TSX: SIL | NYSE American: SILV
VANCOUVER, BC, Aug. 11,
2022 /CNW/ - SilverCrest Metals Inc.
("SilverCrest" or the "Company") is pleased to report the Company's
unaudited financial results for the second quarter of 2022 ("Q2,
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 under the Company's SEDAR profile on
www.sedar.com or on SilverCrest's website
www.silvercrestmetals.com. All amounts herein are presented in
United States Dollars, unless
otherwise stated.
The Company's top priority is the high-grade, historic Las
Chispas mining district in Sonora,
Mexico, where it has completed a feasibility study (the
"Feasibility Study") and construction of its Las Chispas Mine ("Las
Chispas"). Commissioning is underway at the Las Chispas Mine and
achievement of commercial production is expected during Q4, 2022.
Details of the Feasibility Study, including an updated Mineral
Resource Estimate and an initial Mineral Reserve Estimate, are
provided in a technical report filed under the Company's SEDAR
profile entitled, "NI 43-101 Technical Report & Feasibility
Study on the Las Chispas Project" with an effective date of
January 4, 2021.
Highlights - First Half 2022 ("H1, 2022")
- As of June 30, 2022, SilverCrest
had cash and cash equivalents of $118.6
million and $30.0 million
remaining under a $120.0 million
project financing facility (the "Credit Facility"). Given
SilverCrest's strong financial position, it has decided not to draw
the remaining $30.0 million, which is
available to the Company until August 31,
2022.
- During May 2022, Las Chispas
plant construction (Ausenco) along with other construction
activities handled directly by SilverCrest, were completed ahead of
schedule and are expected to be below the $137.7 million capital cost estimate as presented
in the Feasibility Study.
- The Company started plant commissioning activities at Las
Chispas after construction completion at the end of May 2022 and milled an estimated 12,700 tonnes of
low-grade ore during June 2022. Low
grade material from historic stockpiles and underground mining will
continue to be milled during the commissioning period.
- At the end of June 2022, the
Company completed its first precious metal pour, consisting of 312
kilograms of doré with approximately 9,200 ounces ("oz") of silver
and 100 oz of gold.
- During H1, 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
track slightly under budget. Two of the four mining methods
proposed in the Feasibility Study, long hole and resue, commenced
with the extraction of select stopes in the Babicanora Main, Babi
Vista, and Babicanora Norte veins.
- After 1.2 million work-hours completed during H1, 2022, the
Company's Lost Time Injury Frequency Rate ("LTIFR") was 0.69 per
200,000 working hours and its Total Recordable Injury Frequency
Rate ("TRIFR") was 3.97 per 200,000 working hours.
- During May 2022, construction of
the assay lab in 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 stewardship
strategy with both expected to be released during H2, 2022.
Projects to help improve the local water infrastructure have been
initiated.
- An updated technical report is targeted to be released in the
first half of 2023 which will allow for additional data from
further in-vein drifting, initial months of stoping, processing,
exploration and stope delineation drill results to be included. The
updated technical report will also include updated operating and
sustaining capital costs to reflect new technical information for
the mine, new outsourcing regulations and the impact of inflation
since the Q3, 2020 cost based used in the Feasibility Study.
- In July 2022, the Company
appointed Anna Ladd-Kruger to its
Board of Directors and granted her 25,000 stock options and 9,000
deferred share units.
Financial Results
At June
30, 2022, the Company held $118.6 million (December
31, 2021 – $176.5 million) as
cash and cash equivalents, had value-added taxes ("IVA")
receivable in Mexico of
$26.3 million (December 31, 2021 – $23.3
million), inventory of $19.4
million (December 31, 2021 -
$Nil) and mineral property, plant and equipment of $200.0 million (December
31, 2021– $165.7 million).
To date, the Company has financed its operations through the
issuance of common shares and debt. During H1, 2022, the Company
did not generate revenue from its Las Chispas Mine, as the precious
metal poured on June 30, 2022 was
recorded as inventory. During H1, 2022, the Company incurred income
of $0.9 million (H1, 2021 – loss of
$21.4 million) and a comprehensive
loss of $6.0 million (H1, 2021 –
$7.1 million).
Please refer to the Company's Q2, 2022 unaudited condensed
consolidated interim financial statements and MD&A for
additional information.
Credit Facility
Under the Credit Facility, in which
the Company entered into with an affiliate of RK Mine Finance
("RK") on December 31, 2020, a final
tranche of $30 million is available
to the Company until August 31, 2022.
With the completion of plant construction on time and on budget,
$118.6 million of cash and cash
equivalents as of June 30, 2022, and
the planned progression towards achieving commercial production in
Q4, 2022, the Company has decided not to draw down the final
$30.0 million tranche of the Credit
Facility.
Las Chispas Processing Plant Completion and
Commissioning
During Q2, 2022, Ausenco Engineering Canada
Inc. ("Ausenco") completed construction and handed over the Las
Chispas processing plant to SilverCrest, ahead of the Feasibility
Study schedule. Other construction activities handled directly by
SilverCrest (road, bridge, dry stack tailings facility, temporary
diesel power plant and assay lab) have also been completed, some of
which are subject to testing and commissioning. While the final
capital costs incurred remain to be settled, the capital cost of
the Las Chispas Mine is anticipated to be below the US$137.7 million budget estimated in the
Feasibility Study.
Processing plant commissioning is now underway, and 12,700
tonnes of low-grade ore was milled during June 2022. Overall, plant commissioning is
tracking in-line with our objective to reach commercial production
in Q4, 2022. Given the extensive amount of underground development
completed to date, there is a significant amount of stockpiled ore
on surface to allow for operational flexibility and a more measured
ramp-up of underground mining over the first few years of
production.
The Las Chispas Mine had its first pour of silver and gold on
June 30, 2022, consisting of 312 kg
of doré with approximately 9,200 oz of silver and 100 oz of
gold.
Las Chispas Expenditures
During H1, 2022,
Las Chispas expenditures recorded under mineral property,
plant and equipment totaled $35.6
million (inclusive of unpaid accrued expenditures), of which
$5.5 million was for plant and
equipment purchases, $12.2 million
for construction in progress costs, and $17.9 million for mineral property costs, which
is net of $13.7 million of mineral
property costs that were reclassified to inventory.
ABOUT SILVERCREST METALS INC.
SilverCrest is a
Canadian precious metals exploration and development company
headquartered in Vancouver, BC,
that is focused on new discoveries, value-added acquisitions and
near-term production in Mexico's
historic precious metal districts. The Company's top priority is on
the high-grade, historic Las Chispas mining district in
Sonora, Mexico, where it has
completed construction of its Las Chispas Mine and commissioning 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 metal mining
sector, including taking projects through discovery, finance, on
time and on budget construction, and production.
FORWARD-LOOKING STATEMENTS
This news
release contains "forward-looking statements" and "forward-looking
information" (collectively "forward-looking statements") within the
meaning of applicable Canadian and United
States securities legislation. These include, without
limitation, statements with respect to: the timing and expectations
of the Company completing commissioning and ramp up and achieving
commercial production of the processing plant in Q4, 2022, and
completing a technical report update by the end of H1, 2023. Such
forward-looking statements or information are based on a number of
assumptions, which may prove to be incorrect. Assumptions have been
made regarding, among other things: impact of the COVID-19
pandemic; the reliability of mineralization estimates, mining and
development costs, the conditions in general economic and financial
markets; availability of skilled labour; timing and amount of
expenditures related to rehabilitation and drilling programs; and
effects of regulation by governmental agencies. The actual results
could differ materially from those anticipated in these
forward-looking statements as a result of risk factors including:
uncertainty as to the impact and duration of the COVID-19 pandemic;
the timing and content of work programs; results of exploration
activities; the interpretation of drilling results and other
geological data; receipt, maintenance and security of permits and
mineral property titles; environmental and other regulatory risks;
project cost overruns or unanticipated costs and expenses; and
general market and industry conditions. Forward-looking statements
are based on the expectations and opinions of the Company's
management on the date the statements are made. The assumptions
used in the preparation of such statements, although considered
reasonable at the time of preparation, may prove to be imprecise
and, as such, readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
the statements were made. The Company undertakes no obligation to
update or revise any forward-looking statements included in this
news release if these beliefs, estimates and opinions or other
circumstances should change, except as otherwise required by
applicable law.
N. Eric Fier, CPG, P.Eng
Chief Executive Officer
SilverCrest Metals Inc.
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SOURCE SilverCrest Metals Inc.