TSX: SIL | American NYSE: SILV
VANCOUVER, BC, August 11, 2022 /PRNewswire/ – SilverCrest Metals Inc. (“SilverCrest” or the “Company”) is pleased to report the Company’s unaudited financial results for the second quarter of 2022 (“Second Quarter of 2022”). The unaudited condensed consolidated interim financial statements and management’s discussion and analysis (“MD&A”) for the three and six months ended June 30, 2022 are available on the company’s SEDAR profile a www.sedar.com or on the SilverCrest website www.silvercrestmetals.com. All amounts here are presented in United States Dollars, unless otherwise noted.
The company’s top priority is the historic high-grade mining district of Las Chispas Sonora, Mexico, where it has carried out a feasibility study (the “Feasibility Study”) and the construction of its Las Chispas Mine (“Las Chispas”). Start-up at the Las Chispas mine is underway and commercial production is expected to be achieved in Q4 2022. Details of the feasibility study, including an updated mineral resource estimate and an initial estimate of mineral reserve, are provided in a technical report filed under the company’s SEDAR. profile entitled “NI 43-101 Technical Report and Feasibility Study of the Las Chispas Project” with an effective date of January 4, 2021.
Highlights: First Semester 2022 (“H1, 2022”)
How of June 30, 2022SilverCrest had cash and cash equivalents 118.6 million dollars i $30.0 million remaining under a $120.0 million project financing mechanism (the “credit medium”). Given SilverCrest’s strong financial position, it has decided not to take out the remainder $30.0 millionwhich is available to the company until August 31, 2022. during May 2022construction of the Las Chispas (Ausenco) plant, along with other construction activities managed directly by SilverCrest, were completed ahead of schedule and are expected to be below 137.7 million dollars capital cost estimate as presented in the feasibility study. The company started the commissioning activities of the plant in Las Chispas after the completion of construction at the end of May 2022 and crushed about 12,700 tons of low-grade ore during June 2022. During the start-up period, low-quality material from historic warehouses and underground mining will continue to be crushed. At the end of June 2022, the company completed its first precious metal pour, consisting of 312 kilograms of bullion with approximately 9,200 ounces (“oz”) of silver and 100 ounces of gold. During the first half of 2022, SilverCrest completed 4.1 km of underground development for a total of 21.6 km of underground development since 2019. To date, underground development costs have continued to run slightly below budget. Two of the four exploitation methods proposed in the Feasibility Study, long hole and resue, began with the extraction of select caps in the Babicanora Main, Babi Vista and Babicanora Norte veins. After 1.2 million work hours completed in the first half of 2022, the company’s lost time injury frequency rate (“LTIFR”) was 0.69 per 200,000 work hours and its total recordable injury frequency rate (“TRIFR”) was 3.97 per 200,000 work hours. during May 2022test lab construction nearby (14 km) Arizpe was completed, which is expected to provide full-time local employment for 20 to 30 people. The company is nearing completion of its Task Force on Climate-Related Financial Disclosures (“TCFD”) and its Water Management Strategy, both of which are expected to be published in the second half of 2022. S ‘have started projects to help improve local water infrastructure. An updated technical report is expected to be published in the first half of 2023, which will include additional data from vein drift, initial months of stoppage, processing, exploration and delineation drilling results. the stock The updated technical report will also include updated operating and maintenance capital costs to reflect new technical mine information, new outsourcing regulations and the impact of inflation from the third quarter of 2020 based on costs used in the feasibility study. In July 2022the company designated Anna Ladd-Kruger to its Board of Directors and granted him 25,000 stock options and 9,000 deferred stock units.
At June 302022, the Company celebrated 118.6 million dollars (December 31, 2021 – 176.5 million dollars) as cash and cash equivalents, had value added tax (“VAT”) to collect Mexico of 26.3 million dollars (December 31, 2021 – 23.3 million dollars), inventory of 19.4 million dollars (December 31, 2021 – $Nil) and fixed assets of $200.0 million (December 312021– 165.7 million dollars).
To date, the Company has financed its operations through the issuance of common stock and debt. During the first half of 2022, the company did not generate revenue from its Las Chispas mine as the precious metal poured June 30, 2022 was recorded as inventory. During the first half of 2022, the company earned revenue of 0.9 million dollars (S1, 2021 – loss of 21.4 million dollars) and a comprehensive loss of 6.0 million dollars (H1, 2021 – 7.1 million dollars).
Please refer to the company’s 2Q 2022 unaudited condensed consolidated interim financial statements for additional information.
Under the Line of Credit, in which the Company entered into with a subsidiary of RK Mine Finance (“RK”) on December 31, 2020a final stretch of 30 million dollars is available to the company until August 31, 2022. With the completion of the construction of the plant on time and on budget, 118.6 million dollars of cash and cash equivalents from June 30, 2022and the expected progression towards the achievement of commercial production in Q4 2022, the company has decided not to withdraw the $30.0 million section of the credit line.
Completion and commissioning of the Las Chispas Processing Plant
During the second quarter of 2022, Ausenco Engineering Canada Inc. (“Ausenco”) completed construction and delivered the Las Chispas processing plant to SilverCrest, ahead of schedule for the feasibility study. Other construction activities managed directly by SilverCrest (road, bridge, dry stack waste facility, temporary diesel power plant and test lab) have also been completed, some of which are subject to testing and commissioning let’s go. Although the final capital costs incurred have yet to be settled, the Las Chispas mine’s cost of capital is expected to be less than 137.7 million dollars estimated budget in the feasibility study.
Commissioning of the processing plant is underway and 12,700 tonnes of low-grade ore were crushed during June 2022. Plant commissioning is generally progressing in line with our target of achieving commercial production by Q4 2022. Given the large amount of underground development completed to date, there is a significant amount of stockpile ore on the surface to allow for operational flexibility and greater measured the increase in underground mining during the early years of production.
The Las Chispas mine had the first silver and gold pour June 30, 2022consisting of 312 kg of doré with approximately 9,200 oz of silver and 100 oz of gold.
Les Espurnes Expenditures
During the first half of 2022, Las Chispas’ expenses recorded in mineral fixed assets amounted to 35.6 million dollars (including unpaid accrued expenses), of which 5.5 million dollars was for the purchase of plants and equipment, 12.2 million dollars for ongoing construction costs, i 17.9 million dollars for mineral property costs, which is net of 13.7 million dollars of mineral property costs that were reclassified to inventories.
ABOUT SILVERCREST METALS INC.
SilverCrest is a Canadian precious metals exploration and development company based in Vancouver, BCwhich focuses on new discoveries, value-added acquisitions and near-term production Mexico’s historic precious metal districts. The company’s top priority is the historic high-grade mining district of Las Chispas Sonora, Mexico, where the construction of its Las Chispas Mine has been completed and is underway. SilverCrest is the first company to successfully drill test the historic Las Chispas property, resulting in numerous high-grade precious metal discoveries. The company is led by a proven management team in all aspects of the precious metals mining industry, including delivering projects through discovery, finance, construction and production on time and on budget.
This press release contains “forward-looking statements” and “forward-looking information” (collectively “forward-looking statements”) within the meaning of Canadian provisions and United States securities legislation. These include, without limitation, statements regarding: the company’s schedule and expectations for completing the start-up and expansion and achieving commercial production of the processing plant in the fourth quarter of 2022 and completing an upgrade of the technical report at the end of the first half of 2023. These statements or forward-looking information are based on a number of assumptions, which may turn out to be incorrect. Assumptions have been made about, among other things: impact of the COVID-19 pandemic; the reliability of mineralization estimates, mining and development costs, general economic and financial market conditions; availability of skilled labor; schedule and amount of expenditures related to rehabilitation and drilling programs; and effects of regulation by government agencies. Actual results could differ materially from those anticipated in these forward-looking statements as a result of risk factors, including: uncertainty regarding the impact and duration of the COVID-19 pandemic; the schedule and content of the work programs; results of exploration activities; the interpretation of drilling results and other geological data; receipt, maintenance and security of mining permits and titles; environmental and other regulatory risks; project cost overruns or unforeseen costs and expenses; and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the company’s management as of the date the statements are made. The assumptions used in the preparation of these statements, although believed to be reasonable at the time of preparation, may prove to be inaccurate and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only to from the date on which the declarations were made. The Company undertakes no obligation to update or revise any forward-looking statements included in this press release if such beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
N. Eric FierCPG, P.Eng
Chief Executive Officer
SilverCrest Metals Inc.
SOURCE SilverCrest Metals Inc.