(Kitco News) - Santacruz Silver Mining (TSXV:SCZ) announced today that its consolidated silver equivalent production in Q1 2022 increased 97% to 1,391,589 ounces as compared to 706,978 ounces during Q1 2021.
The company explained that this increase is largely due to production from Bolivian operations acquired in March 2022, and a 39% increase in production from the Zimapan mine, offset by no production from the Rosario project following its sale in December 2021.
The increase in silver equivalent production at the Zimapan mine in Q1 2022 as compared to Q1 2021 is primarily due to a 22% increase in mineralized material processed at the Zimapan milling facility, Santacruz added.
The company also reported that its revenue and gross profit increased to $42.9 million (Q1 2021: $11.1 million) and $19.4 million (Q1 2021: $2.2 million) respectively.
"These positive results were due primarily to the inclusion of the Bolivian operations that were acquired during the period," the company said in a statement.
The company also recorded a net profit of $7.1 million for the three months ended March 31, 2021 (Q1 2021: $6.5 million).
CEO Carlos Silva stated, "During this first quarter we started to see the contribution of our recently acquired Bolivian assets with record revenue and profits. At our Mexican operations we expect increased production from new stopes and less lower grade mineralized material from development work. This should reduce our AISC at Zimapan beginning in the third quarter.
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"Q1 marked a strong start to the year for Santacruz Silver and we look forward for a full quarter of results from our Bolivian operations rather than just a few days (13) of operations as occurred in the first quarter. The transition and integration process are going smoothly, and we are very optimistic about the future."
The company 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, the Zimapan mine, the Bolivar, Porco, Tres Amigos, Reserva and Colquechaquita mines, holds two exploration properties in its mineral property portfolio, the La Pechuga property and the Santa Gorgonia prospect, and one development project, the Soracaya project in addition to the San Lucas ore sourcing and trading business.
