Year of challenges and successes in 2019
Recently Santacruz Silver Mining Ltd reports on its financial and operating results for the fourth quarter (Q4) of 2019 and for the 2019 fiscal year. Mr Carlos Silva, CEO of the Company commented; "This past year was a period of both challenges and successes. In October 2019 we completed a two-step process with the Company acquiring a 50% interest in Carrizal Mining at each step.
This has allowed the Company to operate the low cost Zimapan mine in Q3 and Q4 under a lease agreement with Grupo Peñoles." Mr. Silva added; "Fiscal 2020 is about the Company executing the mine plan at Zimapan to further improve mine performance, while commodity markets continue to rebound." Finally, Mr. Silva commented; "Now with a strong and proven mine and a solid Team on board, the Company is poised to become a significant producer and cash flow generator in 2020 and beyond".
The Company recorded a net loss of $20,432 ($0.12 loss per share) for the year ended December 31, 2019 fiscal 2019 that includes an impairment charge of $12,202 recorded against the Veta Grande Project, a gross loss from mining operations of $3,682, operating expenses of $4,611 and interest and other finance expenses of $2,132. The net loss recorded in 2018 arose substantially from the gross loss from mining operations.
Revenues in 2019 of $29,111 include mining operations of $27,140 (2018 - $13,151) and mining services of $1,971 (2018 - $8,017).
At Q4 2019, the Company recorded a net loss of $16,017 ($0.08 loss per share) for the three months ended December 31, 2019, compared to a net loss of $4,240 ($0.03 loss per share) for the three months ended December 31, 2018.
The Company recorded mining operations revenues of $9,964 (2018 - $1,258), mining services revenues of $nil (2018 - $1,466), mining operation cash cost of sales of $11,378 (2018 - $4,880), mining services cash cost of sales of $nil (2018 - $nil), and amortization and depletion expenses of $136 (2018 -- $917) for the three months ended December 31, 2019 resulting in a gross loss of $1,550 (2018 - $3,073).
As referenced above, the significant increase to revenues and mining operations cash cost of sales arose from the 100% interest acquired in the leased Zimapan Mine that the Company was entitled to as a result of the Carrizal Acquisition. The higher net loss in 2019 is largely the result of the impairment charge taken in Q4 2019 of $12,202 (2018 - $1,486).
