What is a Hammer Chart and How to Trade It? There has been an upward trend in earnings estimate revisions for SILV lately, which can certainly be considered a bullish indicator on the fundamental side. That's because a positive trend in earnings estimate revisions usually translates into price appreciation in the near term. Over the last 30 days, the consensus EPS estimate for the current year has increased 9.5%. What it means is that the sell-side analysts covering SILV are majorly in agreement that the co ...

TSX: SIL | NYSE American: SILV VANCOUVER, BC, June 13, 2024 /PRNewswire/ - SilverCrest Metals Inc. ("SilverCrest" or the "Company") is pleased to announce the results of its Annual General Meeting of Shareholders ("AGM") held in Vancouver, BC, on June 12, 2024. A total of 88,115,662 votes were represented at the AGM amounting to 59.84% of the issued common shares as of the record date. Shareholders approved the fixing of the number of directors at eight and re-elected the following directors pursuant to a v ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For SilverCrest Metals, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. The chart below shows the evolution of ...

Financial Data and Key Metrics Changes - The company generated revenue of $63.6 million with a cost of sales of $26.2 million, maintaining strong operating margins of approximately 60% [7][8] - Net earnings for the quarter were $33.9 million or $0.23 per share, with operating cash flow before changes in working capital at $17.6 million or $0.12 per share [8] - Treasury assets decreased by 13% or $14 million during the quarter, attributed to stronger metal prices and higher sales than planned [11][12] - The effective tax rate was lower than expected, but normalization is anticipated in 2024 [8] Business Line Data and Key Metrics Changes - Sales included 15,000 ounces of gold and 1.4 million ounces of silver, leading to silver equivalent sales of 2.6 million ounces, exceeding the plan [3] - The underground mining rates increased to 942 tons per day, while the processing plant averaged 1,026 tons per day, slightly down due to planned maintenance [15][16] - The corporate all-in sustaining cost (ASIC) was $12.90 per ounce, lower than expected due to reduced cash costs [18] Market Data and Key Metrics Changes - The company noted that metal prices were trending higher than the Q1 average, providing greater exposure to gold and silver for investors [12][26] - The company is positioned favorably in the market, with a strong balance sheet compared to peers [4] Company Strategy and Development Direction - The company is focused on infill and expansion drilling at Las Chispas, targeting inferred resources for conversion [19] - A shift towards early-stage exploration is planned for H2 2024, including regional work for nearby deposits [20] - The company is implementing a renewable energy strategy by initiating solar power usage at Las Chispas, aiming for operational cost savings and reduced greenhouse gas emissions [5][6][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2024 guidance of 9.8 million to 10.2 million ounces sold, with all-in sustaining costs projected between $15 and $15.90 per ounce [24] - The company anticipates strengthening its balance sheet throughout 2024, following the resolution of large one-time payments [26] Other Important Information - The company has achieved positive retained earnings of $21.5 million within six quarters of commercial production, a notable accomplishment in the mining industry [62] - The company is committed to maintaining financial flexibility to support operations and potential growth opportunities [10][40] Q&A Session Summary Question: Inquiry about the other income line related to bullion holdings - Management confirmed that part of the other income is related to bullion holdings and other derivatives [27] Question: Plans for cash deployment and potential M&A - Management emphasized the importance of maintaining a strong cash balance for flexibility, including potential share buybacks and M&A opportunities [28][29] Question: Focus on acquisitions within Mexico or diversification - Management indicated a preference for quality assets with lower risk profiles, open to opportunities both within Mexico and elsewhere [30] Question: Details on the renewable energy project - Management provided insights on the solar project, including expected cost savings of approximately $1.5 million per year and a significant reduction in greenhouse gas emissions [31][33] Question: Clarification on bullion strategy and holdings - Management reiterated the strategy of maximizing treasury holdings of gold and silver while maintaining flexibility for operational needs [38][45]

(1) As of December 31, 2023. Corporate AISC $ / oz AgEq Sold 15.00 – 15.90 9 -500 -300 -100 100 300 500 700 900 Babi Area M&I Resource and Development 719 AgEq Ounces AgEq Grade Note: Please review sections titled "Forward-looking statements" on slide 2 which covers the Company's Cautionary Statements 2024 Corporate Guidance Compares Favourably to Silver Producing Peers 58% 27% 1% 3% 11% Opex Sustex Government Royalties Miscellaenous Corporate | --- | |-------| | | | | | | | | | | | | | | | | | | | | | | | ...

[Management's Discussion and Analysis](index=1&type=section&id=Management's%20Discussion%20and%20Analysis) This section contains forward-looking statements, outlines significant business and economic uncertainties, and provides a cautionary note on mineral resource estimates - This Management's Discussion and Analysis (MD&A) contains forward-looking statements concerning the Company's anticipated results, operations, exploration, and other future matters, based on assumptions subject to significant business, economic, and competitive uncertainties[2](index=2&type=chunk)[3](index=3&type=chunk) - The forward-looking statements are subject to various known and unknown risks, including fluctuating commodity prices, inflation, exploration results, regulatory risks, and geopolitical uncertainties, which could cause actual results to differ materially[4](index=4&type=chunk) - A cautionary note is provided to U.S. investors that the Mineral Resource and Reserve estimates comply with Canadian NI 43-101 standards, which differ from SEC requirements and may not be comparable to information disclosed by U.S. domestic companies[7](index=7&type=chunk) [Introduction](index=5&type=section&id=1.%20Introduction) This MD&A provides an overview of SilverCrest Metals Inc.'s liquidity, capital resources, and operational and financial performance for Q1 2024 - This Management's Discussion and Analysis (MD&A) provides an overview of SilverCrest Metals Inc.'s liquidity, capital resources, and operational and financial performance for the three-month period ended March 31, 2024[10](index=10&type=chunk) - The report should be read in conjunction with the Company's unaudited condensed interim consolidated financial statements for Q1 2024 and the audited consolidated financial statements for the year ended December 31, 2023[11](index=11&type=chunk)[12](index=12&type=chunk) - All financial amounts are presented in United States dollars (USD) unless otherwise specified, with the silver equivalent (AgEq) ratio used being **79.51:1** (gold to silver)[13](index=13&type=chunk)[14](index=14&type=chunk) [Description of Business](index=5&type=section&id=2.%20Description%20of%20Business) SilverCrest is a Canadian precious metals producer focused on operating the Las Chispas mine and expanding its resource estimates in the Americas - SilverCrest is a Canadian-based precious metals producer headquartered in Vancouver, BC, with its principal focus on operating the Las Chispas silver and gold mine[16](index=16&type=chunk) - The company's strategy includes expanding current Mineral Resource and Reserve Estimates and acquiring, discovering, and developing other high-value precious metal projects in the Americas[16](index=16&type=chunk) - The Company is publicly listed on the Toronto Stock Exchange (Symbol: SIL) and the NYSE-American (Symbol: SILV)[16](index=16&type=chunk) [Highlights](index=6&type=section&id=3.%20Highlight) Q1 2024 saw strong production and revenue, with positive net earnings, despite negative operating and free cash flow due to significant tax payments Q1 2024 Key Highlights | Metric | Value | | :--- | :--- | | **Production** | | | Gold Recovered | 14,719 oz | | Silver Recovered | 1.4 million oz | | Silver Equivalent Recovered | 2.6 million oz | | **Financials** | | | Revenue | $63.6 million | | Mine Operating Earnings | $37.5 million (59% margin) | | Net Earnings | $33.9 million | | Basic EPS | $0.23 per share | | **Costs** | | | Cash Costs | $7.09 per oz AgEq sold | | AISC | $12.90 per oz AgEq sold | | **Cash Flow & Position** | | | Operating Cash Outflow | $1.1 million | | Free Cash Flow | Negative $11.4 million | | Treasury Assets (End of Q1) | $91.1 million (Cash & Bullion) | - The **negative free cash flow of $11.4 million** was largely due to a **$26.2 million payment for 2023 taxes and duties** and a **$7.5 million prepayment for mining services**[21](index=21&type=chunk) - The company achieved **positive retained earnings of $21.5 million** on its balance sheet, a milestone reached in only the sixth quarter since declaring commercial production[21](index=21&type=chunk) [Environmental, Social, and Governance ("ESG")](index=6&type=section&id=4.%20Environmental,%20Social,%20and%20Governance) The company is committed to water stewardship and advancing renewable solar power integration at the Las Chispas mine for cost savings and emissions reduction - As part of its commitment to water stewardship, the company initiated the installation of a two-kilometre water pipeline for agricultural use in the local community during Q1 2024[19](index=19&type=chunk) - The company is advancing efforts to integrate renewable solar power at the Las Chispas mine, with a target to begin implementation of a solar installation in 2025, expecting cost savings and reduced GHG emissions[20](index=20&type=chunk) [Operating Performance](index=7&type=section&id=5.%20Operating%20Performance) The company achieved increased ore mining, higher processed grades, and record recoveries in Q1 2024, with costs below annual guidance [Operational and Financial Summary](index=7&type=section&id=5.1%20Operational%20and%20Financial%20Summary) In Q1 2024, the company saw increased ore mining and higher processed grades for both gold and silver compared to Q1 2023, leading to higher metal recovery and sales. Revenue and mine operating earnings improved, though operating and free cash flow were negative due to significant tax payments. Cash costs per ounce decreased while All-in Sustaining Costs (AISC) increased year-over-year Q1 2024 vs Q1 2023 Operational Performance | Metric | Unit | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | :--- | | Ore mined | tonnes | 85,737 | 63,600 | | Ore milled | tonnes | 93,373 | 104,400 | | Au Average grade | gpt | 4.97 | 4.06 | | Ag Average grade | gpt | 479 | 419 | | Au Recovered | oz | 14,719 | 13,300 | | Ag Recovered | million oz | 1.41 | 1.29 | | AgEq Recovered | million oz | 2.58 | 2.35 | Q1 2024 vs Q1 2023 Financial Performance | Metric | Unit | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | :--- | | Revenue | $ millions | 63.6 | 58.0 | | Mine operating earnings | $ millions | 37.5 | 35.6 | | Earnings for the period | $ millions | 33.9 | 27.2 | | Operating cash flow | $ millions | (1.1) | 26.6 | | Free cash flow | $ millions | (11.4) | 19.0 | | Cash costs | $/oz AgEq | 7.09 | 7.36 | | AISC | $/oz AgEq | 12.90 | 10.90 | [Underground](index=9&type=section&id=5.2%20Underground) Underground mining rates increased by 10% from the previous quarter, averaging 942 tonnes per day (tpd), with plans to exceed 1,050 tpd by year-end. The transition to a new mining contractor is progressing well, and 4.2 km of underground development was completed in line with expectations - Mining rates averaged **942 tpd in Q1 2024**, a **10% increase from Q4 2023**, with a target to exit 2024 at over **1,050 tpd**[26](index=26&type=chunk) - The mobilization of the new underground mining contractor is on pace and expected to continue through Q3 2024[27](index=27&type=chunk) - The company completed **4.2 km of horizontal and vertical underground development** during the quarter, with rates and costs meeting expectations[27](index=27&type=chunk) [Processing Plant](index=9&type=section&id=5.3%20Processing%20Plant) The processing plant achieved record silver equivalent grades and recoveries in Q1 2024, which strategically offset lower throughput caused by planned maintenance. Average daily throughput was 1,026 tpd but is expected to increase to an average of 1,200 tpd for the rest of the year - Average processed grades reached a **record 874 gpt AgEq** (**4.97 gpt Au and 479 gpt Ag**), strategically planned to offset downtime[29](index=29&type=chunk) - Average process recoveries also set a **record at 98.3% AgEq** (**98.6% Au and 98.0% Ag**), benefiting from consistent high-grade feed[30](index=30&type=chunk) - Average daily mill throughput was **1,026 tpd** due to planned maintenance, but is expected to average **1,200 tpd** for the remainder of 2024[28](index=28&type=chunk)[29](index=29&type=chunk) [Sustaining Capital](index=9&type=section&id=5.4%20Sustaining%20Capital) Sustaining capital for Q1 2024 totaled $10.2 million, primarily for underground development. Expenditures were lower than planned due to timing delays, but the full-year guidance of $40.0 to $44.0 million remains unchanged and is not expected to impact production - Sustaining capital in Q1 2024 was **$10.2 million**, mainly for underground development and infrastructure[31](index=31&type=chunk) - Spending was lower than planned due to timing, with full-year 2024 guidance reiterated at **$40.0 to $44.0 million**[31](index=31&type=chunk) [Costs](index=9&type=section&id=5.5%20Costs) In Q1 2024, both cash costs and AISC were below the annual guidance ranges due to higher grades and lower maintenance costs. The company expects these costs to increase over the remainder of the year to align with the full-year guidance Q1 2024 Costs vs. Full Year Guidance | Cost Metric | Q1 2024 Actual | 2024 Guidance Range | | :--- | :--- | :--- | | Cash Costs (per oz AgEq sold) | $7.09 | $9.50 - $10.00 | | AISC (per oz AgEq sold) | $12.90 | $15.00 - $15.90 | - Costs were lower than expected primarily due to lower processed volume, higher grades, lower maintenance costs, and timing of sustaining capital[32](index=32&type=chunk)[33](index=33&type=chunk) [Exploration](index=9&type=section&id=5.6%20Exploration) The company completed an infill and expansion drilling program targeting the conversion of approximately 10 million oz AgEq of Inferred resources to Indicated. The results confirmed mineral continuity and identified opportunities for further expansion. The 2024 exploration program will shift focus to earlier-stage regional targets with a budget of $12.0 to $14.0 million - A drilling program of **161 holes (34,384 metres)** was completed to test high-priority Inferred resources for potential conversion to Indicated resources[34](index=34&type=chunk) - Drill results generally verified the grades and thicknesses of the targeted resources and identified expansion potential in the BAN Splay 3 and BAS veins[35](index=35&type=chunk) - The 2024 exploration budget is **$12.0 to $14.0 million**, which will include work on regional targets like Picacho to identify potential satellite deposits[44](index=44&type=chunk)[45](index=45&type=chunk) [Financial Performance](index=13&type=section&id=6.%20Financial%20Performance) Q1 2024 saw increased net earnings driven by higher revenue and other income, despite rising cost of sales and G&A expenses [Net earnings](index=13&type=section&id=6.1%20Net%20earnings) Net earnings for Q1 2024 were $33.9 million, an increase from $27.2 million in Q1 2023. The growth was primarily driven by higher revenue and other income, which more than offset increased cost of sales and G&A expenses. The effective tax rate for the quarter was a relatively low 5% Net Earnings Comparison (in thousands USD) | Description | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Earnings | $33,864 | $27,165 | - The increase in net earnings was driven by a **$5.7 million increase in revenue** and a **$1.4 million increase in other income**, partially offset by a **$3.8 million increase in cost of sales**[47](index=47&type=chunk) [Revenue](index=13&type=section&id=6.2%20Revenue) Revenue increased to $63.6 million in Q1 2024 from $58.0 million in Q1 2023. This was a result of both higher quantities of metals sold and higher average realized prices for both gold and silver Realized Metal Prices and Quantities Sold | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Realized Prices ($/oz)** | | | | Gold | $2,062 | $1,879 | | Silver | $23.37 | $23.00 | | **Quantities Sold (oz)** | | | | Gold | 15,000 | 14,200 | | Silver | 1,400,000 | 1,361,000 | [Cost of sales](index=13&type=section&id=6.3%20Cost%20of%20sales) Cost of sales rose to $26.2 million in Q1 2024 from $22.4 million in Q1 2023. The $3.8 million increase was largely due to higher depreciation resulting from sustaining capital invested in mine development during 2023 and Q1 2024 - The increase in cost of sales was primarily driven by **higher depreciation** from ongoing mine development capital investments[50](index=50&type=chunk) [Other income](index=13&type=section&id=6.4%20Other%20income) The company recorded other income of $1.4 million in Q1 2024, compared to none in Q1 2023. This income was primarily from a $0.8 million gain on bullion holdings due to rising metal prices and a $0.5 million gain on currency derivative positions - Other income of **$1.4 million in Q1 2024** was mainly composed of **$0.8 million in gains on bullion** and **$0.5 million in gains on derivative currency positions**[51](index=51&type=chunk) [Interest and finance expense](index=15&type=section&id=6.5%20Interest%20and%20finance%20expense) Interest and finance expense decreased significantly to $0.3 million in Q1 2024 from $1.4 million in Q1 2023. The reduction is attributed to the company having no outstanding debt in the current quarter, whereas it incurred interest on a $50 million Term Facility in the prior-year period - The decrease in interest expense was due to the **absence of outstanding debt in Q1 2024**, compared to interest incurred on a Term Facility in Q1 2023[53](index=53&type=chunk) [General and administrative ("G&A") expenses](index=15&type=section&id=6.6%20General%20and%20administrative%20(G%26A)%20expenses) G&A expenses increased by $1.2 million to $4.7 million in Q1 2024 compared to Q1 2023. The rise was largely due to increased professional fees and share-based compensation, which is influenced by the company's share price performance - G&A expenses rose from **$3.5 million in Q1 2023 to $4.7 million in Q1 2024**, mainly due to higher professional fees and share-based compensation[54](index=54&type=chunk) [Statement of Cash Flows](index=15&type=section&id=6.7%20Statement%20of%20Cash%20Flows) In Q1 2024, cash used in operations was $1.1 million, a significant decrease from the $26.6 million generated in Q1 2023, primarily due to a $26.2 million income tax payment. Investing activities used $14.6 million for property and equipment, while financing activities generated $0.6 million from stock option exercises - **Operating Activities:** Cash used was **$1.1 million**, a **$27.7 million decrease from Q1 2023**, mainly driven by a **$26.2 million income tax payment**[55](index=55&type=chunk) - **Investing Activities:** Used **$14.6 million**, mostly for mineral property, plant, and equipment additions[56](index=56&type=chunk) - **Financing Activities:** Generated **$0.6 million** from the exercise of stock options, compared to a **$24.9 million use in Q1 2023** which included a **$25.0 million debt repayment**[57](index=57&type=chunk) [Liquidity and Capital Position](index=15&type=section&id=7.%20Liquidity%20and%20Capital%20Position) The company maintains sufficient financial resources, including an undrawn revolving facility, with a strong working capital position despite a decrease in treasury assets Liquidity and Capital Measures (in thousands USD) | Measure | Mar 31, 2024 | Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $71,085 | $85,964 | $(14,879) | | Bullion | $20,039 | $19,191 | $848 | | Treasury assets | $91,124 | $105,155 | $(14,031) | | Working capital | $148,278 | $126,760 | $21,518 | - Management believes the company has sufficient financial resources, including an undrawn **$70 million revolving facility**, to cover its business needs for more than 12 months[59](index=59&type=chunk) - Working capital increased by **$21.5 million** during the quarter, mainly due to a decrease in tax liabilities following the income tax payment[63](index=63&type=chunk) Outstanding Shares and Options (as of May 14, 2024) | Security | Outstanding | | :--- | :--- | | Common Shares | 147,260,572 | | Options | 4,334,500 | | **Total (Fully Diluted)** | **151,595,072** | [Non-GAAP Financial Measures](index=17&type=section&id=8.%20Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP financial measures such as average realized prices, capital expenditures, free cash flow, working capital, operating cash flow before working capital, treasury assets, cash costs, and AISC [Average realized gold and silver price](index=17&type=section&id=8.1%20Average%20realized%20gold%20and%20silver%20price) This measure is calculated by dividing gross revenue from gold or silver sales by the respective ounces sold. It helps in understanding the actual metal prices realized by the company. In Q1 2024, the average realized price was $2,062/oz for gold and $23.37/oz for silver Q1 Average Realized Prices | Metal | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Gold (per oz) | $2,062 | $1,879 | | Silver (per oz) | $23.37 | $23.00 | [Capital expenditures](index=18&type=section&id=8.2%20Capital%20expenditures) Capital expenditures are classified as either sustaining (to support current production) or non-sustaining (for new projects or to increase production/mine life). In Q1 2024, sustaining capital was $10.2 million and non-sustaining capital was $4.6 million Capital Expenditures Reconciliation (in thousands USD) | Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total capital expenditures | $14,815 | $7,973 | | Less: Non-sustaining capital | $(4,586) | $(320) | | **Sustaining capital expenditures** | **$10,229** | **$7,653** | [Free cash flow](index=18&type=section&id=8.3%20Free%20cash%20flow) Free cash flow is defined as net cash from operating activities less sustaining capital expenditures. It indicates the company's ability to generate cash after investments to maintain operations. For Q1 2024, free cash flow was negative $11.4 million, compared to positive $19.0 million in Q1 2023 Free Cash Flow Reconciliation (in thousands USD) | Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Operating cash flow | $(1,121) | $26,617 | | Less: sustaining capital expenditures | $(10,229) | $(7,653) | | **Free cash flow** | **$(11,350)** | **$18,964** | [Working capital](index=18&type=section&id=8.4%20Working%20capital) Working capital, calculated as current assets minus current liabilities, is used as a measure of operational efficiency and short-term financial health. As of March 31, 2024, working capital was $148.3 million - Working capital is defined as current assets less current liabilities and is used to measure short-term financial health[72](index=72&type=chunk) [Operating cash flow before change in working capital](index=18&type=section&id=8.5%20Operating%20cash%20flow%20before%20change%20in%20working%20capital) This measure is calculated by adding back the change in working capital to operating cash flow. It is used to assess the ability to generate cash from core operations. For Q1 2024, this measure was $17.6 million Operating Cash Flow Reconciliation (in thousands USD) | Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Operating cash flow | $(1,121) | $26,617 | | Less: change in working capital | $18,735 | $8,544 | | **Operating cash flow before change in working capital** | **$17,614** | **$35,161** | [Treasury assets](index=20&type=section&id=8.6%20Treasury%20assets) Treasury assets are calculated as cash and cash equivalents plus bullion. This measure represents the company's most liquid assets. As of March 31, 2024, treasury assets totaled $91.1 million Treasury Assets (in thousands USD) | Category | Mar 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $71,085 | $85,964 | | Bullion | $20,039 | $19,191 | | **Treasury assets** | **$91,124** | **$105,155** | [Cash costs and AISC](index=20&type=section&id=8.7%20Cash%20costs%20and%20AISC) Cash costs include production costs and royalties, while All-in Sustaining Costs (AISC) add G&A, reclamation, and sustaining capital. These measures are used to monitor operational performance. In Q1 2024, cash costs were $7.09/oz AgEq and AISC were $12.90/oz AgEq Cash Costs and AISC Reconciliation (in thousands USD) | Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Production costs | $18,203 | $18,038 | | Government royalties | $190 | $294 | | **Total cash costs** | **$18,393** | **$18,332** | | General and administrative expenses | $4,695 | $3,533 | | Reclamation accretion expense | $136 | $107 | | Sustaining capital expenditures | $10,229 | $5,181 | | **Total AISC** | **$33,453** | **$27,153** | | **Cash costs (per AgEq sold)** | **$7.09** | **$7.36** | | **AISC (per AgEq sold)** | **$12.90** | **$10.90** | [Review of Quarterly Results](index=20&type=section&id=9.%20Review%20of%20Quarterly%20Results) Quarterly results demonstrate a significant ramp-up in financial performance since Q2 2022, with consistent revenue and earnings growth - The quarterly results show a significant ramp-up in financial performance since the commissioning of the Las Chispas plant in Q2 2022, with revenue recognition beginning in Q3 2022, and revenue and earnings showing strong growth and relative stability over the last several quarters[80](index=80&type=chunk) Selected Quarterly Results (in thousands USD, except per share data) | Quarter | Revenue | Mine operating earnings | Earnings for the period | EPS - basic | | :--- | :--- | :--- | :--- | :--- | | Q1, 2024 | $63,646 | $37,477 | $33,864 | $0.23 | | Q4, 2023 | $61,320 | $36,947 | $35,917 | $0.24 | | Q3, 2023 | $63,828 | $37,460 | $29,936 | $0.20 | | Q2, 2023 | $61,999 | $38,293 | $23,702 | $0.16 | | Q1, 2023 | $57,983 | $35,606 | $27,165 | $0.18 | [Related Party Transactions](index=22&type=section&id=10.%20Related%20Party%20Transactions) Related party transactions primarily involve subsidiaries and key management personnel, with intercompany transactions eliminated upon consolidation - The Company's related parties consist of its subsidiaries and key management personnel, with all transactions with subsidiaries eliminated upon consolidation[84](index=84&type=chunk) [Risks and Uncertainties](index=22&type=section&id=11.%20Risks%20and%20Uncertainties) The company faces various financial, operational, tax, health crisis, macroeconomic, and bullion-related risks that could impact its performance [Financial Instrument Risk](index=22&type=section&id=11.1%20Financial%20Instrument%20Risk) The company is exposed to various financial risks, including credit risk from cash holdings, liquidity risk managed through cash flow monitoring, currency risk from operating in Canada and Mexico, interest rate risk on cash balances, and price risk on precious metals - **Credit Risk:** Managed by diversifying cash holdings across highly rated financial institutions like BMO and BNS[87](index=87&type=chunk)[88](index=88&type=chunk) - **Liquidity Risk:** Managed through ongoing monitoring of cash flows and access to an undrawn **$70 million Revolving Credit Facility**[89](index=89&type=chunk) - **Currency Risk:** Mitigated by using option contracts to limit exposure to the Mexican peso, with open contracts having a notional value of **$34 million** as of March 31, 2024[90](index=90&type=chunk)[91](index=91&type=chunk)[93](index=93&type=chunk) [Mineral Project Risk](index=24&type=section&id=11.2%20Mineral%20Project%20Risk) The company faces risks inherent in operating a precious metals mine, where commercial viability depends on factors like mining costs, deposit characteristics, metal prices, and government regulations. Operational threats include flooding, permit issues, and community relations - The commercial viability of mining operations is subject to numerous factors including costs, deposit size and grade, metal price cycles, and regulatory issues[96](index=96&type=chunk) [Income Tax and VAT Risk](index=24&type=section&id=11.3%20Income%20Tax%20and%20VAT%20Risk) The company is subject to tax assessments in multiple jurisdictions, which involves estimates and interpretations of complex tax rules. Changes in tax laws or challenges by tax authorities could have a material adverse effect on the company's financial condition - Tax provisions require estimates and interpretations of tax rules, and filing positions are subject to review and potential challenge by taxation authorities[97](index=97&type=chunk) - New or changing tax laws in Canada, México, or other operating jurisdictions could result in increased taxes, interest, and penalties[98](index=98&type=chunk) [Health Crises Risk](index=24&type=section&id=11.4%20Health%20Crises%20Risk) Global health crises, such as the COVID-19 pandemic, pose a risk to the company's operations and financial results. Potential impacts include economic downturns affecting commodity prices, labor shortages, supply chain disruptions, and regulatory challenges - Emerging infectious diseases can lead to widespread economic downturns, affecting commodity prices, credit availability, and market liquidity[99](index=99&type=chunk) - Government restrictions or inadequate responses to health crises may disrupt mining operations, leading to labor and supply chain issues[99](index=99&type=chunk) [Macroeconomic Risk](index=25&type=section&id=11.5%20Macroeconomic%20Risk) The company is exposed to macroeconomic risks from global financial market volatility, which can impact commodity prices, foreign exchange rates, and access to financing. Increased market turmoil could adversely affect the company's operations and stock price - Volatility in global financial markets, stemming from geopolitical conflicts and other factors, impacts the mining sector through fluctuations in equity, commodity, and currency markets[102](index=102&type=chunk) [Bullion Risk](index=25&type=section&id=11.6%20Bullion%20Risk) The company holds physical gold and silver bullion to counteract inflation on its cash reserves. However, these holdings are subject to price volatility, and there is no guarantee they will be an effective hedge, potentially leading to mark-to-market losses - Bullion holdings are recorded at fair value, and fluctuations in precious metal prices may lead to mark-to-market losses, impacting net earnings[103](index=103&type=chunk) [Material Accounting Policies, Standards and Judgements](index=25&type=section&id=12.%20Material%20Accounting%20Policies,%20Standards%20and%20Judgements) The company adopted accounting policy changes for cash flow classification and IAS 1 amendments, while assessing the future impact of IFRS 18 - The company retrospectively applied an accounting policy change to include cash flows from interest paid and received within operating activities in the consolidated statements of cash flows[104](index=104&type=chunk) - Amendments to IAS 1 regarding the classification of liabilities as current or non-current were adopted effective January 1, 2024, but did not have a material impact on the Company[105](index=105&type=chunk)[106](index=106&type=chunk) - The new standard IFRS 18, which impacts the presentation of the income statement, will be effective from January 1, 2027, and the company is currently assessing its impact[107](index=107&type=chunk) [Disclosure and Internal Control Procedures](index=27&type=section&id=13.%20Disclosure%20and%20Internal%20Control%20Procedures) Management is responsible for effective internal control over financial reporting and disclosure, with no material changes noted in Q1 2024 - Management is responsible for establishing and maintaining effective internal control over financial reporting and disclosure controls and procedures[109](index=109&type=chunk) - There were no changes in the Company's internal control over financial reporting during Q1 2024 that have materially affected, or are reasonably likely to materially affect, these controls[112](index=112&type=chunk) - Due to inherent limitations, internal controls may not prevent or detect all misstatements, and their effectiveness is subject to risks like changes in conditions or compliance levels[111](index=111&type=chunk)

Q4, 2023 and FY, 2023 Conference Call Forward-looking Statements Q4, 2023 and 2023 Results March 11, 2024 This presentation contains "forward-looking statements" and "forward-looking information" (collectively "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation. These include, without limitation, statements with respect to: the Company's 2024 guidance the timing and amount of expected production from the Las Chispas Operation; the estimation of mi ...

SilverCrest Metals Inc. (NYSE:SILV) Q4 2023 Earnings Conference Call March 11, 2024 10:00 AM ET Company Participants Eric Fier - CEO Chris Ritchie - President Cliff Lafleur - Vice President, Operations Conference Call Participants Travis Anderson - Gilder Gagnon Howe Operator Good morning, ladies and gentlemen and welcome to SilverCrest reports 2023 Annual Financial Results. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. [Operato ...

Financial Performance - SilverCrest generated $61.3 million in revenue for Q4 2023, a 50% increase from $40.8 million in Q4 2022[18] - The company achieved a mine operating income of $36.9 million in Q4 2023, representing a 60% operating margin[18] - Net earnings for Q4 2023 were $35.9 million, or $0.25 per share, significantly higher than $5.2 million, or $0.03 per share, in Q4 2022[31] - For the full year 2023, the Company generated net earnings of $116.7 million, or $0.79 per share, compared to $31.3 million, or $0.21 per share, in 2022[32] - Total cash flow from operating activities in 2023 was $158.3 million, a significant increase from cash outflows of $9.9 million in 2022[34] Cash Flow and Financial Position - Free cash flow for 2023 totaled $121.1 million, or $0.82 per share, with a strong financial position and no debt[10] - Free cash flow for Q4 2023 was $24.1 million, or $0.16 per share, while total free cash flow for 2023 was $121.1 million, or $0.82 per share[35] - As of December 31, 2023, the Company had treasury assets of $105.2 million, a 107% increase from the previous year, and remains debt-free[36] - Net cash position at the end of 2023 was $85,964,000, significantly higher than $1,170,000 in 2022, indicating strong financial health[55] Production and Sales - The Company sold 16,100 oz of gold and 1.28 million oz of silver in Q4 2023, compared to 11,400 oz of gold and 1.0 million oz of silver in Q4 2022[28] - The average realized price for gold was $1,979 per ounce and for silver was $23.09 per ounce in Q4 2023[4] - The company expects to sell between 9.8 to 10.2 million ounces of AgEq in 2024, with cash costs projected at $9.50 to $10.00 per ounce AgEq sold[9] - Mining rates are expected to ramp up to a targeted exit rate of 1,050 tonnes per day in H2 2024[6] - The processing plant is projected to operate at an average of 1,200 tonnes per day in 2024, with consistent silver equivalent sales expected throughout the year[7] Costs and Expenditures - Cash costs for Q4 2023 were $7.45 per ounce AgEq sold, while corporate AISC was $14.36 per ounce AgEq sold[21] - The all-in sustaining cost (AISC) averaged $14.36 per oz AgEq sold in Q4 2023, up from $12.23 per oz AgEq sold in Q3 2023, but within the guidance range of $13.75 to $15.50[22] - Total capital expenditures for Q4 2023 were $17,357,000, with sustaining capital expenditures at $12,025,000, indicating a focus on maintaining current production levels[46] - Sustaining capital expenditures for 2023 totaled $37,144,000, reflecting ongoing investments to support production levels[46] Exploration and Development - SilverCrest completed 3.6 km of underground development in Q4 2023, contributing to a total of 13.2 km for the year[19] - The Company completed 17,947 metres of drilling at Las Chispas in Q4 2023, with 42% focused on infill drilling to convert Inferred Resources to Indicated Resources[24] - The company plans to continue its exploration program at Las Chispas in 2024 with a budget of up to $14 million, targeting resource conversion and growth[26] Market Outlook - The company anticipates continued production growth and strategic plans for 2024, with expectations for gold and silver prices to influence future operations[56] - Average realized gold price per ounce sold in Q4 2023 was $1,979, up from $1,730 in 2022, while average realized silver price per ounce sold was $23.09, compared to $21.51 in 2022[44] - Total cash costs for Q4 2023 were $19,044,000, with cash costs per silver equivalent ounce sold at $7.45, slightly down from $7.73 in 2022[53] - All-in sustaining costs (AISC) for Q4 2023 were $36,708,000, with AISC per silver equivalent ounce sold at $14.36, up from $12.58 in 2022[53]