• Thu. Jun 23rd, 2022

SilverCrest Reports First Quarter 2022 Financial Results

ByDebra J. Aguilar

May 10, 2022

TSX: SIL | US NYSE: SILV

VANCOUVER, BC, May 10, 2022 /PRNewswire/ – SilverCrest Metals Inc. (“SilverCrest” or the “Company”) is pleased to release the Company’s unaudited financial results for the first quarter of 2022 (“Q1 2022”). 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 at www.sedar.com or on the SilverCrest website www.silvercrestmetals.com. All amounts herein are presented in United States Dollars, unless otherwise specified.

SilverCrest Metals Inc. Logo (CNW Group/SilverCrest Metals Inc.)

The Company’s top priority is the historic high-grade Las Chispas mining district in Sound, Mexico, where it completed a feasibility study (the “Feasibility Study”) and construction is nearing 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 January 4, 2021 (the “Technical Report”).

Q1 2022 Highlights

  • At the end of the first quarter of 2022, the overall construction progress at Las Chispas was 95.7%. The start-up of the plant remains on track for the second quarter of 2022, in accordance with the feasibility study of the Las Chispas project. Construction completion remains on track despite lower labor availability in the first quarter of 2022 due to COVID-19, which eliminated schedule gains made in 2021.

  • Until the end of the first quarter of 2022, the Company is committed $114.6 million (83.2%) of $137.7 million Feasibility study investment cost estimate and costs incurred $108.0 million. Of the investment budget remaining to be committed in Q2 2022 ($29.7 million), 22% ($6.3 million($8.0 million) is the unused contingency.

  • During the first quarter of 2022, SilverCrest completed 2.0 kilometers (“km”) of underground development for a total of 19.5 km of underground development since 2019. Underground development unit costs continued to be slightly below the budget. Two of the four mining methods proposed in the feasibility study, longhole and resue, began with mining selected stopes in the Babicanora Main, Vista and Norte veins.

  • At the end of the first quarter of 2022, after 2.46 million hours of work since construction began, the company’s Lost Time Injury Frequency Rate (“LTIFR”) was 0.57 for 200,000 hours of work and its Total Recordable Injury Frequency Rate (“TRIFR”)) was 3.98 per 200,000 hours of work. SilverCrest continues to operate a confined camp and remains committed to its COVID-19 protocols, with over 20,000 PCR tests completed through the end of Q1 2022.

  • The exploration objective for the first half of 2022 at Las Chispas is to map and sample unexplored areas and generate new drill targets. The updated technical report is now expected to be published in the first half of 2023 (previously the second half of 2022), which will allow for the inclusion of additional data from other galleries in the vein, the first months of stoping and processing, and results of delineation drilling.

  • During the first quarter of 2022, the Company completed approximately 10,133 meters of core exploration drilling at The Picacho property located about 40 km (85 km by road) north of Las Chispas. The Company also announced additional results from its initial drilling program. Please refer to the Company’s press release dated April 13, 2022 for more details and results.

  • At the end of the first quarter of 2022, SilverCrest had cash and cash equivalents of $152.0 million and $30.0 million remaining under a $120.0 million project finance facility (the “Credit Facility”).

Expenses in Las Chispas

During the first quarter of 2022, Las Chispas’ expenditures recorded on mining properties, plants and equipment totaled $21.4 million (including unpaid accrued charges), of which $1.2 million was for the purchase of plant and equipment, $6.1 million for ongoing construction costs, and $14.1 million for mining property costs.

The Picacho (“Picacho”) Expenses

The Company completed approximately 10,133 meters of drilling at Picacho during the first quarter of 2022 and committed a total of $1.6 million for the Picacho property in exploration and evaluation expenditures during this period. From March 31, 2022the Company had drilled an estimated total of 90,900 meters (373 drill holes) since acquiring the Picacho property in Q3 2020. As of April 30, 2022, there were two surface platforms active at Picacho. During the first quarter of 2022, the Company announced additional results from its initial drilling program. Please refer to the Company’s press release dated April 13, 2022 for more details and results.

Financial results

To March 31, 2022the company held $152.0 million (December 31, 2021$176.5 million) as cash and cash equivalents and had value added taxes (“IVA”) receivable in Mexico of $25.8 million (December 31, 2021$23.3 million) and the mining properties, plants and equipment of $186.5 million (the 31st of December201 – $165.7 million).

The Company has funded its operations to date through the issuance of common shares and through debt. The Company currently has no activity from which it could derive income. In the three months ended March 31, 2022the Company suffered a loss of $8.7 million (three months ended March 31, 2021$12.7 million) and a total loss of $2.7 million (three months ended March 31, 2021$4.0 million).

Please refer to the Company’s unaudited condensed consolidated interim financial statements and MD&A for Q1 2022 for more information.

ABOUT SILVERCREST METALS INC.
SilverCrest is a Canadian precious metals exploration and development company headquartered in Vancouver, BCfocused on new discoveries, value-added acquisitions and production targeting in from Mexico historical quarters of precious metals. The Company’s top priority is the historic high-grade Las Chispas mining district in Sound, Mexico, where it completed a feasibility study on the Las Chispas project and proceeded with the construction of the mine. The start of processing at the Las Chispas mine is scheduled for the second quarter of 2022. SilverCrest is the first company to have successfully drill-tested the historic Las Chispas property, resulting in numerous discoveries of high-grade precious metals. content. The company is led by a management team experienced in all aspects of the precious metals mining industry, including delivering projects through discovery, financing, construction and production on time and within budget.

FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” and “forward-looking information” (collectively “forward-looking statements”) within the meaning of the laws of Canada and United States securities legislation. These include, but are not limited to, statements regarding: strategic plans, timing and expectations for the Company’s construction and exploration programs at the Las Chispas Project and the start of processing at the Las Chispas Mine during the second quarter of 2022. These forward-looking statements or information are based on a number of assumptions, which may prove to be incorrect. Assumptions have been made regarding, among others: the impact of the COVID-19 pandemic; the reliability of mineralization estimates, operating and development costs, general economic and financial market conditions; availability of skilled labour; timing and amount of expenditures related to rehabilitation and drilling programs; and the effects of regulation by government agencies. Actual results could differ materially from those anticipated in these forward-looking statements due to risk factors, including: uncertainty about the impact and duration of the COVID-19 pandemic; the schedule and content of the work programs; results of exploration activities; interpretation of drill results and other geological data; receipt, maintenance and security of mining permits and titles; environmental and other regulatory risks; project cost overruns or unforeseen costs and expenses; and general market and industry conditions. Forward-looking statements are based on the expectations and beliefs of the Company’s management as of the date the statements are made. The assumptions used in the preparation of these statements, although believed to be reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which are not valid only on the date on which the declarations were made. The Company undertakes no obligation to update or revise any forward-looking statements included in this press release if such beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

NOT Eric ProudCPG, P.Eng.
Chief executive officer
SilverCrest Metals Inc.

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SOURCE SilverCrest Metals Inc.