Santacruz Silver shares rise on 2023 production reuslts

Santacruz Silver Mining Ltd (TSX-V:SCZ, OTC:SZSMF) reported a 25% jump in silver equivalent ounces produced at its Bolivian and Mexican assets during 2023.

During 2023, the miner produced 22.64 million silver equivalent ounces, which included just over 7 million ounces of silver, 91.6 tons of zinc, 12.4 tons of lead, and 1.3 tons of copper.  

It processed nearly 1.9 tons of material, a 14% increase year-over-year.

The company’s 2023 results benefitted from full first quarter 2023 production at its Bolivian operations, it noted.

Consolidated cash cost of production per ton of mineralized material was narrowed from $117.99 to $93.10, attributed to “significant” decreases in unit production costs at its Bolivian operations, driven by higher production rates and cost-saving initiatives.

For 2023, the company grew its gross profit year-over-year from $22.8 million to $34.6 million, or earnings per share of $0.05.  

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were approximately $51 million, marking a 237% increase.

Revenue for the full year was $251.3 million, compared to $278.6 million for 2022.  

CEO Arturo Préstamo highlighted that the company has made significant progress in improving its financial position in 2023, including the announcement of amended terms of sale with Glencore for its Bolivian assets.

“This is expected to further strengthen our balance sheet by significantly reducing the value of the consideration payable that will be recorded on our balance sheet, which will be reflected in the next quarterly financial results,” he said.

He also pointed to 2023 operational achievements at its mine sites.

“The company completed several mine optimization initiatives including the integration ramp that connects the Tres Amigos and Colquechaquita underground mines at Caballo Blanco in Bolivia,” he said. “And in Mexico, the operational restructuring at the Zimapan mine has already resulted in cost savings.”

Shares of Santacruz Silver rose 7.2% over the counter in the US and 1.8% in Toronto.

–Updates with share price–

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