Santacruz Silver reports rise in production in Q3-2020

27.10.2020, 15:25 - eeppo

Santacruz Silver Mining (TSXV: SCZ) announced that, as its operations have returned to normal, it has seen a rise in production with Q3-2020 reaching 977,679 silver equivalent ounces.

The figure implies a 38% increase from the previous quarter’s output, which was affected by the decision of Mexico’s Ministry of Health to suspend non-essential businesses for 42 days, in response to the global pandemic. 

According to Santacruz, following the resumption of activities, AgEq production at its Zimapan mine in the eastern Hidalgo state increased by 44% compared to Q2-2020 and 52% compared to Q3-2019. 

On the other hand, AgEq production at the Rosario mine in the north-central state of San Luis Potosí decreased by 20% compared to Q2-2020 and 57% compared to Q3-2019.

Despite the lower production at Rosario, the miner said that consolidated AgEq production continues to improve quarter over quarter

Despite the lower production at Rosario, the miner said that consolidated AgEq production continues to improve quarter over quarter and clarified that Q3-2019 results included only 50% of Zimapan and 100% of Veta Grande production, whereas Q3-2020 results reflect 100% of Zimapan and the discontinuance of operations at Veta Grande, whose Q3-2019 production was 214,284 AgEq oz.

“During Q2-2020, when operations were suspended due to the Mexican Ministry of Health’s federal decree, we took the opportunity to make certain structural and management adjustments,” Carlos Silva, Santacruz Silver’s CEO, said in a media statement. “As demonstrated by our third-quarter results, these adjustments positioned us for improved performance. With the closing of our recent private placement, we added seven new scooptrams (five at Zimapan mine and two at Rosario mine), which will allow us to further increase production at the Zimapan mine and move the Rosario mine towards budgeted production.”

Silva said that after taking all the 2020 challenges into consideration and evaluating precious metals prices, management believes Q4-2020 will be a turning point in the success of Santacruz.

“We are very excited about the future of the company as we continue to execute our production plans aiming for solid production results for Q4, and a strong start to 2021,” the executive said.