Santacruz Silver Reports Fourth Quarter and Year End 2023 Financial Results
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News Release
May 2, 2024
Santacruz Silver Reports Fourth Quarter and Year End 2023 Financial Results
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 2023. 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.
2023 Highlights
• Processed 1,883,446 tonnes of material, a 14% increase year-over-year
• Produced of 22,641,052 silver equivalent ounces, a 25% increase year-over-year, including:
o 7,004,582 ounces of silver, a 25% increase year-over-year
o 91,616 tonnes of zinc, a 26% increase year-over-year
o 12,369 tonnes of lead, a 23% increase year-over-year
o 1,254 tonnes of copper, a 3% decrease year-over-year
• Cash cost per silver equivalent ounce sold of $18.96, an 8% increase year-over-year
• AISC per silver equivalent ounce sold of $22.69, a 13% increase year-over-year
• Revenue of $251,256,000, a 10% decrease year-over-year
• Adjusted EBITDA of $50,980,000, a 237% increase year-over-year
Arturo Préstamo, Executive Chairman and Interim CEO of Santacruz, commented, “ In 2023, Santacruz continued to
build a mid -tier silver and base metals pro ducer. The Company completed several mine optimization initiatives
including the integration ramp that connects the Tres Amigos and Colquechaquita underground mines at Caballo Blanco
in Bolivia. And in Mexico, the operational restructuring at the Zimapan mine has already resulted in cost savings.”
Mr. Préstamo continued, “The Company has also made significant progress on improving its financial position , and
recently announced amended terms of sale with Glencore for the Bolivian assets. This is expected to further strengthen
our balance sheet by significantly reducing the value of the consideration payable that will be recorded on our balance
sheet, which will be reflected in the next quarterly financial results.”
Selected consolidated financial and operating information for the year ended 2023, 2022 and 2021 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.
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2023 Annual Highlights
2023 Annual Production Summary - By Mine
Bolivar (7) Porco (7)
Caballo Blanco
Group San Lucas Zimapan Total
Material Processed (tonnes milled) 293,083 190,837 316,718 313,506 769,303 1,883,446
Silver Equivalent Produced (ounces) (3) 4,792,832 2,560,057 4,960,043 6,018,502 4,309,617 22,641,052
Silver Ounces Produced 1,973,778 665,215 1,544,561 1,464,180 1,356,846 7,004,582
Zinc Tonnes Produced 17,523 11,901 20,355 28,418 13,419 91,616
Lead Tonnes Produced 1,461 778 3,237 2,178 4,715 12,369
Copper Tonnes Produced N/A N/A N/A N/A 1,254 1,254
Average head grades per mine:
Silver (g/t) 228 126 166 172 75 135
Zinc (%) 6.60 6.61 6.92 9.87 2.31 5.45
Lead (%) 0.68 0.54 1.33 1.05 0.77 0.87
Copper (%) N/A N/A N/A N/A 0.32 0.32
Silver Equivalent Sold (payable ounces) (4) 2,798,472 1,305,115 2,956,128 5,756,049 3,289,563 16,105,327
Notes for both tables above:
(1) On March 18, 2022 the Company closed the acquisition of all Bolivian assets from Glencore and the results of the Bolivian Operations are includ ed in the consolidated results
of the Company from that date.
(2) Bolivian production from March 18, 2022 to December 31, 2022.
(3) Silver Equivalent Produced (ounces) have been calculated using prices of $21.86/oz, $1.52/lb , $0.91/lb and $3.67/lb for silver, zinc, lead and copper respectively applied to
the metal production divided by the silver price as stated here.
(4) 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 Bolivar, Porco, the Caballo Blanco Grou p, San Lucas and Zimapan.
(5) 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 desc riptions.
(6) Average Realized Price per Ounce of Silver Equivalent Sold is prior to all treatment, smelting and refining charges.
(7) Bolivar and Porco are presented at 100% whereas the Company records 45% of revenues and expenses in its consolidated financial statements .
(8) The net loss (income), net loss (income) per share, Adjusted EBITDA, and working capital deficiency were amended as a result of the restatement related to the Sinchi Wayra
and Illapa Acquisition (refer to the “Sinchi Wayra and Illapa Acquisition” in the “Company Overview” section of the MDA for the Years Ended 2023 and 2022 for further details).
2023
2022(1)(2)(8) 2021
Change
’23 vs ’22
Operational
Material Processed (tonnes milled) 1,883,446 1,646,272 730,411 14%
Silver Equivalent Produced (ounces) (3) 22,641,052 18,112,725 3,170,053 25%
Silver Ounces Produced 7,004,582 5,599,223 1,289,171 25%
Zinc Tonnes Produced 91,616 72,533 12,003 26%
Lead Tonnes Produced 12,369 10,065 3,204 23%
Copper Tonnes Produced 1,254 1,287 1,073 (3%)
Silver Equivalent Sold (payable ounces) (4) 16,105,327 19,612,692 2,931,535 (18%)
Cash Cost of Production per Tonne (5) 93.10 117.99 53.16 (21%)
Cash Cost per Silver Equivalent Ounce Sold ($/oz) (5) 18.96 17.58 19.62 8%
All-in Sustaining Cash Cost per Silver Equivalent Ounce Sold ($/oz) (5) 22.69 20.05 24.53 13%
Average Realized Price per Ounce of Silver Equivalent Sold ($/oz) (5) (6) 22.90 20.93 23.89 9%
Financial
Revenues 251,256 278,594 53,334 (10%)
Gross Profit 34,600 22,874 8,526 51%
Net Income (loss) 16,148 (18,506) (11,565) 209%
Net Earnings (Loss) Per Share - Basic ($/share) 0.05 (0.05) (0.03) 206%
Adjusted EBITDA (5) 50,980 15,140 713 237%
Cash and Cash Equivalent 4,947 4,609 938 7%
Working Capital (Deficiency) (43,168) (80,018) (19,821) (43%)
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Silver Equivalent Ounces Produced
2023 vs 2022
YTD 2022, 1,646,272 tonnes of material was processed, and 18,112,725 silver equivalent ounces was produced, and in
YTD 2023 1,883,446 tonnes of material was produced and 22,641,05 2 silver equivalent ounces was produced. While
total material processed in 2023 was 14% more compared to YTD 2022, total silver equivalent ounce production was
up 25%. Annual 2023 production results benefitted from a full Q1 2023 production from the Bolivian operations. Annual
2022 figures are affected by the partial quarter of Bolivian production in Q1 2022. On March 18, 2022, the Company
closed the acquisition of the Bolivian assets from Glencore and the results of the operations of the Bolivian assets are
included from that date.
Q4 2023 vs Q3 2023
Santacruz processed 489,417 tonnes of material in Q4 2023, a 5% increase from the previous quarter. Silver equivalent
ounce production increased 2% to 5,757,229 including 1,719,738 ounces of silver, 23,777 tonnes of zinc, 3,130 tonnes
of lead, and 290 tonnes of copper. While average throughputs, head grades and recoveries varied slightly across all
operations, the increase in material processed at Zimapan, and increases in mineralized material purchased by San
Lucas drove consistent metal production quarter-on-quarter.
Cash Cost of Production per Tonne
2023 vs 2022
Consolidated cash cost of production per tonne of mineralized material processed was $9 3.10 in YTD 2023 compared
to $117.99 in YTD 2022. Significant decreases in unit production costs at the Bolivian operations, a result of higher
production rates and cost saving initiatives have driven the consolidated net reduction in cash costs of 21% per tonne.
Q4 2023 vs Q3 2023
Consolidated cash cost of production per tonne of mineralized material processed remained stable with a slight
increased of 1%. Cash cost per tonne at San Lucas decreased 24% , which was offset by the 15% increase at all other
Bolivian operations. In Mexico, cost of sales remained stable for the quarter as full production resumed at Zimapan
after recovering from a two-week haulage stoppage that took place during Q3 2023.
Cash Cost per Silver Equivalent Ounce Sold
2023 vs 2022
Cash cost per silver equivalent ounce sold was $18.96 in 2023 compared to $17.58 in 2022. This 8% increase in cash
cost was due primarily to a 18% decrease in silver equivalent ounces sold, partly offset by a 5% decrease in unit
operating costs. While the metal production increased 25% for the same period, silver equivalent ounces sold
decreased by 18% mainly due to Bolivia’s pre -acquisition inventories sold in Q2 and Q3 2022 which accounted for
approximately 80% of the total decrease in silver equivalent ounces sold. The other 20% of the total decrease in silver
equivalent ounces sold can be attributed to the silver equivalent con version ratio of base metals to silver, which was
higher due to the changes in realized metal prices and resulted in the additional reduction of silver equivalent ounces
sold.
Q4 2023 vs Q3 2023
Consolidated results for Q4 2023 show an 18% decrease in cash costs per silver equivalent ounce sold compared to Q3
2023. This decrease is primarily a result of lower unit operating costs for San Lucas and Zimapan, and higher sales from
our Bolivian mining operations. At Zimapan, the lower unit costs are a result of the operational restructuring that began
in Q3 2023. Consolidated silver equivalent ounces sold held steady quarter-on-quarter.
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All-In Sustaining Cash Cost (“AISC”) per Silver Equivalent Ounce Sold
2023 vs 2022
2023 AISC per silver equivalent ounce sold was $22.69, compared to 2022 of $20.05. This 13% increase in unit cost was
due primarily to the 18% decrease in silver equivalent ounces sold (most of which was not production related and due
to Bolivia’s pre-acquisition inventories sold in Q2 and Q3 2022), higher sustaining general and administrative expenses,
and higher capital expenditures primarily related to the integration ramp at Caballo Blanco , which was a significant
capital expenditure during 2023 (and was completed in January 2024), but partly offset by 5% lower unit operating
costs. 18% decrease in silver equivalents sold which is a function of realized metal prices.
Q4 2023 vs Q3 2023
Consolidated AISC per silver equivalent ounce sold decreased 18% quarter -on-quarter to $21.37, mainly a result of
lower unit operating costs, partly offset by higher sustaining general and administrative expenses and higher capital
expenditures mostly related to the integration ramp at Caballo Blanco.
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 Interim 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 th e 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 o f 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
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of this news release and include without limitation, statements regarding the benefits the Company expects to derive
from amending the terms of sale with Glencore for the Bolivian assets, and additional financial flexibility from retaining
the value added tax that was originally payable to Glencore. 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 and Glencore will be unable to reach
a definitive agreement to amend the terms of sale for the Bolivian assets, that the Company will not derive the
expected benefits from amending the terms of sale for the Bolivian assets, that retaining the value added tax amount
that was originally payable to Glencore will not provide the financial flexibility necessary for the Company to better
manage its business, 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.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 Company and Glencore will enter into a definitive
agreement to amend the terms of sale for the Bolivian assets and that such terms will align with management’s
expectations, and that the Company will derive the benefits management currently expects from amending the terms
of sale of the Bolivian 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.