Santacruz Silver Reports Fourth Quarter and Year End 2023 Financial Results
- 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:
- 7,004,582 ounces of silver, a 25% increase year-over-year
- 91,616 tonnes of zinc, a 26% increase year-over-year
- 12,369 tonnes of lead, a 23% increase year-over-year
- 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
$50,980,000 , a 237% increase year-over-year
Arturo Préstamo, Executive Chairman and Interim CEO of Santacruz, commented, "In 2023, Santacruz continued to build a mid-tier silver and base metals producer. The Company completed several mine optimization initiatives including the integration ramp that connects the Tres Amigos and Colquechaquita underground mines at Caballo Blanco in
Mr. Préstamo continued, "The Company has also made significant progress on improving its financial position, and recently announced amended terms of sale with Glencore for the Bolivian assets. This is expected to further strengthen our balance sheet by significantly reducing the value of the consideration payable that will be recorded on our balance sheet, which will be reflected in the next quarterly financial results."
Selected consolidated financial and operating information for the year ended 2023, 2022 and 2021 are presented below. All financial information is prepared in accordance with International Financial Reporting Standards ("IFRS"), and all dollar amounts are expressed in thousands of US dollars, except per unit amounts, unless otherwise indicated.
|
2023 |
2022 (1)(2)(8) |
2021 |
Change '23 vs '22 |
|
|
|
|
|
Material Processed (tonnes milled) |
1,883,446 |
1,646,272 |
730,411 |
14 % |
Silver Equivalent Produced (ounces) (3) |
22,641,052 |
18,112,725 |
3,170,053 |
25 % |
Silver Ounces Produced |
7,004,582 |
5,599,223 |
1,289,171 |
25 % |
Zinc Tonnes Produced |
91,616 |
72,533 |
12,003 |
26 % |
Lead Tonnes Produced |
12,369 |
10,065 |
3,204 |
23 % |
Copper Tonnes Produced |
1,254 |
1,287 |
1,073 |
(3 %) |
Silver Equivalent Sold (payable ounces) (4) |
16,105,327 |
19,612,692 |
2,931,535 |
(18 %) |
Cash Cost of Production per Tonne (5) |
93.10 |
117.99 |
53.16 |
(21 %) |
Cash Cost per Silver Equivalent Ounce Sold ($/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 % |
|
|
|
|
|
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 %) |
2023 Annual Production Summary - By Mine
|
Bolivar (7) |
Porco (7) |
Caballo |
|
|
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 |
(2) |
Bolivian production from |
(3) |
Silver Equivalent Produced (ounces) have been calculated using prices of |
(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 Bolivar, Porco, the |
(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 descriptions. |
(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 " |
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 22,641,052 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
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
2023 vs 2022
Consolidated cash cost of production per tonne of mineralized material processed was
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
2023 vs 2022
Cash cost per silver equivalent ounce sold was
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
2023 vs 2022
2023 AISC per silver equivalent ounce sold was
Q4 2023 vs Q3 2023
Consolidated AISC per silver equivalent ounce sold decreased 18% quarter-on-quarter to
Santacruz Silver is engaged in the operation, acquisition, exploration, and development of mineral properties in
'signed'
Arturo Préstamo Elizondo,
Executive Chairman and Interim CEO
Neither the
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 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
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.
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