Santacruz Silver Reports Third Quarter 2024 Results Q3 2024 Revenue Increased 21% Year-over-Year to $78 Million Q3 2024 EBITDA Increased 242% Year-over-Year to $16 Million Q3 2024 Cash and Cash Equivalents Increased 505% Year-over-Year to
Santacruz Silver Reports Third Quarter 2024
Results
Q3 2024 Revenue Increased 21% Year-over-Year to
$78 Million
Q3 2024 EBITDA Increased 242% Year-over-Year to
$16 Million
Q3 2024 Cash and Cash Equivalents Increased 505% Year-over-Year to
$18 Million
Filed NI 43-101 Compliant Mineral Resource and Reserve Estimates for Three Bolivian Producing
Mines
Webinar Scheduled for
Wednesday, November 27th
at
2:00 pm ET
VANCOUVER, BC
,
Nov. 25, 2024
/CNW/ -
Santacruz Silver Mining Ltd.
(TSXV: SCZ) (OTCQB:
SCZMF) (FSE: 1SZ) ("Santacruz" or "the Company") reports its financial and operating results for
the three and nine months ended
September 30, 2024
("Q3 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
.
Arturo Préstamo, Executive Chairman and CEO of Santacruz, commented, "Following the successful
restructuring of the Share Purchase Agreement (SPA) with Glencore, the Company has significantly
enhanced its financial position. This achievement, coupled with strong operational performance and
solid revenue growth, led to a successful third quarter, highlighted by
$78 million
in revenue,
$16
million
in EBITDA, and
$18 million
in cash and cash equivalents. These results reflect our continued
focus on improving the productivity of our mines and milling facilities, aiming to enhance the quality of
our concentrates while optimizing costs."
Mr. Prestamo continued; "In addition to our solid financial performance, we successfully maintained
a stable All-In Sustaining Cost (AISC) and remain committed to disciplined cost optimization
initiatives. Furthermore, significant investments were made in underground equipment in
Mexico
to
support the growth momentum achieved over the past quarters. This strategic focus not only
strengthens our operational and financial stability but also positions us to create sustained long-term
value for our shareholders."
Q3 2024 Highlights (all amounts in US$000's unless otherwise stated)
Revenues
increased 21% or
$13,836
to
$78,244
in Q3 2024, compared to
$64,408
in Q3
2023, primarily due from:
An increase of
$13,453
in revenues from the Bolivia Operating Mines due to a 22%
increase in the average realized price per ounce of silver equivalent ounces sold and further
impacted by a 10% increase in the volume of silver equivalent ounces sold from Q3 2023.
An increase of
$3,345
in revenues from the Zimapan Mine due to a 7% increase in the
average realized price per ounce of silver equivalent ounces sold and further impacted by a
6% increase in the volume of silver equivalent ounces sold from Q3 2023.
Adjusted EBITDA
increased 242% or
$11,181
to
$15,810
in Q3 2024, compared to
$4,628
in
Q3 2023. The increase was primarily due to higher silver production, improvements in milling
facilities to increase silver recovery in the lead concentrate, and the rise in silver prices.
Cash and Cash Equivalent
increased 505% or
$15,238
to
$18,242
in Q3 2024, compared to
$3,014
in Q3 2023. The increase was primarily due to higher revenue from increased silver
production and favorable silver and zinc prices.
Working Capital
was
$24,191
at the end of Q3 2024, improving from a deficit of
$43,168
as of
December 31, 2023
.
Bolivia Assets Mineral Resources and Reserves:
In
August 2024
, Santacruz filed National
Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") compliant
Mineral Resource and Reserve estimates for its three Bolivian producing assets (Bolivar mine,
Porco mine, and Caballo Blanco Group of mines ("Caballo Blanco")) together with the Bolivar
mine and the Porco mine (the "Bolivian Producing Mines"). Subsequent to the quarter-end, in
October 2024
, Santacruz also filed the NI 43-101 Mineral Resource estimate for the Soracaya
exploration project in
Bolivia
.
Silver Recovery Focus:
In Q3 2024, the feed for the Don Diego milling facility supplied by the
Caballo Blanco Group was adjusted to improve silver recovery to the lead concentrate, where
silver payabilities are highest for Santacruz. Initial results show significant gains in silver
recovery to the lead concentrate, with this new processing approach being adopted as the new
standard going forward for consistent recovery performance and to maximize the value of the
Company's mineral resources.
Selected consolidated financial and operating information for Q3 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.
2024 Third Quarter Highlights
2024-Q3
2024-Q2
Change
Q3 vs Q2
2023-Q3
Change
Q3 vs Q3
2024-YTD
2023-YTD
Change
'24 vs '23
Operational
Material Processed (tonnes milled)
491,260
500,755
(2 %)
467,563
5 %
1,462,359
1,394,029
5 %
Silver Equivalent Produced (ounces)
(1)
4,644,013
4,819,552
(4 %)
4,695,999
(1 %)
13,941,687
14,023,809
(1 %)
Silver Ounces Produced
1,703,388
1,671,359
2 %
1,728,863
(1 %)
4,956,696
5,284,845
(6 %)
Zinc Tonnes Produced
23,143
25,052
(8 %)
23,095
0 %
71,042
67,839
5 %
Lead Tonnes Produced
3,027
2,908
4 %
3,370
(10 %)
8,888
9,237
(4 %)
Copper Tonnes Produced
270
284
(5 %)
252
7 %
809
964
(16 %)
Silver Equivalent Sold (payable ounces)
(2)
3,601,754
3,402,139
6 %
3,822,782
(6 %)
10,636,832
12,291,464
(13 %)
Cash Cost of Production per Tonne
(3)
110.50
95.11
16 %
93.73
18 %
99.66
92.48
8 %
Cash Cost per Silver Equivalent Ounce Sold
($/oz)
(3)
22.38
21.66
3 %
21.68
3 %
21.74
19.34
12 %
All-in Sustaining Cash Cost per Silver
Equivalent Ounce Sold ($/oz)
(3)
27.40
24.91
10 %
25.98
5 %
25.53
23.10
11 %
Average Realized Price per Ounce of Silver
Equivalent Sold ($/oz)
(3) (4)
29.86
30.40
(2 %)
25.31
18 %
27.75
23.04
20 %
Financial
Revenues
78,244
70,485
11 %
64,408
21 %
201,318
193,640
4 %
Gross Profit
14,767
15,690
(6 %)
7,394
100 %
30,920
33,050
(6 %)
Net Income (loss)
4,062
1,539
164 %
(4,298)
(195 %)
134,626
(123)
109552 %
Net Earnings (Loss) Per Share – Basic and
Diluted($/share)
0.01
0.00
0 %
(0.01)
(182 %)
0.38
(0.00)
17024 %
Adjusted EBITDA
(3)
15,810
16,893
6 %
4,628
242 %
32,141
26,369
22 %
Cash and Cash Equivalent
18,242
7,308
150 %
3,014
505 %
18,242
3,014
505 %
Working Capital (Deficiency)
24,191
14,976
62 %
(27,354)
(188 %)
24,191
(27,354)
188 %
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 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 in the Company's Q3 2024 Management Discussion and Analysis for definitions.
(4)
Average Realized Price per Ounce of Silver Equivalent Sold is prior to all treatment, smelting and refining charges.
Silver Equivalent Ounces Produced
For Q3 2024, the Company processed 491,260 tonnes of mineralized material, producing 4,644,013
silver equivalent ounces. This total includes 1,703,388 ounces of silver and 23,143 tonnes of zinc.
Full Q3 2024 production results were released in a press release dated
October 24, 2024
.
Q3 2024 vs Q3 2023
Compared to Q3 2023, processed material rose by 5%; however, silver equivalent production
experienced a slight decrease of 1%. This decline was primarily attributed to reduced zinc
production at the Bolivar and Caballo Blanco Group operations, partially offset by increased zinc
production from
San Lucas
and
Zimapan
. This highlights the stability and diversification of the
Company's asset base, enabling us to offset declines in production at certain operations with
increased production from others. This strategic balance is essential for maintaining overall
production stability and ensuring consistent performance across our operations.
Q3 2024 vs Q2 2024
Compared to Q2 2024, processed material decreased by 2%, resulting in a 4% decline in silver
equivalent production, primarily due to lower zinc production. However, this impact was partially
offset by a 2% increase in silver production—a key objective for Santacruz. This improvement in
silver production is especially positive given the recent rise in silver prices and favorable market
outlook.
Webinar Details
CEO
Arturo Préstamo
and Interim CFO
Andres Bedregal
will present at a webinar hosted by
Adelaide Capital on
Wednesday, November 27th
at
2:00 pm ET
. Investors and shareholders are
invited to participate in the webinar.
Registration Link:
https://streamyard.com/watch/i2kvpaMigzMg
The webinar will also be live-streamed on the Adelaide Capital YouTube Channel, where a replay
will be available after the event:
https://bit.ly/adcap-youtube
.
Questions can be submitted during the session or in advance to
.
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
.
Qualified Person
Wayne Corso
, a consultant to the Company, is a qualified person under NI 43-101 and has approved
the scientific and technical information related to operational matters contained in this news release.
'signed'
Arturo Préstamo Elizondo,
Executive Chairman and CEO
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
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.
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.
SOURCE
Santacruz Silver Mining Ltd.
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For further information:
For further information please contact: Arturo Préstamo, Santacruz Silver
Mining Ltd., Email: [email protected], Telephone: +52 81 83 785707; Andrés Bedregal,
Santacruz Silver Mining Ltd., Email: [email protected], Telephone: +591 22444849
CO: Santacruz Silver Mining Ltd.
CNW 18:51e 25-NOV-24