Carlos Silva, CEO of Santacruz, said; “Our quarterly monetary effects come with the first full quarter of contributions from our Bolivian operations. The transition procedure is progressing well as Santacruz has strong and committed control groups in Bolivia and Mexico. “Silva continued, “With the recent addition of Wayne Corso as Chief Operating Officer, we are reviewing all production operations to identify potential charge discounts and operational efficiencies that will be implemented in the short term with the aim of improving our production parameters. “
Below is consolidated monetary and operational information selected for the three- and six-month periods ended June 30, 2022 and 2021. The effects of Sinchi Wayra and Illapa Business are consolidated from March 18, 2022.
Discussion of consolidated monetary results
Compared to the 3 months ended June 30, 2021, the Company recorded net income of $6,547 (loss: $3,784) and compared to the six months ended June 30, 2021, net income of $13,656 ($2,734). Net source of income for the quarter ended June 30, 2022 definitively impacted by the effects of the first full quarter of Bolivian operations and negatively impacted by the unrealized loss in marketable securities ($1,999).
Compared to the quarter ended June 30, 2021, revenue was $225,128 ($13,744), monetary prices from mining sales were $177,003 ($9,498), and depreciation and amortization expenses were $9,192 ($406), gross profit of $38,933 ($3,840).
Discussion of effects and costs
Consolidated
Consolidated silver equivalent production increased 406% in the second quarter of 2022 to 4,046,328 ounces, compared to 799,057 ounces in the second quarter of 2021. This accumulation is largely due to the production of the Bolivian operations acquired in March 2022, a 21% accumulation in the equivalent silver production of the Zimapán mine was offset by the non-production of the Rosario allocation following its sale in December 2021.
The consolidated monetary charge of production consistent with the ton of mineralized rock processed increased by 255% in the second quarter of 2022 to $197. 15/t, to $55. 48/t in the second quarter of 2021. to consolidated unit costs for the second quarter of 2021, a 7% reduction in unit prices at the Zimapán mine and no unit price for the Rosario Project in the second quarter of 2022 following its sale in December 2021. The monetary production charge at the Zimapán mine building increased by 20% $10,028, partially offset by a 29% accumulation in milled tons.
The consolidated monetary charge of production consistent with a ton of mineralized processed water increased by 185% in fiscal 2022 to $150. 36/t, to $52. 72/t in fiscal year 2021. ) to the consolidated unit costs of the existing fiscal year 2021, a 4% reduction in unit prices at the Zimapan mine and no unit price for rosario’s allocation in fiscal 2022 after its sale in December 2021. The monetary production charge at the Zimapan mine building rose 20% to $19,252, partially offset by a 26% buildup in milled tons.
The consolidated monetary charge consistent with the ounce of silver sold decreased 11% in the second quarter of 2022 to $17. 78/oz from $19. 87/oz in the second quarter of 2021. This update reflects the minimum unit prices of the Bolivian consistent quantities ($17. 88/oz) compared to the consolidated charge in the second quarter 2021. unit prices, a minimum of 9% in unit prices at the Zimapan mine and no unit price for rosario’s allocation in the second quarter of 2022 following its sale in December 2021.
Consolidated monetary expenses increased as much as 1352% in the second quarter of 2022 to $195,935, compared to $13,493 in the second quarter of 2021, reflecting a 20% increase in monetary expenses at the Zimapán mine, monetary expenses for Bolivian operations of $181,417 and no monetary fees for Rosario allocation in the second quarter of 2022 following its sale in December 2021. The price accumulation at the Zimapan mine was offset by a 32% accumulation in silver equivalent ounces sold at the Zimapan mine.
The consolidated monetary charge consistent with the ounce of silver sold decreased 14% in fiscal 2022 to $17. 31/oz, compared to $20. 19/oz in fiscal 2021. This update reflects minimum unit prices of consistent Bolivian quantities ($17. 38/oz) compared to fiscal year 2021 Consolidated profit. unit prices, a minimum of 12% in unit prices at the Zimapan mine and no unit price for the Rosario allocation from the beginning of 2022 following its sale in December 2021.
Consolidated monetary expenses increased as much as 789% in fiscal 2022 to $230,552, compared to $25,941 in fiscal 2021, reflecting a 27% increase in monetary expenses at the Zimapan mine, monetary expenses for Bolivian operations of $201,159, and the absence of monetary expenses for Rosario’s allocation in fiscal 2022 following its sale in December 2021. The price accumulation at the Zimapan mine was offset by a 44% accumulation in silver equivalent ounces sold at the Zimapan mine.
Consolidated AISC consistent with the ounce equivalent of silver sold reduced 18% in the second quarter of 2022 to $19. 55/oz from $23. 74/oz in the second quarter of 2021. This update reflects minimum unit prices for consistent Bolivian quantities ($19. 31/oz) compared to consolidated unit prices in the second quarter of 2021, a 3% reduction in unit prices at the Zimapán mine and no unit price for Rosario’s allocation in the second quarter of 2022 following its sale in December 2021. Consolidated AISC construction increased to 1,237% in the second quarter of 2022 to $215,400 from $16,115 in the second quarter of 2021, reflecting a 28% buildup at AISC at the Zimapan mine, from the AISC to the consistent Bolivian quotes of $195,917 and no money prices for the Rosario Project in the second quarter of 2022 following its sale in December 2021. The accumulation in prices at the Zimapan mine compensated through a 32% accumulation in silver equivalent ounces sold at the Zimapán mine.
Consolidated AISC consistent with the ounce equivalent of silver sold reduced 19% in fiscal 2022 to $19. 27/oz from $23. 75/oz in fiscal 2021. This update reflects minimum unit prices of Bolivian consistent units ($19. 03/oz) compared to the consolidated unit in fiscal 2021. unit prices, a 6% reduction in unit prices at the Zimapan mine and no unit price for the Rosario allocation in fiscal 2021 after its sale in December 2021. La consolidated AISC construction increased to 741% in fiscal 2022 to $256,692, compared to $30,513 in fiscal 2021, reflecting a 35% buildup in AISC at the Zimapán mine, from THE AISC to Bolivia, with investments consisting of $220,248 and no money prices for Rosario’s allocation since early 2022 following its sale in December 2021. The accumulation in prices at the Zimapan mine offset through a 44% accumulation in equivalent ounces of silver sold at the Zimapan mine.
Sinchi Wayra and Illapa Business (Bolivia)
On March 18, 2022, the Company acquired the Sinchi Wayra and Illapa businesses from Glencore. Therefore, no comparative research is provided from the second quarter of 2022 to the second quarter of 2021 or from YTD 2022 to YTD 2021.
Production at the Bolívar, Porco, Tres Amigos, Reserva and Colquechaquita mines is supported by NI 43-101 technical reports.
Mina Zimapán (Mexico)
Silver equivalent ounce production in the second quarter of 2022 increased 21% to 914,524 ounces, compared to 757,937 ounces in the second quarter of 2021. This accumulation is largely due to a 29% accumulation in mineralized fabrics processed at the plant from an effect on the use of other steel prices for fiscal years 2022 and 2021. Silver equivalent ounce production in the second quarter of 2022 increased by 9% (after adjusting steel prices) compared to the second quarter of 2021.
Silver equivalent ounce production in fiscal 2022 increased 29% to 1,815,708 ounces, up from 1,404,022 ounces in fiscal 2021. on the use of other steel prices for fiscal years 2022 and 2021. 2022 YTD silver equivalent ounce production increased by 18% (after adjusting steel prices) compared to YTD 2021.
The monetary production charge consistent with the ton of mineralized rock processed decreased by 7% in the second quarter of 2022 to $50. 14/t, to $53. 92/t in the second quarter of 2021, reflecting a 20% increase in production money prices offset by the previous increase of 29%. in draconsistent mineralized processed withy.
The monetary production charge consistent with ton of mineralized rock processed decreased by 4% in fiscal 2022 to $49. 18/t, to $51. 47/t in fiscal 2021, reflecting a 27% increase in production money prices offset by the previous increase of 26%. in draconsistent mineralized processing with. .
AISC consistent with the ounce of silver equivalent sold decreased 3% in the second quarter of 2022 to $20. 63/oz, compared to $21. 35/oz in the second quarter of 2021, reflecting a 28% build-up in AISC, which offset the previous 32% accumulation in silver equivalent ounces sold.
AISC consistent with the ounce of silver equivalent sold decreased 6% in fiscal 2022 to $19. 91/oz, compared to $21. 20/oz in fiscal 2021, reflecting a 35% buildup in AISC, which offset the previous 44% accumulation in silver equivalent ounces sold.
Production at the Zimapán mine is not supported by a feasibility examination of mineral reserves demonstrating economic and technical viability or any other independent economic examination under NI 43-101. As a result, there is increased uncertainty and production-related economic and technical failure hazards. Productive and economic variables can vary significantly due to the lack of a complete and detailed investigation according to NI 43-101.
Rosario Project (Mexico)
Rosario’s allocation operations were suspended in August 2021 and assets were divested in December 2021. Therefore, no comparative research is provided from the second quarter of 2022 to the second quarter of 2021 or from YTD 2022 to YTD 2021.
About Santacruz Silver Mining Ltd.
The Company is engaged in the exploitation, acquisition, exploration and progression of mining homes in Latin America, focusing on silver and zinc, but also on lead and copper. The Company has recently six projects in production, the Zimapán Mine, the Bolívar Mine, Porco, the Tres Amigos, Reserva and Colquechaquita mines, it has two exploration homes in its portfolio of mining homes, the La Pechuga assets and the Santa Gorgonia Prospect, and a progression project, the Soracaya Project, in addition to the San Lucas mineral supply and marketing activities.
‘signed’
Arturo Préstamo Elizondo, Executive Chairman
For information, please contact:
Mars Investor Relations Phone: (778) 999 4653
Arturo Loan Elizondo Santacruz Silver Mining Ltd. Email: Phone: (604) 569-1609
Neither TSX Venture Exchange nor its Regulatory Service Provider (as that term is in TSX Venture Exchange’s policies) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking information
Certain statements in this press release constitute “forward-looking information” within the use of this term in applicable Canadian securities laws, adding statements relating to the production of the Zimapan mine and the Company’s plans to expand it.
Forward-looking data is based on management’s plans, expectations and estimates as of the date the data is provided and is subject to certain items and assumptions. In making the forward-looking statements included in this press release, the Company made several important assumptions, adding that the Company’s financial condition and growth plans are not superseded due to unforeseen events and that long-term steel costs and the demand and market prospects for steels will remain strong or disappear. Forward-looking data is subject to a variety of threats and uncertainties and other factors that may also cause actual plans, estimates and effects to differ materially from those projected in such forward-looking data. Factors that may also cause the forward-looking data contained in this news release to be superseded or erroneous include, but are not limited to: the threat that any of the assumptions discussed above may prove invalid or unreliable; market conditions and volatility and global economic conditions, aggregating heightened volatility and potentially adverse capital raising situations as a result of the continuation or escalation of the COVID-19 pandemic and similar threats, the scope and duration of this pandemic and its effect on global markets; controls or regulations and political or economic progressions in Mexico and Bolivia; threat of delay and/or cessation of planned works or adjustments in the monetary condition and progression plans of the Company; material threats to the Company’s plan to take certain post-closing reorganization steps with respect to the target entities; the uncertainty of the geology, grade and continuity of mineral deposits and the threat of unforeseen diversifications in mineral resources, grade and/or recovery rates; threats related to fluctuations in the costs of gold, silver, basic steels and other basic products; labor Relations; relations with local communities and indigenous peoples and their claims; the availability and costs of expansion relevant to mining inputs and labor; the speculative nature of mining exploration and progression, coupled with the threats of obtaining compulsory licenses and permits and the presence of legislation and regulations that would possibly impose restrictions on mining; threats related to environmental regulation and liability; the option that the effects will not meet the Company’s expectations, as well as other threats and uncertainties applicable to exploration and mining activities and to the Company, as set forth in the Company’s continuing disclosure documents presented under the Company Profile company in
There can be no guarantee that forward-looking data will prove to be accurate, as actual effects and long-term events may differ materially from those expected in such statements. Accordingly, the reader should not place undue reliance on prospective data or statements. The Company assumes no legal responsibility to update any forward-looking data or statements as required by applicable law.
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