Mining News
Santacruz Silver posts net loss in third quarter, says silver equivalent production up 456% y-o-y
(Kitco News) - Santacruz Silver Mining (TSXV: SCZ) today reported that its Q3 2022 production increased 456% to 4,850,949 silver equivalent ounces as compared to 872,913 ounces during Q3 2021.
The company said that this increase is largely due to production from Bolivian operations acquired in March 2022, a 14% increase in silver equivalent production from the Zimapan mine offset by no production from the Rosario project following suspension of operations in August 2021.
The company’s quarterly revenues increased 501% to $87.7 million during Q3 2022 (Q3 2021: $14.6 million), whereas gross profit decreased 260% to a loss of $5.8 million during Q3 2022 (Q3 2021: profit $3.7 million), mainly due to an increase in depreciation and depletion charges at the Zimapan mine together with certain one-time accounting adjustments to cost of sales at the Bolivian operations combined with a reduction of the average realized price per ounce of silver equivalent.
As compared to the three months ended September 30, 2021, the company recorded a net loss of $9.9 million (Q3 2021: net loss of $3.8 million) and as compared to the nine months ended September 30, 2021, a net profit of $3.8 million (9M 2021: net loss of $1.1 million).
Santacruz explained that net loss for the three months ended September 30, 2022, was impacted by increased cost of sales and a reduction in realised silver price.
The company noted that at the end of the quarter, it had cash and cash equivalents of $4.8 million; in addition to this, the company has the ability to access a $10 million credit facility with Glencore and a $25 million short term bond program in the Bolivian Security Markets.
Santacruz Silver is engaged in the operation, acquisition, exploration and development of mineral properties in Latin America, with a primary focus on silver and zinc, but also including lead and copper. The company currently has six producing projects, holds two exploration properties in its mineral property portfolio, and owns one development project.
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