Santacruz Silver’s Net Profit Jumps 273% in Q2 as Silver Equivalent Production Increases 406%

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(Kitco News) – Santacruz Silver Mining (TSXV:SCZ) today announced that its consolidated silver equivalent production increased 406% in Q2 2022 to 4,046,328 ounces from 799,057 ounces produced in Q2 2021.

The company said the increase is largely due to production from the Bolivian operations acquired in March 2022, a 21% increase in silver equivalent production from the Zimapan mine offset by no production from the Rosario project following on sale in December 2021.

Santacruz added that consolidated all-in sustaining costs (AISC) per silver equivalent ounce sold decreased 18% in the second quarter of 2022 to $19.55/oz from $23.74/oz in the second quarter of 2021. .

This change reflects lower unit costs from the Bolivian operations ($19.31/oz) compared to Q2 2021 consolidated unit costs, a 3% decrease in unit costs from the Zimapan mine and the absence of unit costs for the Rosario project in Q2 2022 following its sale. in December 2021, the company said.

Company revenue increased 1,538% to $225.1 million in Q2 2022 (Q2 2021: $13.7 million), gross profit increased 914% to $38 .9 million in Q2 2022 (Q2 2021: $3.8 million) and Adjusted EBITDA increased by 1,290% to $31.6 million in Q2. 2022 (Q2 2021: $2.3 million).

Importantly, the company reported that in the second quarter of 2022, it recorded a net profit of $6.5 million, up 273% year-on-year (Q2 2021: net loss of $3.8 million). . Santacruz explained that net income for the three months ended June 30, 2022 was positively impacted by results for the first full quarter of the Bolivian operations.

Commenting on the results, CEO Carlos Silva said, “Our second quarter financial results include contributions from the first full quarter of our Bolivian operations. The transition process is progressing well as Santacruz has strong and committed management teams in Bolivia and Mexico.

“With the recent addition of Wayne Corso as COO, we are reviewing all production operations with a view to identifying potential cost reductions and operational efficiencies to be implemented in the near term with the aim of further improving our production parameters.”

Santacruz is engaged in the operation, acquisition, exploration and development of mineral properties in Latin America, focusing primarily on silver and zinc, but also lead and copper.

The Company currently has six projects in production, the Zimapan mine, the Bolivar, Porco, Tres Amigos, Reserva and Colquechaquita mines, holds two exploration properties in its portfolio of mining properties, the La Pechuga property and the Santa Gorgonia prospect, and a development project, the Soracaya project in addition to the San Lucas ore supply and trading activities.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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