Q3 2019 Highlights
Consolidated mining operations generated a gross profit of $102 including gross profit from Zimapan of $992, and gross losses from Rosario and Veta Grande of $672 and $511 respectively plus mine services gross profit of $293;
Net loss after taxes of $1,432;
Consolidated cash cost per silver equivalent ounce sold $18.52 and AISC of $22.83
Carlos Silva, COO of Santacruz, stated, "The 50% acquisition of Carrizal Mining in early Q3 of 2019 made an immediate impact to our production profile and bottom line by producing 606,589 silver equivalent ounces and generating mine operating earnings of $1 million. Further, consolidated production for Q3 2019 set a new quarterly record of 952,832 silver equivalent ounces. Consolidated production for Q4 2019 is expected to significantly increase as a result of Santacruz acquiring the remaining 50% of Carrizal Mining in early October. Management is continuing discussions with Penoles with respect to reaching an agreement for the outright acquisition of the Zimapan mine prior to the expiry of the current mine lease agreement on December 31, 2020."
Mr Silva continued, "Rosario was not as strong in Q3 as the results include a one-time charge for certain mine related expenditures while at Veta Grande operating improvements continued. We expect Rosario to become a consistent cash flow contributor by Q1 2020 and have changed the operating plan at Veta Grande with the expectation of further operating improvements."
Selected consolidated financial information for the three-month periods ended September 30 and June 30, 2019, and September 30, 2018 is presented below:
Q3 2019 Q2 2019 Q3 2018
Revenue - Mining Operations(2)11,439 3,247 1,657
Revenue - Mining Services 293 888 569
Gross Profit (Loss) (1) 102 251 (2,157)
Net (Loss) Income (1,432) (1,137) (2,888)
Net (Loss) Income Per Share - Basic ($/share) (0.01) (0.01) (0.02)
Adjusted EBITDA (1) (705) (113) (2,151)
(1) The Company reports additional non-IFRS measures which include Gross Profit (Loss) and Adjusted EBITDA. These additional financial disclosure measures are intended to provide additional information. See the Company's MD&A filed on SEDAR or its website for a reconciliation of these amounts to the unaudited interim financial statements for the respective periods.
(2) Financial results from the Zimapan Mine have been recorded on a 100% basis as they are consolidated for financial reporting purposes. Conversely, production metrics including material processed (tonnes), silver equivalent produced (ounces) and silver equivalent sold (payable ounces) have been reported as to the Company's 50% proportionate interest in the Zimapan Mine for Q3 2019.
Selected Operating Unit financial information for the three-month periods ended September 30 and June 30, 2019, and September 30, 2018 is presented below:
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