Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an update on the cash and bullion status following the Las Chispas acquisition? A: Mitchell Krebs, CEO, explained that SilverCrest's balance sheet was a key factor in the acquisition, with plans to use cash and bullion to reduce debt. Thomas Whelan, CFO, added that SilverCrest had $153 million in cash and $40 million in bullion at year-end, with the cash balance closer to $100 million at closing due to various payments.
Q: What caused the increase in cost per ounce at Kensington, and what was the issue with crush size at Rochester? A: Mitchell Krebs, CEO, noted that Rochester's crush size issue was due to using larger, previously mined material to offset crusher downtime, impacting silver production. Michael Routledge, COO, added that Kensington's costs rose due to increased labor and development expenses, with sensitivity to grade impacting costs.
Q: What factors contribute to the back-half weighted production outlook for Rochester? A: Michael Routledge, COO, explained that the production outlook is driven by the momentum of leach curves, with silver taking longer to leach. Weather conditions and loading rates also impact production, particularly in open-pit mines like Rochester.
Q: How is the fragmentation or grind size at Rochester progressing? A: Michael Routledge, COO, stated that while progress is being made towards the 5/8-inch target, more work is needed to optimize blasting practices and crusher controls. Direct-to-pad material, which bypasses the crusher, is also used to exceed permit limits and generate value.
Q: How are recovery rates and costs at Rochester tracking against expectations? A: Mitchell Krebs, CEO, confirmed that recovery rates are meeting expectations for the material size, with 2025 production targets set at 7.5 to 8 million ounces of silver and 70,000 ounces of gold. Costs per ton are expected to align with previous guidance, driving significant cash flow.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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