SilverCrest Metals announces FY24 guidance for Las Chispas Operation

SilverCrest Metals announce its 2024 guidance for the Company’s Las Chispas Operation located in Sonora, Mexico. The Las Chispas underground will continue its ramp-up through 2024 with a target to exit the year at over 1,050tpd, in line with the Technical Report. The new mining contractor, Dumas Contracting, arrived at site in early February 2024 to begin mobilization, which is expected to continue through Q3. 2024 guidance incorporates assumptions related to the transition of contractors and ramp-up of Dumas. A total of $4.5 million in mobilization charges will be paid over the mobilization period with the expense recognized over the life of the five year contract and reflected in AISC during this time. In 2024, the processing plant will operate at an average of 1,200 tpd except in Q1, 2024 when there is planned maintenance downtime which will reduce plant availability to approximately 85%. This downtime is not expected to impact production in the quarter as ore blending from the underground mine and high-grade stockpile will offset this downtime. Cash Costs are expected to be $9.50-$10.00/oz AgEq sold. This compares to 2024 cash costs forecast in the Technical Report of $9.80/oz AgEq sold and 2023 guidance of $7.50-$8.50/oz AgEq sold. The major variance from 2023 is the inclusion of Dumas mobilization and demobilization of the outgoing contractor. Cash costs are expected to remain relatively consistent throughout 2024. Eric Fier, CEO, commented, “2023 marked a successful first year of commercial production with Las Chispas exceeding its inaugural sales guidance, leading to full repayment of our debt and a $54.4M or 107% increase in treasury assets. Despite continued cost pressures we are proud to be delivering sales and cost guidance that is in line with our 2023 Technical Report. In 2024 we will continue to pursue capital allocation opportunities including exploration, share buybacks, and growth of our bullion holdings.”