Santacruz Reports Strong Q2 2024 Performance Amid Favorable Metal Prices
Santacruz reported solid financial and operational results for the second quarter of 2024, driven by strong metal prices and robust production. The company processed 500,755 tonnes of material in Q2, bringing the total for the first half of 2024 to 971,504 tonnes. This resulted in the production of 4,819,552 silver equivalent ounces for the quarter and 9,297,674 silver equivalent ounces for the first half of the year.
In terms of specific metals, Santacruz produced 1,671,359 ounces of silver and 25,052 tonnes of zinc during Q2, with first-half totals reaching 3,253,308 ounces of silver and 47,899 tonnes of zinc. The company reported a cash cost per silver equivalent ounce sold of $22.25 for the quarter and $21.89 for the first half of the year. The all-in sustaining cost (AISC) was $24.74 per silver equivalent ounce sold in Q2 and $24.47 in the first half.
Financially, Santacruz achieved revenue of $70.5 million in Q2 and $123.1 million for the first half of 2024. Adjusted EBITDA stood at $8.9 million for the quarter, with a slight decrease to $8.6 million for the first half.
Arturo Prestamo, Executive Chairman and CEO, noted that strong metal prices played a significant role in boosting the average realized price per silver equivalent ounce sold. He highlighted the company’s solid financial performance in Q2, with nearly $16 million in gross profit. However, net income was affected by a non-cash charge of $6.9 million, stemming from fair value changes in contingent value rights due to rising zinc prices between March and June.
Prestamo emphasized that despite this charge, the company’s stable AISC and disciplined cost management will support long-term financial stability, ensuring continued value creation for shareholders.
