SilverCrest Reports First Quarter 2024 Financial Results
SilverCrest Metals has released its Q1 2024 financial results, showcasing strong financial and operational performance driven by its Las Chispas operation in Sonora, Mexico. Key highlights include:
- Recovered 14,719 oz gold and 1.4 million oz silver, or 2.6 million oz silver equivalent (AgEq).
- Generated revenue of $63.6 million with a mine operating earnings of $37.5 million.
- Net earnings of $33.9 million or $0.23 per share.
- Ended the quarter with treasury assets of $91.1 million and no debt.
- Processed grades and recoveries set new records with 874 grams per tonne silver equivalent and 98.3% recovery rates.
Despite planned maintenance, the company achieved higher-than-expected sales and maintained strong financial flexibility to support tax and duty payments. SilverCrest's strong start to the year positions it well for delivering on its 2024 guidance.
- Revenue increased to $63.6 million from $58 million in Q1 2023.
- Mine operating earnings increased to $37.5 million from $35.6 million in Q1 2023.
- Net earnings grew to $33.9 million, or $0.23 per share, from $27.2 million, or $0.18 per share, in Q1 2023.
- Treasury assets totaled $91.1 million with no debt.
- Processed grades hit a record 874 grams per tonne silver equivalent.
- Recovery rates achieved 98.3%, marking a new high.
- Positive collaboration between new and outgoing underground mining contractors.
- Achieved 10% increase in average daily mining rates from Q4 2023.
- Operating cash outflow was $1.1 million due to $26.2 million payment for 2023 taxes and duties.
- Free cash flow was negative $11.4 million, largely due to tax payments and a $7.5 million prepayment for mining services.
- Sustaining capital expenditures were lower than planned due to delays in execution of some projects.
- AISC increased to $12.90 per oz AgEq from $10.90 per oz AgEq in Q1 2023.
Insights
SilverCrest Metals Inc. reported strong financial results for Q1 2024, with revenue reaching $63.6 million and net earnings of
The operational highlights for Q1 2024 indicate that SilverCrest Metals Inc. is performing well in terms of mining efficiency and productivity. The 10% increase in underground mining rates to 942 tonnes per day and the completion of 4.2 km of horizontal and vertical underground development are notable achievements. These metrics exceed previous quarters, suggesting effective management and operational coordination. The company's ability to achieve record silver equivalent process grades of 874 grams per tonne and high recovery rates (98.6% for gold and 98.0% for silver) reflects the quality of ore and the efficiency of the milling process. Although the average daily mill throughput decreased to 1,026 tpd due to planned maintenance, the plant's availability rebounded to 92% in March 2024, aligning with planned targets. Investors should track the ramp-up efforts, targeting over 1,050 tpd by year-end to gauge future productivity and cost efficiency.
SilverCrest Metals Inc.'s ability to sell 15,000 oz of gold and 1.4 million oz of silver at average realized prices of
Financial and Operational Flexibility Continue to Drive Strong Results
TSX: SIL | NYSE American: SILV
N. Eric Fier, CEO, commented, "We are proud to deliver another quarter of strong financial and operational performance. Our ability to deliver consistent results is a function of the operational and financial flexibility we have created, which was showcased in a number of ways this quarter. The planned mobilization of our new underground mining contractor began in February, with ramp-up of the underground benefiting from excellent cooperation between our new and outgoing contractors leading to a
References to average realized gold and silver price, sustaining and non-sustaining capital expenditures, free cash flow, free cash flow per share (basic), working capital, operating cash flow before changes in working capital, operating cash flow before changes in working capital per share (basic), operating cash flow per share (basic), treasury assets, cash costs, and corporate all-in sustaining costs ("AISC") are described in more detail in the "Non-GAAP Financial Measures" section of this news release.
- Recovered 14,719 ounces ("oz") gold ("Au") and 1.4 million oz silver ("Ag"), or 2.6 million oz silver equivalent ("AgEq"1).
- Sold 15,000 oz Au and 1.4 million oz Ag (2.6 million oz AgEq) at average realized prices of
$2,062 $23.37 - Revenue of
$63.6 million $26.2 million - Mine operating earnings of
$37.5 million 59% operating margin), exceeded the$36.9 million - Net earnings of
$33.9 million $0.23 - Cash costs of
$7.09 $12.90 - Operating cash outflow of
$1.1 million $17.6 million $0.12 $26.2 million - Free cash flow was negative
$11.4 million $0.08 $7.5 million - Reported retained earnings of
$21.5 million - Ended the quarter with treasury assets totaling
$91.1 million $71.1 million $20.0 million
______________________________ | |
1 | Silver equivalent ("AgEq") ratio used in this news release of 79.51:1 based on the Las Chispas Operation Technical Report dated September 5, 2023, with an effective date of July 19, 2023 (the "2023 Technical Report"). |
The following operating performance refers to operating cash flow per share (basic), free cash flow, free cash flow per share (basic), cash costs, AISC, and treasury assets which are described in more detail in the "Non-GAAP Financial Measures" section of this news release.
OPERATIONAL | Unit | Q1, 2024 | Q1, 2023 |
Ore mined | tonnes | 85,737 | 63,600 |
Underground development | km | 4.2 | 2.8 |
Ore milled(1) | tonnes | 93,373 | 104,400 |
Average daily mill throughput | tonnes per day ("tpd") | 1,026 | 1,160 |
Gold | |||
Average grade | gpt | 4.97 | 4.06 |
Recovery | % | 98.6 % | 97.5 % |
Recovered | oz | 14,719 | 13,300 |
Sold | oz | 15,000 | 14,200 |
Silver | |||
Average grade | gpt | 479 | 419 |
Recovery | % | 98.0 % | 91.9 % |
Recovered | million oz | 1.41 | 1.29 |
Sold | million oz | 1.40 | 1.36 |
Silver equivalent(2) | |||
Average grade | gpt | 874 | 742 |
Recovery | % | 98.3 % | 94.4 % |
Recovered | million oz | 2.58 | 2.35 |
Sold | million oz | 2.59 | 2.49 |
FINANCIAL | Unit | Q1, 2024 | Q1, 2023 |
Revenue | $ millions | $ 63.6 | $ 58.0 |
Cost of sales | $ millions | $ (26.2) | $ (22.4) |
Mine operating earnings | $ millions | $ 37.5 | $ 35.6 |
Earnings for the period | $ millions | $ 33.9 | $ 27.2 |
Earnings per share (basic) | $/share | $ 0.23 | $ 0.18 |
Operating cash flow | $ millions | $ (1.1) | $ 26.6 |
Operating cash flow per share (basic) | $/share | $ (0.01) | $ 0.18 |
Free cash flow | $ millions | $ (11.4) | $ 19.0 |
Free cash flow per share (basic) | $/share | $ (0.08) | $ 0.13 |
Cash costs(2) | $/oz AgEq | $ 7.09 | $ 7.36 |
AISC(2) | $/oz AgEq | $ 12.90 | $ 10.90 |
Unit | March 31, 2024 | December 31, 2023 | |
Cash and cash equivalents | $ millions | $ 71.1 | $ 86.0 |
Bullion | $ millions | $ 20.0 | $ 19.2 |
Treasury assets | $ millions | $ 91.1 | $ 105.2 |
(1) | Ore milled includes material from stockpiles and ore mined. |
(2) | Q1, 2023 figures have been recast to align with the current period's presentation as follows: 1. Silver equivalent ounces sold have been adjusted to reflect a ratio of 79.51:1, used in the 2023 Technical Report, from the previous 86.9:1, and 2. Cash costs increased by |
In the quarter, a total of 85,737 tonnes were mined from the underground. Mining rates in Q1, 2024 averaged 942 tpd, a
The mobilization of the new underground mining contractor is largely on pace and continuing to progress, with good collaboration and coordination between the new and outgoing contractors contributing to the strong underground mining rates in the quarter. Mobilization of our new contractor is expected to continue through Q3, 2024.
In the quarter, the Company completed 4.2 km of horizontal and vertical underground development. Development rates and costs were inline with expectations.
Average daily mill throughput was 1,026 tpd in Q1, 2024, a decrease from previous quarters due to planned maintenance that was completed ahead of schedule. Process plant availability returned to
Average processed grades of 4.97 gpt Au and 479 gpt Ag, or 874 gpt AgEq marked a record for silver equivalent processed grades. These higher grades were strategically planned to offset the planned downtime in Q1, 2024, facilitated by sizable surface stockpiles and a flexible mine plan. Process grades are expected to moderate in Q2, 2024 as processing plant rates increase to be more inline with the expected average rate for the remainder of 2024 of 1,200 tpd.
Average process recoveries in Q1, 2024 were
Sustaining capital totaled
During the quarter, cash costs averaged
AISC averaged
Beginning in H2, 2023 through Q1, 2024, a combination of infill (
Drilling targeted the Babicanora Area where seven veins were tested. Drill results confirmed mineral continuity in these targets, with results in general verifying the grades and thicknesses of the targeted Inferred resource proximal to underground infrastructure as presented in the 2023 Technical Report. Opportunities for further expansion of mineralization were identified in the Babicanora Norte Splay 3 vein ("BAN Splay 3") and Babicanora Sur vein ("BAS") where drilling extended the mineralized footprint down dip and to the southeast of BAN Splay 3 and to the northwest of BAS beyond the initial area of the targeted Inferred resources. These results are being compiled and assessed for the potential conversion to Indicated resources for reserve consideration.
Drill intercept highlights from 161 drillholes are presented in the Company's Management's Discussion and Analysis for the three months ended March 31, 2024.
2024 Las Chispas and Regional Exploration Program
With the majority of the Las Chispas high priority Inferred resources now drill tested, exploration efforts will return to earlier stage targeting at Las Chispas and regionally.
The Company's strong regional geological knowledge and expertise is being applied to identify potential nearby satellite deposits which could eventually contribute additional feed to the Las Chispas plant. Throughout 2023 a regional evaluation program was carried out to identify priority opportunities. In 2024, a number of targets, including Picacho, have been chosen for further work including mapping, sampling, and drilling.
The 2024 exploration budget of
During Q1, 2024, the Company sold a total of 15,000 oz Au and 1.4 million oz Ag at average realized prices of
Q1, 2024 net earnings of
In Q1, 2024, cash flow used by operating activities was
The Company expects to pay a further
During the quarter, a total of
As at March 31, 2024, the Company had treasury assets of
Bullion assets increased by
The Company's working capital was
In Q1, 2024 installation of two kilometres of pipeline for water conduction for agricultural use in the community was initiated as part of the Company's ongoing commitment to water stewardship.
Also in the quarter, work continued to advance efforts to integrate renewable solar power at Las Chispas. This program is expected to be underway through 2024 with a target to begin implementation of a solar installation in 2025. The benefits of this program are expected to include cost savings and a reduction in GHG emissions.
A conference call to discuss the Company's Q1, 2024 operational and financial results will be held Wednesday, May 15, 2024 at 8:00 a.m. PT / 11:00 a.m. ET. To participate in the conference call, please dial the numbers below.
Date & Time: | Wednesday May 15, 2024 at 8:00 a.m. PT / 11:00 a.m. ET |
Telephone: | North America Toll Free: 1-800-274-8461 |
Conference ID: SILVER (745837) | |
Webcast: |
SilverCrest is a Canadian precious metals producer headquartered in
Management believes that the following non-GAAP financial measures will enable certain investors to better evaluate the Company's performance, liquidity, and ability to generate cash flow. These measures do not have any standardized definition under IFRS, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these measures differently.
Average realized gold and silver price per ounce is calculated by dividing the Company's gross revenue from gold or silver sales for the relevant period by the gold or silver ounces sold, respectively. The Company believes the measure is useful in understanding the metal prices realized by the Company throughout the period. The following table reconciles revenue and metal sold during the period with average realized prices:
Three months ended | ||
2024 | 2023 | |
Gold revenue | 30,923 | 26,676 |
Gold ounces sold during the period | 15,000 | 14,200 |
Average realized gold price (per oz sold) | $ 2,062 | $ 1,879 |
Silver revenue | 32,723 | 31,307 |
Silver ounces sold during the period | 1,400,000 | 1,361,000 |
Average realized silver price (per oz sold) | $ 23.37 | $ 23.00 |
Capital expenditures are classified into sustaining capital expenditures or non-sustaining capital expenditures depending on the nature of the expenditure. Sustaining capital expenditures are those required to support current production levels. Non-sustaining capital expenditures represent the capital spending at new projects and major, discrete projects at existing operations intended to increase production or extend mine life. Management believes this to be a useful indicator of the purpose of capital expenditures and this distinction is an input into the calculation of AISC.
The following table reconciles payments for mineral properties, plant and equipment, and equipment leases to sustaining and non-sustaining capital expenditures:
Three months ended | ||
2024 | 2023 | |
Payments for mineral properties, plant and equipment | $ 14,804 | $ 7,930 |
Payments for equipment leases | 11 | 43 |
Total capital expenditures | 14,815 | 7,973 |
Less: Non-sustaining capital expenditures | (4,586) | (320) |
Sustaining capital expenditures | $ 10,229 | $ 7,653 |
Free cash flow subtracts sustaining capital expenditures from net cash provided by operating activities, serving as a valuable indicator of our capacity to generate cash from operations post-sustaining capital investments. The following table reconciles this non-GAAP financial measure to the most directly comparable IFRS measure.
Three months ended | ||
2024 | 2023(1) | |
Operating cash flow | $ (1,121) | $ 26,617 |
Less: sustaining capital expenditures | (10,229) | (7,653) |
Free cash flow | $ (11,350) | $ 18,964 |
Free cash flow per share (basic) | $ (0.08) | $ 0.13 |
Weighted average shares outstanding (basic) | 146,954 | 147,200 |
(1) | Q1, 2023 operating cash flow has been adjusted to include |
Working capital is calculated as current assets less current liabilities. The Company uses working capital as a measure of the Company's operational efficiency and short-term financial health.
The Company uses operating cash flow before change in working capital to determine the Company's ability to generate cash flow from operations, and is calculated by adding back the change in working capital to operating cash flow as reported in the consolidated statements of cash flows.
Three months ended | ||
2024 | 2023(1) | |
Operating cash flow | $ (1,121) | $ 26,617 |
Less: change in working capital | 18,735 | 8,544 |
Operating cash flow before change in working capital | $ 17,614 | $ 35,161 |
Operating cash flow per share (basic) | $ (0.01) | $ 0.18 |
Operating cash flow before change in working capital per share (basic) | $ 0.12 | $ 0.24 |
Weighted average shares outstanding (basic) | 146,954 | 147,200 |
(1) | Q1, 2023 operating cash flow has been adjusted to include |
SilverCrest calculates treasury assets as cash and cash equivalents plus bullion as reported in the consolidated statements of financial position. Management believes that treasury assets provide a useful measure of the Company's most liquid assets that can be used to settle short-term obligations or provide liquidity. Treasury assets are calculated as follows:
March 31 | December 31 | |
Cash and cash equivalents | $ 71,085 | $ 85,964 |
Bullion | 20,039 | 19,191 |
Treasury assets | $ 91,124 | $ 105,155 |
Cash costs include production costs, and government royalties. Management uses this measure to monitor the performance of its mining operation and ability to generate positive cash flow on a site basis.
All-in sustaining costs, a non-GAAP financial measure, starts with cash costs and includes general and administrative costs, reclamation accretion expense and sustaining capital expenditures. Management uses this measure to monitor the performance of its mining operation and ability to generate positive cash flow on an overall company basis.
Cash costs and AISC are calculated as follows:
Three months ended | ||
2024 | 2023(1) | |
Production costs | $ 18,203 | $ 18,038 |
Government royalties | 190 | 294 |
Total cash costs | 18,393 | 18,332 |
General and administrative expenses | 4,695 | 3,533 |
Reclamation accretion expense | 136 | 107 |
Sustaining capital expenditures | 10,229 | 5,181 |
Total AISC | $ 33,453 | $ 27,153 |
Silver equivalent ounces sold (koz) | 2,593 | 2,490 |
Cash costs (per AgEq sold) | $ 7.09 | $ 7.36 |
AISC (per AgEq sold) | $ 12.90 | $ 10.90 |
(1) | Q1, 2023 Figures have been recast to align with the current period's presentation as follows: 1. Silver equivalent ounces sold have been adjusted to reflect a ratio of 79.51:1, used in the 2023 Technical Report, from the previous 86.9:1, and 2. Cash costs increased by |
This news release contains "forward-looking statements" and "forward-looking information" (collectively "forward-looking statements") within the meaning of applicable Canadian and
The Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects for this news release is N. Eric Fier, CPG, P.Eng, CEO for SilverCrest, who has reviewed and approved its contents.
View original content to download multimedia:https://www.prnewswire.com/news-releases/silvercrest-reports-first-quarter-2024-financial-results-302145461.html
SOURCE SilverCrest Metals Inc.
FAQ
What were SilverCrest's Q1 2024 net earnings and EPS?
How much revenue did SilverCrest generate in Q1 2024?
What were the average realized prices for gold and silver for SilverCrest in Q1 2024?
What were SilverCrest's cash costs per oz AgEq sold in Q1 2024?
What is SilverCrest's total treasury assets as of Q1 2024?
