SCZ.V · 2023-06-05 12:00:00

Santacruz Silver Reports Fourth Quarter and Year End 2022 Financial Results

Financials

News Release

June 5, 2023

Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) ("Santacruz" or "the Company”) reports its financial and

operating results for the fourth quarter (“Q4”) and year end 2022. The full version of the financial statements and

accompanying management discussion and analysis can be viewed on the Company’s website at

www.santacruzsilver.com or on SEDAR at www.sedar.com. 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.

2022 Highlights

• Processed 1,646,272 tonnes of material, a 125% increase year-over-year

• Silver equivalent ounces sold of 19,612,692, a 562% increase year-over-year

• Cash cost per silver ounce sold of $17.58, a 10% decrease year-over-year

• AISC per silver ounce sold of $20.05, an 18% decrease year-over-year

• Revenue of $278,594,000, an increase of 422% year-over-year

• Adjusted EBITDA of $11,385,000, a 1,497% increase year-over-year

Arturo Préstamo, Executive Chairman of Santacruz, commented, “ Santacruz is building a mid-tier precious and base

metals producer, and the acquisition of the Bolivian assets transformed us into a multi-million-ounce silver equivalent

producer, with year-over-year production increasing four times. In addition, we have strengthened our management

team with seasoned professionals both on the operational and financial sides of the business . While our significant

growth came with its challenges, the team's determination has been vital in establishing a solid platform from which to

grow the Company.”

Mr. Préstamo emphasized, “With our next consideration payment to Glencore now not due till March 2024, we have

near-term financial flexibility which will enable us to strengthen our balance sheet and re-invest in the Company. This

strategic approach will fuel sustainable growth and going forward, we will look for opportunities to further streamline

and identify synergies among all mining operations in order to maximize value from each of our assets and for our

shareholders."

Selected consolidated financial and operating information for the year ended 2022 and 2021 are presented below.

The Bolivian Assets have been consolidated from March 18, 2022.

2022 Annual Highlights

2022 Annual Production Summary – By Mine

Bolivar (5) Porco (5)

Caballo

Blanco

Group San Lucas Zimapan

Rosario

Project Consolidated

Material Processed (tonnes milled) 210,847 153,377 213,886 246,007 822,155 - 1,646,272

Silver Equivalent Produced (ounces) (1) 2,854,607 1,631,529 2,671,145 3,914,284 3,310,928 - 14,382,493

Silver Ounces Produced 1,402,289 518,986 1,139,576 1,244,089 1,294,283 - 5,599,223

Lead Tonnes Produced 974 713 2,540 1,914 3,923 - 10,064

Zinc Tonnes Produced 13,243 10,171 12,779 24,252 12,087 - 72,532

Copper Tonnes Produced N/A N/A N/A N/A 1,287 - 1,287

Average head grades per mine:

Silver (g/t) 230 119 183 185 73 - 128

Zinc (%) 6.88 7.02 6.51 10.77 2.13 - 5.05

Lead (%) 0.65 0.61 1.54 1.13 0.65 - 0.84

Copper (%) N/A N/A N/A N/A 0.37 - 0.37

Silver Equivalent Sold (payable ounces) (2) 3,579,214 2,258,846 3,448,726 6,703,747 3,622,159 - 19,612,692

Notes for both tables above:

(1) Silver Equivalent Produced (ounces) have been calculated , for all periods presented, using prices of $25.60/oz, $0.94/lb, $1.20/lb and $4.01/lb for silver, lead, zinc and copper

respectively applied to the metal production divided by the silver price .

(2) Silver Equivalent Sold (payable ounces) have been calculated using the Average Realized Price per Ounce of Silver Equivalent Sold st ated in the table above, applied to the

payable metal content of the concentrates sold from Zimapan, Bolivar, Porco, the Caballo Bl anco Group, and San Lucas in 2022 and Zimapan and Rosario Project in 2021.

(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, 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 .

2022 2021 2020

Change

’22 vs ’21 (%)

Operational

Material Processed (tonnes milled) 1,646,272 730,411 652,424 125%

Silver Equivalent Produced (ounces) (1) 14,382,494 3,170,053 3,590,450 354%

Silver Ounces Produced 5,599,223 1,289,171 1,135,714 334%

Lead Tonnes Produced 10,065 3,204 3,828 214%

Zinc Tonnes Produced 72,533 12,007 10,869 504%

Copper Tonnes Produced 1,287 1,073 1,543 20%

Silver Equivalent Sold (payable ounces) (1) (2) 19,612,692 2,961,535 2,500,355 562%

Cash Cost of Production per Tonne (3) 117.99 53.16 46.53 122%

Cash Cost per Silver Equivalent Ounce Sold ($/oz) (3) 17.58 19.62 18.53 (10%)

All-in Sustaining Cash Cost per Silver Equivalent Ounce Sold ($/oz) (3) 20.05 24.53 20.82 (18%)

Average Realized Price per Ounce of Silver Equivalent Sold ($/oz) (3) (4) 20.93 23.89 19.58 (13%)

Financial

Revenues 278,594 53,334 33,097 422%

Gross Profit 22,874 8,526 988 204%

Net Loss (22,261) (11,565) (1,493) 92%

Net Loss Per Share – Basic ($/share) (0.07) (0.03) (0.01) 232%

Adjusted EBITDA (3) 11,385 713 (181) 1,497%

Cash and Cash Equivalent 4,609 938 430 391%

Working Capital (Deficiency) 6,531 (19,821) 22,514 (133%)

Shareholder

Loss per share - Basic and diluted (0.07) (0.04) (0.01) 75%

Cease Trade Order Update

The Company has notified the British Columbia Securities Commission that its 2022 financial documents have been filed

and they are in the process or reviewing Santacruz’s continuous disclosure record to ensure all is in order before trading

recommences. We anticipate trading of our shares resuming on the TSX.V soon.

Refiling of Third Quarter Financial Results

The Company refiled its 2022 third quarter financial results and these documents are available the Company’s

website at www.santacruzsilver.com or on SEDAR at www.sedar.com.

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

For further information please contact:

Arturo Préstamo

Santacruz Silver Mining Ltd.

Email: [email protected]

Telephone: +1 (528) 183 785707

Sabina Srubiski

Manager, Investor Relations

Santacruz Silver Mining Ltd.

Email: [email protected]

Telephone: +1 (604) 351 7909

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.

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 financial flexibility of the Company at its impact

on investment in the Company, growth strategies of the Company, and the timing of Santacruz’s shares resuming

trading on the TSX Venture Exchange (the “TSXV’).

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 near-term financial flexibility of Company will not translate into sustainable growth, that the Company

will be unsuccessful in streamlining or synergizing its mining operation, that the Company’ s shares will not resume

trading on the TSXV soon, if at all , 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 Canada and available at www.sedar.com.

In making the forward-looking statements in this news release, the Company has applied several material assumptions,

including without limitation, the assumption that near-term investment in the Company will translate into sustainable

growth, that streamlining and synergizing the Company’s mining operations will lead to increase in value for the

Company’s assets and for Santacruz’s shareholders, and that the Company’s shares will resume trading on the TSX V

soon.

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 rel iance 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.

← Back to feed