SilverCrest Reports Third Quarter 2024 Financial Results
PR Newswire
VANCOUVER, BC, Nov. 12, 2024
Strong Free Cash Flow Continues, Supporting 29% Growth in Treasury Assets
TSX: SIL | NYSE American: SILV
VANCOUVER, BC, Nov. 12, 2024 /PRNewswire/ - SilverCrest Metals Inc. ("SilverCrest" or the "Company") is pleased to announce its financial results for the three months ended September 30, 2024 ("Q3 2024"). This release provides additional operational results to supplement the October 10, 2024 release of Q3 2024 operational highlights from the Company's Las Chispas Operation ("Las Chispas" or "Las Chispas Operation") located in Sonora, Mexico. All amounts herein are presented in United States Dollars ("US$"), unless otherwise stated.
N. Eric Fier, CEO, commented, "We are pleased to deliver another quarterly record for both revenue and mine operating earnings, as well as one of our best quarters to date for both operating and free cash flow. Our results were supported by strong metal prices, impressive sales quantities and all-in sustaining costs that were well below the low end of our 2024 guidance. Mining rates continued to benefit from having two underground contractors, a dynamic we plan to maintain into Q1 2025 as part of our strategy to manage single asset risk and create additional operational flexibility. These results once again showcase the quality and consistency of our asset and operating team.
Free cash flow per share remains a strong testament of our performance, increasing 49% to $0.24 per share(1) from already strong levels in Q2 2024. This performance led to a 29%, or $35.9 million, increase in treasury assets(1) to end the quarter with $158.2 million. With this exceptional quarter, we remain firmly on track to perform inline or better than our 2024 annual guidance for sales, cash costs, and all-in sustaining costs."
Q3 2024 Highlights
-- Recovered 14,928 ounces ("oz") gold ("Au") and 1.4 million oz silver
("Ag"), or 2.6 million oz silver equivalent ("AgEq")(2).
-- Sold 15,204 oz Au and 1.5 million oz Ag (2.7 million oz AgEq) at average
realized prices of $2,472 per oz Au(1) and $29.48 per oz Ag(1). Total
sales of 7.9 million oz AgEq for the nine months ended September 30, 2024
("YTD") positions the Company to meet or exceed the top end of 2024 sales
guidance of 10.0 million to 10.3 million oz AgEq.
-- Record quarterly revenue of $80.4 million which exceeded Q2 2024 revenue
of $72.7 million.
-- Record mine operating earnings of $47.0 million representing a 59%
operating margin(1), exceeded the $41.5 million and 57% operating margin
achieved in Q2 2024.
-- Adjusted earnings(1) of $26.3 million, or $0.18 per share, which is
largely consistent with the $24.9 million, or $0.17 per share in Q2 2024.
Adjustments were largely related to deferred taxes, unrealized losses on
derivative currency contracts, and transaction and integration costs.
-- Net earnings were $9.5 million, or $0.06 per share, compared to $6.5
million, or $0.04 per share, in Q2 2024.
-- Cash costs of $8.85 per oz AgEq(1) in Q3 2024 decreased from $8.87 in Q2
largely due to increased sales volume. Cash costs of $8.28 per oz AgEq
YTD were below 2024 guidance of $9.25 to $9.75 per oz AgEq.
-- All-in sustaining costs ("AISC") of $13.72 per oz AgEq(1) decreased from
Q2 2024, due largely to planned lower sustaining capital expenditures.
AISC of $14.50 per oz AgEq (1) YTD is below the low end of guidance of
$14.90 to $15.75 per oz AgEq.
-- Mining rates increased to 1,350 tonnes per day ("tpd"), a 23% increase
from Q2 2024, benefiting from the ongoing engagement of two mining
contractors at site throughout the quarter.
-- Average daily mill throughput increased to 1,324 tpd due to capacity
testing performed in the quarter. With testing complete in August,
throughput has returned to the range of 1,200 tonnes per day for the
remainder of the year.
-- Operating cash flow of $44.2 million, or $0.30 per share, increased from
$39.6 million, or $0.27 per share, in Q2 2024 largely from higher metal
prices. Operating cash flow before changes in working capital in the
quarter was $37.8 million or $0.25 per share(1). Both figures are net of
the payment of taxes and duties, which totaled $12.1 million.
-- Free cash flow generation of $36.2 million, or $0.24 per share(1), for
the quarter increased by $11.9 million from $24.3 million, or $0.16 per
share, in Q2 2024.
-- Ended the quarter with total treasury assets of $158.2 million(1) ($120.9
million cash and $37.4 million in bullion), an increase of 29% from
$122.3 million at the end of Q2 2024. Gold and silver continued to be the
best performing currencies in our treasury assets with a mark to market
increase of $3.0 million in the quarter.
(1) Refer to the "Non-GAAP Financial Measures" disclosure at the end of this
press release and associated MD&A for a description and calculation of
these measures.
(2) 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").
Third Quarter Operating Performance
The following operating performance refers to adjusted earnings, 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.
Three months ended Nine months ended
September 30, September 30,
------------------------------------ ------------------------------------
OPERATIONAL Unit 2024 2023 2024 2023
------------ ---------- ----------------- ----------------- ----------------- -----------------
Ore mined tonnes 124,229 83,800 309,985 222,300
Underground kilometres
development ("km") 4.4 3.3 13.3 9.6
Ore
milled(1) tonnes 121,775 114,500 325,793 326,900
Average
daily mill
throughput tpd 1,324 1,245 1,193 1,197
------------ ---------- ----------------- ----------------- ----------------- -----------------
Gold
grams per
Average tonne
grade ("gpt") 3.87 4.35 4.35 4.42
Recovery % 98.5 % 98.3 % 98.5 % 98.1 %
Recovered oz 14,928 15,700 44,950 45,600
Sold oz 15,204 14,500 44,704 42,100
------------ ---------- ----------------- ----------------- ----------------- -----------------
Silver
Average
grade gpt 366 413 416 427
Recovery % 98.3 % 98.1 % 98.2 % 96.1 %
Recovered million oz 1.41 1.49 4.28 4.31
Sold million oz 1.45 1.53 4.30 4.34
------------ ---------- ----------------- ----------------- ----------------- -----------------
Silver
equivalent
Average
grade gpt 674 759 762 778
Recovery % 98.4 % 98.2 % 98.4 % 97.0 %
Recovered million oz 2.60 2.74 7.85 7.93
Sold million oz 2.66 2.68 7.85 7.69
------------ ---------- ----------------- ----------------- ----------------- -----------------
Three months ended Nine months ended
September 30, September 30,
------------------------------------ ------------------------------------
FINANCIAL Unit 2024 2023 2024 2023
------------ ---------- ----------------- ----------------- ----------------- -----------------
Revenue $ millions $ 80.4 $ 63.8 $ 216.8 $ 183.8
Cost of
sales $ millions $ (33.3) $ (26.4) $ (90.8) $ (72.5)
Mine
operating
earnings $ millions $ 47.0 $ 37.5 $ 126.0 $ 111.4
Earnings for
the period $ millions $ 9.5 $ 29.9 $ 49.9 $ 80.8
Earnings per
share
(basic) $/share $ 0.06 $ 0.20 $ 0.34 $ 0.55
Adjusted
earnings
for the
period $ millions $ 26.3 $ 28.5 $ 88.9 $ 82.8
Adjusted
earnings
per share
(basic) $ millions $ 0.18 $ 0.19 $ 0.60 $ 0.56
Operating
cash flow $ millions $ 44.2 $ 43.8 $ 82.6 $ 122.2
Operating
cash flow
per share
(basic) $/share $ 0.30 $ 0.30 $ 0.56 $ 0.83
Free cash
(MORE TO FOLLOW) Dow Jones Newswires
November 12, 2024 17:00 ET (22:00 GMT)
Comments