SilverCrest Metals (SIL) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $72.7 million and mine operating earnings of $41.5 million, driven by strong operational performance at Las Chispas and robust gold and silver prices.

• Treasury assets increased 34% to $122.3 million, with bullion holdings up 20% to $24 million, reflecting a strong balance sheet.

• Free cash flow reached $24.3 million ($0.16/share) after $15.3 million in sustaining capital, reversing a negative outflow in Q1 2024.

• Net earnings were $6.5 million ($0.04/share), impacted by Mexican peso depreciation and non-cash deferred tax expense.

• Management changes included the appointment of Rob Doyle as interim CFO and the release of the second annual ESG report, highlighting water stewardship and community engagement.

Financial highlights

• Q2 2024 revenue was $72.7 million, up from $62.0 million in Q2 2023 and $63.6 million in Q1 2024.

• Mine operating earnings reached $41.5 million (57% margin), compared to $38.3 million in Q2 2023.

• Operating cash flow was $39.6 million ($0.27/share); free cash flow was $24.3 million ($0.16/share) after $15.3 million in sustaining capital.

• Net earnings for the quarter were $6.5 million ($0.04/share), down from $23.7 million in Q2 2023 and $33.9 million in Q1 2024, due to tax and FX impacts.

• Current taxes rose to $11.8 million due to full utilization of Mexican tax loss carryforwards in 2023.

Outlook and guidance

• Annual sales guidance increased to 10.0–10.3 million silver equivalent ounces, up from 9.8–10.2 million.

• 2024 cash cost guidance lowered to $9.25–$9.75/oz AgEq; all-in sustaining cost guidance reduced to $14.90–$15.75/oz AgEq.

• Sustaining capital and exploration guidance unchanged at $40–44 million and $12–14 million, respectively.

• Continued ramp-up at Las Chispas and focus on regional exploration and ESG initiatives.