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SilverCrest Metals Inc.
11/13/2024
Good morning, ladies and gentlemen. Welcome to the Silvercrest Metals third quarter 2024 results call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing star 1 on your telephone. Also, today's call is being recorded, and if you should need any assistance during the call today, please press star 0. Now, at this time, I'll turn things over to Mr. Eric Fierre, CEO and Director of Silvercrest Metals. Please go ahead, sir.
Thank you, operator. Good, and thanks everyone for joining. Today we'll be providing commentary on our Q3 2024 results, after which we'll be happy to take questions. The slide deck we'll be referring to is available on our website at silvercrestmetals.com under the investor tab. Before we get started, I'd like to direct you to the forward-looking statement on slide two. All figures discussed this morning are in U.S. dollars unless otherwise stated. All ounces and per ounce references discussed will be based on silver equivalent ounces sold unless otherwise indicated. Our silver equivalent reference are based on gold to silver ratio of 79.51 to 1. On the call with me today are Rob Doyle, Interim CFO, Chris Ritchie, President, and Cliff LaFleur, Vice President of Operations. Starting on slide three, Las Chispas continues to demonstrate its quality and flexibility with another quarter of stellar results, including record revenue and mine operating earnings, which continued to increase to a large free cash flow. Operational and financial consistency has become our hallmark, And heading into the final quarter of the year, we are confident in our ability to meet or possibly beat our 2024 sales cash cost and all in sustaining cost guidance. Free cash flow is one of the truest tests of performance and Q3 has been one of our best quarters to date. In the quarter we had a 29% increase in our Treasury assets from Q2, leaving us with one of the best balance sheets in the silver space. We exited the quarter debt-free with nearly $160 million in treasury assets, including a sizable jump in our bullion holdings, which continue to provide value to our shareholders. As you all know, shortly after the end of the quarter, we announced a transaction with Core Mining. The agreement for CORE to acquire Silvercrest represented an 18% premium on the announcement. We are excited about this transaction and what it means for our shareholders. I will now pass the call to Rob to discuss our financial results.
Thank you, Eric, and good morning, everyone. Moving to slide four. In the quarter, we generated record revenue of $80.4 million and record mine operating earnings of $47 million for exceptional operating margins of 59%. Adjusted net earnings in the quarter were $26.3 million or $0.18 per share. We've made the decision this quarter to start reporting adjusted earnings per share in a manner consistent with many of our peers. Adopting this metric has allowed us to remove some of the non-cash unrealized exchange rate impacts on our currency positions and deferred taxes, as well as for one-time transaction costs. For detailed information, please see Q3 MD&A posted on our website. Cash flow generation in the quarter was again robust with operating cash flow of $44.2 million, or $0.30 per share, and free cash flow of $36.2 million, or $0.24 per share. an impressive 49% increase from Q2. Las Chispas continues to demonstrate its ability to translate strong operational performance to our balance sheet strength, which Chris will speak to next. Over to you, Chris.
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