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Silvercrest Metals Inc
Symbol SIL
Shares Issued 145,868,764
Close 2022-05-10 C$ 8.58
Recent Sedar Documents

Silvercrest Metals has cash of $152M (U.S.) at March 31

2022-05-10 16:42 ET - News Release

Mr. N. Eric Fier reports

SILVERCREST REPORTS Q1, 2022 FINANCIAL RESULTS

Silvercrest Metals Inc. has released its unaudited financial results for the first quarter of 2022 (Q1 2022). The unaudited condensed consolidated interim financial statements and management's discussion and analysis (MD&A) for the three months ended March 31, 2022, are available under the company's SEDAR profile or on Silvercrest's website. All amounts herein are presented in U.S. dollars, unless otherwise stated.

The company's top priority is the high-grade, historic Las Chispas mining district in Sonora, Mexico, where it has completed a feasibility study and construction is near completion on its Las Chispas project. Details of the feasibility study, including an updated mineral resource estimate and an initial mineral reserve estimate, are provided in a technical report filed under the company's SEDAR profile, entitled, "NI 43-101 Technical Report & Feasibility Study on the Las Chispas Project," with an effective date of Jan. 4, 2021.

Q1 2022 highlights:

  • At the end of Q1 2022, overall construction progress at Las Chispas was 95.7 per cent. Start-up of the plant remains on track for Q2 2022, in line with the feasibility study for the Las Chispas project. Construction completion remains on track despite a decline in labour availability in Q1 2022, due to COVID-19, which eliminated the schedule gains made in 2021.
  • To the end of Q1 2022, the company has committed $114.6-million (83.2 per cent) of the $137.7-million feasibility study capital cost estimate and incurred $108.0-million. Of the remaining capital budget to be incurred in Q2 2022 ($29.7-million), 22 per cent ($6.3-million) is related to the Ausenco fixed price engineering, procurement and construction (EPC) contract for process plant construction, and 27 per cent ($8.0-million) is unused contingency.
  • During Q1 2022, Silvercrest completed 2.0 kilometres of underground development for a total of 19.5 kilometres of underground development since 2019. Unit underground development costs continued to track slightly under budget. Two of the four mining methods proposed in the feasibility study, long hole and resue, commenced with the extraction of select stopes in the Babicanora Main, Vista and Norte veins.
  • At the end of Q1 2022, after 2.46 million work hours completed since the start of construction, the company's lost-time injury frequency rate (LTIFR) was 0.57 per 200,000 working hours and its total recordable injury frequency rate (TRIFR) was 3.98 per 200,000 working hours. Silvercrest continues to operate a confined camp and remains committed to its COVID-19 protocols, with more than 20,000 PCR tests completed with the end of Q1 2022.
  • The H1 (first half) 2022 exploration focus at Las Chispas is to map and sample unexplored areas and generate new drill targets. The updated technical report is now targeted to be released in H1 2023 (previously H2 (second half) 2022), which will allow for additional data from further in-vein drifting, initial months of stoping and processing, and delineation drill results to be included.
  • During Q1 2022, the company completed an estimated 10,133 metres of exploration core drilling at El Picacho property, located approximately 40 kilometres (85 road kilometres) north of Las Chispas. The company also announced additional results from its initial drill program. Please refer to the company's news release dated April 13, 2022, for further details and results.
  • As at the end of Q1 2022, Silvercrest had cash and cash equivalents of $152.0-million and $30.0-million remaining under a $120.0-million project financing facility.

Las Chispas expenditures

During Q1 2022, Las Chispas expenditures recorded under mineral property, plant and equipment totalled $21.4-million (inclusive of unpaid accrued expenditures), of which $1.2-million was for plant and equipment purchases, $6.1-million for construction in progress costs, and $14.1-million for mineral property costs.

El Picacho expenditures

The company completed an estimated 10,133 metres of drilling at Picacho during Q1 2022 and incurred a total of $1.6-million for the Picacho property under exploration and evaluation expenditures during this period. As of March 31, 2022, the company had drilled an estimated cumulative 90,900 metres (373 drill holes) since acquiring the Picacho property in Q3 2020. As of April 30, 2022, there were two surface rigs active at Picacho. During Q1 2022, the company announced additional results from its initial drill program. Please refer to the company's news release dated April 13, 2022, for further details and results.

Financial results

At March 31, 2022, the company held $152.0-million (Dec. 31, 2021 -- $176.5-million) as cash and cash equivalents, and had value-added taxes (IVA) receivable in Mexico of $25.8-million (Dec. 31, 2021 -- $23.3-million), and mineral property, plant and equipment of $186.5-million (Dec. 31, 2021 -- $165.7-million).

The company has financed its operations to date through the issuance of common shares and debt. The company currently has no operations from which to derive revenues. During the three months ended March 31, 2022, the company incurred a loss of $8.7-million (three months ended March 31, 2021 -- $12.7-million) and a comprehensive loss of $2.7-million (three months ended March 31, 2021 -- $4.0-million).

Please refer to the company's Q1 2022 unaudited condensed consolidated interim financial statements and management's discussion and analysis (MD&A) for additional information.

About Silvercrest Metals Inc.

Silvercrest is a Canadian precious metals exploration and development company, headquartered in Vancouver, B.C., that is focused on new discoveries, value-added acquisitions and targeting production in Mexico's historic precious metal districts. The company's top priority is on the high-grade, historic Las Chispas mining district in Sonora, Mexico, where it has completed a feasibility study on the Las Chispas project and is proceeding with mine construction. Start-up of processing at the Las Chispas mine is targeted for Q2 2022. Silvercrest is the first company to successfully drill test the historic Las Chispas property, resulting in numerous high-grade precious metal discoveries. 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.

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