VANCOUVER, BC - SilverCrest Metals (NYSE:SILV) Inc. reported surpassing its 2023 sales guidance and increasing its treasury assets significantly in the fourth quarter of 2023. The company, which operates the Las Chispas mine in Sonora, Mexico, disclosed these results ahead of its full financial statement release scheduled for March 6, 2024.
In the fourth quarter, SilverCrest sold 16,100 ounces of gold and 1.27 million ounces of silver, totaling 2.56 million silver equivalent ounces, a figure that slightly exceeds the recovery of 14,100 ounces of gold and 1.34 million ounces of silver. The average realized prices were $1,977 per ounce for gold and $23.09 per ounce for silver, generating $61.3 million in revenue.
For the full year of 2023, the company's sales reached 10.25 million silver equivalent ounces, outperforming the projected range of 9.8 to 10.2 million ounces. The average prices realized over the year were $1,945 per ounce for gold and $23.48 per ounce for silver, resulting in a total revenue of $245.1 million.
N. Eric Fier, CEO of SilverCrest, credited the company's teams in Mexico and Canada for the successful year, which marked their first full year of commercial production at Las Chispas. Despite some unplanned downtime at the processing plant, the company's operational flexibility allowed it to deliver above the guidance figures.
At the close of Q4, SilverCrest's treasury holdings stood at $105 million, marking a 29% increase from Q3. The company acknowledged upcoming cash flow impacts due to various taxes and payments, including those related to a new underground mining contract, but emphasized its financial strength and flexibility.
SilverCrest also announced a change in its underground mining contract, with Dumas, a subsidiary of STRACON Group, set to take over in February 2024 under a five-year service agreement. The current contractor will continue operations until Dumas is fully mobilized.
InvestingPro Insights
SilverCrest Metals Inc. has demonstrated a remarkable performance with its latest sales figures, and the financial health of the company is a critical aspect for investors. With a market capitalization of $858.61 million and a notable price-to-earnings (P/E) ratio of 9.99, the company stands out in the precious metals sector. The adjusted P/E ratio for the last twelve months as of Q3 2023 is even more attractive at 9.69, pointing towards a potentially undervalued stock. Additionally, the company has shown a staggering revenue growth of over 8000% in the same period, highlighting its rapid expansion and operational success.
Investors may find the InvestingPro Tips particularly relevant, as SilverCrest holds more cash than debt, indicating a strong balance sheet. Moreover, the company's high shareholder yield and anticipated net income growth this year add to the positive outlook. For those interested in deeper analysis, InvestingPro offers over 11 additional tips for SilverCrest, which can be accessed with an InvestingPro+ subscription now available at a special New Year sale with discounts of up to 50%. Using coupon code SFY24 can get you an additional 10% off a 2-year subscription, or SFY241 for an additional 10% off a 1-year subscription.
These insights and tips, along with the company's strong return over the last three months, suggest that SilverCrest Metals Inc. is positioned for continued success and could be a compelling consideration for investors looking for opportunities in the mining sector.
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