Santacruz Silver Reports Third Quarter Financial Results
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News Release
November 29, 2023
Santacruz Silver Reports Third Quarter Financial Results
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) ("Santacruz" or "the Company”) reports its financial and
operating results for the third quarter (“Q3”) of 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.
Q3 2023 Highlights
• Processed 467,563 tonnes of material in the quarter: 1,394,029 tonnes in the first nine months of 2023;
• Produced of 5,669,905 silver equivalent ounces in the quarter: 16,883,823 silver equivalent ounces in the first nine
months of 2023;
• Cash cost per silver ounce sold of $21.68 in the quarter: $19.34 in the first nine months of 2023;
• AISC per silver ounce sold of $25.98 in the quarter: $23.10 in the first nine months of 2023;
• Revenue of $64,408,000 in the quarter: $193,640,000 in the first nine month of 2023; and
• Adjusted EBITDA of $4,628,000 in the quarter: $26,368,000 in the first nine months of 2023.
Arturo Préstamo, Executive Chairman and Interim CEO of Santacruz, commented, “The Company had a solid quarter in
the face of a challenging commodity price environment.” Mr. Préstamo continued, “While we continue to identify and
implement efficiencies at all our assets, i t is important to highlight the signifi cant changes that were made at the
Zimapan mine in Mexico during the quarter . By streamlining the management team and shifting to more owner-
operated mining, we were able to increase productivity and decrease costs, and expect to continue to see the benefits
from these changes in the next quarter.”
Selected consolidated financial and operating information for the quarter ended September 30, 2023 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 Third Quarter Highlights
Third Quarter 2023 Production Summary – By Mine
Bolivar (7) Porco (7)
Caballo
Blanco Group San Lucas Zimapan Consolidated
Material Processed (tonnes milled) 77,298 47,786 76,864 73,456 192,158 467,563
Silver Equivalent Produced (ounces) (3) 1,343,000 625,401 1,118,711 1,399,187 1,183,606 5,669,905
Silver Ounces Produced 502,931 165,066 319,674 362,443 378,748 1,728,863
Lead Tonnes Produced 449 190 684 522 1,526 3,370
Zinc Tonnes Produced 5,214 2,891 4,805 6,454 3,731 23,095
Copper Tonnes Produced N/A N/A N/A N/A 252 252
Average head grades per mine:
Silver (g/t) 221 119 144 183 80 156
Lead (%) 0.79 0.52 1.22 1.06 0.97 0.95
Zinc (%) 7.41 6.40 6.80 9.55 2.49 6.68
Copper (%) N/A N/A N/A N/A 0.29 0.29
Silver Equivalent Sold (payable ounces) (4) 784,713 285,286 609,415 1,285,739 857,628 3,822,782
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 September 30, 2022.
(3) Silver Equivalent Produced (ounces) have been calculated using prices of $21.86/oz, $0.91/lb, $1.52/lb and $3.67/lb for silve r, lead, zinc 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 stated in the table above, applied to the
payable metal content of the concentrates sold from Zimapan, Bolivar, Porco, the Cab allo Blanco Group, and San Lucas.
(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 financia l 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.
2023-Q3
2023-Q2(8)
Change
Q3 vs Q2 2022-Q3
Change
Q3 vs Q3 2023-YTD 2022-YTD(1)(2)
Change
’23 vs ’22
Operational
Material Processed (tonnes milled) 467,563 443,969 5% 500,956 (7%) 1,394,029 1,163,645 20%
Silver Equivalent Produced (ounces) (3) 5,669,905 5,569,535 2% 5,832,822 (3%) 16,883,823 12,368,597 37%
Silver Ounces Produced 1,728,863 1,786,461 (3%) 1,924,973 (10%) 5,284,845 3,805,287 39%
Lead Tonnes Produced 3,370 2,824 19% 2,996 12% 9,237 7,165 29%
Zinc Tonnes Produced 23,095 22,281 4% 22,831 1% 67,839 49,422 37%
Copper Tonnes Produced 252 297 (15%) 364 (31%) 964 901 7%
Silver Equivalent Sold (payable ounces) (4) 3,822,782 4,087,787 (6%) 4,383,872 (13%) 12,291,464 14,854,519 (17%)
Cash Cost of Production per Tonne (5) 93.73 100.25 (7%) 148.51 (37%) 92.48 119.72 (23%)
Cash Cost per Silver Equivalent Ounce Sold
($/oz) (5) 21.68 19.34 12% 20.79 4% 19.34 17.26 12%
All-in Sustaining Cash Cost per Silver
Equivalent Ounce Sold ($/oz) (5) 25.98 22.89 13% 24.90 4% 23.10 19.80 17%
Average Realized Price per Ounce of Silver
Equivalent Sold ($/oz) (5) (6) 25.31 22.00 15% 19.63 29% 23.04 20.98 10%
Financial
Revenues 64,408 63,854 1% 53,516 20% 193,640 214,285 (10%)
Gross Profit 7,394 10,976 (33%) (19,338) (138%) 33,050 16,635 99%
Net Income (loss) (4,298) 4,351 (199%) (18,788) (77%) (123) (14,192) 99%
Net Earnings (Loss) Per Share - Basic
($/share) (0.01) 0.01 (199%) (0.06) (78%) (0.00) (0.04) 99%
Adjusted EBITDA (5) 4,628 9,138 (49%) (14,785) (131%) 26,368 16,758 57%
Cash and Cash Equivalent 3,014 7,720 (61%) 4,494 (33%) 3,014 4,494 (33%)
Working Capital (Deficiency) (27,354) (22,293) (23%) (91,184) (70%) (27,354) (91,184) 70%
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YTD 2022 numbers 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 in the consolidated operational and financial results of the Company from that date. However,
combined Q2 and Q3 results show a 5% increase in silver equivalent ounces produced from 2022 to 2023, despite lower
tonnages processed. This is a reflection of the Comp any starting to benefit from its efforts to increase mined grades
and metallurgical recoveries at all operations.
Production
In Q3 2022, 500,956 tonnes of material was processed, and 5,832,882 silver equivalent ounces was produced, and in
Q3 2023 467,563 tonnes of material was produced and 5,669,905 silver equivalent ounces was produced. While total
material processed in Q3 2023 was 7% less compared to Q3 2022, total silver equivalent ounce production was down
only 3%. This was a result of higher grades mined and an increase in metal recoveries at Bolivar and Zimapan.
In Q3 2023, t he Company processed 467,563 tonnes of material, a slight increase from the previous quarter. Silver
equivalent ounces produced of 5,669,905 included 1,728,863 ounces of silver, 3,370 tonnes of lead, 23,095 tonnes of
zinc and 252 tonnes of copper. The positive impact of a slight increase in material processed combined with an increase
in metal production from the Zimapan and Bolivar mines resulted in stable silver equivalent ounce production overall.
Cash Cost of Production per Tonne
Consolidated cash cost of production per tonne of mineralized material processed was $93.73 in Q3 2023 compared to
$148.51 for the same period last year. Since acquiring the Bolivian assets, the steady increase in unit production costs
at Zimapan have been offset by significant decreases in unit production costs at the Bolivian operations for a net
reduction in cash costs of 37% per tonne.
When compared to the previous quarter, consolidated cash cost of production per tonne of mineralized material
processed decreased by 7% as a result of several factors including the increase in production at Zimapan after
recovering from a two-week haulage stoppage that took place last quarter, incremental decreases in unit costs from
our Bolivian mining operations and less mineralized material purchased by San Lucas feed sourcing.
Cash Cost per Silver Equivalent Ounce Sold
Cash cost per silver equivalent ounce sold was $21.68 in Q3 2023 compared to $20.79 for the same period last year.
This 4% increase in unit cost was due primarily to a 13% decrease in silver equivalent ounces sold, which is a function
of realized metal prices. While the metal production only decreased 3% for the same period, the silver equivalent
conversion ratio of base metals to silver was higher due to the changes in realized metal prices quarter over quar ter,
which resulted in the additional 10% reduction in silver equivalent ounces sold.
Consolidated results for Q3 2023 show a 12% increase in cash costs per silver equivalent ounce sold compared to Q2
2023. This increase is primarily a result of 6% lower silver equivalent ounces sold based on realized pricing for metals
which decreased silver equivalents sold for Q3 2023. Total costs were comparable to Q2 2023 and silver equivalent
ounce production actually increased 2% vs Q2 2023.
All-In Sustaining Cash Cost (“AISC”) per Silver Equivalent Ounce Sold
Q3 2023 AISC per silver equivalent ounce sold was $25.9 8, compared to Q3 2022 of $24. 90. This 4% increase in unit
cost was due primarily to a 13% decrease in silver equivalents sold which is a function of realized metal prices. While
the metal production only decreased 3% for the same period, the silver equivalent conversion ratio of base metals to
silver was higher due to the changes in realized metal prices quarter over quarter, which resulted in the additional 10%
reduction in silver equivalent sold.
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Consolidated AISC per silver equivalent ounce sold increased 13% quarter-on-quarter to $25.98, mainly a result of the
6% decrease in silver equivalent ounces sold based on changes in the silver equivalent conversion ratio as described
above, coupled with higher sustaining capital expenditures and higher sustaining general and administrative costs.
Bolivian consolidated AISC per silver equivalent ounce sold increased 21% versus Q2 2023 due to the lower silver
equivalent ounces sold, however this was partially offset by a 21% decrease at Zimapan resulting f rom lower capital
expenditures and sustaining general and administrative expenditures.
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: +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.
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
of this news release and include without limitation, statements regarding the Company’s goal of identifying and
implementing efficiencies at all of its assets, and the benefits the Company expects to realize for the changes made at
the Zimapan mine. 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 will be unable to identify and implement further efficiencies at
its assets, that the Company will not derive the expected benefits from streamlining the management team and
shifting to more owner-operated mining at the Zimapan mine, 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
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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 there are further inefficiencies at the Company’s assets
which can be identified and improved upon, and that the Company will realize the expected benefits from the changes
it has made at the Zimapan mine.
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.