Silvercrest Metals posts US$27.2-million earnings in Q1
Silvercrest Metals Inc. [SIL-TSX; SILV-NYSE American] posted its financial and Las Chispas mine operational results for the first quarter of 2023. All amounts herein are presented in US$ unless otherwise stated. Certain amounts shown in this news release may not total to exact amounts due to rounding differences.
Eric Fier, CEO, commented, “Marking another significant milestone for Silvercrest, Q1, 2023 was our first full quarter of production since Las Chispas was declared commercial in November 2022. We generated $19.3 million of net free cash flow allowing for accelerated debt prepayment of $25.0 million and a robust quarter end cash position of $45.8 million. As a testament to our strong financial position, execution and risk management, subsequent to Q1, 2023 we made an additional debt prepayment of $20 million and have now repaid 95% of our debt within six months of declaring commercial production. We remain focused on completion of the Updated Technical Report in late Q2, 2023 which will include updated costs, a new Life of Mine plan and allow for the inclusion of data from our initial production period. This report will provide us with the details to support production and cost guidance.”
Q1, 2023 Financial Highlights: Sold a total of 14,200 oz of gold and 1.36 million oz of silver at average realized prices1 of $1,879/oz gold and $23.00/oz silver.
Revenue of $58.0 million and cost of sales of $22.4 million, resulting in mine operating income of $35.6 million. Income of $27.2 million or $0.18 per share.
Cash flow from operating activities before changes in non-cash working capital items of $35.5 million or $0.24 per share. Cash costs of $6.57/oz silver equivalent (AgEq) sold and all-in sustaining cost (AISC) of $11.45/oz AgEq sold.
Net free cash flow1 of $19.3 million for $0.13 per share. Repaid $25.0 million of debt in the quarter for total debt repayments of $65.0 million to the end of Q1, 2023. Ended the quarter with cash of $45.8 million and net cash1 of $21.0 million.
Q1, 2023 Operating Highlights: Underground production mining rates averaged 707 tonnes per day during Q1, 2023, slightly ahead of H1, 2023 expectations of 650-700 tpd, however development rates are tracking below expectations.
Average daily processing plant throughput of 1,160 tpd with an estimated 40% of production feed sourced from stockpiles during the quarter. Processed grades increased from Q4, 2022, averaging 4.06 g/t gold (3.67 g/t in Q4, 2022) and 419 g/t silver (382 g/t in Q4, 2022).
Metallurgical recoveries remained robust with an average gold recovery of 97.5% (96.9% in Q4, 2022) and average silver recovery of 91.9% (93.3% in Q4, 2022). Recovered 13,300 ounces of gold and 1.29 million ounces of silver, or 2.45 million silver equivalent ounces.
Contract discussions are underway with mining contractors, including our current contractor, with a goal of finalizing negotiations in H2, 2023.
Subsequent to the end of Q1, 2023 the Company made prepayments totaling $20.0 million towards the term facility, reducing debt outstanding to $5.0 million.
Silvercrest’s principal focus is operating its Las Chispas Mine in Sonora, Mexico.