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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