Santacruz Silver Reports Third Quarter 2024 Results
Canada NewsWire
VANCOUVER, BC, Nov. 25, 2024
Q3 2024 Revenue Increased 21% Year-over-Year to $78 Million
Q3 2024 EBITDA Increased 242% Year-over-Year to $16 Million
Q3 2024 Cash and Cash Equivalents Increased 505% Year-over-Year to $18 Million
Filed NI 43-101 Compliant Mineral Resource and Reserve Estimates for Three Bolivian Producing Mines
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VANCOUVER, BC, Nov. 25, 2024 /CNW/ - Santacruz Silver Mining Ltd. (TSXV: SCZ) (OTCQB: SCZMF) (FSE: 1SZ) ("Santacruz" or "the Company") reports its financial and operating results for the three and nine months ended September 30, 2024 ("Q3 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.
Arturo Préstamo, Executive Chairman and CEO of Santacruz, commented, "Following the successful restructuring of the Share Purchase Agreement $(SPA)$ with Glencore, the Company has significantly enhanced its financial position. This achievement, coupled with strong operational performance and solid revenue growth, led to a successful third quarter, highlighted by $78 million in revenue, $16 million in EBITDA, and $18 million in cash and cash equivalents. These results reflect our continued focus on improving the productivity of our mines and milling facilities, aiming to enhance the quality of our concentrates while optimizing costs."
Mr. Prestamo continued; "In addition to our solid financial performance, we successfully maintained a stable All-In Sustaining Cost (AISC) and remain committed to disciplined cost optimization initiatives. Furthermore, significant investments were made in underground equipment in Mexico to support the growth momentum achieved over the past quarters. This strategic focus not only strengthens our operational and financial stability but also positions us to create sustained long-term value for our shareholders."
Q3 2024 Highlights (all amounts in US$000's unless otherwise stated)
-- Revenues increased 21% or $13,836 to $78,244 in Q3 2024, compared to
$64,408 in Q3 2023, primarily due from:
-- An increase of $13,453 in revenues from the Bolivia Operating
Mines due to a 22% increase in the average realized price per
ounce of silver equivalent ounces sold and further impacted by a
10% increase in the volume of silver equivalent ounces sold from
Q3 2023.
-- An increase of $3,345 in revenues from the Zimapan Mine due to a
7% increase in the average realized price per ounce of silver
equivalent ounces sold and further impacted by a 6% increase in
the volume of silver equivalent ounces sold from Q3 2023.
-- Adjusted EBITDA increased 242% or $11,181 to $15,810 in Q3 2024, compared
to $4,628 in Q3 2023. The increase was primarily due to higher silver
production, improvements in milling facilities to increase silver
recovery in the lead concentrate, and the rise in silver prices.
-- Cash and Cash Equivalent increased 505% or $15,238 to $18,242 in Q3 2024,
compared to $3,014 in Q3 2023. The increase was primarily due to higher
revenue from increased silver production and favorable silver and zinc
prices.
-- Working Capital was $24,191 at the end of Q3 2024, improving from a
deficit of $43,168 as of December 31, 2023.
-- Bolivia Assets Mineral Resources and Reserves: In August 2024, Santacruz
filed National Instrument 43-101 -- Standards of Disclosure for Mineral
Projects ("NI 43-101") compliant Mineral Resource and Reserve estimates
for its three Bolivian producing assets (Bolivar mine, Porco mine, and
Caballo Blanco Group of mines ("Caballo Blanco")) together with the
Bolivar mine and the Porco mine (the "Bolivian Producing Mines").
Subsequent to the quarter-end, in October 2024, Santacruz also filed the
NI 43-101 Mineral Resource estimate for the Soracaya exploration project
in Bolivia.
-- Silver Recovery Focus: In Q3 2024, the feed for the Don Diego milling
facility supplied by the Caballo Blanco Group was adjusted to improve
silver recovery to the lead concentrate, where silver payabilities are
highest for Santacruz. Initial results show significant gains in silver
recovery to the lead concentrate, with this new processing approach being
adopted as the new standard going forward for consistent recovery
performance and to maximize the value of the Company's mineral resources.
Selected consolidated financial and operating information for Q3 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 Third Quarter Highlights
2024-Q3 2024-Q2 ChangeQ3 2023-Q3 ChangeQ3 2024-YTD 2023-YTD Change'24
vs Q2 vs Q3 vs '23
Operational
Material
Processed
(tonnes milled) 491,260 500,755 (2 %) 467,563 5 % 1,462,359 1,394,029 5 %
Silver Equivalent
Produced
(ounces) (1) 4,644,013 4,819,552 (4 %) 4,695,999 (1 %) 13,941,687 14,023,809 (1 %)
Silver Ounces
Produced 1,703,388 1,671,359 2 % 1,728,863 (1 %) 4,956,696 5,284,845 (6 %)
Zinc Tonnes
Produced 23,143 25,052 (8 %) 23,095 0 % 71,042 67,839 5 %
Lead Tonnes
Produced 3,027 2,908 4 % 3,370 (10 %) 8,888 9,237 (4 %)
Copper Tonnes
Produced 270 284 (5 %) 252 7 % 809 964 (16 %)
Silver Equivalent
Sold (payable
ounces) (2) 3,601,754 3,402,139 6 % 3,822,782 (6 %) 10,636,832 12,291,464 (13 %)
Cash Cost of
Production per
Tonne (3) 110.50 95.11 16 % 93.73 18 % 99.66 92.48 8 %
Cash Cost per
Silver
Equivalent Ounce
Sold
($/oz) (3) 22.38 21.66 3 % 21.68 3 % 21.74 19.34 12 %
All-in Sustaining
Cash Cost per
Silver
Equivalent Ounce
Sold ($/oz) (3) 27.40 24.91 10 % 25.98 5 % 25.53 23.10 11 %
Average Realized
Price per Ounce
of Silver
Equivalent Sold
($/oz) (3) (4) 29.86 30.40 (2 %) 25.31 18 % 27.75 23.04 20 %
Financial
Revenues 78,244 70,485 11 % 64,408 21 % 201,318 193,640 4 %
Gross Profit 14,767 15,690 (6 %) 7,394 100 % 30,920 33,050 (6 %)
Net Income (loss) 4,062 1,539 164 % (4,298) (195 %) 134,626 (123) 109552 %
Net Earnings
(Loss) Per Share
-- Basic and
Diluted($/share) 0.01 0.00 0 % (0.01) (182 %) 0.38 (0.00) 17024 %
Adjusted EBITDA
(3) 15,810 16,893 6 % 4,628 242 % 32,141 26,369 22 %
Cash and Cash
Equivalent 18,242 7,308 150 % 3,014 505 % 18,242 3,014 505 %
Working Capital
(Deficiency) 24,191 14,976 62 % (27,354) (188 %) 24,191 (27,354) 188 %
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 in the Company's
Q3 2024 Management Discussion and Analysis for definitions.
(4) Average Realized Price per Ounce of Silver Equivalent
Sold is prior to all treatment, smelting and refining
charges.
Silver Equivalent Ounces Produced
For Q3 2024, the Company processed 491,260 tonnes of mineralized material, producing 4,644,013 silver equivalent ounces. This total includes 1,703,388 ounces of silver and 23,143 tonnes of zinc. Full Q3 2024 production results were released in a press release dated October 24, 2024.
Q3 2024 vs Q3 2023
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