Santacruz Silver Mining Ltd (TSX-V:SCZ, OTC:SZSMF) highlighted enhanced financial flexibility and a more robust balance sheet as it reported its financial and operating results for the first quarter of 2024.
The company processed 470,749 tonnes of material, producing 4,478,122 silver equivalent ounces, which included 1,581,949 ounces of silver, 22,847 tonnes of zinc, 2,953 tonnes of lead, and 256 tonnes of copper.
The cash cost per silver equivalent ounce sold was $21.19, and the all-in-sustaining cost (AISC) was $24.12. Revenue for the quarter was $52.59 million, it reported a $215,000 earnings (adjusted EBITDA) loss for the quarter.
Most significantly, the company successfully restructured its debt with Glencore during this period.
This resulted in "enhanced financial flexibility and a more robust balance sheet”, chief executive Arturo Préstamo said in a statement.
“This strategic move has bolstered the Company’s financial position and should allow for better optimization of Santacruz's core business activities and the pursuit of long-term growth initiatives," he added.
Préstamo also noted the challenges faced during the first quarter. "Production at our Bolivian mines faced several disruptions due to various events, including national holidays, and the national population census.
Also, the Caballo Blanco operation experienced challenges including the scheduled mining in areas with lower silver grades.
The company highlighted, however, that its preparation of new areas is progressing well.
It is now expected that Caballo Blanco will mine areas with higher silver grades in the coming months, and with fewer operational disruptions, the company expects a better performance."
Elsewhere, the Zimapan mine in Mexico saw no production variances and continued to benefit from efficiency strategies implemented in late 2023.