Santacruz Silver Reports Second Quarter 2024 Results
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News Release
August 15, 2024
Santacruz Silver Reports Second 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 second quarter (“Q2”) 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.
Q2 2024 Highlights
• Processed 500,755 tonnes of material in the quarter: 971,504 tonnes in the first half 2024;
• Produced of 4,819,552 silver equivalent ounces in the quarter: 9,297,674 silver equivalent ounces in the first
half of 2024, including:
o 1,671,359 ounces of silver in the quarter: 3,253,308 in the first half of 2024;
o 25,052 tonnes of zinc in the quarter: 47,899 tonnes in the first half of 2024;
• Cash cost per silver equivalent ounce sold of $22.25 in the quarter: $21.89 in the first half of 2024;
• AISC per silver equivalent ounce sold of $24.74: $24.47 in the first half of 2024;
• Revenue of $70,485,000 in the quarter: $123,074,000 in the first half of 2024;
• Adjusted EBITDA of $8,852,000 in the quarter: $8,637,000 in the first half of 2024.
Arturo Préstamo, Executive Chairman and CEO of Santacruz, commented, “Strong metal prices significantly
bolstered our average realized price per silver equivalent ounce sold. Coupled with robust production, Santacruz
delivered a solid financial performance in Q2 2024, achieving $70 million in revenue and nearly $16 million in gross
profit. This stable financial outcome underscores our ability to capitalize on favo urable market conditions .
However, our net income was impacted by a non -cash charge of $6.9 mil lion in the quarter, related to the fair
value changes on the contingent value rights due to the increase in zinc prices from March to June.” Mr. Prestamo
continued; “In addition to our strong financial performance, we maintained a stable AISC and will continue with a
disciplined approach on cost management initiatives in order to achieve long-term financial stability, which puts
us in a position to continue creating value for our shareholders."
Selected consolidated financial and operating information for the quarter ended June 30, 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.
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2024 Second Quarter Highlights
Second Quarter 2024 Production Summary - By Mine
Bolivar (5) Porco (5)
Caballo
Blanco Group San Lucas Zimapan Total
Material Processed (tonnes milled) 72,151 51,307 83,661 83,900 209,735 500,755
Silver Equivalent Produced (ounces) (1) 1,029,806 534,300 968,646 1,200,854 1,085,946 4,819,552
Silver Ounces Produced 427,665 151,258 318,520 364,607 409,309 1,671,359
Zinc Tonnes Produced 5,168 3,276 5,331 7,150 4,127 25,053
Lead Tonnes Produced 300 205 641 450 1,312 2,908
Copper Tonnes Produced N/A N/A N/A N/A 284 284
Average head grades per mine:
Silver (g/t) 207 105 133 165 80 124
Zinc (%) 7.83 6.76 6.96 9.31 2.46 5.57
Lead (%) 0.57 0.52 1.04 0.86 0.73 0.76
Copper (%) N/A N/A N/A N/A 0.30 0.30
Metal recovery per mine:
Silver (%) 89 88 89 82 76 82
Zinc (%) 92 94 92 91 80 87
Lead (%) 73 77 74 62 86 77
Copper (%) N/A N/A N/A N/A 45 45
Silver Equivalent Sold (payable ounces) (2) 775,682 365,176 688,391 715,135 857,755 3,402,139
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 silve r, 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 Bla nco 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, a nd 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 si milar 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 financia l statements.
2024-Q2
2024-Q1
Change
Q2 vs Q1 2023-Q2
Change
Q2 vs Q2 2024-YTD 2023-YTD
Change
’24 vs ’23
Operational
Material Processed (tonnes milled) 500,755 470,749 6% 443,969 13% 971,504 926,466 5%
Silver Equivalent Produced (ounces) (1) 4,819,552 4,478,122 8% 4,631,429 4% 9,297,674 9,327,969 -%
Silver Ounces Produced 1,671,359 1,581,949 6% 1,786,461 (6%) 3,253,308 3,555,981 (9%)
Zinc Tonnes Produced 25,052 22,847 10% 22,282 12% 47,899 44,745 7%
Lead Tonnes Produced 2,908 2,953 (2%) 2,825 3% 5,861 5,868 -%
Copper Tonnes Produced 284 256 11% 297 (4%) 540 713 (24%)
Silver Equivalent Sold (payable ounces) (2) 3,402,139 3,632,938 (6%) 4,087,787 (17%) 7,035,077 8,468,682 (17%)
Cash Cost of Production per Tonne (3) 99.09 96.09 3% 106.18 (7%) 97.64 105.87 (8%)
Cash Cost per Silver Equivalent Ounce Sold
($/oz) (3) 22.25 21.56 3% 19.95 12% 21.89 19.79 11%
All-in Sustaining Cash Cost per Silver
Equivalent Ounce Sold ($/oz) (3) 24.74 24.22 2% 23.49 5% 24.47 23.32 5%
Average Realized Price per Ounce of Silver
Equivalent Sold ($/oz) (3) (4) 30.40 23.18 31% 22.00 38% 26.67 22.01 21%
Financial
Revenues 70,485 52,589 34% 63,854 10% 123,074 129,232 (5%)
Gross Profit 15,690 463 3,289% 10,976 43% 16,153 25,656 (37%)
Net Income (loss) 1,539 129,025 (99%) 4,351 (65%) 130,564 4,175 3,027%
Net Earnings (Loss) Per Share – Basic and
Diluted($/share) 0.00 0.37 (100%) 0.01 (100%) 0.37 0.01 3,600%
Adjusted EBITDA (3) 8,852 (215) 4,217% 9,138 (3%) 8,637 21,740 (60%)
Cash and Cash Equivalent 7,308 4,035 81% 7,720 (5%) 7,308 7,720 (5%)
Working Capital (Deficiency) 18,011 7,150 152% (23,013) (178%) 18,011 (23,013) (178%)
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Silver Equivalent Ounces Produced
Q2 2024 vs Q2 2023
In Q2 2024, the Company processed 500,755 tonnes of material and produced 4,819,552 silver equivalent ounces
including 1,671,359 ounces of silver and 25,053 tonnes of zinc, a 4% increase over Q2 2023. When compared to
Q2 2023, despite the 13% increase in material mined and processed, silver production decreased 6% as a result
of lower silver grades at Bolivar, Porco, Caballo Blanco and San Lucas, partially offset by increased silver grades at
Zimapan. Zinc production contributed to the increase in silver equivalent ounce production as a result of more
material processed coupled with the increase in zinc grades and recoveries at Bolivar and Zimapan.
Q2 2024 vs Q1 2024
When compared to the previous quarter, silver equivalent ounce production increase 8% as a result of increases
in total material processed from increases at Caballo Blanco and San Lucas which drove the 6% increase in total
silver production; 12% from Caballo Blanco and 24% from San Lucas offset by a 14% decrease at Porco. Zinc grades
and recoveries were in line with Q1 2024.
Cash Cost of Production per Tonne
Q2 2024 vs Q2 2023
Consolidated cash cost of production per tonne of mineralized material processed was $99.09 in Q2 2024
compared to $106.18 in Q2 2023, a decrease of 7%. A 5% increase in total costs was offset by a 13% increase in
material processed.
Q2 2024 vs Q1 2024
Consolidated cash cost of production per tonne of mineralized material processed was $99.09 in Q2 2024
compared to $96.09 in Q1 2024, an increase of 4%. A 10% increase in total cost was partially offset by a 6% increase
in material processed.
Cash Cost per Silver Equivalent Ounce Sold
Q2 2024 vs Q2 2023
Cash cost per silver equivalent ounce sold was $22.25 in Q2 2024 compared to $19.95 in Q2 2023, an increase of
12%. This increase was driven by a 17% decrease in silver equivalent ounces sold, partially offset by a 7% reduction
in unit cost per tonne processed.
Q2 2024 vs Q1 2024
Cash cost per silver equivalent ounce sold was $22.25 in Q2 2024 compared to $21.56 in Q1 2024, an increase of
3% which was due primarily to the 6% decrease in silver equivalent ounces sold compounded by the slight increase
in unit cost per tonne processed.
All-In Sustaining Cash Cost (“AISC”) per Silver Equivalent Ounce Sold
Q2 2024 vs Q2 2023
Q2 2024 AISC per silver equivalent ounce sold was $24.74 compared to Q2 2023 of $23.49, an increase of 5%.
Higher cash costs per silver equivalent ounce in Q2 2024 were partially offset by lower sustaining capital
expenditures in the same period.
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Q2 2024 vs Q1 2024
Q2 2024 AISC per silver equivalent ounce sold was $24.74 compared to Q1 2024 of $24.22, an increase of 2%.
Unit costs and silver equivalent sold were relatively consistent quarter over quarter.
OTC Symbol Change
On August 12, 2024, the Company’s OTC symbol changed from SZSMF to SCZMF.
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 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 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
ability of the Company to successfully complete any capital projects, the expected economic or operational results
derived from those projects, and the impacts of any such projects on the Company.
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These forward-looking statements and information reflect the Company’s current views with respect to future
events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable
by the Company, are inherently subject to significant operational, business, economic, competitive, political,
regulatory, and social uncertainties and contingencies. These assumptions, include: the ability of the Company
to successfully complete any capital projects, the expected economic or operational results derived from those
projects, and the impacts of any such projects on the Company , 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 ability of the Company to successfully complete any capital
projects, the expected economic or operational results derived from those projects, and the impacts of any such
projects on the Company.
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.