstamo, Executive Chairman and CEO of Santacruz,
commented, "Strong metal prices significantly bolstered our average
realized price per silver equivalent ounce sold. Coupled with
robust production, Santacruz delivered a solid financial
performance in Q2 2024, achieving $70
million in revenue and nearly $16
million in gross profit. This stable financial outcome
underscores our ability to capitalize on favourable market
conditions. However, our net income was impacted by a non-cash
charge of $6.9 million in the
quarter, related to the fair value changes on the contingent value
rights due to the increase in zinc prices from March to June." Mr.
Préstamo continued; "In addition to our strong financial
performance, we maintained a stable AISC and will continue with a
disciplined approach on cost management initiatives in order to
achieve long-term financial stability, which puts us in a position
to continue creating value for our shareholders."
Selected consolidated financial and operating information for
the quarter ended June 30, 2024 are
presented below. All financial information is prepared in
accordance with International Financial Reporting Standards
("IFRS"), and all dollar amounts are expressed in thousands of US
dollars, except per unit amounts, unless otherwise indicated.
2024 Second Quarter Highlights
|
2024-Q2
|
2024-Q1
|
Change
Q2 vs
Q1
|
2023-Q2
|
Change
Q2 vs
Q2
|
2024-YTD
|
2023-YTD
|
Change
'24 vs
'23
|
|
Operational
|
|
|
|
|
|
|
|
|
|
Material Processed
(tonnes milled)
|
500,755
|
470,749
|
6 %
|
443,969
|
13 %
|
971,504
|
926,466
|
5 %
|
|
Silver Equivalent
Produced (ounces) (1)
|
4,819,552
|
4,478,122
|
8 %
|
4,631,429
|
4 %
|
9,297,674
|
9,327,969
|
- %
|
|
Silver Ounces
Produced
|
1,671,359
|
1,581,949
|
6 %
|
1,786,461
|
(6 %)
|
3,253,308
|
3,555,981
|
(9 %)
|
|
Zinc Tonnes
Produced
|
25,052
|
22,847
|
10 %
|
22,282
|
12 %
|
47,899
|
44,745
|
7 %
|
|
Lead Tonnes
Produced
|
2,908
|
2,953
|
(2 %)
|
2,825
|
3 %
|
5,861
|
5,868
|
- %
|
|
Copper Tonnes
Produced
|
284
|
256
|
11 %
|
297
|
(4 %)
|
540
|
713
|
(24 %)
|
|
Silver Equivalent Sold
(payable ounces) (2)
|
3,402,139
|
3,632,938
|
(6 %)
|
4,087,787
|
(17 %)
|
7,035,077
|
8,468,682
|
(17 %)
|
|
Cash Cost of Production
per Tonne (3)
|
99.09
|
96.09
|
3 %
|
106.18
|
(7 %)
|
97.64
|
105.87
|
(8 %)
|
|
Cash Cost per Silver
Equivalent Ounce Sold
($/oz) (3)
|
22.25
|
21.56
|
3 %
|
19.95
|
12 %
|
21.89
|
19.79
|
11 %
|
|
All-in Sustaining Cash
Cost per Silver
Equivalent Ounce Sold ($/oz) (3)
|
24.74
|
24.22
|
2 %
|
23.49
|
5 %
|
24.47
|
23.32
|
5 %
|
|
Average Realized Price
per Ounce of Silver
Equivalent Sold ($/oz) (3) (4)
|
30.40
|
23.18
|
31 %
|
22.00
|
38 %
|
26.67
|
22.01
|
21 %
|
|
Financial
|
|
|
|
|
|
|
|
|
|
Revenues
|
70,485
|
52,589
|
34 %
|
63,854
|
10 %
|
123,074
|
129,232
|
(5 %)
|
|
Gross Profit
|
15,690
|
463
|
3,289 %
|
10,976
|
43 %
|
16,153
|
25,656
|
(37 %)
|
|
Net Income
(loss)
|
1,539
|
129,025
|
(99 %)
|
4,351
|
(65 %)
|
130,564
|
4,175
|
3,027 %
|
|
Net Earnings (Loss) Per
Share – Basic and
Diluted($/share)
|
0.00
|
0.37
|
(100 %)
|
0.01
|
(100 %)
|
0.37
|
0.01
|
3,600 %
|
|
Adjusted EBITDA
(3)
|
8,852
|
(215)
|
4,217 %
|
9,138
|
(3 %)
|
8,637
|
21,740
|
(60 %)
|
|
Cash and Cash
Equivalent
|
7,308
|
4,035
|
81 %
|
7,720
|
(5 %)
|
7,308
|
7,720
|
(5 %)
|
|
Working Capital
(Deficiency)
|
18,011
|
7,150
|
152 %
|
(23,013)
|
(178 %)
|
18,011
|
(23,013)
|
(178 %)
|
Second Quarter 2024 Production Summary - By Mine
|
Bolivar (5)
|
Porco (5)
|
Caballo
Blanco Group
|
San
Lucas
|
Zimapan
|
Total
|
|
Material Processed
(tonnes milled)
|
72,151
|
51,307
|
83,661
|
83,900
|
209,735
|
500,755
|
|
Silver Equivalent
Produced (ounces) (1)
|
1,029,806
|
534,300
|
968,646
|
1,200,854
|
1,085,946
|
4,819,552
|
|
Silver Ounces
Produced
|
427,665
|
151,258
|
318,520
|
364,607
|
409,309
|
1,671,359
|
|
Zinc Tonnes
Produced
|
5,168
|
3,276
|
5,331
|
7,150
|
4,127
|
25,053
|
|
Lead Tonnes
Produced
|
300
|
205
|
641
|
450
|
1,312
|
2,908
|
|
Copper Tonnes
Produced
|
N/A
|
N/A
|
N/A
|
N/A
|
284
|
284
|
|
Average head grades per
mine:
|
|
|
|
|
|
|
|
Silver
(g/t)
|
207
|
105
|
133
|
165
|
80
|
124
|
|
Zinc
(%)
|
7.83
|
6.76
|
6.96
|
9.31
|
2.46
|
5.57
|
|
Lead
(%)
|
0.57
|
0.52
|
1.04
|
0.86
|
0.73
|
0.76
|
|
Copper
(%)
|
N/A
|
N/A
|
N/A
|
N/A
|
0.30
|
0.30
|
|
Metal recovery per
mine:
|
|
|
|
|
|
|
|
Silver
(%)
|
89
|
88
|
89
|
82
|
76
|
82
|
|
Zinc
(%)
|
92
|
94
|
92
|
91
|
80
|
87
|
|
Lead
(%)
|
73
|
77
|
74
|
62
|
86
|
77
|
|
Copper
(%)
|
N/A
|
N/A
|
N/A
|
N/A
|
45
|
45
|
|
Silver Equivalent Sold
(payable ounces) (2)
|
775,682
|
365,176
|
688,391
|
715,135
|
857,755
|
3,402,139
|
|
|
|
|
|
|
|
|
|
Notes for both tables
above:
|
|
(1)
|
Silver Equivalent
Produced (ounces) have been calculated using prices of $23.85/oz,
$1.21/lb, $0.94/lb and $3.91/lb for silver, zinc, lead and copper
respectively applied to the metal production divided by the
silver price as stated here.
|
|
(2)
|
Silver Equivalent Sold
(payable ounces) have been calculated using the Average Realized
Price per Ounce of Silver Equivalent Sold stated in the table
above, applied to the payable metal content of the concentrates
sold from Bolivar, Porco, the Caballo Blanco Group, San Lucas and
Zimapan.
|
|
(3)
|
The Company reports
non-GAAP measures, which include Cash Cost of Production per Tonne,
Cash Cost per Silver Equivalent Ounce Sold, All-in Sustaining Cash
Cost per Silver Equivalent Ounce Sold, Average Realized Price per
Ounce of Silver Equivalent Sold, and Adjusted EBITDA. These
measures are widely used in the mining industry as a benchmark for
performance, but do not have a standardized meaning and may differ
from methods used by other companies with similar descriptions. See
''Non-GAAP Measures'' section below for definitions.
|
|
(4)
|
Average Realized Price
per Ounce of Silver Equivalent Sold is prior to all treatment,
smelting and refining charges.
|
|
(5)
|
Bolivar and Porco are
presented at 100% whereas the Company records 45% of revenues and
expenses in its consolidated financial statements.
|
Silver Equivalent Ounces Produced
Q2 2024 vs Q2 2023
In Q2 2024, the Company processed
500,755 tonnes of material and produced 4,819,552 silver equivalent
ounces including 1,671,359 ounces of silver and 25,053 tonnes of
zinc, a 4% increase over Q2 2023. When compared to Q2 2023,
despite the 13% increase in material mined and processed, silver
production decreased 6% as a result of lower silver grades at
Bolivar, Porco, Caballo Blanco and San
Lucas, partially offset by increased silver grades at
Zimapan. Zinc production contributed to the increase in
silver equivalent ounce production as a result of more material
processed coupled with the increase in zinc grades and recoveries
at Bolivar and Zimapan.
Q2 2024 vs Q1 2024
When compared to the previous
quarter, silver equivalent ounce production increase 8% as a result
of increases in total material processed from increases at Caballo
Blanco and San Lucas which drove
the 6% increase in total silver production; 12% from Caballo Blanco
and 24% from San Lucas offset by a
14% decrease at Porco. Zinc grades and recoveries were in
line with Q1 2024.
Cash Cost of Production per Tonne
Q2 2024 vs Q2 2023
Consolidated cash cost of
production per tonne of mineralized material processed was
$99.09 in Q2 2024 compared to
$106.18 in Q2 2023, a decrease of
7%. A 5% increase in total costs was offset by a 13% increase
in material processed.
Q2 2024 vs Q1 2024
Consolidated cash cost of
production per tonne of mineralized material processed was
$99.09 in Q2 2024 compared to
$96.09 in Q1 2024, an increase of 4%.
A 10% increase in total cost was partially offset by a 6% increase
in material processed.
Cash Cost per Silver Equivalent Ounce Sold
Q2 2024 vs Q2 2023
Cash cost per silver equivalent
ounce sold was $22.25 in Q2 2024
compared to $19.95 in Q2 2023, an
increase of 12%. This increase was driven by a 17% decrease in
silver equivalent ounces sold, partially offset by a 7% reduction
in unit cost per tonne processed.
Q2 2024 vs Q1 2024
Cash cost per silver equivalent
ounce sold was $22.25 in Q2 2024
compared to $21.56 in Q1 2024, an
increase of 3% which was due primarily to the 6% decrease in silver
equivalent ounces sold compounded by the slight increase in unit
cost per tonne processed.
All-In Sustaining Cash Cost ("AISC") per Silver Equivalent
Ounce Sold
Q2 2024 vs Q2 2023
Q2 2024 AISC per silver equivalent
ounce sold was $24.74 compared to Q2
2023 of $23.49, an increase of 5%.
Higher cash costs per silver equivalent ounce in Q2 2024 were
partially offset by lower sustaining capital expenditures in the
same period.
Q2 2024 vs Q1 2024
Q2 2024 AISC per silver equivalent
ounce sold was $24.74 compared to Q1
2024 of $24.22, an increase of
2%. Unit costs and silver equivalent sold were relatively
consistent quarter over quarter.
OTC Symbol Change
On August 12, 2024, the Company's
OTC symbol changed from SZSMF to SCZMF.
About Santacruz Silver Mining Ltd.
Santacruz Silver is engaged in the operation,
acquisition, exploration, and development of mineral properties in
Latin America. The Bolivian
operations are comprised of the Bolivar, Porco and the Caballo
Blanco Group, which consists of the Tres Amigos, Reserva and
Colquechaquita mines. The Soracaya exploration project and
San Lucas ore sourcing and trading
business are also in Bolivia. The Zimapan mine is in Mexico.
'signed'
Arturo Préstamo Elizondo,
Executive Chairman and CEO
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward looking information
This news release includes certain statements and information
that may constitute forward-looking information within the meaning
of applicable Canadian securities laws. Forward-looking statements
relate to future events or future performance and reflect the
expectations or beliefs of management of the Company regarding
future events. Generally, forward-looking statements and
information can be identified by the use of forward-looking
terminology such as "intends", "expects" or "anticipates", or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "should", "would" or
will "potentially" or "likely" occur. This information and these
statements, referred to herein as "forward‐looking statements", are
not historical facts, are made as of the date of this news release
and include without limitation, statements regarding the
ability of the Company to successfully complete any capital
projects, the expected economic or operational results derived from
those projects, and the impacts of any such projects on the
Company.
These forward-looking statements and information reflect the
Company's current views with respect to future events and are
necessarily based upon a number of assumptions and estimates that,
while considered reasonable by the Company, are inherently subject
to significant operational, business, economic, competitive,
political, regulatory, and social uncertainties and contingencies.
These assumptions, include: the ability of the Company to
successfully complete any capital projects, the expected economic
or operational results derived from those projects, and the impacts
of any such projects on the Company, risks related to
changes in general economic, business and political conditions,
including changes in the financial markets, changes in applicable
laws, and compliance with extensive government regulation,
as well as those risk factors discussed or referred to in the
Company's disclosure documents filed with the securities regulatory
authorities in certain provinces of Canada and available at
www.sedarplus.ca.
In making the forward-looking statements in this news
release, the Company has applied several material assumptions,
including without limitation, the ability of the
Company to successfully complete any capital projects, the expected
economic or operational results derived from those projects, and
the impacts of any such projects on the Company.
There can be no assurance that any forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, the reader should not place any undue
reliance on forward-looking information or statements. The Company
undertakes no obligation to update forward-looking information or
statements, other than as required by applicable law.
SOURCE Santacruz Silver Mining Ltd.