UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
 
 
For the month of May, 2024.
 
 
Commission File Number 001-38628
 
 
SilverCrest Metals Inc.
(Translation of registrant’s name into English)
 
570 Granville Street, Suite 501
Vancouver, British Columbia V6C 3P1
Canada
(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F
 
Form 20-F
o
Form 40-F
x
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   o              
 
 
Note:  Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):    o            
 
 
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.


SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 

 SILVERCREST METALS INC.
 
Date:  May 14, 2024
/s/ Anne Yong______________
Anne Yong
Chief Financial Officer

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INDEX TO EXHIBITS

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Unaudited Condensed Interim Consolidated Financial Statements and Notes
FOR THE THREE MONTHS ENDED MARCH 31, 2024

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Condensed Interim Consolidated Statements of
Financial Position
(unaudited, in thousands of U.S. dollars)
March 31, 2024December 31, 2023
Assets
Current assets
Cash and cash equivalents (Note 19)$71,085 $85,964 
Bullion (Note 7)20,039 19,191 
Trade and other receivables4,980 114 
Value-added tax receivables17,544 16,250 
Inventories (Note 8)53,240 49,798 
Prepaids and other assets7,741 7,216 
Derivative assets548 - 
175,177 178,533 
Non-current assets
Mineral properties, plant and equipment (Note 9)254,911 246,728 
Deferred tax assets18,255 22,723 
Long-term value-added tax receivables14,743 12,190 
Prepaids and other long-term assets7,290 - 
Total assets$470,376 $460,174 
Liabilities
Current liabilities
Accounts payable and accrued liabilities (Note 10, 6(a))$20,232 $17,924 
Tax liabilities6,256 33,614 
Derivative liabilities344 168 
Lease obligations67 67 
26,899 51,773 
Non-current liabilities
Long-term lease obligations210 221 
Reclamation provision (Note 12)5,986 5,855 
Total liabilities33,095 57,849 
Equity (Note 13)
Issued capital407,837 406,890 
Share option reserve11,483 11,338 
Currency translation reserve(3,538)(3,538)
Retained earnings21,499 (12,365)
Total equity437,281 402,325 
Total liabilities and equity$470,376 $460,174 
See accompanying notes to the condensed interim consolidated financial statements
Approved by the Board on May 14, 2024
"signed"N. Eric Fier, Director"signed"Anna Ladd-Kruger, Director
SILVERCREST METALS INC.
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Condensed Interim Consolidated Statements of Earnings and
Comprehensive Earnings
(unaudited, in thousands of U.S. dollars except per share amounts)
Three months ended
March 31,
20242023
Revenue (Note 14)$63,646 $57,983 
Cost of sales
Production costs (Note 15)(18,203)(18,038)
Depreciation(7,776)(4,045)
Government royalties(190)(294)
(26,169)(22,377)
Mine operating earnings37,477 35,606 
General and administrative expenses (Note 16)(4,695)(3,533)
Exploration and project expenses(222)(226)
Foreign exchange gains366 1,119 
Earnings from operations32,926 32,966 
Interest income1,638 772 
Interest and finance expense (Note 17)(315)(1,369)
Other income1,350 — 
Earnings before income taxes35,599 32,369 
Income tax expense (Note 18)(1,735)(5,204)
Net earnings$33,864 $27,165 
Other comprehensive income
Currency translation adjustment— 329 
Total comprehensive earnings$33,864 $27,494 
Net earnings attributable to common shareholders
Basic earnings per share$0.23 $0.18 
Diluted earnings per share$0.23 $0.18 
Weighted average shares outstanding (in 000’s) Basic146,954 147,200 
Weighted average shares outstanding (in 000’s) Diluted147,956 152,414 
See accompanying notes to the condensed interim consolidated financial statements
SILVERCREST METALS INC.
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Condensed Interim Consolidated Statements of Cash Flows
(unaudited, in thousands of U.S. dollars)
Three months ended
March 31,
20242023
(Note 19)
Operating activities
Net earnings for the period$33,864 $27,165 
Income tax expense (Note 18)1,735 5,204 
Depreciation7,776 4,067 
Share-based compensation expense1,065 1,120 
Unrealized foreign exchange losses (gains)484 (1,629)
Interest income(1,638)(772)
Interest expense (Note 17)147 1,242 
Interest paid (Note 19)(49)(1,077)
Interest received (Note 19)1,638 721 
Income taxes paid(26,164)(987)
Other operating activities (Note 19)(1,244)107 
Change in working capital (Note 19)(18,735)(8,544)
$(1,121)$26,617 
Investing activities
Payments for mineral properties, plant and equipment(14,804)(7,930)
Purchase of bullion— (1,810)
Proceeds from derivatives161 — 
$(14,643)$(9,740)
Financing activities
Common share proceeds658 179 
Repayment of debt (Note 11)— (25,000)
Payments of equipment leases(11)(43)
$647 $(24,864)
Effects of exchange rate changes on cash and cash equivalents238 2,991 
Decrease in cash and cash equivalents(14,879)(4,996)
Cash and cash equivalents at the beginning of the period85,964 50,761 
Cash and cash equivalents at the end of the period$71,085 $45,765 
Supplemental cash flow information and restatement of prior period (Note 19)
See accompanying notes to the condensed interim consolidated financial statements
SILVERCREST METALS INC.
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Condensed Interim Consolidated Statements of Changes in Equity
(unaudited, in thousands of U.S. dollars except for number of shares)
Issued
shares		Issued
capital		Share option reserveCurrency translation reserveRetained earningsTotal
Balance, December 31, 2022147,156 $405,811 $10,945 $(13,793)$(125,969)$276,994 
Total comprehensive earnings
Net earnings for the period— — — — 27,165 27,165 
Foreign exchange translation— — — 329 — 329 
— — — 329 27,165 27,494 
Shares issued on the exercise of stock options75 294 (115)— — 179 
Stock options forfeited— — (36)— 36 — 
Share-based compensation on option grants— — 674 — — 674 
Share repurchased and cancelled— — — — — — 
Balance, March 31, 2023147,231 406,105 11,468 (13,464)(98,768)305,341 
Total comprehensive earnings
Net earnings for the year— — — — 89,555 89,555 
Foreign exchange translation— — — 9,926 — 9,926 
— — — 9,926 89,555 99,481 
Shares issued on the exercise of stock options1,208 4,814 (1,862)— — 2,952 
Stock options forfeited— — 36 — (36)— 
Share-based compensation on option grants— — 1,696 — — 1,696 
Share repurchased and cancelled(1,504)(4,029)— — (3,116)(7,145)
Balance, December 31, 2023146,935 406,890 11,338 (3,538)(12,365)402,325 
Total comprehensive earnings
Net earnings for the period— — — — 33,864 33,864 
— — — — 33,864 33,864 
Shares issued on the exercise of stock options126 928 (270)— — 658 
Shares issued on the settlement of share units3 19 — — — 19 
Share-based compensation on option grants— — 415 — — 415 
Balance, March 31, 2024147,064 407,837 11,483 (3,538)21,499 437,281 
See accompanying notes to the condensed interim consolidated financial statements
SILVERCREST METALS INC.
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Notes to the Condensed Interim Consolidated Financial Statements
As at March 31, 2024 and December 31, 2023, and for the
three months ended March 31, 2024 and 2023
(unaudited with tabular amounts in thousands of USD$ except number of shares,
options and per share amounts, unless otherwise noted)
1. Nature of Operations
SilverCrest Metals Inc. (the "Company" or "SilverCrest") is a corporation governed by the Business Corporations Act (British Columbia). The Company’s corporate office and principal address is located at 501-570 Granville Street, Vancouver, British Columbia, Canada, V6C 3P1. The Company’s registered office is 19th Floor, 885 West Georgia Street, Vancouver, BC, Canada, V6C 3H4. SilverCrest shares trade on the Toronto Stock Exchange under the symbol SIL and the NYSE-American under the symbol SILV.
SilverCrest engages in silver and gold mining and related activities, including exploration and mine development from its Las Chispas mine located in Sonora, Mexico.
2. Basis of Preparation
These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) applicable to the preparation of interim financial statements, under International Accounting Standard ("IAS") 34 - Interim Financial Reporting and have been condensed with certain disclosures from the Company's audited consolidated financial statements for the year ended December 31, 2023 (the "2023 Annual Financial Statements") omitted. Accordingly, these unaudited condensed interim consolidated financial statements should be read in conjunction with the 2023 Annual Financial Statements.
These unaudited condensed interim consolidated financial statements were approved for issuance by the Board of Directors on May 14, 2024.
3. Material Accounting Policies
The accounting policies applied in the preparation of these unaudited condensed interim consolidated financial statements, with the exception of those described in Note 4, are consistent with those applied and disclosed in the 2023 Annual Financial Statements.
4. Changes in Accounting Standards
Application of New and Revised Accounting Standards
Presentation of Financial Statements (Amendments to IAS 1)
We have adopted the amendments to IAS 1 Presentation of Financial Statements regarding the classification of liabilities as current or non-current based on contractual rights that are in existence at the end of the reporting period and affected by expectations about whether an entity will exercise its right to defer settlement. A liability not due over the next twelve months is classified as non-current even if management intends or expects to settle the liability within twelve months. The amendment also introduces a definition of ‘settlement’ to make clear that settlement refers to the transfer of cash, equity instruments, other assets, or services to the counterparty. The amendment issued in October 2022 also clarifies how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. Covenants to be compiled with after the reporting date do not affect the classification of debt as current or non-current at the reporting date. The amendments are effective for annual reporting periods beginning on or after January 1, 2024. These amendments did not have a material impact on the Company.
Accounting Standards Issued but Not Yet Applied
Presentation and Disclosure in Financial Statements (IFRS 18)
IFRS 18 has been issued to achieve comparability of the financial performance of similar entities. The standard, which replaces IAS 1, impacts the presentation of primary financial statements and notes, mainly the income statement where companies will be required to present separate categories of income and expense for operating, investing, and financing activities with prescribed subtotals for each new category. IFRS 18 will require management-defined performance measures to be explained and included in a separate note within the consolidated financial statement. The standard is effective for financial statements beginning on January 1, 2027, including interim financial statements and requires retrospective application. The Company is currently assessing the impact of this amendment.
SILVERCREST METALS INC.
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Notes to the Condensed Interim Consolidated Financial Statements
As at March 31, 2024 and December 31, 2023, and for the
three months ended March 31, 2024 and 2023
(unaudited with tabular amounts in thousands of USD$ except number of shares,
options and per share amounts, unless otherwise noted)
There are no other standards or amendments or interpretations to existing standards issued but not yet effective that are expected to have a material impact on the Company.
5. Significant Judgments and Estimates
In preparing the Company’s unaudited condensed interim financial statements for the three months ended March 31, 2024, the Company applied the critical judgements and estimates, and key sources of estimation uncertainty disclosed in Notes 5 and 6, respectively, of its 2023 Annual Financial Statements.
6. Financial Instruments
a)Carrying Values and Measurement of Financial Assets and Liabilities at Amortized Cost or Fair Value through Profit and Loss ("FVTPL")
March 31, 2024Amortized cost FVTPLTotal
Financial assets
Cash and cash equivalents$71,085 $- $71,085 
Trade and other receivables4,980 - 4,980 
Derivative assets- 548 548 
Financial liabilities
Accounts payable and accrued liabilities16,698 3,534 20,232 
Derivative liabilities- 344 344 
December 31, 2023Amortized costFVTPLTotal
Financial assets
Cash and cash equivalents$85,964 $- $85,964 
Trade and other receivables114 - 114 
Financial liabilities
Accounts payable and accrued liabilities14,080 3,844 17,924 
Derivative liabilities- 168 168 
b)Derivative Instruments
The Company's derivatives are comprised of bullion and foreign currency contracts. During the three months ended March 31, 2024, the Company sold call options and purchased put options on bullion and foreign currency. The Company receives an option premium in cash on selling the option, which is recorded as either an asset or a liability. The value of the option is remeasured using the Black-Scholes option pricing model at each reporting date, with gains or losses recorded as other expense, along with a corresponding increase or decrease to the derivative assets or liabilities.
The gains on derivatives for the three months ended March 31, 2024 were as follows:
Three months ended
March 31,
20242023
Unrealized gains on derivatives (Note 22)533 - 
SILVERCREST METALS INC.
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Notes to the Condensed Interim Consolidated Financial Statements
As at March 31, 2024 and December 31, 2023, and for the
three months ended March 31, 2024 and 2023
(unaudited with tabular amounts in thousands of USD$ except number of shares,
options and per share amounts, unless otherwise noted)
c)Fair Value Information
i.Fair Value Measurement
The categories of the fair value hierarchy of inputs used in the valuation techniques are as follows:
Level 1: Quoted prices in active markets for identical assets or liabilities;
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and
Level 3: Inputs for the asset or liability based on unobservable market data
The levels in the fair value hierarchy into which the Company’s financial assets and liabilities that are measured and recognized on the Condensed Consolidated Interim Statements of Financial Position at fair value on a recurring basis were categorized as follows:
At March 31, 2024At December 31, 2023
Level 1Level 2Level 1Level 2
Assets and Liabilities:
Derivative assets— 548 — — 
Derivative liabilities— 344 — 168 
The methodology and assessment of inputs for determining the fair value of financial assets and liabilities as well as the levels of hierarchy for the Company’s financial assets and liabilities measured at fair value remain unchanged from that at December 31, 2023.
ii.Valuation Techniques
Derivative assets and liabilities
The Company’s derivatives were comprised of bullion and foreign currency contracts which are valued using observable market prices.
d)Financial Instruments and Related Risks
The Company has exposure to risks of varying degrees of significance which could affect its ability to achieve its strategic objectives for growth and shareholder returns. The principle financial risks to which the Company is exposed are:
i)Credit risk
ii)Liquidity risk
iii)Market risk
1.Currency risk
2.Interest rate risk
3.Price risk
The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework and reviews the Company’s policies on an ongoing basis.
i.Credit Risk
Credit risk is the risk that a counterparty may fail to satisfy its performance obligations under the terms of a financial instrument. Credit risk results from cash and cash equivalents and trade and other receivables.
The Company manages credit risk on its cash and cash equivalents by diversifying these asset holdings with multiple highly rated financial institutions, including the Bank of Montreal ("BMO") and the Bank of Nova Scotia (“BNS”) in Canada and BNS in Mexico. Further, credit risk on trade and other receivables is managed by ensuring amounts are receivable from highly rated financial institutions. The Company has not recognized any expected credit losses with respect to trade and other receivables. For cash and cash equivalents and trade and other receivables, credit risk exposure equals the carrying amount on the balance sheet.
ii.Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company has in place a planning and budgeting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company's cash and cash
SILVERCREST METALS INC.
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Notes to the Condensed Interim Consolidated Financial Statements
As at March 31, 2024 and December 31, 2023, and for the
three months ended March 31, 2024 and 2023
(unaudited with tabular amounts in thousands of USD$ except number of shares,
options and per share amounts, unless otherwise noted)
equivalents are invested in business accounts with quality financial institutions and are available on demand to fund the Company's operations.
The Company believes its cash and cash equivalents at March 31, 2024 of $71.1 million, bullion of $20.0 million, undrawn $70.0 million Revolving Facility, and continuing revenue and profitable operations are sufficient to settle its commitments through the next 12 months.
iii.Market Risk
1.Currency Risk
The functional and reporting currency of the Company including its subsidiaries is the United States dollar ("USD") and the Company reports results using USD; however, the Company operates in jurisdictions that utilize the Canadian dollar ("CAD") and Mexican peso ("MXN"). As a consequence, the financial results of the Company’s operations as reported in USD are subject to changes in the value of the USD relative to these local currencies. Since the Company’s sales are denominated in USD and a portion of the Company’s operating costs and capital spending are in local currencies, the Company is negatively impacted by changes in local currencies relative to the USD.
In order to mitigate its exposure to currency risk, the Company has entered into option contracts designed to limit the effective exchange rate between the Mexican peso and US dollar. The notional value of open contracts as at March 31, 2024 totaled $34 million, with maturities from April 2024 until January 2025 and exchange rates between 17.06 and 17.74. The positive mark-to-market on open contracts at March 31, 2024 was $0.5 million.
2.Interest Rate Risk
Interest rate risk is the risk that the fair values and future cash flows of the Company will fluctuate because of changes in market interest rates. The average interest rate earned by the Company during the three months ended March 31, 2024 on its cash and cash equivalents was 5.3% (2023 - 5.09%).
On November 29, 2022, the Company's entered into a $120 million senior secured credit facility (the "Credit Facility") comprised of a $50 million term facility (the "Term Facility") and a $70 million revolving facility (the "Revolving Facility") (Note 11). The Company repaid the Term Facility during the first five months of 2023 and incurred a weighted average interest rate of 7.79% during that time. There were no amounts drawn on the Revolving Facility during the three months ended March 31, 2024 or comparative period.
3.Price Risk
The Company is exposed to price risk on precious metals that impact the valuation of the Company’s derivative positions, comprised of gold and silver call options written, which has a direct and immediate impact on net earnings. The prices of precious metals are volatile and affected by many factors beyond the Company’s control, and there can be no assurance that precious metal prices will not be subject to wide fluctuations in the future. A substantial or extended change in precious metal prices could have an adverse effect on the Company’s financial position, income, and cash flows.
7. Bullion
The Company purchases gold and silver bullion from a bullion bank as part of its liquidity management program.
Bullion held by the Company was comprised of the following:
March 31, 2024December 31, 2023
CostFair valueCostFair value
Gold bullion$5,535 $6,166 $5,535 $5,743 
Silver bullion13,139 13,873 13,139 13,448 
$18,674 $20,039 $18,674 $19,191 
The Company records bullion at fair value with gains of $0.8 million included in other income (note 22) for the three months ended March 31, 2024 and no amount recorded in the comparative period.
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Notes to the Condensed Interim Consolidated Financial Statements
As at March 31, 2024 and December 31, 2023, and for the
three months ended March 31, 2024 and 2023
(unaudited with tabular amounts in thousands of USD$ except number of shares,
options and per share amounts, unless otherwise noted)
8. Inventories
The Company’s inventories were comprised of the following:
March 31, 2024December 31, 2023
Stockpile$30,270 $27,115 
In-process2,605 2,055 
Finished11,465 11,496 
Materials and supplies8,900 9,132 
$53,240 $49,798 
9. Mineral Properties, Plant, and Equipment
March 31, 2024December 31, 2023
CostAccumulated DepreciationCarrying ValueCostAccumulated DepreciationCarrying Value
Producing:
MexicoLas Chispas$298,237 $(45,814)$252,423 $281,371 $(37,130)$244,241 
Non-Producing:
MexicoOther2,748 (260)$2,488 2,748 (261)$2,487 
CanadaOther58 (58)$- 58 (58)$— 
2,806 (318)2,488 2,806 (319)2,487 
Total$301,043 $(46,132)$254,911 $284,177 $(37,449)$246,728 
10. Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities consist of:
March 31, 2024December 31, 2023
Trade payables$5,618 $2,938 
Accrued liabilities8,424 9,890 
Payroll related liabilities2,656 1,957 
Share unit accrued liabilities3,534 3,139 
$20,232 $17,924 
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Notes to the Condensed Interim Consolidated Financial Statements
As at March 31, 2024 and December 31, 2023, and for the
three months ended March 31, 2024 and 2023
(unaudited with tabular amounts in thousands of USD$ except number of shares,
options and per share amounts, unless otherwise noted)
11. Debt
A summary of debt transactions for the three months ended March 31, 2024 and year ended December 31, 2023 is as follows:
Three months ended
March 31, 2024		Year ended
December 31, 2023
Term Facility
Balance, beginning of period$- $49,591 
Accretion- 409 
Interest expense- 1,030 
Interest payments- (1,030)
Debt repayment- (50,000)
Balance, end of period$- $- 
Revolving Facility
On November 29, 2022, the Company entered into a $120 million Credit Facility comprised of a $50 million Term Facility, maturing November 28, 2025, and a $70 million Revolving Facility, maturing November 27, 2026. On closing the Credit Facility, the Company drew $50 million from the Term Facility and used $40 million of available cash to repay its $92.9 million secured project financing facility.
The Company fully repaid the Term Facility during the first five months of 2023 and has not drawn from the Revolving Facility in 2024 or 2023. As of March 31, 2024, the Company was in compliance with all financial covenants under the $70 million Revolving Facility.
The Revolving Facility bears interest, and the Term Facility when outstanding bore interest, at a rate based initially on an adjusted Term secured overnight financing rate ("SOFR") as administered by the Federal Reserve Bank of New York, plus an applicable margin ranging from 2.50% to 3.75%. The undrawn portion of the Revolving Facility is subject to a standby fee ranging from 0.5625% to 0.8428% per annum. During the three months ended March 31, 2024, $0.1 million (2023 - $0.2 million) of standby fees and interest were recorded as interest and finance expense.
12. Reclamation Provision
Changes to the reclamation and closure provision or the three months ended March 31, 2024 and year ended December 31, 2023 is as follows:
March 31, 2024December 31, 2023
Balance, beginning of period$5,855 $4,590 
Accretion of reclamation provision (Note 17)136 493 
Revisions in estimates and obligations(5)772 
Balance, end of period$5,986 $5,855 
13. Share Capital and Employee Compensation Plans
a)Stock Options
For the three months ended March 31, 2024, the total share-based compensation expense relating to stock options was $0.4 million (2023 - $0.3 million) and is presented as a component of general and administrative expense.
Stock options
During the three months ended March 31, 2024, the Company granted 620,800 (2023 - 65,000) stock options. During the three months ended March 31, 2024, the Company issued 125,916 (2023 - 1,282,750) common shares in connection with the exercise of stock options.
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Notes to the Condensed Interim Consolidated Financial Statements
As at March 31, 2024 and December 31, 2023, and for the
three months ended March 31, 2024 and 2023
(unaudited with tabular amounts in thousands of USD$ except number of shares,
options and per share amounts, unless otherwise noted)
The following table summarizes changes in stock options for the three months ended March 31, 2024 and year ended December 31, 2023:
Three months ended
March 31, 2024		Year ended
December 31, 2023
Number of
options		Weighted average
exercised price CAD		Number of
options		Weighted average
exercised price CAD
Outstanding, beginning of period4,105,200$9.16 5,560,450$7.87 
Granted620,8007.43 65,0007.13 
Exercised(125,916)7.07 (1,282,750)3.34 
Forfeited(68,667)10.15 (237,500)9.80 
Outstanding, end of period4,531,417$8.97 4,105,200$9.16 
The following table summarizes information about the Company's stock options outstanding at March 31, 2024:
Options OutstandingOptions Exercisable
Range of Exercise Prices CADNumber Outstanding as at March 31, 2024Weighted Average Remaining Contractual Life (years)Weighted Average Exercise Price CADNumber Outstanding as at March 31, 2024Weighted Average Exercise Price CAD
$4.54 - $8.21
1,535,550 2.4$7.74 833,083 $8.02 
$8.22 - $8.50
1,343,867 2.28.37 909,699 8.30 
$8.51 - $10.80
740,000 2.79.86 493,327 9.86 
$10.81 - $12.63
912,000 1.911.18 878,666 11.18 
4,531,417 2.3 $8.97 3,114,775 $9.28 
b)PSUs
The Company recorded $0.1 million of expense in general and administrative expense for PSUs for the periods ended March 31, 2024 and 2023.
The following table summarizes changes in PSUs for the three months ended March 31, 2024 and year ended December 31, 2023:
Three months ended
March 31, 2024		Year ended
December 31, 2023
Number outstandingFair valueNumber outstandingFair value
Outstanding, beginning of period153,125$705 173,750 $764 
Granted96,9004961,875 451 
Settled for cash(61,875)(405)(82,500)(535)
Change in value-62— 25 
Outstanding, end of period188,150$411 153,125 $705 
c)RSUs
The Company recorded a $0.3 million and $0.1 million expense in general and administrative expense for RSUs for the periods ended March 31, 2024 and 2023, respectively.
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Notes to the Condensed Interim Consolidated Financial Statements
As at March 31, 2024 and December 31, 2023, and for the
three months ended March 31, 2024 and 2023
(unaudited with tabular amounts in thousands of USD$ except number of shares,
options and per share amounts, unless otherwise noted)
The following table summarizes changes in RSUs for the three months ended March 31, 2024 and year ended December 31, 2023:
Three months ended
March 31, 2024		Year ended
December 31, 2023
Number outstandingFair valueNumber outstandingFair value
Outstanding, beginning of period235,437 $1,055 249,498 $254 
Granted380,800 254- - 
Settled for cash(87,846)(564)- - 
Settled for shares(2,925)(16)- - 
Forfeited- -(14,061)(20)
Change in value- 83- 821 
Outstanding, end of period525,466 $811 235,437 $1,055 
d)DSUs
The Company recorded a $0.3 million and $0.3 million expense in general and administrative expense for DSUs for the periods ended March 31, 2024 and 2023, respectively.
The following table summarizes changes in DSUs for the three months ended March 31, 2024 and year ended December 31, 2023:
Three months ended
March 31, 2024		Year ended
December 31, 2023
Number outstandingFair valueNumber outstandingFair value
Outstanding, beginning of period228,000 $1,498 228,000 $1,364 
Granted118,800 790 - - 
Change in value- 20 - 134 
Outstanding, end of period346,800 $2,308 228,000 $1,498 
e)Authorized Shares
The Company's authorized capital stock consists of an unlimited number of common shares and an unlimited number of preferred shares without nominal or par value.
14. Revenue
Three months ended
March 31,
20242023
Gold$30,923 $26,676 
Silver32,723 31,307 
$63,646 $57,983 
SILVERCREST METALS INC.
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Notes to the Condensed Interim Consolidated Financial Statements
As at March 31, 2024 and December 31, 2023, and for the
three months ended March 31, 2024 and 2023
(unaudited with tabular amounts in thousands of USD$ except number of shares,
options and per share amounts, unless otherwise noted)
15. Production Costs
Three months ended
March 31,
20242023
Materials and consumables$11,251 $9,081 
Salaries and benefits2,814 3,155 
Contractors5,980 4,127 
Refining and transportation452 607 
Other514 486 
Changes in inventories(2,808)582 
$18,203 $18,038 
16. General and Administrative Expenses
Three months ended
March 31,
20242023
Corporate administration$3,630 $2,815 
Share-based compensation1,065 718 
$4,695 $3,533 
17. Interest and Finance Expense
Three months ended
March 31,
20242023
Interest expense$147 $1,239 
Reclamation accretion expense (Note 12)136 107 
Other financing costs32 23 
$315 $1,369 
18. Income Taxes
The income taxes recognized in net earnings and comprehensive earnings are as follows:
Three months ended
March 31,
20242023
Current tax (recovery) expense$(2,733)$2,483 
Deferred tax expense4,468 2,721 
$1,735 $5,204 
SILVERCREST METALS INC.
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Notes to the Condensed Interim Consolidated Financial Statements
As at March 31, 2024 and December 31, 2023, and for the
three months ended March 31, 2024 and 2023
(unaudited with tabular amounts in thousands of USD$ except number of shares,
options and per share amounts, unless otherwise noted)
The provision for income taxes reported differs from the amounts computed by applying statutory tax rates to the income (loss) before income taxes due to the following:
Three months ended
March 31,
20242023
Earnings for the period before income taxes$35,599 $32,369 
Statutory tax rate27 %27 %
Income taxes computed at statutory rates9,612 8,739 
Permanent differences404 (3,262)
Effect of other taxes (recovered) paid, mining and withholding1,899 2,483 
Change in unrecognized temporary differences and other(10,180)(2,756)
$1,735 $5,204 
19. Supplemental Cash Flow
The following table summarizes other operating activities adjustments for non-cash income statement items in operating activities:
Three months ended
March 31,
Other operating activities20242023
Adjustments for non-cash income statement items:
Reclamation accretion expense (Note 12)$136 $107 
Bullion gains (Note 7)(847)- 
Derivative gains (Note 6)(533)- 
$(1,244)$107 
The following table summarizes the change in working capital in operating activities:
Three months ended
March 31,
Change in working capital20242023
Trade and other receivables$(8,712)$(4,057)
Inventories(2,532)4,180 
Prepaid expenses(7,814)(239)
Accounts payable323 (8,428)
Provisions- - 
$(18,735)$(8,544)
During the year ended December 31, 2023, the Company retrospectively applied an accounting policy change. This adjustment involved the inclusion of cash flows from both interest paid and received within operating activities in the consolidated statements of cash flows. This decision was made as the Company views these forms of financing and investment to be for the benefit of operations, in consideration of a full year of production. The following table provides a reconciliation of the impact of the accounting policy change on the amounts presented for the three months ended March 31, 2023:
Amount
Interest paid(1)
(1,077)
Interest received(2)
721 
(1)Previously presented as loan interest payments included in financing activities.
(2)Previously presented in investing activities.
SILVERCREST METALS INC.
15
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Notes to the Condensed Interim Consolidated Financial Statements
As at March 31, 2024 and December 31, 2023, and for the
three months ended March 31, 2024 and 2023
(unaudited with tabular amounts in thousands of USD$ except number of shares,
options and per share amounts, unless otherwise noted)
20. Segmented Information
The Company’s reportable operating segment, which has separate financial information available, is assessed regularly for performance by the Company’s Chief Executive Officer, who is the Company’s chief operating decision maker ("CODM"). The Company has concluded that it has a single operating segment: Las Chispas Mine, which includes Picacho. Corporate includes the corporate team that provides administrative, technical, financial, and other support to the Company’s business units.
Segments and their performance measures are listed below:
For the three months ended March 31, 2024
SegmentRevenueProduction costs and government royaltiesDepreciationMine operating earningsCapital expenditures
Las Chispas$63,646 $18,393 $7,776 $37,477 $14,804 
For the three months ended March 31, 2023
SegmentRevenueProduction costs and government royaltiesDepreciationMine operating earningsCapital expenditures
Las Chispas$57,983 $18,332 $4,045 $35,606 $7,930 
At March 31, 2024
SegmentAssetsLiabilitiesNet assets
Las Chispas$431,689 $22,205 $409,484 
Corporate37,216 10,866 26,350 
Other1,471 24 1,447 
$470,376 $33,095 $437,281 
At December 31, 2023
SegmentAssetsLiabilitiesNet assets
Las Chispas$420,613 $43,899 $376,714 
Corporate38,039 13,926 24,113 
Other1,522 24 1,498 
$460,174 $57,849 $402,325 
21. Related Party Transactions
The Company’s related parties include its subsidiaries, and key management personnel. Transactions with the Company's subsidiaries have been eliminated on consolidation.
22. Other Income
Three months ended
March 31,
20242023
Derivative gains (Note 6(b))$533 $- 
Bullion gains 847 - 
Miscellaneous expense(30)- 
Other Income$1,350 $- 
SILVERCREST METALS INC.
16





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Management's Discussion and Analysis
FOR THE THREE MONTHS ENDED MARCH 31, 2024

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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
Cautionary Note
Forward-Looking Information
This MD&A contains “forward-looking statements” and “forward-looking information” (collectively, “forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation. Such forward-looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development of its properties, planned expenditures and plans related to its business and other matters that may occur in the future. In addition, these statements include, but are not limited to: the future price of commodities; the estimation of Mineral Resource and Mineral Reserve Estimates; the realization of Mineral Resource and Mineral Reserve Estimates; the timing and amount of estimated future production; costs of production; capital expenditures; costs and timing of the development of new deposits; timing of completion of exploration programs; technical reports and studies; the success of exploration and development activities and mining operations; future financings, the Company’s share price and on the timing and completion of exploration programs, the productivity and timing of mine operation activities; permitting timelines; currency fluctuations; requirements for additional capital; government regulation of exploration and production operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; completion of acquisitions and their potential impact on the Company and its operations; limitations on insurance coverage; maintenance of adequate internal control over financial reporting; and the development and advancement of the Company’s environmental, social, and corporate governance strategy.
Forward-looking statements are made based upon certain assumptions and other important factors that, while considered reasonable by the Company, are inherently subject to significant business economic, competitive, political and social uncertainties and contingencies. The Company has made assumptions based on many of these factors which include, without limitation: the Company’s expectations of future performance, including gold and silver production and planned work programs; present and future business strategies; the environment in which the Company will operate in the future, including the price of gold and silver; currency exchange rates; estimates of capital and operating costs; production estimates; Mineral Resource and Mineral Reserve Estimates, and metallurgical recoveries; and mining operational and development risks. 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.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: fluctuating prices and availability of commodities; price inflation of goods and services; the timing and content of work programs; interest rate risks; global market conditions; fluctuations in the Company’s share prices; results of exploration activities; the interpretation of drilling results and other geological data; reliability of Mineral Resource and Reserve estimates; receipt, maintenance and security of permits and mineral property titles; enforceability of contractual interests in mineral properties; environmental and other regulatory risks; the effects of climate change; compliance with changing environmental regulations; dependence on local community relationships; risks of local violence; risks related to natural disasters, terrorism, civil unrest, public health concerns (including the impact on operations of health epidemics or outbreaks of communicable diseases such as the COVID-19 pandemic) and other geopolitical uncertainties; reliability of costs estimates; project cost overruns or unanticipated costs and expenses; precious metals price fluctuations; fluctuations in the foreign exchange rate (particularly Mexican peso ("MXN"), Canadian dollar ("CAD"), and United States dollar("USD")); risks associated with taxation in multiple jurisdictions; uncertainty in the Company’s ability to fund the exploration and development of its mineral properties or the completion of further exploration programs; uncertainty as to whether the Company’s exploration programs will result in the discovery, development or production of commercially viable ore bodies or yield reserves; operational, health and safety risks; infrastructure risks; risks associated with costs of reclamation; development plans and costs differing materially from the Company’s expectations; risks and uncertainties related to the timing of mine operation activities; risks related to mineral properties being subject to prior unregistered agreements, transfers, claims, and other defects in title; uncertainty in the ability to obtain financing if required; maintaining adequate internal control over financial reporting; dependence on key personnel; and general market and industry conditions. This list is not exhaustive of the factors that may affect the Company’s forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements.
The Company’s forward-looking statements are based on beliefs, expectations, and opinions of management on the date the statements are made. While the Company has attempted to identify important factors that could cause actual actions, events, or results to differ from those described in forward-looking statements, there may be factors that cause actions, events, or results not to be as anticipated, estimated, or intended. The Company undertakes no obligation to update or

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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
revise any forward-looking statements included in this MD&A if these beliefs, expectations and opinions or other circumstances should change, except as otherwise required by applicable law.
Cautionary Note to U.S. Investors
This MD&A includes Mineral Resource and Reserve classification terms that comply with reporting standards in Canada and the Mineral Resource and Reserve estimates are made in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ from the requirements of the United States Securities and Exchange Commission (the "SEC") applicable to domestic United States reporting companies. Consequently, Mineral Resource and Reserve information included in this MD&A may not be comparable to similar information that would generally be disclosed by United States domestic reporting companies subject to the reporting and disclosure requirements of the SEC. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with US standards.
Qualified Person
Technical information contained in this MD&A has been prepared by or under the supervision of N. Eric Fier, CPG, P.Eng., and Chief Executive Officer of the Company, who is a Qualified Person for the purpose of NI 43-101.

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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)



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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
1. Introduction
This Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand SilverCrest Metals Inc. (“SilverCrest”, “we”, “our” or the “Company”), our liquidity, capital resources, and operational and financial performance as at, and for the three month period ended March 31, 2024, in comparison to the corresponding prior-year periods.
This MD&A should be read in conjunction with the Company's unaudited condensed interim consolidated financial statements and notes (the "Financial Statements"), prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) applicable to the preparation of interim financial statements under International Accounting Standard 34 Interim Financial Reporting (“IAS 34”), for the three months ended March 31, 2024.
This MD&A should also be read in conjunction with the Company’s audited consolidated financial statements and notes for the year ended December 31, 2023 (the “2023 Annual Financial Statements”), related annual MD&A, Form 40-F/Annual Information Form, and other continuous disclosure materials available on our website at www.silvercrestmetals.com, on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov, as applicable (For avoidance of doubt, unless specifically noted, no items from these or other websites mentioned in this MD&A are incorporated by reference).
All amounts in this MD&A and the unaudited condensed interim consolidated financial statements for the three months ended March 31, 2024 are presented in United States dollars (“USD”) unless identified otherwise.
The following are other abbreviations used throughout this MD&A: Au (gold), Ag (silver), AgEq (silver equivalent), oz (ounces), koz (kilo-ounces), gpt (grams per tonne), kt (kilotonne), km (kilometres) and tpd (tonnes per day).
The AgEq ratio used in this MD&A is based on the gold to silver ratio of 79.51:1 from the technical report titled “Las Chispas Operation Technical Report” dated September 5, 2023 with an effective date of July 19, 2023 (the “2023 Technical Report”).
The effective date of this MD&A is May 14, 2024.
Non-GAAP Financial Measures
This MD&A refers to various non-GAAP measures which are used by the Company to manage and evaluate operating performance at the Company's Las Chispas mine and though widely reported in the mining industry as benchmarks for performance, do not have standardized meanings under IFRS Accounting Standards, and the methodology by which these measures are calculated may differ from similar measures reported by other companies. To facilitate a better understanding of these non-GAAP measures as calculated by the Company, additional information has been provided in this MD&A. Please refer to the section of this MD&A entitled “Non-GAAP Financial Measures” for a detailed description, and a reconciliation to the most comparable GAAP measure, of the following measures used in this MD&A:
•Average realized gold and silver price
•Sustaining and non-sustaining capital expenditures
•Free cash flow & Free cash flow per share (basic)
•Working capital
•Operating cash flow before change in working capital & Operating cash flow before change in working capital per share (basic)
•Operating cash flow per share (basic)
•Treasury assets
•Cash costs
•All-in sustaining costs ("AISC")
2. Description of Business
SilverCrest is a Canadian-based precious metals producer headquartered in Vancouver, BC. The Company's principal focus is operating its Las Chispas silver and gold operation ("Las Chispas" or the "Las Chispas Operation" or the "Las Chispas Mine"). SilverCrest has an ongoing initiative to increase its asset base by expanding current Mineral Resource and Reserve Estimates, acquiring, discovering and developing high value precious metal projects, and ultimately operating multiple silver-gold mines in the Americas. The Company is listed on the Toronto Stock Exchange (Symbol: SIL) and on the NYSE-American (Symbol: SILV).
SILVERCREST METALS INC.
5
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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
3. Highlights
The following highlights refer to free cash flow, cash costs, AISC, and treasury assets which are described in more detail in section "9. Non-GAAP Financial Measures" of this MD&A.
Q1, 2024
•Recovered 14,719 ounces (“oz”) gold (“Au”) and 1.4 million oz silver (“Ag”), or 2.6 million oz silver equivalent (“AgEq”).
•Sold 15,000 oz Au and 1.4 million oz Ag (2.6 million oz AgEq) at average realized prices of $2,062/oz Au and $23.37/oz Ag.
•Revenue of $63.6 million and cost of sales of $26.2 million.
•Mine operating earnings of $37.5 million (59% operating margin), exceeded the $36.9 million generated in Q4, 2023.
•Net earnings of $33.9 million or basic earnings of $0.23 per share.
•Cash costs of $7.09 per oz AgEq sold and AISC of $12.90 per oz AgEq sold.
•Operating cash outflow of $1.1 million and operating cash flow before changes in working capital of $17.6 million or $0.12 per share, after payment of 2023 taxes and duties which totaled $26.2 million.
•Free cash flow was negative $11.4 million or $0.08 per share for the quarter, due largely to the payment of 2023 taxes and duties and a $7.5 million prepayment for mining services.
•Reported retained earnings of $21.5 million on the Company’s balance sheet at the end of the quarter, achieving this milestone in only the sixth quarter since commercial production was declared.
•Ended the quarter with treasury assets totaling $91.1 million ($71.1 million cash and $20.0 million in bullion) and no debt outstanding.
4. Environmental, Social, and Governance ("ESG")
In Q1, 2024 installation of two kilometres of pipeline for water conduction for agricultural use in the community was initiated as part of the Company’s ongoing commitment to water stewardship.
Also in the quarter, work continued to advance efforts to integrate renewable solar power at Las Chispas. This program is expected to be underway through 2024 with a target to begin implementation of a solar installation in 2025. The benefits of this program are expected to include cost savings and a reduction in GHG emissions.
SILVERCREST METALS INC.
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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
5. Operating Performance
The following operating performance refers to operating cash flow per share (basic), free cash flow, free cash flow per share (basic), cash costs, AISC, and treasury assets which are described in more detail in section "8. Non-GAAP Financial Measures" of this MD&A.
OPERATIONALUnit
Q1, 2024
Q1, 2023
Ore minedtonnes85,73763,600
Underground developmentkm4.22.8
Ore milled(1)
tonnes93,373104,400
Average daily mill throughputtpd1,0261,160
Gold
Average gradegpt4.974.06
Recovery%98.6 %97.5 %
Recoveredoz14,71913,300
Soldoz15,00014,200
Silver
Average gradegpt479419
Recovery%98.0 %91.9 %
Recoveredmillion oz1.411.29
Soldmillion oz1.401.36
Silver equivalent(2)
Average gradegpt874742
Recovery%98.3 %94.4 %
Recoveredmillion oz2.582.35
Soldmillion oz2.592.49
FINANCIALUnit
Q1, 2024
Q1, 2023
Revenue$ millions$63.6 $58.0 
Cost of sales$ millions$(26.2)$(22.4)
Mine operating earnings
$ millions$37.5 $35.6 
Earnings for the period$ millions$33.9 $27.2 
Earnings per share (basic)$/share$0.23 $0.18 
Operating cash flow
$ millions$(1.1)$26.6 
Operating cash flow (basic)
$/share$(0.01)$0.18 
Free cash flow$ millions$(11.4)$19.0 
Free cash flow (basic)
$/share
$(0.08)$0.13 
Cash costs(2)
$/oz AgEq$7.09 $7.36 
AISC(2)
$/oz AgEq$12.90 $10.90 
Unit
March 31, 2024December 31, 2023
Cash and cash equivalents$ millions$71.1 $86.0 
Bullion$ millions$20.0 $19.2 
Treasury assets$ millions$91.1 $105.2 
(1)Ore milled includes material from stockpiles and ore mined.
(2)Q1, 2023 Figures have been recast to align with the current period’s presentation as follows: 1. Silver equivalent ounces sold have been adjusted to reflect a ratio of 79.51:1, used in the 2023 Technical Report, from the previous 86.9:1, and 2. Cash costs increased by $2.1 million from the exclusion of adjustments for corporate salaries and other expenses, and changes in inventories.
SILVERCREST METALS INC.
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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
Underground
In the quarter a total of 85,737 tonnes were mined from the underground. Mining rates in Q1, 2024 averaged 942 tpd, a 10% increase from Q4, 2023. Ramp-up of the underground is planned to continue through 2024 with a target to exit the year at over 1,050 tpd. Key performance indicators which track the quality of mining, such as ore loss and mining dilution, continued to track to or better than plan.
The mobilization of the new underground mining contractor is largely on pace and continuing to progress, with good collaboration and coordination between the new and outgoing contractors contributing to the strong underground mining rates in the quarter. Mobilization of our new contractor is expected to continue through Q3, 2024.
In the quarter, the Company completed 4.2 km of horizontal and vertical underground development. Development rates and costs were inline with expectations.
Processing Plant
Average daily mill throughput was 1,026 tpd in Q1, 2024, a decrease from previous quarters due to planned maintenance that was completed ahead of schedule. Process plant availability returned to 92% in March 2024, which is in the range of planned availability.
Average processed grades of 4.97 gpt Au and 479 gpt Ag, or 874 gpt AgEq marked a record for silver equivalent processed grades. These higher grades were strategically planned to offset the planned downtime in Q1, 2024, facilitated by sizable surface stockpiles and a flexible mine plan. Process grades are expected to moderate in Q2, 2024 as processing plant rates increase to be more inline with the expected average rate for the remainder of 2024 of 1,200 tpd.
Average process recoveries in Q1, 2024 were 98.6% Au and 98.0% Ag, or 98.3% AgEq, setting another record for the plant. These higher recoveries benefited from consistent and higher grade feed.
Sustaining Capital
Sustaining capital totaled $10.2 million in Q1, 2024 which consisted largely of the costs attributed to underground development and infrastructure. Expenditures in the quarter were lower than planned due to the timing of some payments and delay in execution of some surface infrastructure projects which are expected to be made in Q2, 2024. The delay in sustaining capital spending is not expected to impact production, with 2024 sustaining capital still expected to be in the range of $40.0 to $44.0 million.
Costs
During the quarter, cash costs averaged $7.09 per oz AgEq sold. Cash costs were below the 2024 guidance range of $9.50 to $10.00 per oz AgEq sold, mainly due to lower volume processed, higher grades, and lower maintenance costs. Cash costs are expected to increase over the balance of the year to align with 2024 full year guidance.
AISC averaged $12.90 per oz AgEq sold in Q1, 2024, lower than expected due primarily to a combination of lower cash costs and sustaining capital costs. It is anticipated that AISC will increase in Q2, 2024, with 2024 annual AISC guidance of $15.00 to $15.90 per oz AgEq sold reiterated.
Exploration
Beginning in H2, 2023 through Q1, 2024, a combination of infill (75%) and expansion (25%) drilling (161 holes totaling 34,384 metres) was completed to test Inferred resources that were identified as high priority for potential conversion to Indicated resources in the 2023 Technical Report. Approximately 10 million oz AgEq were targeted for potential conversion to Indicated resources in proximity to existing or planned underground development.
Drilling targeted the Babicanora Area where seven veins were tested. Drill results confirmed mineral continuity in these targets, with results in general verifying the grades and thicknesses of the targeted Inferred resource proximal to underground infrastructure as presented in the 2023 Technical Report. Opportunities for further expansion of mineralization were identified in the Babicanora Norte Splay 3 vein (“BAN Splay 3”) and Babicanora Sur vein ("BAS") where drilling extended the mineralized footprint down dip and to the southeast of BAN Splay 3 and to the northwest of BAS beyond the initial area of the targeted Inferred resources. These results are being compiled and assessed for the potential conversion to Indicated resources for reserve consideration.
Drill intercept highlights from 161 drillholes are presented in the following tables. All grades are reported as uncapped and undiluted based on a 150 gpt AgEq cut-off grade. This cut-off grade is used to evaluate exploration targets in the initial
SILVERCREST METALS INC.
8
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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
stages of work and may differ from the cut-off grade used for future resource and reserve estimations. Please refer to the 2023 Technical Report for resource and reserve cutoff grades used with respect to vein thicknesses.
Babicanora Sur (BAS) Infill and Expansion Drilling
Hole IDFromToDrilledApprox.Au gptAg gptAgEq gpt*
Intercept True
(m)Thickness
(m)
BAS-23-233109.8 110.4 0.6 0.5 7.55 197.0 797 
BAS-23-234120.8 122.5 1.7 1.4 9.07 295.6 1,017 
Includes121.5 122.5 1.0 0.8 8.80 415.0 1,115 
BAS-23-243265.2 265.7 0.5 0.4 0.73 105.0 163 
BAS-23-244249.2 254.8 5.6 4.5 5.83 605.0 1,068 
Includes249.2 249.7 0.5 0.4 29.70 3,400.0 5,761 
Includes254.3 254.8 0.5 0.4 26.10 2,540.0 4,615 
BAS-23-245248.4 249.0 0.5 0.4 1.24 113.0 212 
BAS-23-247250.1 250.9 0.8 0.6 1.04 91.0 174 
BAS-23-249275.5 276.0 0.5 0.4 11.80 1,540.0 2,478 
BAS-23-250245.2 245.8 0.5 0.4 1.98 59.9 217 
BAS-23-251281.5 284.6 3.1 2.5 7.22 517.0 1,091 
Includes284.0 284.6 0.6 0.5 28.00 2,070.0 4,296 
BAS-23-252273.8 274.3 0.5 0.4 1.60 179.0 306 
BAS-23-253129.0 135.0 6.0 4.8 1.86 47.2 195 
BAS-23-25695.5 96.0 0.5 0.4 3.97 173.0 489 
BAS-24-263276.5 277.3 0.8 0.6 1.37 100.0 209 
BAS-24-265298.0 298.9 0.8 0.6 0.96 103.0 179 
BAS-24-266288.1 288.8 0.7 0.6 1.35 158.0 265 
BAS-24-267212.0 212.9 0.9 0.7 5.86 588.0 1,054 
BAS-24-268192.1 192.6 0.5 0.4 1.67 66.0 199 
Weighted Average
1.5 1.2 4.35 323.0 669 
Babicanora Sur Footwall (BAS FW) Infill Drilling
Hole IDFromToDrilledApprox.Au gptAg gptAgEq gpt*
Intercept True
(m)Thickness
(m)
BAS-23-243316.4 316.9 0.5 0.4 12.15 1,025.0 1,991 
BAS-23-247300.0 301.1 1.1 0.9 0.65 138.9 191 
BAS-23-255244.6 245.2 0.6 0.5 4.34 243.0 588 
Weighted Average0.7 0.6 4.27 370.4 710 
SILVERCREST METALS INC.
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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
Babicanora Norte Splay 3 (BAN Splay 3) Infill and Expansion Drilling
Hole IDFromToDrilledApprox.Au gptAg gptAgEq gpt*
Intercept True
(m)Thickness
(m)
UBN-23-26133.8 134.6 0.8 0.6 0.75 115.0 175 
UBN-23-28188.9 191.0 2.1 1.7 2.87 384.0 612 
Includes189.4 189.9 0.5 0.4 5.74 687.0 1,143 
UBN-23-29205.3 205.8 0.6 0.4 6.79 854.0 1,394 
UBN-23-31195.9 196.5 0.6 0.4 15.15 1,575.0 2,780 
UBN-23-32199.7 200.2 0.5 0.4 37.70 4,250.0 7,248 
UBN-23-33180.7 181.3 0.7 0.5 2.90 377.0 608 
UBN-23-37201.5 202.7 1.2 0.9 46.35 3,394.6 7,080 
Includes202.1 202.7 0.6 0.4 98.30 7,040.0 14,856 
UBN-23-39215.6 216.1 0.5 0.4 0.85 150.0 218 
UBN-23-40235.8 236.3 0.5 0.4 9.42 1,025.0 1,774 
UBN-24-42235.0 235.5 0.5 0.4 20.70 2,630.0 4,276 
UBN-24-44200.9 201.4 0.5 0.4 0.79 151.0 214 
Weighted Average0.8 0.6 13.24 1,274.1 2,326 
Babicanora Norte Northwest (BAN NW) Infill Drilling
Hole IDFromToDrilledApprox.Au gptAg gptAgEq gpt*
Intercept True
(m)Thickness
(m)
BAN-23-448182.4 183.1 0.7 0.6 3.11 429.0 676 
BAN-24-46393.7 94.2 0.5 0.4 2.24 280.0 458 
BAN-24-46691.4 91.9 0.5 0.4 11.80 921.0 1,859 
BAN-24-46792.7 93.3 0.5 0.4 2.43 384.0 577 
Weighted Average0.6 0.5 4.79 500.7 882 
Babi Vista Footwall (BAV FW) Infill Drilling
Hole IDFromToDrilledApprox.Au gptAg gptAgEq gpt*
Intercept True
(m)Thickness
(m)
UBV-23-6891.2 91.7 0.5 0.4 39.40 7,750.0 10,883 
UBV-23-69143.6 144.1 0.5 0.4 0.85 123.0 191 
UBV-23-76131.9 132.4 0.5 0.4 29.90 2,100.0 4,477 
Weighted Average0.5 0.4 23.41 3,272.1 5,133 
SILVERCREST METALS INC.
10
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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
El Muerto Splay (EM Splay) Infill Drilling
Hole IDFromToDrilledApprox.Au gptAg gptAgEq gpt*
Intercept True
(m)Thickness
(m)
EM-23-142343.9 344.4 0.5 0.4 8.33 538.0 1,200 
EM-23-145327.0 327.5 0.5 0.4 8.19 1,205.0 1,856 
EM-23-148365.9 366.4 0.5 0.4 13.85 983.0 2,084 
EM-23-150353.2 353.8 0.6 0.5 1.84 137.0 283 
Weighted Average0.5 0.4 7.85 703.4 1,327 
Encinitas Infill Drilling
Hole IDFromToDrilledApprox.Au gptAg gptAgEq gpt*
Intercept True
(m)Thickness
(m)
BAS-23-232149.4 150.5 1.1 0.8 3.07 2.4 246 
BAS-23-240151.6 152.1 0.5 0.4 2.14 10.1 180 
BAS-23-248165.1 165.9 0.8 0.6 6.56 4.3 526 
BAS-23-25533.0 34.8 1.8 1.4 2.56 8.1 212 
BAS-23-257208.2 208.8 0.6 0.5 1.37 48.8 158 
BAS-24-258262.2 262.7 0.5 0.4 4.29 228.0 569 
BAS-24-259184.4 185.4 1.0 0.8 3.09 86.2 332 
BAS-24-261181.6 182.2 0.6 0.5 81.70 52.0 6,548 
BAS-24-266151.4 152.5 1.1 0.9 3.27 90.1 350 
EN-23-09148.1 148.6 0.5 0.4 3.36 17.6 285 
EN-23-10148.5 149.0 0.5 0.4 2.47 14.6 211 
EN-23-15165.2 165.9 0.7 0.6 5.93 68.1 540 
Weighted Average0.8 0.6 8.25 47.6 704 
* AgEq has been determined using an Ag:Au ratio of 79.51:1, as calculated based on long-term gold and silver prices of $1,650/oz Au and $21.00/oz Ag, metallurgical recovery values of 98% Au/97% Ag, and assuming applicable smelter charge and royalty of 0.5% for both gold and silver.
2024 Las Chispas and Regional Exploration Program
With the majority of the Las Chispas high priority Inferred resources now drill tested, exploration efforts will return to earlier stage targeting at Las Chispas and regionally.
The Company’s strong regional geological knowledge and expertise is being applied to identify potential nearby satellite deposits which could eventually contribute additional feed to the Las Chispas plant. Throughout 2023 a regional evaluation program was carried out to identify priority opportunities. In 2024, a number of targets, including Picacho, have been chosen for further work including mapping, sampling, and drilling.
The 2024 exploration budget of $12.0 to $14.0 million is inclusive of this regional work.
SILVERCREST METALS INC.
11
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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
6. Financial Performance
Net earnings
During the three months ended March 31, 2024, net earnings were $33.9 million, compared to net earnings of $27.2 million for the three months ended March 31, 2023. Net earnings in both Q1, 2024 and Q1, 2023 benefited from relatively low effective tax rates, well below anticipated long term tax rates which are expected to approximate statutory corporate tax rates. The effective tax rate for Q1, 2024 was 5%.

The following table summarizes the Q1, 2024 vs Q1, 2023 differences in net earnings:
Three monthsNote
Net earnings, period ended March 31, 2023
$27,165 
Increased revenue5,663 1
Increased production costs and government royalties(61)
Increased depreciation(3,731)
Increased cost of sales$(3,792)2
Increased mine operating earnings$1,871 
Increased other income1,350 3
Decreased interest and finance expense1,054 4
Increased interest income866 
Increased general and administrative expenses(1,162)5
Decreased foreign exchange gains(753)
Other3,473 
Net earnings, period ended March 31, 2024
$33,864 
1)Revenue
Q1, 2024 vs Q1, 2023
During Q1, 2024, the Company sold a total of 15,000 oz Au and 1.4 million oz Ag at average realized prices of $2,062/oz Au and $23.37/oz Ag, generating revenue of $63.6 million. During Q1, 2023, the Company sold a total of 14,200 oz Au and 1.4 million oz Ag at average realized prices of $1,879/oz Au and $23.00/oz Ag, generating revenue of $58.0 million. The Q1, 2024 increase in revenue was thus driven by higher Au and Ag prices and higher quantities sold.
The following table reflects quarterly realized metal prices and quantities sold:
Realized Metal Prices ($ per oz)Quantities of Metal Sold (oz)
Three months ended
March 31,		Three months ended
March 31,
2024202320242023
Gold$2,062 $1,879 15,000 14,200 
Silver$23.37 $23.00 1,400,000 1,361,000 
2)Cost of sales
Q1, 2024 vs Q1, 2023
Cost of sales of $26.2 million in Q1, 2024 was $3.8 million higher than $22.4 million in Q1, 2023, which was largely due to an increase in depreciation resulting from sustaining capital invested in mine development over the remainder of 2023 and Q1, 2024. Production costs in Q1, 2024 were largely consistent with Q1, 2023.
3)Other income
Q1, 2024 vs Q1, 2023
The Company had other income of $1.4 million in Q1, 2024 with no amount recorded in Q1, 2023, which was primarily the result of $0.8 million in gains on bullion holdings driven by increased precious metal prices and $0.5 million in gains on derivative currency positions, which benefited from an appreciating Mexican peso.
SILVERCREST METALS INC.
12
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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
4)Interest and finance expense
Q1, 2024 vs Q1, 2023
Interest and finance expense in Q1, 2024 amounted to $0.3 million, reflecting a decrease of $1.1 million from the $1.4 million expense recorded in Q1, 2023. This reduction can be attributed to the absence of any outstanding debt in the current quarter. By contrast, during Q1, 2023, the Company incurred interest expense on its $50 million Term Facility, with half of the Term Facility being repaid within that period.
5)General and administrative ("G&A") expenses
Q1, 2024 vs Q1, 2023
G&A expense of $4.7 million in Q1, 2024 was $1.2 million higher than $3.5 million recorded in Q1, 2023 largely due to increased professional fees and share-based compensation, which is sensitive to share price performance.
Statement of Cash Flows
1)Operating activities
Q1, 2024 vs Q1, 2023
Cash flows used in operations in Q1, 2024 totaled $1.1 million, a $27.7 million quarter-over-quarter decrease relative to the $26.6 million generated in Q1, 2023. The decrease was primarily driven by income tax payments of $26.2 million made in Q1, 2024. Q1, 2024 saw an additional $10.2 million used by changes in working capital, largely from increased prepaid expenses driven by a $7.5 million prepayment for mining services, and trade and other receivables, which was partially offset by increased cash mine operating earnings.
2)Investing activities
Q1, 2024 vs Q1, 2023
Investing activities utilized $14.6 million of cash in Q1, 2024, comprised mostly of $14.8 million spent on mineral property, plant and equipment ("MPPE") additions for mine development and equipment purchases. In Q1, 2023, investing activities used $9.7 million, including $7.9 million in MPPE additions and $1.8 million for bullion purchases.
3)Financing activities
Q1, 2024 vs Q1, 2023
Financing activities in Q1, 2024 generated $0.6 million of cash from the exercise of stock options. In Q1, 2023, $24.9 million was used in financing activities, due primarily to a $25.0 million repayment of the Term Facility in the quarter.
7. Liquidity and Capital Position
Liquidity and Capital MeasuresMar 31,
2024		Dec 31,
2023		Change
Cash and cash equivalents$71,085 $85,964 $(14,879)
Bullion$20,039 $19,191 $848 
Treasury assets(1)
$91,124 $105,155 $(14,031)
Working capital(2)
$148,278 $126,760 $21,518 
(1)Treasury assets is a non-GAAP measure. Please refer to "8. Non-GAAP Financial Measures" section of the MD&A.
(2)Working capital, calculated as current assets less current liabilities, is a non-GAAP measure. Please refer to "8. Non-GAAP Financial Measures" section of the MD&A.
Management believes the Company has sufficient financial resources, including access to the undrawn $70 million revolving facility (the "Revolving Facility"), to cover its business for a period greater than 12 months, including capital expenditures, and meeting working capital requirements.
To ensure alignment with its capital needs, the Company develops annual budgets. These budgets are regularly reviewed and incorporate estimated production, exploration efforts, financing availability, and industry conditions.
The impact of inflation on the Company’s financial position, operating performance, or cash flows over the next 12 months cannot be determined with any degree of certainty due to a number of factors outside of the Company’s control. The
SILVERCREST METALS INC.
13
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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
Company attempts to mitigate inflationary risks through various strategies including, but not limited to, continuous balance sheet management in which the Company invests in assets in an attempt to generate a rate of return. As of March 31, 2024, the Company held bullion with a fair value of $20.0 million, (comprised of 2,784 gold ounces and 565,319 silver ounces). The cost basis of the bullion held as of March 31, 2024 was $18.7 million. The Company has strategically diversified its treasury assets into bullion to mitigate the effects of inflation on its cash reserves.
During the quarter ended March 31, 2024, the Company's working capital increased by $21.5 million, inclusive of a $14.0 million decreased in Treasury assets. The working capital increase is mainly due to the decrease in tax liabilities, from the income tax payment made in Q1, 2024. The payments for mineral properties, plant and equipment contributed to the decrease in the treasury assets.
Outstanding Share and Option Amounts
As at March 31, 2024, the Company had approximately 4.5 million stock options outstanding (each exercisable for one common share of the Company), with exercise prices in the range of CAD $4.54 to CAD $12.63 and a weighted average life of 2.3 years. Approximately 3.1 million of the stock options were vested and exercisable at March 31, 2024, with an average weighted exercise price of CAD $9.28 per share.

The following table sets out the common shares and options outstanding as at the date of this MD&A:
Outstanding as at May 14, 2024
Common Shares147,260,572 
Options(1)
4,334,500 
151,595,072 
(1)Each option is convertible or exchangeable into one common share of the Company.
8. Non-GAAP Financial Measures
Management believes that the following non-GAAP financial measures will enable certain investors to better evaluate the Company's performance, liquidity, and ability to generate cash flow. These measures do not have any standardized definition under IFRS Accounting Standards, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. Other companies may calculate these measures differently.
Average realized gold and silver price
Average realized gold and silver price per ounce is calculated by dividing the Company’s gross revenue from gold or silver sales for the relevant period by the gold or silver ounces sold, respectively. The Company believes the measure is useful in understanding the metal prices realized by the Company throughout the period. The following table reconciles revenue and metal sold during the period with average realized prices:
Three months ended
March 31,
20242023
Gold revenue30,92326,676
Gold ounces sold during the period15,00014,200
Average realized gold price (per oz sold)$2,062 $1,879 
Silver revenue32,72331,307
Silver ounces sold during the period1,400,0001,361,000
Average realized silver price (per oz sold)$23.37 $23.00 
SILVERCREST METALS INC.
14
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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
Capital expenditures
Capital expenditures are classified into sustaining capital expenditures or non-sustaining capital expenditures depending on the nature of the expenditure. Sustaining capital expenditures are those required to support current production levels. Non-sustaining capital expenditures represent the capital spending at new projects and major, discrete projects at existing operations intended to increase production or extend mine life. Management believes this to be a useful indicator of the purpose of capital expenditures and this distinction is an input into the calculation of AISC.
The following table reconciles payments for mineral properties, plant and equipment, and equipment leases to sustaining and non-sustaining capital expenditures:
Three months ended
March 31,
20242023
Payments for mineral properties, plant and equipment$14,804 $7,930 
Payments for equipment leases11 43 
Total capital expenditures14,815 7,973 
Less: Non-sustaining capital expenditures(4,586)(320)
Sustaining capital expenditures$10,229 $7,653 
Free cash flow
Free cash flow, a non-GAAP financial metric, subtracts sustaining capital expenditures from net cash provided by operating activities, serving as a valuable indicator of our capacity to generate cash from operations post-sustaining capital investments. The following table reconciles this non-GAAP financial measure to the most directly comparable IFRS Accounting Standard measure.
Three months ended
March 31,
20242023
Operating cash flow$(1,121)$26,617 
Less: sustaining capital expenditures(10,229)(7,653)
Free cash flow$(11,350)$18,964 
Free cash flow per share (basic)$(0.08)$0.13 
Weighted average shares outstanding (basic)146,954147,200
Working capital
Working capital is calculated as current assets less current liabilities. The Company uses working capital as a measure of the Company’s operational efficiency and short-term financial health.
Operating cash flow before change in working capital
The Company uses operating cash flow before change in working capital to determine the Company’s ability to generate cash flow from operations, and is calculated by adding back the change in working capital to operating cash flow as reported in the consolidated statements of cash flows.
Three months ended
March 31,
2024
2023(1)
Operating cash flow$(1,121)$26,617 
Less: change in working capital18,735 8,544 
Operating cash flow before change in working capital$17,614 $35,161 
Operating cash flow per share (basic)$(0.01)$0.18 
Operating cash flow before change in working capital per share (basic)$0.12 $0.24 
Weighted average shares outstanding (basic)146,954147,200
(1)Q1, 2023 operating cash flow has been adjusted to include $1.1 million in interest paid and $0.7 million in interest received which was previously presented in financing and investing activities, respectively.
SILVERCREST METALS INC.
15
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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
Treasury assets
SilverCrest calculates treasury assets as cash and cash equivalents plus bullion as reported in the consolidated statements of financial position. Management believes that treasury assets provide a useful measure of the Company's most liquid assets that can be used to settle short-term obligations or provide liquidity. Treasury assets are calculated as follows:
March 31
2024		December 31
2023
Cash and cash equivalents$71,085 $85,964 
Bullion20,039 19,191 
Treasury assets$91,124 $105,155 
Cash costs
Cash costs are a non-GAAP financial metric which includes production costs, and government royalties. Management uses this measure to monitor the performance of its mining operation and ability to generate positive cash flow on a site basis.
AISC
All-in sustaining costs, a non-GAAP financial measure, starts with cash costs and includes general and administrative costs, reclamation accretion expense and sustaining capital expenditures. Management uses this measure to monitor the performance of its mining operation and ability to generate positive cash flow on an overall company basis.
Cash costs and AISC are calculated as follows:
Three months ended
March 31,
20242023
Production costs$18,203 $18,038 
Government royalties190 294 
Total cash costs18,39318,332
General and administrative expenses4,6953,533
Reclamation accretion expense136107
Sustaining capital expenditures10,229 5,181 
Total AISC$33,453 $27,153 
Silver equivalent ounces sold (koz)2,5932,490
Cash costs (per AgEq sold)(1)
$7.09 $7.36 
AISC (per AgEq sold)(1)
$12.90 $10.90 
(1)Q1, 2023 Figures have been recast to align with the current period’s presentation as follows: 1. Silver equivalent ounces sold have been adjusted to reflect a ratio of 79.51:1, used in the 2023 Technical Report, from the previous 86.9:1, and 2. Cash costs increased by $2.1 million from the exclusion of adjustments for corporate salaries and other expenses, and changes in inventories.
9. Review of Quarterly Results
The following table sets out selected quarterly results over a period encompassing the most recently completed eight quarters. The most significant factors affecting results in the quarters presented were the commissioning of the Las Chispas plant during Q2, 2022 with revenue, production costs and depreciation recognized starting in Q3, 2022. Additionally, the Company's net income was impacted by foreign exchange gains and losses on foreign denominated cash and cash equivalents and VAT receivables.
Quarter Ended
Q1, 2024Q4, 2023Q3, 2023Q2, 2023
Revenue$63,646 $61,320 $63,828 $61,999 
Mine operating earnings$37,477 $36,947 $37,460 $38,293 
Earnings for the period$33,864 $35,917 $29,936 $23,702 
Earnings per common share - basic$0.23 $0.24 $0.20 $0.16 
Earnings per common share - diluted$0.23 $0.24 $0.20 $0.16 
SILVERCREST METALS INC.
16
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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
Quarter Ended
Q1, 2023Q4, 2022Q3, 2022Q2, 2022
Revenue$57,983 $40,791 $2,719 $- 
Mine operating earnings$35,606 $26,496 $1,924 $- 
Earnings for the period$27,165 $5,231 $25,212 $9,605 
Earnings per common share - basic$0.18 $0.03 $0.17 $0.07 
Earnings per common share - diluted$0.18 $0.04 $0.17 $0.06 
10. Related Party Transactions
The Company’s related parties include its subsidiaries, and key management personnel. Transactions with the Company's subsidiaries have been eliminated on consolidation.
11. Risks and Uncertainties
The Company is exposed to many risks in conducting its business, including but not limited to: financial instrument risks being: liquidity risk, price risk, credit risk, currency risk, and interest rate risk. Other risks include mineral project risk, income tax risk, and health crisis risk. These risks are described below.
Financial Instrument Risk
The Company is exposed to financial risks, including credit risk, liquidity risk, price risk, interest rate risk, and currency risk. The Company's exposures and management of each of those risks is described in the 2023 Annual Financial Statements under Note 8 "Financial Instruments".
1)Credit Risk
Credit risk is the risk that a counterparty may fail to satisfy its performance obligations under the terms of a financial instrument. Credit risk results from cash and cash equivalents and trade and other receivables.
The Company manages credit risk on its cash and cash equivalents by diversifying these asset holdings with multiple highly rated financial institutions, including the Bank of Montreal ("BMO") and the Bank of Nova Scotia (“BNS”) in Canada and BNS in Mexico. Further, credit risk on trade and other receivables is managed by ensuring amounts are receivable from highly rated financial institutions. The Company has not recognized any expected credit losses with respect to trade and other receivables. For cash and cash equivalents and trade and trade and other receivables, credit risk exposure equals the carrying amount on the balance sheet.
2)Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. We manage liquidity risk through the ongoing monitoring of projected and actual cash flows. Our reporting, planning, and budgeting procedures play a crucial role in assessing the funds necessary to sustain both our regular operational needs, expansion and exploration initiatives. We consistently scrutinize both capital and operating expenses, actively seeking opportunities to reduce and limit non-essential expenditures. The Company also ensures its cash and cash equivalents are held with high quality financial institutions and available on demand. The Company also has access to its $70 million Revolving Credit Facility which remains undrawn at March 31, 2024.
3)Currency Risk
The functional and reporting currency of the Company including its subsidiaries is the United States dollar ("USD") and the Company reports results using USD; however, the Company operates in jurisdictions that utilize the Canadian dollar ("CAD") and Mexican peso ("MXN"). As a consequence, the financial results of the Company’s operations as reported in USD are subject to changes in the value of the USD relative to these local currencies. Since the Company’s sales are denominated in USD and a portion of the Company’s operating costs and capital spending are in local currencies, the Company is negatively impacted by changes in local currencies relative to the USD.
In order to mitigate its exposure to currency risk, the Company has entered into option contracts designed to limit the effective exchange rate between the Mexican peso and US dollar. The notional value of open contracts as at March
SILVERCREST METALS INC.
17
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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
31, 2024 totaled $34 million, with maturities from April 2024 until January 2025 and exchange rates between 17.06 and 17.74. The positive mark-to-market on open contracts at March 31, 2024 was $0.5 million.
4)Interest Rate Risk
Interest rate risk is the risk that the fair values and future cash flows of the Company will fluctuate because of changes in market interest rates which will impact the yield generated on cash and cash equivalent balances and the interest rates paid on any drawn portion of the Company's Revolving Credit Facility, as noted in the MD&A section "7. Liquidity and Capital Position".
5)Price Risk
The Company is exposed to price risk on precious metals that impact the valuation of the Company’s derivative positions, comprised of gold and silver call options written, which has a direct and immediate impact on net earnings. The prices of precious metals are volatile and affected by many factors beyond the Company’s control, and there can be no assurance that precious metal prices will not be subject to wide fluctuations in the future. A substantial or extended change in precious metal prices could have an adverse effect on the Company’s financial position, income, and cash flows.
Mineral Project Risk
The Company is exposed to risk factors inherent in operating a precious metals mine. The commercial viability of these operations hinges on various elements, including mining and processing costs, deposit characteristics such as size, grade, and infrastructure accessibility, as well as the cyclical nature of metal prices and governmental regulations. Factors such as flooding, permit issues, infrastructure failures, and community-related concerns also pose threats to our mining operation. While the precise impact of these factors is uncertain, their convergence could render the mine economically unfeasible, potentially leading to closure.
Income Tax and VAT Risk
In the normal course of business, the Company is subject to assessment by taxation authorities in various jurisdictions. VAT, income tax provisions and income tax filing positions (together "Tax") require estimates and interpretations of income tax rules and regulations of the various jurisdictions in which the Company operates and judgments as to their interpretation and application to the Company's specific situation. The Company's business and operations of the business and operations of its subsidiaries is complex, and the Company has, historically, undertaken a number of significant financings and other material transactions. While the Company's management believes that the provision for Taxes is appropriate and in accordance with IFRS Accounting Standards and applicable legislation and regulations, Tax filing positions are subject to review and adjustment by taxation authorities, which may challenge the Company's interpretation of the applicable tax legislation and regulations. Any review or adjustment may have a material adverse effect on the Company's financial condition.
The introduction of new Tax laws, Tax reforms, regulations or rules, or changes to, or differing interpretation of, or application of, existing Tax laws, regulations or rules in Canada or México or any other countries in which the Company's subsidiaries may be located, or to which shipments of products are made, could result in an decrease or increase in the Company's Taxes receivables or payables, respectively, or other governmental charges, interest and penalties, duties or impositions. No assurance can be given that new Tax laws, tax reforms, regulations or rules will not be enacted or that existing Tax laws, regulations or rules will not be changed, interpreted or applied in a manner which could result in the Company's profits being subject to additional taxation, interest and penalties, or which could otherwise have a material adverse effect on the Company.
Health Crises Risk
Global markets, including the mining industry, have faced adverse impacts from emerging infectious diseases, notably the recent COVID-19 pandemic. A significant resurgence or continued outbreaks of COVID-19 or other health pandemics could trigger a widespread crisis, leading to economic downturns affecting many countries. Such volatility in global economic conditions could adversely affect commodity prices, demand for metals, credit availability, investor confidence, and overall financial market liquidity, thereby impacting the Company's business operations and the market value of its securities. Moreover, inadequate responses to infectious diseases or government-imposed restrictions may disrupt mining operations, leading to labor shortages, supply chain disruptions, and regulatory challenges. Given the uncertainties surrounding the geographic spread and duration of outbreaks, the Company cannot accurately predict the extent of the impact on its operations or financial results.
SILVERCREST METALS INC.
18
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Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
Given that the Company operates internationally, determining how the Company may be impacted or when operations may return to normal is complex. Any new outbreaks or the persistence of existing ones present substantial risks to the Company's business and operational performance. Hence, continuous monitoring of global health situations and implementing responsive measures are crucial for mitigating potential adverse effects.
Besides the risks discussed elsewhere in this MD&A, there are other risks and uncertainties that have affected the Company's financial statements or that may affect them in the future. See "Risk Factors" in the Company's AIF for other risks affecting or that could potentially affect the Company.
Macroeconomic Risk
Global financial markets have experienced extreme volatility as a result of the recent COVID-19 pandemic and current geopolitical conflicts. Events in global financial markets, and the volatility of global financial conditions, will continue to have an impact on the global economy. Many industries, including the mining sector, are impacted by financial markets. Some of the key impacts of financial market turmoil include devaluations and high volatility in global equity, commodity, foreign exchange and precious metal markets and a lack of market liquidity. Financial institutions and large corporations may be forced into bankruptcy or need to be rescued by government authorities. Access to financing may also be negatively impacted by future liquidity crises throughout the world. These factors may impact the Company’s ability to obtain equity or debt financing and, where available, to obtain such financing on terms favorable to the Company. Increased levels of volatility and market turmoil could have an adverse impact on the Company’s operations and planned growth and the trading price of the securities of the Company may be adversely affected.
Bullion Risk
The Company has strategically allocated funds into physical gold and silver bullion, aiming to establish a stable store of value to counteract the effects of inflation on its cash reserves. These bullion holdings are recorded at fair value, with any resulting gains or losses reflected in the Consolidated Statement of Earnings. Due to the inherent volatility in precious metal prices, there is no guarantee that these bullion investments will effectively shield against inflation. In fact, fluctuations in market prices may lead to potential mark-to-market losses.
12. Material Accounting Policies, Standards and Judgements
During the year ended December 31, 2023, the Company retrospectively applied an accounting policy change. This adjustment involved the inclusion of cash flows from both interest paid and received within operating activities in the consolidated statements of cash flows. This decision was made as the Company views these forms of financing and investment to be for the benefit of operations, in consideration of a full year of production. The following table provides a reconciliation of the impact of the accounting policy change on the amounts presented for the three months ended March 31, 2023:
Amount
Interest paid(1)
(1,077)
Interest received(2)
721 
(1)Previously presented as loan interest payments included in financing activities.
(2)Previously presented in investing activities.
The accounting policies applied in the preparation of the unaudited condensed interim consolidated financial statements as at and for the three months ended March 31, 2024, are consistent with those applied and disclosed in the 2023 Annual Financial Statements with the exception of the mandatory adoption of certain amendments noted below:
Application of New and Revised Accounting Standards
Presentation of Financial Statements (Amendments to IAS 1)
We have adopted the amendments to IAS 1 Presentation of Financial Statements regarding the classification of liabilities as current or non-current based on contractual rights that are in existence at the end of the reporting period and affected by expectations about whether an entity will exercise its right to defer settlement. A liability not due over the next twelve months is classified as non-current even if management intends or expects to settle the liability within twelve months. The amendment also introduces a definition of ‘settlement’ to make clear that settlement refers to the transfer of cash, equity instruments, other assets, or services to the counterparty. The amendment issued in October 2022 also clarifies how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a
SILVERCREST METALS INC.
19
silvercrest_color6.jpg
Management Discussion and Analysis
For the three months ended March 31, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
liability. Covenants to be compiled with after the reporting date do not affect the classification of debt as current or non-current at the reporting date. The amendments are effective for annual reporting periods beginning on or after January 1, 2024. These amendments did not have a material impact on the Company.
Accounting Standards Issued but Not Yet Applied
Presentation and Disclosure in Financial Statements (IFRS 18)
IFRS 18 has been issued to achieve comparability of the financial performance of similar entities. The standard, which replaces IAS 1, impacts the presentation of primary financial statements and notes, mainly the income statement where companies will be required to present separate categories of income and expense for operating, investing, and financing activities with prescribed subtotals for each new category. IFRS 18 will require management-defined performance measures to be explained and included in a separate note within the consolidated financial statement. The standard is effective for financial statements beginning on January 1, 2027, including interim financial statements and requires retrospective application. The Company is currently assessing the impact of this amendment.
There are no other standards or amendments or interpretations to existing standards issued but not yet effective that are expected to have a material impact on the Company.
13. Disclosure and Internal Control Procedures
Management is responsible for establishing and maintaining effective internal control over financial reporting and disclosure controls and procedures as defined in our 2023 annual MD&A.
The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of the Company’s financial reporting for external purposes in accordance with IFRS Accounting Standards. Disclosure controls and procedures are designed to provide reasonable assurance that other financial information disclosed publicly fairly presents in all material respects the financial condition, results of operations and cash flows of the Company.
Together, the internal control over financial reporting and disclosure controls and procedures frameworks provide internal control over financial reporting and disclosure. Due to its inherent limitations, internal control over financial reporting and disclosure may not prevent or detect all misstatements. Further, the effectiveness of internal control is subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may change.
There were no changes in the Company’s internal control over financial reporting and disclosure controls and procedures during the three months ended March 31, 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
The Company's management, at the direction of the CEO and CFO, will continue to assess the effectiveness of the Company's internal control over financial reporting and disclosure controls and procedures, and may make modifications if required.
SILVERCREST METALS INC.
20

Form 52-109F2
Certification of Interim Filings
Full Certificate

I, N. Eric Fier, Chief Executive Officer of SilverCrest Metals Inc., certify the following:
1.    Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of SilverCrest Metals Inc. (the “issuer”) for the interim period ended March 31, 2024.

2.     No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)     designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)    material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)    information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)     designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1    Control framework: The control framework the issuer’s other certifying officer and I used to design the issuer’s ICFR is the Internal Control – Integrated Framework (2013) (COSO Framework) published by The Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2    ICFR – material weakness relating to design: N/A

5.3    Limitation on scope of design: N/A

6.    Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2024 and ended on March 31, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: May 14, 2024

“N. Eric Fier”
_______________________
N. Eric Fier
Chief Executive Officer

1


Form 52-109F2
Certification of Interim Filings
Full Certificate

I, Anne Yong, Chief Financial Officer of SilverCrest Metals Inc., certify the following:
1.    Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of SilverCrest Metals Inc. (the “issuer”) for the interim period ended March 31, 2024.

2.     No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)     designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)    material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)    information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)     designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1    Control framework: The control framework the issuer’s other certifying officer and I used to design the issuer’s ICFR is the Internal Control – Integrated Framework (2013) (COSO Framework) published by The Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2    ICFR – material weakness relating to design: N/A

5.3    Limitation on scope of design: N/A

6.    Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2024 and ended on March 31, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: May 14, 2024

“Anne Yong”
_______________________
Anne Yong
Chief Financial Officer
1



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SilverCrest Reports First Quarter 2024 Financial Results
Financial and Operational Flexibility Continue to Drive Strong Results
TSX: SIL | NYSE American: SILV                               For Immediate Release
VANCOUVER, BC – May 14, 2024 – SilverCrest Metals Inc. (“SilverCrest” or the “Company”) is pleased to announce its financial results for the three months ended March 31, 2024 (“Q1, 2024”). This release provides additional operational results to supplement the April 17, 2024 release of Q1, 2024 operational highlights from the Company’s Las Chispas operation (“Las Chispas” or the “Operation”) located in Sonora, Mexico. All amounts herein are presented in United States Dollars (“US$”), unless otherwise stated.
N. Eric Fier, CEO, commented, “We are proud to deliver another quarter of strong financial and operational performance. Our ability to deliver consistent results is a function of the operational and financial flexibility we have created, which was showcased in a number of ways this quarter. The planned mobilization of our new underground mining contractor began in February, with ramp-up of the underground benefiting from excellent cooperation between our new and outgoing contractors leading to a 10% increase in average daily mining rates from Q4, 2023. Our ability to strategically blend from surface stockpiles and underground resulted in record silver equivalent process grades of 874 grams per tonne and recoveries of 98.3%, supporting higher than expected silver equivalent sales, despite planned processing plant maintenance. Our financial flexibility supported a planned lump sum payment for 2023 taxes and duties of $26.2 million while still ending the quarter with total treasury assets of $91.1 million, including $20.0 million of bullion. Our financial strength allows us to hold bullion thereby increasing the exposure to the metal for our shareholders without additional operating risk. The strong start to the year positions us favourably to deliver on our 2024 guidance.”
References to average realized gold and silver price, sustaining and non-sustaining capital expenditures, free cash flow, free cash flow per share (basic), working capital, operating cash flow before changes in working capital, operating cash flow before changes in working capital per share (basic), operating cash flow per share (basic), treasury assets, cash costs, and corporate all-in sustaining costs (“AISC”) are described in more detail in the "Non-GAAP Financial Measures" section of this news release.
Q1, 2024 Highlights
•Recovered 14,719 ounces (“oz”) gold (“Au”) and 1.4 million oz silver (“Ag”), or 2.6 million oz silver equivalent (“AgEq”1).
•Sold 15,000 oz Au and 1.4 million oz Ag (2.6 million oz AgEq) at average realized prices of $2,062/oz Au and $23.37/oz Ag.
•Revenue of $63.6 million and cost of sales of $26.2 million.
•Mine operating earnings of $37.5 million (59% operating margin), exceeded the $36.9 million generated in Q4, 2023.
•Net earnings of $33.9 million or basic earnings of $0.23 per share.
•Cash costs of $7.09 per oz AgEq sold and AISC of $12.90 per oz AgEq sold.
•Operating cash outflow of $1.1 million and operating cash flow before changes in working capital of $17.6 million or $0.12 per share, after payment of 2023 taxes and duties which totaled $26.2 million.
•Free cash flow was negative $11.4 million or $0.08 per share for the quarter, due largely to the payment of 2023 taxes and duties and a $7.5 million prepayment for mining services.
1 Silver equivalent (“AgEq”) ratio used in this news release of 79.51:1 based on the Las Chispas Operation Technical Report dated September 5, 2023, with an effective date of July 19, 2023 (the “2023 Technical Report”).
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•Reported retained earnings of $21.5 million on the Company’s balance sheet at the end of the quarter, achieving this milestone in only the sixth quarter since commercial production was declared.
•Ended the quarter with treasury assets totaling $91.1 million ($71.1 million cash and $20.0 million in bullion) and no debt outstanding.
First Quarter Operating Performance
The following operating performance refers to operating cash flow per share (basic), free cash flow, free cash flow per share (basic), cash costs, AISC, and treasury assets which are described in more detail in the “Non-GAAP Financial Measures" section of this news release.
OPERATIONALUnit
Q1, 2024
Q1, 2023
Ore minedtonnes85,73763,600
Underground developmentkm4.22.8
Ore milled(1)
tonnes93,373104,400
Average daily mill throughput
tonnes per day (“tpd”)
1,0261,160
Gold
Average gradegpt4.974.06
Recovery%98.6 %97.5 %
Recoveredoz14,71913,300
Soldoz15,00014,200
Silver
Average gradegpt479419
Recovery%98.0 %91.9 %
Recoveredmillion oz1.411.29
Soldmillion oz1.401.36
Silver equivalent(2)
Average gradegpt874742
Recovery%98.3 %94.4 %
Recoveredmillion oz2.582.35
Soldmillion oz2.592.49
FINANCIALUnit
Q1, 2024
Q1, 2023
Revenue$ millions$63.6 $58.0 
Cost of sales$ millions$(26.2)$(22.4)
Mine operating earnings
$ millions$37.5 $35.6 
Earnings for the period$ millions$33.9 $27.2 
Earnings per share (basic)$/share$0.23 $0.18 
Operating cash flow
$ millions$(1.1)$26.6 
Operating cash flow per share (basic)
$/share$(0.01)$0.18 
Free cash flow$ millions$(11.4)$19.0 
Free cash flow per share (basic)
$/share
$(0.08)$0.13 
Cash costs(2)
$/oz AgEq$7.09 $7.36 
AISC(2)
$/oz AgEq$12.90 $10.90 
Unit
March 31, 2024December 31, 2023
Cash and cash equivalents$ millions$71.1 $86.0 
Bullion$ millions$20.0 $19.2 
Treasury assets$ millions$91.1 $105.2 
(1)Ore milled includes material from stockpiles and ore mined.
(2)Q1, 2023 figures have been recast to align with the current period’s presentation as follows: 1. Silver equivalent ounces sold have been adjusted to reflect a ratio of 79.51:1, used in the 2023 Technical Report, from the previous 86.9:1, and 2. Cash costs increased by $2.1 million from the exclusion of adjustments for corporate salaries and other expenses, and changes in inventories.
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Underground
In the quarter, a total of 85,737 tonnes were mined from the underground. Mining rates in Q1, 2024 averaged 942 tpd, a 10% increase from Q4, 2023. Ramp-up of the underground is planned to continue through 2024 with a target to exit the year at over 1,050 tpd. Key performance indicators which track the quality of mining, such as ore loss and mining dilution, continued to track to or better than plan.
The mobilization of the new underground mining contractor is largely on pace and continuing to progress, with good collaboration and coordination between the new and outgoing contractors contributing to the strong underground mining rates in the quarter. Mobilization of our new contractor is expected to continue through Q3, 2024.
In the quarter, the Company completed 4.2 km of horizontal and vertical underground development. Development rates and costs were inline with expectations.
Processing Plant
Average daily mill throughput was 1,026 tpd in Q1, 2024, a decrease from previous quarters due to planned maintenance that was completed ahead of schedule. Process plant availability returned to 92% in March 2024, which is in the range of planned availability.
Average processed grades of 4.97 gpt Au and 479 gpt Ag, or 874 gpt AgEq marked a record for silver equivalent processed grades. These higher grades were strategically planned to offset the planned downtime in Q1, 2024, facilitated by sizable surface stockpiles and a flexible mine plan. Process grades are expected to moderate in Q2, 2024 as processing plant rates increase to be more inline with the expected average rate for the remainder of 2024 of 1,200 tpd.
Average process recoveries in Q1, 2024 were 98.6% Au and 98.0% Ag, or 98.3% AgEq, setting another record for the plant. These higher recoveries benefited from consistent and higher grade feed.
Sustaining Capital
Sustaining capital totaled $10.2 million in Q1, 2024 which consisted largely of the costs attributed to underground development and infrastructure. Expenditures in the quarter were lower than planned due to the timing of some payments and delay in execution of some surface infrastructure projects which are expected to be made in Q2, 2024. The delay in sustaining capital spending is not expected to impact production with 2024 sustaining capital still expected to be in the range of $40.0 to $44.0 million.
Costs
During the quarter, cash costs averaged $7.09 per oz AgEq sold. Cash costs were below the 2024 guidance range of $9.50 to $10.00 per oz AgEq sold, mainly due to lower volume processed, higher grades, and lower maintenance costs. Cash costs are expected to increase over the balance of the year to align with 2024 full year guidance.
AISC averaged $12.90 per oz AgEq sold in Q1, 2024, lower than expected due primarily to a combination of lower cash costs and sustaining capital costs. It is anticipated that AISC will increase in Q2, 2024, with 2024 annual AISC guidance of $15.00 to $15.90 per oz AgEq sold reiterated.
Exploration
Beginning in H2, 2023 through Q1, 2024, a combination of infill (75%) and expansion (25%) drilling (161 holes totaling 34,384 metres) was completed to test Inferred resources that were identified as high priority for potential conversion to Indicated resources in the 2023 Technical Report. Approximately 10 million oz AgEq were targeted for potential conversion to Indicated resources in proximity to existing or planned underground development.
Drilling targeted the Babicanora Area where seven veins were tested. Drill results confirmed mineral continuity in these targets, with results in general verifying the grades and thicknesses of the targeted Inferred resource proximal to underground infrastructure as presented in the 2023 Technical Report. Opportunities for further expansion of mineralization were identified in the Babicanora Norte Splay 3 vein (“BAN Splay 3”) and Babicanora Sur vein ("BAS") where drilling extended the mineralized footprint down dip and to the southeast of BAN Splay 3 and to the northwest of BAS beyond the initial area of the targeted Inferred resources. These results are being compiled and assessed for the potential conversion to Indicated resources for reserve consideration.
Drill intercept highlights from 161 drillholes are presented in the Company’s Management’s Discussion and Analysis for the three months ended March 31, 2024.
2024 Las Chispas and Regional Exploration Program
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With the majority of the Las Chispas high priority Inferred resources now drill tested, exploration efforts will return to earlier stage targeting at Las Chispas and regionally.
The Company’s strong regional geological knowledge and expertise is being applied to identify potential nearby satellite deposits which could eventually contribute additional feed to the Las Chispas plant. Throughout 2023 a regional evaluation program was carried out to identify priority opportunities. In 2024, a number of targets, including Picacho, have been chosen for further work including mapping, sampling, and drilling.
The 2024 exploration budget of $12.0 to $14.0 million is inclusive of this regional work.
Selected First Quarter Financial Results
Revenue
During Q1, 2024, the Company sold a total of 15,000 oz Au and 1.4 million oz Ag at average realized prices of $2,062/oz Au and $23.37/oz Ag, generating revenue of $63.6 million. During Q1, 2023, the Company sold a total of 14,200 oz Au and 1.4 million oz Ag at average realized prices of $1,879/oz Au and $23.00/oz Ag, generating revenue of $58.0 million. The increase in revenue for Q1, 2024 was driven by higher Au and Ag prices and quantities sold.
Income
Q1, 2024 net earnings of $33.9 million, or $0.23 per share, was $6.7 million more than Q1, 2023 net earnings of $27.2 million, or $0.18 per share, primarily related to $3.5 million in lower taxes from utilization of tax attributes in the current quarter, $1.9 million in higher mine operating earnings resulting from higher realized metal prices and increased sales quantities, and $1.4 million of other income, from bullion and derivative gains, in Q1, 2024 with no amount in Q1, 2023. Net earnings in both Q1, 2024 and Q1, 2023 benefited from relatively low effective tax rates, well below anticipated long term tax rates which are expected to approximate statutory corporate tax rates. The effective tax rate for Q1, 2024 was 5%.
Cash Flow
In Q1, 2024, cash flow used by operating activities was $1.1 million, primarily the result of a $26.2 million payment for taxes and duties, a $7.5 million prepayment for mining services, offset by strong cash mine operating earnings in the quarter.
The Company expects to pay a further $1.2 million in 2023 income taxes in Q2, 2024 and begin the payment of 2024 monthly income tax installments. Mining duties are paid annually in the first quarter based on the previous financial year. Guidance for tax payments related to taxable income generated in 2024 is $28.0 to $33.0 million based on metal prices of $1,850/oz Au and $22.80/oz Ag and Mexican peso to US dollar of 17:1.
During the quarter, a total of $14.8 million was recorded in payments for mineral properties, plant, and equipment, of which $10.2 million was related to sustaining capital expenditures. Q1, 2024 free cash flow was negative $11.4 million (or $0.08 per share) largely due to the $26.2 million payment for 2023 taxes and duties.
Financial Position
As at March 31, 2024, the Company had treasury assets of $91.1 million ($71.1 million cash and $20.0 million in bullion). The Company also had $4.9 million in trade and other receivables related to metal sales, which was received early in Q2, 2024. The Company remains debt free with access to an undrawn $70.0 million revolving facility.
Bullion assets increased by 4% during the quarter as a result of strong metal prices. Since undertaking the bullion holding strategy in Q1, 2023, bullion has outperformed all of the other currencies utilized by the Company and continues to add increased exposure to gold and silver for investors.
The Company’s working capital was $148.3 million at March 31, 2024, an increase of $21.5 million from December 31, 2023, primarily due to the payment of income tax liabilities which were accrued at the end of 2023.
ESG
In Q1, 2024 installation of two kilometres of pipeline for water conduction for agricultural use in the community was initiated as part of the Company’s ongoing commitment to water stewardship.
Also in the quarter, work continued to advance efforts to integrate renewable solar power at Las Chispas. This program is expected to be underway through 2024 with a target to begin implementation of a solar installation in 2025. The benefits of this program are expected to include cost savings and a reduction in GHG emissions.
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First Quarter 2024 Conference Call
A conference call to discuss the Company’s Q1, 2024 operational and financial results will be held Wednesday, May 15, 2024 at 8:00 a.m. PT / 11:00 a.m. ET. To participate in the conference call, please dial the numbers below.
Date & Time:     Wednesday May 15, 2024 at 8:00 a.m. PT / 11:00 a.m. ET

Telephone:    North America Toll Free: 1-800-274-8461
        Conference ID: SILVER (745837)
Webcast:     https://silvercrestmetals.com/investors/presentations/
ABOUT SILVERCREST METALS INC.
SilverCrest is a Canadian precious metals producer headquartered in Vancouver, BC. The Company’s principal focus is its Las Chispas Operation in Sonora, Mexico. SilverCrest has an ongoing initiative to increase its asset base by expanding current resources and reserves, acquiring, discovering, and developing high value precious metals projects and ultimately operating multiple silver-gold mines in the Americas. 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.
For Further Information:
SilverCrest Metals Inc.
Contact:
Telephone:
Fax:
Toll Free:
Email:
Website:
Lindsay Bahadir, Manager Investor Relations and Corporate Communications
+1 (604) 694-1730
+1 (604) 357-1313
1-866-691-1730 (Canada & USA)
info@silvercrestmetals.com
www.silvercrestmetals.com
570 Granville Street, Suite 501
Vancouver, British Columbia V6C 3P1
Non-GAAP Financial Measures
Management believes that the following non-GAAP financial measures will enable certain investors to better evaluate the Company's performance, liquidity, and ability to generate cash flow. These measures do not have any standardized definition under IFRS, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these measures differently.
Average realized gold and silver price
Average realized gold and silver price per ounce is calculated by dividing the Company’s gross revenue from gold or silver sales for the relevant period by the gold or silver ounces sold, respectively. The Company believes the measure is useful in understanding the metal prices realized by the Company throughout the period. The following table reconciles revenue and metal sold during the period with average realized prices:
Three months ended
March 31,
20242023
Gold revenue30,92326,676
Gold ounces sold during the period15,00014,200
Average realized gold price (per oz sold)$2,062 $1,879 
Silver revenue32,72331,307
Silver ounces sold during the period1,400,0001,361,000
Average realized silver price (per oz sold)$23.37 $23.00 
Capital expenditures
Capital expenditures are classified into sustaining capital expenditures or non-sustaining capital expenditures depending on the nature of the expenditure. Sustaining capital expenditures are those required to support current production levels. Non-sustaining capital expenditures represent the capital spending at new projects and major,
5


discrete projects at existing operations intended to increase production or extend mine life. Management believes this to be a useful indicator of the purpose of capital expenditures and this distinction is an input into the calculation of AISC.
The following table reconciles payments for mineral properties, plant and equipment, and equipment leases to sustaining and non-sustaining capital expenditures:
Three months ended
March 31,
20242023
Payments for mineral properties, plant and equipment$14,804 $7,930 
Payments for equipment leases11 43 
Total capital expenditures14,815 7,973 
Less: Non-sustaining capital expenditures(4,586)(320)
Sustaining capital expenditures$10,229 $7,653 
Free cash flow
Free cash flow subtracts sustaining capital expenditures from net cash provided by operating activities, serving as a valuable indicator of our capacity to generate cash from operations post-sustaining capital investments. The following table reconciles this non-GAAP financial measure to the most directly comparable IFRS measure.
Three months ended
March 31,
2024
2023(1)
Operating cash flow$(1,121)$26,617 
Less: sustaining capital expenditures(10,229)(7,653)
Free cash flow$(11,350)$18,964 
Free cash flow per share (basic)$(0.08)$0.13 
Weighted average shares outstanding (basic)146,954147,200
(1)Q1, 2023 operating cash flow has been adjusted to include $1.1 million in interest paid and $0.7 million in interest received which was previously presented in financing and investing activities, respectively.
Working capital
Working capital is calculated as current assets less current liabilities. The Company uses working capital as a measure of the Company’s operational efficiency and short-term financial health.
Operating cash flow before change in working capital
The Company uses operating cash flow before change in working capital to determine the Company’s ability to generate cash flow from operations, and is calculated by adding back the change in working capital to operating cash flow as reported in the consolidated statements of cash flows.
Three months ended
March 31,
2024
2023(1)
Operating cash flow$(1,121)$26,617 
Less: change in working capital18,735 8,544 
Operating cash flow before change in working capital$17,614 $35,161 
Operating cash flow per share (basic)$(0.01)$0.18 
Operating cash flow before change in working capital per share (basic)$0.12 $0.24 
Weighted average shares outstanding (basic)146,954147,200
(1)Q1, 2023 operating cash flow has been adjusted to include $1.1 million in interest paid and $0.7 million in interest received which was previously presented in financing and investing activities, respectively.
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Treasury assets
SilverCrest calculates treasury assets as cash and cash equivalents plus bullion as reported in the consolidated statements of financial position. Management believes that treasury assets provide a useful measure of the Company's most liquid assets that can be used to settle short-term obligations or provide liquidity. Treasury assets are calculated as follows:
March 31
2024		December 31
2023
Cash and cash equivalents$71,085 $85,964 
Bullion20,039 19,191 
Treasury assets$91,124 $105,155 
Cash costs
Cash costs include production costs, and government royalties. Management uses this measure to monitor the performance of its mining operation and ability to generate positive cash flow on a site basis.
AISC
All-in sustaining costs, a non-GAAP financial measure, starts with cash costs and includes general and administrative costs, reclamation accretion expense and sustaining capital expenditures. Management uses this measure to monitor the performance of its mining operation and ability to generate positive cash flow on an overall company basis.
Cash costs and AISC are calculated as follows:
Three months ended
March 31,
2024
2023(1)
Production costs$18,203 $18,038 
Government royalties190 294 
Total cash costs18,39318,332
General and administrative expenses4,6953,533
Reclamation accretion expense136107
Sustaining capital expenditures10,229 5,181 
Total AISC$33,453 $27,153 
Silver equivalent ounces sold (koz)2,5932,490
Cash costs (per AgEq sold)$7.09 $7.36 
AISC (per AgEq sold)$12.90 $10.90 
(1)Q1, 2023 Figures have been recast to align with the current period’s presentation as follows: 1. Silver equivalent ounces sold have been adjusted to reflect a ratio of 79.51:1, used in the 2023 Technical Report, from the previous 86.9:1, and 2. Cash costs increased by $2.1 million from the exclusion of adjustments for corporate salaries and other expenses, and changes in inventories.
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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 Company’s 2024 guidance and outlook; the amount of future production of gold and silver over any period; the strategic plans and expectations for the Company’s operation and exploration program; working capital requirements; expected recoveries; expected cash costs and outflows, Au and Ag prices and currency exchange rates. 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: present and future business strategies; continued commercial operations at the Las Chispas Operation; the environment in which the Company will operate in the future, including the price of gold and silver; estimates of capital and operating costs; production estimates; estimates of mineral resources, mineral reserves and metallurgical recoveries and mining operational risk; the reliability of mineral resource and mineral reserve estimates; mining and development costs; the conditions in general economic and financial markets; availability of skilled labour; timing and amount of expenditures related to exploration programs; and effects of regulation by governmental agencies and changes in Mexican mining legislation. The actual results could differ materially from those anticipated in these forward-looking statements as a result of risk factors including: 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; fluctuations in gold and silver prices and currency exchange rates; 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.
Qualified Persons Statement
The Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects for this news release is N. Eric Fier, CPG, P.Eng, CEO for SilverCrest, who has reviewed and approved its contents.
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