2023 Sales and Corporate AISC Beat Guidance,
Driving $54.4 million Increase in
Treasury Assets
TSX: SIL | NYSE American: SILV
VANCOUVER, BC, March 11,
2024 /CNW/ - SilverCrest Metals Inc.
("SilverCrest" or the "Company") is pleased to announce its
financial results for the fourth quarter of 2023 ("Q4, 2023") and
the year ended December 31, 2023.
This release also provides additional operational results,
expanding on the January 23, 2024
release of Q4, 2023 operational results from the Company's Las
Chispas operation ("Las Chispas" or the "Operation") located in
Sonora, Mexico. All amounts herein
are presented in United States
Dollars ("US$"), unless otherwise stated. Certain amounts shown in
this news release may not total to exact amounts due to rounding
differences. References to corporate all-in sustaining costs
("AISC"), free cash flow, cash costs, average realized gold and
silver price, and treasury assets are described in more detail in
the "Non-GAAP Financial Measures" section of this news release.
N. Eric Fier, CEO, commented,
"2023 marked a successful first full year of commercial production
at Las Chispas, with the Operation exceeding the high end of
sales guidance, beating the low end of AISC guidance,
delivering impressive operating margins of 61%, and generating
$121.1 million in free cash flow. We
are extremely proud that within seven months of declaring
commercial production we became debt free, after repaying
$50.0 million in debt in the first
half of 2023 ("H1, 2023"). This was in addition to strategically
allocating a total of $37.2 million
in capital throughout the year to share buybacks, exploration, and
increasing our bullion holdings. We ended 2023 with
peer1 leading treasury assets of $105.2 million, and while we expect the pace of
our cash build to slow in 2024 due to the commencement of tax
payments and contractor related charges, we remain uniquely
positioned to continue to allocate capital strategically. Our new
underground mining contractor began mobilization in February 2024, a key de-risking event, and we are
excited that this process is underway while also having our
outgoing contractor on site to allow for a smooth transition and
continued ramp-up of the underground operations at Las
Chispas."
|
________________________________
|
|
1 Based on
company filing for the period ended September 30, 2023 of silver
peer companies, including Aya Gold & Silver Inc., Coeur Mining,
Inc., Endeavour Silver Corp., First Majestic Silver Corp.,
Fresnillo plc., Fortuna Silver Mines Inc., Hecla Mining Company,
MAG Silver Corp., and Silvercorp Metals Inc.
|
Q4, 2023
- Recovered 14,100 ounces ("oz") of gold ("Au") and 1.34 million
oz of silver ("Ag"), or 2.47 million oz of silver equivalent
("AgEq"2).
- Sold 16,100 oz of Au and 1.28 million oz of Ag, or 2.56 million
oz of AgEq.
- Cash costs of $7.45 per oz AgEq
sold and Corporate AISC of $14.36 per
oz AgEq sold, which was within the H2, 2023 guidance range of
$13.75 to $15.50 per oz AgEq sold, but higher than Q3,
2023, primarily due to an increase in capital spend and payments to
our outgoing mining contractor.
- Average realized price of $1,979/oz Au and $23.09/oz Ag.
- Revenue of $61.3 million and cost
of sales of $24.4 million, resulting
in mine operating earnings of $36.9
million, which represents a 60% operating margin.
- Net earnings of $35.9 million or
basic earnings of $0.25 per
share.
- Free cash flow of $24.1 million
or $0.16 per share.
- Ended the quarter with treasury assets totaling $105.2 million ($86.0
million cash and $19.2 million
in bullion), a $23.4 million or 29%
increase from the prior quarter.
Year ended December 31,
2023
- Recovered 59,700 oz of Au and 5.65 million oz of Ag, or 10.40
million oz of AgEq.
- Sold 58,200 oz of Au and 5.62 million oz of Ag, or 10.25
million oz of AgEq, exceeding 2023 sales guidance of 9.8 to 10.2
million oz of AgEq.
- Cash costs of $7.73 per oz AgEq
sold was within the guidance range of $7.50 to $8.50 per
oz AgEq sold.
- AISC of $12.58 per oz AgEq sold
beat the low end of the 2023 guidance range of $12.75 to $13.75
per oz AgEq sold.
- Average realized price of $1,946/oz Au and $23.48/oz Ag.
- Revenue of $245.1 million and
cost of sales of $96.8 million,
resulting in mine operating income of $148.3
million, which represents a 61% operating margin.
- Net earnings of $116.7 million or
basic earnings of $0.79 per
share.
- Free cash flow of $121.1 million
or $0.82 per share.
- Financial position remained strong with no debt and treasury
assets totaling $105.2 million
($86.0 million cash and $19.2 million in bullion), a $54.4 million or 107% increase from the prior
year.
- Fully repaid the $50.0 million
Term Facility.
- Repurchased $7.1 million of the
Company's shares under SilverCrest's Normal Course Issuer Bid
("NCIB"), representing 20% of the allowable 7.4 million common
share purchase limit.
|
_____________________________
|
|
2 Silver
equivalent ("AgEq") ratio used in this news release of 79.51:1
based on the updated technical report for Las Chispas titled "Las
Chispas Operation Technical Report" dated September 5, 2023 with an
effective date of July 19, 2023 (the "2023 Technical
Report").
|
2024 Outlook
The Las Chispas underground operation will continue its ramp-up
through 2024 with mining rates expected to remain at or around Q4,
2023 levels in H1, 2024, as the new mining contractor mobilizes.
Mining rates will increase in H2, 2024 with a targeted exit rate of
1,050 tonnes per day ("tpd"). The mine plan was created with a
measured ramp-up, which when combined with balanced usage of
surface stockpiles, reduces execution risk. The new mining
contractor, a subsidiary of Dumas Contracting Ltd. ("Dumas"),
arrived at site in early February
2024 to begin mobilization, which is expected to continue
through Q3, 2024. Guidance for 2024 incorporates assumptions
related to the transition of contractors and ramp-up of Dumas,
including some one time costs.
In 2024, the processing plant will operate at an average of
1,200 tpd, except in Q1, 2024, due to planned maintenance downtime
in February 2024. This work is now complete and is not
expected to impact production in the quarter due to the flexibility
afforded by the stockpile for ore blending. Silver equivalent sales
are expected to be relatively consistent quarterly throughout
2024.
The Company announced its full year 2024 guidance on
February 20, 2024 which highlighted
stable production at low costs, despite continued industry cost
pressures.
|
Guidance
Metric
|
Unit
|
2024
|
|
AgEq Ounces
Sold
|
millions
|
9.8 to 10.2
|
|
Cash
Costs(1)
|
$/oz AgEq
sold
|
9.50
to 10.00
|
|
Corporate
AISC(1)
|
$/oz AgEq
sold
|
15.00
to 15.90
|
|
Sustaining
Capital(1)
|
$ millions
|
40.0
to 44.0
|
|
Exploration
|
$ millions
|
12.0
to 14.0
|
|
Notes:
|
|
1.
|
Cash Costs, AISC, and
sustaining capital are non-GAAP measures. Please refer to the
Non-GAAP Financial Measures section of this news release for
further information on this measure.
|
|
2
|
General
assumptions:
a. Metal prices
estimated at $1,850/oz Au and $22.80/oz Ag.
b. Annual average
exchange rate from all costs based on Mexican peso to US dollar of
17:1.
|
Estimated 2024 Corporate AISC of $15.00 to $15.90/oz
AgEq sold is inline with the 2024 AISC estimate based on the 2023
Technical Report of $15.08/oz AgEq
(inclusive of 2024 mine level AISC of $13.48/oz AgEq sold and an estimate of
$1.60/oz AgEq sold of corporate level
costs). AISC in H1, 2024 is expected to be higher than Q4, 2023 as
a result of Dumas mobilization and demobilization of the outgoing
contractor, and is expected to reduce in H2, 2024.
In Q1, 2024 SilverCrest expects to make payments totaling
approximately $30.0 million for 2023
taxes and duties. 2024 taxes are estimated to total $28.0 to $33.0
million and will be paid in quarterly installments.
Special mining duties are paid in the first quarter following the
end of each fiscal year in accordance with the mandated annual
schedule.
In 2024, cash flows are also expected to be impacted by
mobilization and demobilization costs, including a
$7.5 million advance that was made in
Q1, 2024 to support equipment purchases as part of the mobilization
of Dumas. The equipment advance will result in estimated savings of
$1.5 million over the life of the
five year contract. This advance to Dumas will be credited towards
mining services for SilverCrest over 24 months starting in Q3,
2024. A total of $4.5 million in
mobilization charges will be paid over the mobilization period with
the expense recognized over the life of the five year contract and
reflected in AISC during this time.
Fourth Quarter and Annual Operating Performance
The following operating performance refers to free cash flow,
cash costs, AISC, treasury assets and net cash which are described
in more detail in the "Non-GAAP Financial Measures" section of this
news release.
|
OPERATIONAL
|
Unit
|
Q4,
2023
|
Q4,
2022
|
2023
|
2022
|
|
Ore mined
|
tonnes
|
78,600
|
64,700
|
300,900
|
201,000
|
|
Ore
milled(a)
|
tonnes
|
104,500
|
104,400
|
431,400
|
187,600
|
|
Average daily mill
throughput
|
tpd
|
1,136
|
1,135
|
1,182
|
877
|
|
Underground
development
|
km
|
3.6
|
2.3
|
13.2
|
8.1
|
|
|
|
|
|
|
|
Gold
|
|
|
|
|
|
|
Average
grade
|
gpt
|
4.28
|
3.67
|
4.39
|
3.05
|
|
Recovery
|
%
|
98.3 %
|
96.9 %
|
98.1 %
|
96.5 %
|
|
Recovered
|
oz
|
14,100
|
11,940
|
59,700
|
17,770
|
|
Sold
|
oz
|
16,100
|
11,400
|
58,200
|
11,400
|
|
|
|
|
|
|
|
Silver
|
|
|
|
|
|
|
Average
grade
|
gpt
|
410
|
382
|
423
|
312
|
|
Recovery
|
%
|
97.7 %
|
93.3 %
|
96.5 %
|
92.5 %
|
|
Recovered
|
million oz
|
1.34
|
1.20
|
5.65
|
1.74
|
|
Sold
|
million oz
|
1.28
|
0.98
|
5.62
|
1.12
|
|
|
|
|
|
|
|
Silver
equivalent(b)
|
|
|
|
|
|
|
Average
grade
|
gpt
|
750
|
674
|
771
|
555
|
|
Recovery
|
%
|
98.0 %
|
94.7 %
|
97.2 %
|
94.2 %
|
|
Recovered
|
million oz
|
2.47
|
2.15
|
10.40
|
3.16
|
|
Sold
|
million oz
|
2.56
|
1.89
|
10.25
|
2.03
|
|
(a)
|
Ore milled includes
material from stockpiles and ore mined.
|
|
(b)
|
Q4, 2022 and 2022 AgEq
figures were originally presented using a Ag:Au ratio of 86.9:1 but
have been recast for consistency with the ratio of 79.51:1 being
applied to current year figures based on the 2023 Technical
Report.
|
|
FINANCIAL
|
Unit
|
Q4,
2023
|
Q4,
2022
|
2023
|
2022
|
|
Revenue
|
$ millions
|
$
61.3
|
$
40.8
|
$
245.1
|
$
43.5
|
|
Cost of
sales
|
$ millions
|
$
(24.4)
|
$
(14.3)
|
$
(96.8)
|
$
(15.1)
|
|
Mine operating
income
|
$ millions
|
$
36.9
|
$
26.5
|
$
148.3
|
$
28.4
|
|
Earnings for the
period
|
$ millions
|
$
35.9
|
$
5.2
|
$
116.7
|
$
31.3
|
|
Earnings per share
(basic)
|
$/share
|
$
0.25
|
$
0.03
|
$
0.79
|
$
0.21
|
|
Free cash
flow
|
$ millions
|
$
24.1
|
N/A*
|
$
121.1
|
N/A*
|
|
Cash costs
|
$/oz AgEq
|
$
7.45
|
N/A*
|
$
7.73
|
N/A*
|
|
AISC
|
$/oz AgEq
|
$
14.36
|
N/A*
|
$
12.58
|
N/A*
|
|
Units
|
|
|
As at
Dec 31,
2023
|
As at
Dec 31,
2022
|
|
Cash and cash
equivalents
|
$ millions
|
|
|
$
86.0
|
$
50.8
|
|
Bullion
|
$ millions
|
|
|
$
19.2
|
$
—
|
|
Treasury
assets
|
$ millions
|
|
|
$
105.2
|
$
50.8
|
|
Credit Facility
Debt
|
$ millions
|
|
|
$
—
|
$
49.6
|
|
Net cash
|
$ millions
|
|
|
$
86.0
|
$
1.2
|
|
*
This information was not available for
2022.
|
Underground
Mining rates in Q4, 2023 averaged 855 tpd, a 6% decrease from
Q3, 2023, but in line with the ramp-up estimate of 800 to 900 tpd.
Rates decreased over the previous quarter as a result of a focus on
dilution management. During 2023, mining rates averaged 824
tpd.
In Q4, 2023, the Company completed 3.6 km of horizontal and
vertical underground development. In 2023, the Company completed an
additional 13.2 km of horizontal and vertical underground
development, compared to 8.0 km in 2022.
Processing Plant
Average daily mill throughput was 1,136 tpd in Q4, 2023 and
1,182 tpd in 2023. Q4, 2023 throughput declined slightly from
Q3, 2023 throughput of 1,245 tpd as the processing plant
experienced some unplanned downtime.
Average processed gold and silver grades of 4.28 gpt Au and 410
gpt Ag, or 750 gpt AgEq, in Q4, 2023 were in line with Q3, 2023 (2%
and 1% declines respectively). In 2023, gold and silver
processed grades averaged 4.39 gpt Au and 423 gpt Ag, or 771 gpt
AgEq.
Costs
During the quarter, cash costs averaged $7.45 per oz AgEq sold. This is higher than Q3,
2023 cash costs of $6.53 per oz AgEq
sold, but within H2, 2023 cash cost guidance range of $7.00 to $8.50 per
oz AgEq sold. Cash costs increased due to higher payments
to our outgoing mining contractor. In 2023 cash costs averaged
$7.73 per oz AgEq sold which was
within the 2023 cash cost guidance range of $7.50 to $8.50 per
oz AgEq sold.
AISC averaged $14.36 per oz AgEq
sold in Q4, 2023, higher than $12.23
per oz AgEq sold in Q3, 2023 as expected, but within the H2, 2023
guidance range of $13.75 to
$15.50 per oz AgEq sold. AISC
increased due to higher capital spend and payments to our outgoing
mining contractor. AISC in 2023 was $12.58 per oz AgEq sold which beat the low
end of the 2023 guidance range of $12.75 to $13.75
per oz AgEq sold.
Sustaining Capital Expenditures
Sustaining capital expenditures totalled $12.0 million in Q4, 2023 and $37.1 million for 2023, which is consistent with
the $39.1 million estimated in the
2023 Technical Report. Sustaining capital in 2023 was largely
related to underground development and underground
infrastructure.
Exploration Update
During 2023, the Company completed exploration work at Las
Chispas, which is capitalized as growth capital.
During Q4, 2023, 17,947 metres of drilling was completed at Las
Chispas, with 42% of the metres focused on infill drilling of
Inferred Resources (see 2023 Technical Report) for conversion to
Indicated Resources and possible conversion to Reserves. The
balance of the drilling was focused on new vein targets. In Q4,
2023, the Company spent $5.0 million
on exploration at Las Chispas. This drilling program will continue
in 2024 with a budget of up to $14
million targeting conversion in H1, 2024 and targeting
inferred growth in H2, 2024.
During 2023, 50,233 metres of drilling was completed and
$11.4 million was spent on
exploration at Las Chispas.
Selected Fourth Quarter Financial Results
Fourth Quarter and Annual Consolidated Income
Statements
(unaudited, in thousands of USD)
|
Three months
ended
December 31,
|
Year ended
December 31,
|
|
2023
|
2022
|
2023
|
2022
|
|
Revenue
|
$
61,320
|
$
40,791
|
$
245,130
|
$
43,510
|
|
Cost of
sales
|
|
|
|
|
|
Production
costs
|
(17,555)
|
(13,006)
|
(74,108)
|
(13,758)
|
|
Depreciation
|
(6,328)
|
(1,073)
|
(21,348)
|
(1,116)
|
|
Royalties
|
(490)
|
(216)
|
(1,368)
|
(216)
|
|
(24,373)
|
(14,295)
|
(96,824)
|
(15,090)
|
|
Mine operating
earnings
|
36,947
|
26,496
|
148,306
|
28,420
|
|
General and
administrative expenses
|
(6,534)
|
(4,365)
|
(15,756)
|
(9,746)
|
|
Exploration and project
expenses
|
(99)
|
(775)
|
(726)
|
(5,444)
|
|
Foreign exchange gains
(losses)
|
630
|
(4,493)
|
(7,247)
|
27,913
|
|
Earnings from
operations
|
30,944
|
16,863
|
124,577
|
41,143
|
|
Interest
income
|
1,448
|
886
|
4,035
|
2,811
|
|
Interest and finance
expense
|
(334)
|
(6,397)
|
(2,713)
|
(6,589)
|
|
Other
expense
|
507
|
—
|
(2,653)
|
—
|
|
Earnings before
income taxes
|
32,565
|
11,352
|
123,246
|
37,365
|
|
Income tax
expense
|
3,352
|
$
(6,121)
|
(6,526)
|
$
(6,064)
|
|
Net
earnings
|
35,917
|
5,231
|
116,720
|
31,301
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
Currency translation
adjustment
|
—
|
5,399
|
10,255
|
(27,987)
|
|
Total comprehensive
earnings
|
$
35,917
|
$
10,630
|
$
126,975
|
$
3,314
|
|
|
|
|
|
|
Net earnings
attributable to common shareholders
|
|
|
|
|
|
Basic earnings per
share
|
$
0.25
|
$
0.03
|
$
0.79
|
$
0.21
|
|
Diluted earnings per
share
|
$
0.24
|
$
0.04
|
$
0.79
|
$
0.21
|
|
Weighted average shares
outstanding (in 000's) Basic
|
146,334
|
146,646
|
146,882
|
146,164
|
|
Weighted average shares
outstanding (in 000's) Diluted
|
146,972
|
152,403
|
147,539
|
152,190
|
Revenue
During Q4, 2023, the Company sold a total of 16,100 oz Au and
1.28 million oz Ag at average realized prices of $1,979/oz Au and $23.09/oz Ag, generating revenue of $61.3 million. During Q4, 2022, the Company
sold a total of 11,400 oz Au and 1.0 million oz Ag at average
realized prices of $1,730/oz Au and
$21.51/oz Ag, generating revenue of
$40.8 million. The increased
quantities sold resulted from the Company having three months of
commercial production in Q4, 2023 compared to two months in Q4,
2022.
During 2023, the Company sold a total of 58,200 oz Au and 5.62
million oz Ag at average realized prices of $1,946/oz Au and $23.48/oz Ag, generating revenue of $245.1 million. During 2022, the Company
sold a total of 11,400 oz Au and 1.12 million oz Ag at average
realized prices of $1,730/oz Au and
$21.24/oz Ag, generating revenue of
$43.5 million. The increased
quantities sold resulted from the Company having a full year of
commercial production in 2023 compared to two months in 2022.
Income
Q4, 2023 net earnings of $35.9
million, or $0.25 per share,
was $30.7 million higher than Q4,
2022 net earnings of $5.2 million, or
$0.03 per share, primarily from
higher mine operating earnings resulting from higher realized metal
prices and increased sales quantities and lower interest, taxes and
foreign exchange losses.
During 2023, the Company generated net earnings of $116.7 million, or $0.79 per share, $85.4
million higher than 2022 net earnings of $31.3 million, or $0.21 per share. The increase in net earnings
resulted from the Company having a full year of commercial
production in 2023 compared to two months in 2022.
Fourth Quarter and Annual Consolidated Statements of Cash
Flows
(unaudited, in thousands of USD)
|
Three months
ended
December 31,
|
Year ended
December 31,
|
|
2023
|
2022
|
2023
|
2022
|
|
Operating
activities
|
|
|
|
|
|
Net earnings for the
year
|
$
35,917
|
$
5,231
|
$
116,720
|
$
31,301
|
|
Income tax (recovery)
expense
|
(3,352)
|
6,121
|
6,526
|
6,064
|
|
Depreciation
|
5,957
|
1,894
|
21,348
|
1,937
|
|
Share-based
compensation expense
|
2,333
|
1,391
|
4,190
|
2,398
|
|
Unrealized foreign
exchange losses
|
842
|
3,579
|
7,942
|
(21,868)
|
|
Interest
income
|
(1,448)
|
(886)
|
(4,035)
|
(2,811)
|
|
Interest
expense
|
(4,010)
|
6,374
|
1,461
|
6,566
|
|
Interest
paid
|
190
|
(1,619)
|
(1,461)
|
(7,568)
|
|
Interest
received
|
1,251
|
974
|
4,035
|
2,715
|
|
Income taxes
paid
|
10
|
—
|
(977)
|
—
|
|
Other operating
activities
|
(242)
|
—
|
(242)
|
—
|
|
Net change in non-cash
working capital items
|
(1,352)
|
(3,630)
|
2,754
|
(28,644)
|
|
$
36,096
|
$
19,429
|
$
158,261
|
$
(9,910)
|
|
Investing
activities
|
|
|
|
|
|
Payments for mineral
properties, plant and equipment
|
(17,327)
|
(16,409)
|
(51,257)
|
(68,489)
|
|
Purchase of
bullion
|
(6,655)
|
—
|
(18,674)
|
—
|
|
Proceeds from
derivatives
|
264
|
—
|
264
|
—
|
|
$
(23,718)
|
$
(16,409)
|
$
(69,667)
|
$
(68,489)
|
|
Financing
activities
|
|
|
|
|
|
Common share
proceeds
|
2,878
|
1,084
|
3,131
|
2,467
|
|
Common share
repurchases
|
(6)
|
—
|
(7,145)
|
—
|
|
Proceeds from
debt
|
—
|
49,583
|
—
|
49,583
|
|
Repayment of
debt
|
—
|
(92,860)
|
(50,000)
|
(92,860)
|
|
Payments of equipment
leases
|
(30)
|
(39)
|
(112)
|
(159)
|
|
$
2,842
|
$
(42,232)
|
$
(54,126)
|
$
(40,969)
|
|
Effects of exchange
rate changes on cash and cash equivalents
|
765
|
1,396
|
735
|
(6,386)
|
|
Increase (decrease) in
cash and cash equivalents
|
15,985
|
(37,816)
|
35,203
|
(125,754)
|
|
Cash and cash
equivalents at the beginning of the period
|
69,979
|
88,577
|
50,761
|
176,515
|
|
Cash and cash
equivalents at the end of the period
|
$
85,964
|
$
50,761
|
$
85,964
|
$
50,761
|
Cash Flow
In Q4, 2023, the cash flow generated from operating activities
was $36.1 million, an increase of
$16.7 million compared to Q4, 2022,
primarily driven by elevated mine operating earnings. Total
cash flow generated from operating activities in 2023 was
$158.3 million, a $168.2 million increase from the $9.9 million operating cash outflows in
2022. This notable improvement resulted from increased mine
operating earnings and a reduction in cash utilized for working
capital.
Q4, 2023 free cash flow was $24.1
million (or $0.16 per share)
and 2023 free cash flow was $121.1
million (or $0.82 per
share).
Financial Position
As at December 31, 2023, the
Company had treasury assets of $105.2
million ($86.0 million cash
and $19.2 million in bullion), a
$54.4 million or 107% increase from
the prior year. The Company remains debt free with access to an
undrawn revolving facility of $70.0
million.
ESG
In 2023, SilverCrest published its inaugural full ESG report
following the success of the Task Force for Climate-Related
Disclosures ("TCFD") and Water Stewardship Report disclosures in
2022, collectively available on our website at
www.silvercrestmetals.com. This further formalizes the Company's
commitment to diligent management of ESG issues within its own
operations and the local community.
SilverCrest continues to execute on its commitment to invest in
initiatives that support water stewardship in communities local to
Las Chispas. In 2023, SilverCrest allocated $0.4 million from its committed five year
$1.5 million water stewardship
initiatives within the community. This investment facilitated
approximately 900 metres of sewer system repairs, more than 500
metres of aqueduct enhancements in the Arizpe region of Sonora, and the establishment of electrified
pumps for wells. In addition SilverCrest continued to assist local
community members with the process to secure water concessions.
These projects helped protect the main sources of income for the
local population while also creating a second planting season in
the local area.
The Company's ESG practices and community engagement earned
recognition in Mexico with the
2023 Empresas Socialmente Responsables (Socially Responsible
Companies) distinction from the Mexican Centre for Philanthropy
(CEMEFI). In addition, the Company has received recognition from
the Confederation of Chambers of Commerce of Mexico (CONCAMIN) in the areas of ESG
compliance and Outstanding Social Responsibility and Sustainability
Practices.
Fourth Quarter 2023 Conference Call
A conference call to discuss the Company's Q4, 2023 operational
and financial results will be held Monday,
March 11, 2024 at 7:00 a.m. PT
/ 10:00 a.m. ET. To participate in
the conference call, please dial the numbers below.
|
Date & Time:
|
Monday March 11, 2024
at 7:00 a.m. PT / 10:00 a.m. ET
|
|
Telephone:
|
Toronto:
+1-416-764-8624
|
|
North America Toll
Free: 1-888-259-6580
|
|
Conference ID:
58528537
|
|
|
|
Webcast:
|
https://silvercrestmetals.com/investors/presentations/
|
ABOUT SILVERCREST METALS INC.
SilverCrest is a Canadian precious metals producer headquartered
in Vancouver, BC. The
Company's principal focus is its Las Chispas Operation in
Sonora, Mexico. SilverCrest
has an ongoing initiative to increase its asset base by expanding
current resources and reserves, acquiring, discovering, and
developing high value precious metals projects and ultimately
operating multiple silver-gold mines in the Americas. The Company
is led by a proven management team in all aspects of the precious
metal mining sector, including taking projects through discovery,
finance, on time and on budget construction, and production.
Non-GAAP Financial Measures
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
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:
|
|
Q4,
2023
|
2023
|
2022
|
|
Revenues from financial
statements
|
|
$
61,320
|
$
245,130
|
$
43,510
|
|
Ag sales
|
|
(29,452)
|
(131,867)
|
(23,784)
|
|
Au sales
|
A
|
31,868
|
113,263
|
19,726
|
|
Au oz sold during the
period
|
B
|
16,100
|
58,200
|
11,400
|
|
Average realized Au
price per oz sold
|
A/B
|
$
1,979
|
$
1,946
|
$
1,730
|
|
|
|
|
|
|
Revenues from financial
statements
|
|
$
61,320
|
$
245,130
|
$
43,510
|
|
Au sales
|
|
(31,868)
|
(113,263)
|
(19,726)
|
|
Ag sales
|
A
|
29,452
|
131,867
|
23,784
|
|
Ag oz sold during the
period
|
B
|
1,275,300
|
5,616,300
|
1,105,700
|
|
Averaged realized Ag
price per oz sold
|
A/B
|
$
23.09
|
$
23.48
|
$
21.51
|
Capital expenditures
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:
|
Q4,
2023
|
2023
|
|
Payments for mineral
properties, plant and equipment
|
$
17,327
|
$
51,257
|
|
Payments for equipment
leases
|
30
|
112
|
|
Total capital
expenditures
|
17,357
|
51,368
|
|
Less: Non-sustaining
capital expenditures
|
(5,332)
|
(14,224)
|
|
Sustaining capital
expenditures
|
$
12,025
|
$
37,144
|
Free cash flow
Free cash flow, a non-GAAP financial metric, 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.
|
|
Q4,
2023
|
2023
|
|
Net cash provided by
operating activities
|
|
$
36,096
|
$
158,261
|
|
Less: sustaining
capital expenditures
|
|
(12,025)
|
(37,145)
|
|
Free cash
flow
|
|
$
24,071
|
$
121,116
|
|
Free cash flow per
share (basic)
|
|
$
0.16
|
$
0.82
|
|
Weighted average shares
outstanding (basic)
|
|
146,334
|
146,882
|
Treasury assets
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:
|
2023
|
2022
|
|
Cash and cash
equivalents
|
$
85,964
|
$
50,761
|
|
Bullion
|
19,191
|
—
|
|
Treasury
assets
|
$
105,155
|
$
50,761
|
Cash costs
Cash costs are a non-GAAP financial metric which includes
production costs, royalties and minesite general and administrative
costs. Management uses this measure to monitor the
performance of its mining operation and ability to generate
positive cash flow on a site basis.
AISC
All-in sustaining costs, a non-GAAP financial measure, starts
with cash costs and includes all other 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:
|
Q4,
2023
|
2023
|
|
Production
costs
|
$
17,555
|
$
74,108
|
|
Royalties
|
490
|
1,368
|
|
General and
administrative expenses, minesite
|
999
|
3,703
|
|
Total cash
costs
|
19,044
|
79,179
|
|
General and
administrative expenses, other
|
5,500
|
12,053
|
|
Reclamation accretion
expense
|
139
|
493
|
|
Sustaining capital
expenditures
|
12,025
|
37,145
|
|
Total
AISC
|
$
36,708
|
$
128,870
|
|
Silver equivalent
ounces sold (koz)
|
2,555
|
10,244
|
|
Cash costs (per AgEq
sold)
|
$
7.45
|
$
7.73
|
|
AISC (per AgEq
sold)
|
$
14.36
|
$
12.58
|
Net cash
SilverCrest calculates net cash by deducting debt from cash and
cash equivalents as reported in the consolidated statements of
financial position. The Company believes that in addition to
conventional measures prepared in accordance with IFRS, net cash is
useful to evaluate the Company's and liquidity and capital
resources.
|
2023
|
2022
|
|
Cash and cash
equivalents
|
$
85,964
|
$
50,761
|
|
Debt
|
—
|
(49,591)
|
|
Net
cash
|
$
85,964
|
$
1,170
|
Forward-Looking Statements
This news release contains "forward-looking statements" and
"forward-looking information" (collectively "forward-looking
statements") within the meaning of applicable Canadian and
United States securities
legislation. These include, without limitation, statements with
respect to: the Company's 2024 guidance and outlook; the amount of
future production of gold and silver over any period; the strategic
plans and expectations for the Company's operation and exploration
program; working capital requirements; expected recoveries;
expected cash costs and outflows, Au and Ag prices and currency
exchange rates. Such forward-looking statements or information are
based on a number of assumptions, which may prove to be incorrect.
Assumptions have been made regarding, among other things: present
and future business strategies; continued commercial operations at
the Las Chispas Operation; the environment in which the Company
will operate in the future, including the price of gold and silver;
estimates of capital and operating costs; production estimates;
estimates of mineral resources, mineral reserves and metallurgical
recoveries and mining operational risk; the reliability of mineral
resource and mineral reserve estimates; mining and development
costs; the conditions in general economic and financial markets;
availability of skilled labour; timing and amount of expenditures
related to exploration programs; and effects of regulation by
governmental agencies and changes in Mexican mining legislation.
The actual results could differ materially from those anticipated
in these forward-looking statements as a result of risk factors
including: the timing and content of work programs; results of
exploration activities; the interpretation of drilling results and
other geological data; receipt, maintenance and security of permits
and mineral property titles; environmental and other regulatory
risks; project cost overruns or unanticipated costs and expenses;
fluctuations in gold and silver prices and currency exchange rates;
and general market and industry conditions. Forward-looking
statements are based on the expectations and opinions of the
Company's management on the date the statements are made. The
assumptions used in the preparation of such statements, although
considered reasonable at the time of preparation, may prove to be
imprecise and, as such, readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date the statements were made. The Company undertakes no
obligation to update or revise any forward-looking statements
included in this news release if these beliefs, estimates and
opinions or other circumstances should change, except as otherwise
required by applicable law.
Qualified Persons Statement
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.
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SOURCE SilverCrest Metals Inc.