Cerro de Pasco Resources (CSE:CDPR, OTC:GPPRF) has reported a near doubling in second-quarter production as it approaches nameplate capacity at its Santander Mine in Peru.
The company produced 10 million pounds of zinc, 820,000 pounds of lead, and 66,000 ounces of silver in the three months to June 30, 2023, representing increases of 83%, 112% and 238% respectively for the three metals from 2Q 2022.
Average mill production reached 2,050 tonnes per day, a 97% improvement over throughput achieved for the same quarter a year earlier.
Revenue for the quarter amounted to $4.5 million, down 34% from a year earlier, due to $3.9 million of negative final settlements from 1Q 2023 sales and a 35% decrease in zinc prices from the earlier quarter.
Cash costs decreased by 41% and all-in-sustaining costs (AISC) fell 35% from a year earlier due to the resumption of normal production rates and improved cost plans.
The company noted that AISC included development and new infrastructure supporting the Santander Pipe connection. The brownfield Pipe project forms a strategic cornerstone for the Santander Mine.
"CDPR delivered a solid quarter despite inflationary pressures that impacted the global mining industry,” CDPR CEO Guy Goulet commented in a statement.
“Aggressive cost reduction plans saved nearly 35% on unit costs. Revenues for Q2 2023 were severely impacted due to a negative revision in final settlements of Q1 2023 sales further exacerbated by the significant drop in zinc prices," Goulet added. "As a result, we have announced and implemented a new curtailed operating plan to sustain the Santander operation while we continue advancing the Pipe project."
The company reported positive mine operating cash flow of over $3.8 million.
As of June 30, it had cash, cash equivalents, and restricted cash of $6.1 million.
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