(Kitco News) – Santacruz Silver Mining (TSXV: SCZ) announced today that its consolidated silver equivalent production increased 406% in Q2 2022 to 4,046,328 ounces as compared to 799,057 ounces produced in Q2 2021.
The company said that this increase is largely due to production from 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 its sale in December 2021.
Santacruz added that consolidated all-in sustaining costs (AISC) per silver equivalent ounce sold decreased 18% in Q2 2022 to $19.55/oz as compared to $23.74/oz in Q2 2021.
This change reflects the lower unit costs at Bolivian operations ($19.31/oz) compared to the Q2 2021 consolidated unit costs, a 3% decrease in the unit costs at the Zimapan Mine and no unit costs for the Rosario Project in Q2 2022 following its sale in December 2021, the company said.
The company’s revenue increased 1,538% to $225.1 million during Q2 2022 (Q2 2021: $13.7 million), gross profit increased 914% to $38.9 million during Q2 2022 (Q2 2021: $3.8 million), and adjusted EBITDA increased 1,290% to $31.6 million during Q2 2022 (Q2 2021: $2.3 million).
Importantly, the company reported that in Q2 2022, it recorded a net profit of $6.5 million, up 273% y-o-y (Q2 2021: net loss of $3.8 million). Santacruz explained that net profit for the three months ended June 30, 2022, was positively impacted by the first full quarter results from Bolivian operations.
Commenting on the results, CEO Carlos Silva said, “Our second quarter financial results include the first full quarter of contributions from our Bolivian operations. The transition process is advancing well as Santacruz has strong and committed management teams in both Bolivia and México.
“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 objective of further improving our production metrics.”
Santacruz 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.
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Read More:Santacruz Silver’s net income jumps 273% in second quarter as silver equivalent production up 406%
2022-08-30 17:11:00
