Q3 2023 Highlights
- Processed 467,563 tonnes of material in the quarter: 1,394,029 tonnes in the first nine months of 2023;
- Produced of 5,669,905 silver equivalent ounces in the quarter: 16,883,823 silver equivalent ounces in the first nine months of 2023;
- Cash cost per silver ounce sold of
$21.68 in the quarter:$19.34 in the first nine months of 2023; - AISC per silver ounce sold of
$25.98 in the quarter:$23.10 in the first nine months of 2023; - Revenue of
$64,408,000 in the quarter:$193,640,000 in the first nine month of 2023; and - Adjusted EBITDA of
$4,628,000 in the quarter:$26,368,000 in the first nine months of 2023.
Arturo Préstamo, Executive Chairman and Interim CEO of Santacruz, commented, "The Company had a solid quarter in the face of a challenging commodity price environment." Mr. Préstamo continued, "While we continue to identify and implement efficiencies at all our assets, it is important to highlight the significant changes that were made at the
Selected consolidated financial and operating information for the quarter ended
2023-Q3 | 2023-Q2(8) | Change Q3 vs Q2 | 2022-Q3 | Change Q3 vs Q3 | 2023-YTD | 2022-YTD(1)(2) | Change '23 vs '22 | |
| ||||||||
Material Processed (tonnes milled) | 467,563 | 443,969 | 5 % | 500,956 | (7 %) | 1,394,029 | 1,163,645 | 20 % |
Silver Equivalent Produced (ounces) (3) | 5,669,905 | 5,569,535 | 2 % | 5,832,822 | (3 %) | 16,883,823 | 12,368,597 | 37 % |
Silver Ounces Produced | 1,728,863 | 1,786,461 | (3 %) | 1,924,973 | (10 %) | 5,284,845 | 3,805,287 | 39 % |
Lead Tonnes Produced | 3,370 | 2,824 | 19 % | 2,996 | 12 % | 9,237 | 7,165 | 29 % |
Zinc Tonnes Produced | 23,095 | 22,281 | 4 % | 22,831 | 1 % | 67,839 | 49,422 | 37 % |
Copper Tonnes Produced | 252 | 297 | (15 %) | 364 | (31 %) | 964 | 901 | 7 % |
Silver Equivalent Sold (payable ounces) (4) | 3,822,782 | 4,087,787 | (6 %) | 4,383,872 | (13 %) | 12,291,464 | 14,854,519 | (17 %) |
Cash Cost of Production per Tonne (5) | 93.73 | 100.25 | (7 %) | 148.51 | (37 %) | 92.48 | 119.72 | (23 %) |
Cash Cost per Silver Equivalent Ounce Sold ($/oz) (5) | 21.68 | 19.34 | 12 % | 20.79 | 4 % | 19.34 | 17.26 | 12 % |
All-in Sustaining Cash Cost per Silver Equivalent Ounce Sold ($/oz) (5) | 25.98 | 22.89 | 13 % | 24.90 | 4 % | 23.10 | 19.80 | 17 % |
Average Realized Price per Ounce of Silver Equivalent Sold ($/oz) (5) (6) | 25.31 | 22.00 | 15 % | 19.63 | 29 % | 23.04 | 20.98 | 10 % |
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Revenues | 64,408 | 63,854 | 1 % | 53,516 | 20 % | 193,640 | 214,285 | (10 %) |
Gross Profit | 7,394 | 10,976 | (33 %) | (19,338) | (138 %) | 33,050 | 16,635 | 99 % |
Net Income (loss) | (4,298) | 4,351 | (199 %) | (18,788) | (77 %) | (123) | (14,192) | 99 % |
Net Earnings (Loss) Per Share - Basic ($/share) | (0.01) | 0.01 | (199 %) | (0.06) | (78 %) | (0.00) | (0.04) | 99 % |
Adjusted EBITDA (5) | 4,628 | 9,138 | (49 %) | (14,785) | (131 %) | 26,368 | 16,758 | 57 % |
Cash and Cash Equivalent | 3,014 | 7,720 | (61 %) | 4,494 | (33 %) | 3,014 | 4,494 | (33 %) |
Working Capital (Deficiency) | (27,354) | (22,293) | (23 %) | (91,184) | (70 %) | (27,354) | (91,184) | 70 % |
Third Quarter 2023 Production Summary –
Bolivar (7) | Porco (7) | Caballo | Consolidated | |||
Material Processed (tonnes milled) | 77,298 | 47,786 | 76,864 | 73,456 | 192,158 | 467,563 |
Silver Equivalent Produced (ounces) (3) | 1,343,000 | 625,401 | 1,118,711 | 1,399,187 | 1,183,606 | 5,669,905 |
Silver Ounces Produced | 502,931 | 165,066 | 319,674 | 362,443 | 378,748 | 1,728,863 |
Lead Tonnes Produced | 449 | 190 | 684 | 522 | 1,526 | 3,370 |
Zinc Tonnes Produced | 5,214 | 2,891 | 4,805 | 6,454 | 3,731 | 23,095 |
Copper Tonnes Produced | N/A | N/A | N/A | N/A | 252 | 252 |
Average head grades per mine: | ||||||
Silver (g/t) | 221 | 119 | 144 | 183 | 80 | 156 |
Lead (%) | 0.79 | 0.52 | 1.22 | 1.06 | 0.97 | 0.95 |
Zinc (%) | 7.41 | 6.40 | 6.80 | 9.55 | 2.49 | 6.68 |
Copper (%) | N/A | N/A | N/A | N/A | 0.29 | 0.29 |
Silver Equivalent Sold (payable ounces) (4) | 784,713 | 285,286 | 609,415 | 1,285,739 | 857,628 | 3,822,782 |
Notes for both tables above: | |
(1) | On |
(2) | Bolivian production from |
(3) | Silver Equivalent Produced (ounces) have been calculated using prices of |
(4) | 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 |
(5) | 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. |
(6) | Average Realized Price per Ounce of Silver Equivalent Sold is prior to all treatment, smelting and refining charges. |
(7) | Bolivar and Porco are presented at 100% whereas the Company records 45% of revenues and expenses in its consolidated financial statements. |
(8) | The net loss (income), net loss (income) per share, Adjusted EBITDA, and working capital deficiency were amended as a result of the restatement related to the |
YTD 2022 numbers are affected by the partial quarter of Bolivian production in Q1 2022. On
Production
In Q3 2022, 500,956 tonnes of material was processed, and 5,832,882 silver equivalent ounces was produced, and in Q3 2023 467,563 tonnes of material was produced and 5,669,905 silver equivalent ounces was produced. While total material processed in Q3 2023 was 7% less compared to Q3 2022, total silver equivalent ounce production was down only 3%. This was a result of higher grades mined and an increase in metal recoveries at Bolivar and Zimapan.
In Q3 2023, the Company processed 467,563 tonnes of material, a slight increase from the previous quarter. Silver equivalent ounces produced of 5,669,905 included 1,728,863 ounces of silver, 3,370 tonnes of lead, 23,095 tonnes of zinc and 252 tonnes of copper. The positive impact of a slight increase in material processed combined with an increase in metal production from the
Cash Cost of Production per Tonne
Consolidated cash cost of production per tonne of mineralized material processed was
When compared to the previous quarter, consolidated cash cost of production per tonne of mineralized material processed decreased by 7% as a result of several factors including the increase in production at
Cash Cost per Silver Equivalent Ounce Sold
Cash cost per silver equivalent ounce sold was
Consolidated results for Q3 2023 show a 12% increase in cash costs per silver equivalent ounce sold compared to Q2 2023. This increase is primarily a result of 6% lower silver equivalent ounces sold based on realized pricing for metals which decreased silver equivalents sold for Q3 2023. Total costs were comparable to Q2 2023 and silver equivalent ounce production actually increased 2% vs Q2 2023.
All-In Sustaining Cash Cost ("AISC") per Silver Equivalent Ounce Sold
Q3 2023 AISC per silver equivalent ounce sold was
Consolidated AISC per silver equivalent ounce sold increased 13% quarter-on-quarter to
About
Santacruz Silver is engaged in the operation, acquisition, exploration, and development of mineral properties in
'signed'
Arturo Préstamo Elizondo,
Executive Chairman and Interim CEO
Neither the
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 Company's goal of identifying and implementing efficiencies at all of its assets, and the benefits the Company expects to realize for the changes made at the
In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, the assumption that there are further inefficiencies at the Company's assets which can be identified and improved upon, and that the Company will realize the expected benefits from the changes it has made at the
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.
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