Q2 2023 Highlights
- Processed 443,969 tonnes of material in the quarter: 926,466 tonnes in the first half 2023;
- Produced of 5,569,535 silver equivalent ounces in the quarter: 11,213,918 silver equivalent ounces in the first half of 2023;
- Cash cost per silver ounce sold of
$19.34 in the quarter:$18.29 in the first half of 2023; - AISC per silver ounce sold of
$22 .89:$21.80 in the first half of 2023; - Revenue of
$63,854,000 in the quarter:$129,232,000 in the first half of 2023; - Adjusted EBITDA of
$9,138,000 in the quarter:$21,740,000 in the first half of 2023.
Arturo Préstamo, Executive Chairman and Interim CEO of Santacruz, commented, "The Company had another solid performance during the second quarter with production, costs, and sales relatively in line with the previous quarter. Mr. Préstamo continued, "We believe there is potential to upgrade our operations and are currently focusing on areas where we see opportunities for further improvement. By doing this, we aim to make processes more efficient, reduce costs, and get the most out of each of our valuable assets."
Selected consolidated financial and operating information for the quarter ended
2023 Second Quarter Highlights
2023-Q2 |
2023-Q1 | Change Q2 vs Q1 | 2022-Q2 | Change Q2 vs Q2 | 2023-YTD | 2022-YTD(1) | Change '23 vs '22 | |
| ||||||||
Material Processed (tonnes milled) | 443,969 | 482,497 | (8 %) | 435,119 | 2 % | 926,466 | 662,689 | 40 % |
Silver Equivalent Produced (ounces) (2) | 5,569,535 | 5,644,383 | (1 %) | 4,922,055 | 13 % | 11,213,918 | 6,535,775 | 72 % |
Silver Ounces Produced | 1,786,461 | 1,769,520 | 1 % | 1,410,485 | 27 % | 3,555,981 | 1,880,314 | 89 % |
Lead Tonnes Produced | 2,824 | 3,043 | (7 %) | 2,825 | - % | 5,867 | 4,169 | 41 % |
Zinc Tonnes Produced | 22,281 | 22,463 | (1 %) | 20,433 | 9 % | 44,744 | 26,591 | 68 % |
Copper Tonnes Produced | 297 | 415 | (28 %) | 329 | (10 %) | 712 | 537 | 33 % |
Silver Equivalent Sold (payable ounces) (3) | 4,087,787 | 4,380,895 | (7 %) | 8,605,909 | (93 %) | 8,468,682 | 10,470,647 | (19 %) |
Cash Cost of Production per Tonne (4) | 88.61 | 85.71 | 3 % | 110.06 | (19 %) | 87.17 | 97.96 | (11 %) |
Cash Cost per Silver Equivalent Ounce Sold ($/oz) (4) | 19.34 | 17.29 | 12 % | 15.40 | 26 % | 18.29 | 15.79 | 16 % |
All-in Sustaining Cash Cost per Silver | 22.89 | 20.76 | 10 % | 17.14 | 34 % | 21.80 | 17.67 | 23 % |
Average Realized Price per Ounce of Silver | 22.00 | 22.03 | - % | 21.09 | 4 % | 22.02 | 21.55 | 2 % |
| ||||||||
Revenues | 63,854 | 65,378 | (2 %) | 128,388 | (50 %) | 129,232 | 160,769 | (20 %) |
Gross Profit | 10,976 | 14,680 | (25 %) | 27,957 | (61 %) | 25,656 | 35,973 | (29 %) |
Net (loss) Income | 1,353 | (949) | 243 % | 3,834 | (65 %) | 404 | 4,596 | (91 %) |
Net Earnings (Loss) Per Share – Basic | 0.00 | 0.00 | - % | 0.01 | (66 %) | 0.00 | 0.01 | (66 %) |
Adjusted EBITDA (4) | 9,138 | 12,602 | (27 %) | 25,440 | (65 %) | 21,740 | 31,543 | (31 %) |
Cash and Cash Equivalent | 7,720 | 11,988 | (36 %) | 4,804 | 61 % | 7,720 | 4,804 | 61 % |
Working Capital (Deficiency) | (20,484) | (14,319) | (43 %) | (64,313) | 65 % | (34,803) | (67,011) | 48 % |
Second Quarter 2023 Production Summary –
Bolivar (6) | Porco (6) | Caballo | Zimapan | Consolidated | ||
Material Processed (tonnes milled) | 66,689 | 46,085 | 74,268 | 85,258 | 171,668 | 443,969 |
Silver Equivalent Produced (ounces) (2) | 961,580 | 689,902 | 1,211,475 | 1,827,724 | 878,854 | 5,569,535 |
Silver Ounces Produced | 424,664 | 195,509 | 399,811 | 495,344 | 271,133 | 1,786,461 |
Lead Tonnes Produced | 302 | 214 | 825 | 635 | 849 | 2,824 |
Zinc Tonnes Produced | 3,323 | 3,098 | 4,804 | 8,315 | 2,741 | 22,281 |
Copper Tonnes Produced | N/A | N/A | N/A | N/A | 297 | 297 |
Average head grades per mine: | ||||||
Silver (g/t) | 217 | 154 | 182 | 216 | 69 | 147 |
Zinc (%) | 5.57 | 7.15 | 6.98 | 10.69 | 2.25 | 5.66 |
Lead (%) | 0.62 | 0.58 | 1.44 | 1.21 | 0.67 | 0.88 |
Copper (%) | N/A | N/A | N/A | N/A | 0.33 | 0.33 |
Silver Equivalent Sold (payable ounces) (3) | 408,571 | 351,919 | 762,023 | 1,978,767 | 586,507 | 4,087,787 |
Notes for both tables above: | ||
(1) | On | |
(2) | Silver Equivalent Produced (ounces) have been calculated using prices of | |
(3) | 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 Zimapan, Bolivar, Porco, the | |
(4) | 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, 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. | |
(5) | Average Realized Price per Ounce of Silver Equivalent Sold is prior to all treatment, smelting and refining charges. | |
(6) | Bolivar and Porco are presented at 100% whereas the Company records 45% of revenues and expenses in its consolidated financial statements. |
YTD 2022 numbers are affected by the partial quarter of Bolivian production in Q1 2022. On
Production
During the quarter, the Company processed 443,969 tonnes and silver equivalent ounces produced was 5,569,535. During the same period last year, 435,119 tonnes of material was processed, and 4,922,055 silver equivalent ounces was produced. While total material processed was relatively consistent when comparing Q2 2023 to Q2 2022, the larger proportion of production originating from higher grade operations, especially
When compared to the previous quarter, there was a slight decrease in material processed. Silver equivalent ounces produced of 5,569,535 included 1,786,461 ounces of silver, 2,824 tonnes of lead, 22,281 tonnes of zinc and 297 tonnes of copper. The slight decrease in material processed was offset by an increase in silver production from
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 increased slightly due to the increase in unit production costs at Zimapan which produced fewer feed tonnes due to a two-week haulage stoppage that took place in June. This occurred when a trucking contractor imposed a temporary work stoppage over a contract dispute, which reduced ore extraction from the Monte mine. In addition, Zimapan experienced higher costs due to several compounding factors including an unfavourable exchange rate, and issues with concentrate quality. The concentrate quality issues have been subsequently resolved and are not expected to affect production in Q3 2023.
Cash Cost per Silver Equivalent Ounce Sold
Cash cost per silver equivalent ounce sold in Q2 2023 was
Consolidated results for Q2 2023 show a 12% increase in cash costs per silver equivalent ounce sold compared to Q1 2023. This increase is primarily a result of 7% lower ounces sold because of the lower metal production in Q2 2023.
All-In Sustaining Cash Cost ("AISC") per Silver Equivalent Ounce Sold
Q2 2023 AISC per silver equivalent ounce sold was
Consolidated AISC per silver equivalent ounce sold increased 10% 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
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 potential to upgrade the Company's operations, and the benefits therefrom.
These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, risks that the Company will be unable to upgrade their operations as expected, or that the Company will be unable to derive the expected benefits from a change in its operations, 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
In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, the assumption that there is the potential to upgrade the Company's current operations, and that an upgrade could lead to more efficient processes, reduced costs, or improved utilization of the Company's assets.
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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