Santacruz Silver 3Q remained good!
Santacruz Silver Mining said the operating and financial results from its Mexican mining operations for the third quarter of 2019. Consolidated mining operations generated a gross profit of $102K including gross profit (GP) from Zimapan of $992K, and gross losses from Rosario and Veta Grande of $672K and $511K respectively plus mine services gross profit of $293K; Net loss after taxes of $1,432K; Consolidated cash cost per silver equivalent ounce sold $18.52K and AISC of $22.83K.
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."
