Santacruz Silver Reports First Quarter 2024 Results
1
News Release
May 31, 2024
Santacruz Silver Reports First Quarter 2024 Results
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) ("Santacruz" or "the Company”) reports its financial and
operating results for the first quarter (“Q1”) 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.
Q1 2024 Highlights
• Processed 470,749 tonnes of material and produced 4,478,122 silver equivalent ounces, including:
o 1,581,949 ounces of silver
o 22,847 tonnes of zinc
o 2,953 tonnes of lead
o 256 tonnes of copper
• Cash cost per silver equivalent ounce sold of $21.19
• AISC per silver equivalent ounce sold of $24.12
• Revenue of $52,589,000
• Adjusted EBITDA of ($215,000)
Arturo Préstamo, Executive Chairman and CEO of Santacruz, commented, “Santacruz has successfully restructured its
debt with Glencore, resulting in enhanced financial flexibility and a more robust balance sheet. This strategic move has
bolstered the Company´s financial position and should allow for better optimization of Santacruz’s core business
activities and the pursuit of long-term growth initiatives.”
Mr. Préstamo continued, “During the first quarter, production at our Bolivian mines faced several disruptions due to
various events , including national holidays , and the national population census . Caballo Blanco experienced a
challenging quarter due to additional production disruptions caused by safety training and mining in areas with lower
silver grades. However, the preparation of new areas is progressing well, thanks to the integration ramp. Caballo Blanco
is expected to mine areas with higher silver grades in the coming months and together with less operational disruptions,
the Company expects a better performance. Our AISC per silver equivalent ounces sold increased due to the decrease
in silver equivalent ounce sold, with the most impact being from Caballo Blanco. However, our Zimapan mine in Mexico
experienced no production variances during the quarter , with the efficiency strategies implemented in late 2023
continuing to deliver improvements.”
Selected consolidated financial and operating information for the quarter ended March 31, 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.
2
2024 First Quarter Highlights
First Quarter 2024 Production Summary - By Mine
Bolivar (5) Porco (5)
Caballo Blanco
Group San Lucas Zimapan Total
Material Processed (tonnes milled) 72,801 50,862 72,462 69,220 205,404000 470,749
Silver Equivalent Produced (ounces) (1) 1,024,492 543,414 862,142 1,032,085 1,015,989 4,478,122
Silver Ounces Produced 425,756 176,436 284,809 294,998 399,950 1,581,949
Zinc Tonnes Produced 5,063 3,160 4,702 6,279 3,643 22,847
Lead Tonnes Produced 395 169 611 427 1,352 2,953
Copper Tonnes Produced N/A N/A N/A N/A 256 256
Average head grades per mine:
Silver (g/t) 199 130 136 159 82 125
Zinc (%) 7.68 6.72 7.04 9.90 2.29 5.45
Lead (%) 0.74 0.46 1.10 0.96 0.83 0.84
Copper (%) N/A N/A N/A N/A 0.29 0.29
Metal recovery per mine:
Silver (%) 91 83 90 83 74 81
Zinc (%) 91 92 92 92 77 84
Lead (%) 74 72 76 64 79 75
Copper (%) N/A N/A N/A N/A 43 43
Silver Equivalent Sold (payable ounces) (2) 1,014,743 419,230 573,347 754,910 870,708 3,632,938
Notes for both tables above:
(1) Silver Equivalent Produced (ounces) have been calculated using prices of $ 23.62/oz, $1.21/lb, $0.95/lb and $3.91/lb for silver, zinc, lead and copper respectively applied to
the metal production divided by the silver price as stated here.
(2) Silver Equivalent Sold (payable ounces) have been calculated using the Average Realized Price per Ounce of Silver Equivalent Sold stated in the table above, applied to the
payable metal content of the concentrates sold from Bolivar, Porco, the Caballo Blanco Group, San Lucas and Zimapan.
(3) The Company reports non-GAAP measures, which include Cash Cost of Production per Tonne, Cash Cost per Silver Equivalent Ounce Sold, All-in Sustaining Cash Cost per Silver
Equivalent Ounce Sold, Average Realized Price per Ounce of Silver Equivalent Sold, and Adjusted EBITDA. These measures are widely used in the mining industry as a benchmark
for performance, but do not have a standardized meaning and may differ from methods used by other companies with similar descriptions. See ''Non-GAAP Measures'' section
below for definitions.
(4) Average Realized Price per Ounce of Silver Equivalent Sold is prior to all treatment, smelting and refining charges.
(5) Bolivar and Porco are presented at 100% whereas the Company records 45% of revenues and expenses in its consolidated financial statements .
2024-Q1
2023-Q4
Change
Q1 vs Q4 2023-Q1
Change
Q1 vs Q1
Operational
Material Processed (tonnes milled) 470,749 489,417 (4%) 482,497 (2%)
Silver Equivalent Produced (ounces) (1) 4,478,122 4,788,318 (6%) 4,727,882 (5%)
Silver Ounces Produced 1,581,949 1,719,737 (8%) 1,769,520 (11%)
Zinc Tonnes Produced 22,847 23,777 (4%) 22,463 2%
Lead Tonnes Produced 2,953 3,130 (6%) 3,043 (3%)
Copper Tonnes Produced 256 290 (12%) 415 (38%)
Silver Equivalent Sold (payable ounces) (2) 3,632,938 3,813,863 (5%) 4,380,895 (17%)
Cash Cost of Production per Tonne (3) 93.18 94.87 (2%) 84.11 11%
Cash Cost per Silver Equivalent Ounce Sold ($/oz) (3) 21.19 17.74 19% 17.29 23%
All-in Sustaining Cash Cost per Silver Equivalent Ounce Sold ($/oz) (3) 24.12 21.37 13% 20.77 16%
Average Realized Price per Ounce of Silver Equivalent Sold ($/oz) (2) (3) (4) 23.18 22.47 3% 22.03 5%
Financial
Revenues 52,589 57,616 (9%) 65,378 (20%)
Gross Profit 463 1,550 (70%) 14,680 (97%)
Net Income (loss) 129,025 16,271 693% (176) 73,410%
Net Earnings (Loss) Per Share - Basic ($/share) 0.37 0.05 640% 0.00 100%
Adjusted EBITDA (3) (215) 24,612 (101%) 12,603 (102%)
Cash and Cash Equivalent 4,035 4,947 (18%) 11,988 (66%)
Working Capital (Deficiency) 7,150 (43,168) 117% (78,906) 109%
3
Silver Equivalent Ounces Produced
Q1 2024 vs Q1 2023
In Q1 2024, the Company processed 470,749 tonnes of material and produced 4,478,112 silver equivalent ounces
including 1,581,949 ounces of silver, 22,847 tonnes of zinc, 2,953 tonnes of lead and 256 tonnes of copper. When
compared to Q1 2023, total material processed was slightly less, however silver equivalent ounce production decreased
5% due primarily to lower production, silver grade and plant recovery at Caballo Blanco.
Q1 2024 vs Q4 2023
When compared to the previous quarter total material processed was slightly less. Silver equivalent ounce production
decreased 6% quarter-over-quarter as a result of less material processed, along with lower silver grades from the Bolivar
and Caballo Blanco mines in Bolivia.
Cash Cost of Production per Tonne
Q1 2024 vs Q1 2023
Consolidated cash cost of production per tonne of mineralized material processed was $93.18 in Q1 2024 compared to
$84.11 in Q1 2023. Increases in unit production costs at the Bolivian operations, a result of lower production rates
have driven the consolidated net increase in cash costs of 11% per tonne.
Q1 2024 vs Q4 2023
Consolidated cash cost of production per tonne of mineralized material processed remained stable with a slight
decrease of 2% driven mostly by incremental decreases across all operations. Cash cost per tonne at San Lucas increased
12%, which was offset by the 2% decrease at all other Bolivian operations. In Mexico, cash cost of production has
decreased from the Q4 2023 high to be relatively in line with the other quarters of 2023.
Cash Cost per Silver Equivalent Ounce Sold
Q1 2024 vs Q1 2023
Cash cost per silver equivalent ounce sold was $21.19 in Q1 2024 compared to $17.29 in Q1 2023. There was an increase
in unit costs together with a decrease of silver equivalent ounces sold mainly due to the silver equivalent conversion
ratio of base metals to silver, which was higher due to the changes in realized metal prices and resulted in the reduction
of silver equivalent ounces sold.
Q1 2024 vs Q4 2023
Consolidated results for Q1 2024 show an 19% increase in cash costs per silver equivalent ounce sold compared to Q4
2023. There was an increase in unit costs together with a decrease of silver equivalent ounces sold.
All-In Sustaining Cash Cost (“AISC”) per Silver Equivalent Ounce Sold
Q1 2024 vs Q1 2023
Q1 2024 AISC per silver equivalent ounce sold was $24.12, compared to Q1 2023 of $20.77. This 16% increase in unit
cost was due primarily to the 17% decrease in silver equivalent ounces sold.
Q1 2024 vs Q4 2023
Consolidated AISC per silver equivalent ounce sold increased 13% from Q4 2023, mainly a result of higher unit operating
costs, partly offset by lower sustaining capital expenditures mostly related to the completion of the integration ramp
at Caballo Blanco in Q1 2024.
4
Corporate Update
On May 13, 2024, the Board of Directors appointed Arturo Préstamo as CEO of the Company.
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
For further information please contact:
Arturo Préstamo
Santacruz Silver Mining Ltd.
Email: [email protected]
Telephone: +52 81 83 785707
Sabina Srubiski
Manager, Investor Relations
Santacruz Silver Mining Ltd.
Email: [email protected]
Telephone: +1 888 883 2011
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 benefits the Company expects to derive
from restructuring its debt with Glencore, and that Caballo Blanco will achieve improved performance in the coming
months. 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 restructured debt with Glencore will not allow for better optimization of the Company’s
core business activities and the pursuit of its long -term growth initiatives, that Caballo Blanco will be unable mine
areas with higher silver grades in the coming months, that there will not be fewer operational disruptions at Caballo
Blanco in the coming months, or that Caballo Blanco will not achieve improved performance, 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
5
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 assumption that the restructured debt with Glencore will allow the
Company to better optimize its core business activities and pursuit of long -term growth initiatives, and that Caballo
Blanco will be able to mine areas with higher silver grades in the coming months and together wi th less operational
disruptions will achieve improved performance.
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.