MINING REFINING

Santacruz Silver Q2 revenue boosted by higher precious metals prices

Thu Aug 15 2024

Santacruz Silver Mining Ltd (TSX-V:SCZ, OTC:SZSMF)'s second quarter financial performance was bolstered by higher silver prices, which boosted its revenue by 10% from the year-ago quarter. Revenue for Q2 was $70.5 million, up from $63.8 million.

Gross profit surged by 43$ to $15.7 million, from about $11 million in Q2 2023. The company processed 500,755 tonnes of material during the quarter.  Silver equivalent ounces produced were 4,819,552, including 1,671,359 ounces of silver and 25,052 tonnes of zinc.  All in sustaining cost (AISC) per silver equivalent ounce sold was $24.74, compared to $23.49 in the year-ago quarter.  Average realized price per ounce of silver equivalent sold was up 38% at $30.40 from $22 in Q2 2023.

"Strong metal prices significantly bolstered our average realized price per silver equivalent ounce sold. Coupled with robust production, Santacruz delivered a solid financial performance in Q2 2024,” Santacruz CEO Arturo Préstamo said in a statement.   “This stable financial outcome underscores our ability to capitalize on favourable market conditions.”  The CEO noted that the company’s net income was impacted by a non-cash charge of $6.9 million in the quarter, related to the fair value changes on the contingent value rights due to the increase in zinc prices from March to June.

Net income for Q2 was about $1.5 million, compared to $4.4 million for the same period last year. "In addition to our strong financial performance, we maintained a stable AISC and will continue with a disciplined approach on cost management initiatives in order to achieve long-term financial stability, which puts us in a position to continue creating value for our shareholders,” Préstamo said.

Source: https://www.proactiveinvestors.com/