On Tuesday, BMO Capital Markets updated its assessment of SilverCrest Metals (SIL:CN) (NYSE: NYSE:SILV), elevating the price target to Cdn$9.00 from the previous Cdn$8.25. The firm has sustained an Outperform rating for the stock. The adjustment follows SilverCrest's announcement of fourth-quarter earnings, which exceeded both BMO Capital's and the consensus estimates.
SilverCrest Metals reported a fourth-quarter earnings per share (EPS) of $0.25, surpassing the anticipated $0.11. While revenue figures had been disclosed earlier, the company's production costs for the quarter were notably lower than expected, at $17.6 million compared to the estimated $25.8 million. This significant cost efficiency contributed to the earnings beat.
The company's cash flow from operations was robust, recorded at $36.1 million, which was higher than BMO Capital's forecast of $27.3 million. This strong operational performance facilitated the generation of $24.1 million in free cash flow (FCF) for the quarter. Reflecting on the annual performance, SilverCrest generated $121 million in FCF during 2023, marking its first full year of commercial production.
The fourth quarter also saw SilverCrest achieving an all-in sustaining cost (AISC) of $14.36 per ounce of silver equivalent (AgEq), which was below the $16.39 per ounce estimate and comfortably within the second half guidance range of $13.75 to $15.50 per ounce. Consequently, the full-year 2023 AISC for SilverCrest was reported to be below the lower end of the provided guidance.
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