SilverCrest Metals Exceeds Sales Guidance, Increases Treasury Assets in Q4 2023
SilverCrest Metals Inc. has reported surpassing its 2023 sales guidance and significantly increasing its treasury assets in the fourth quarter of 2023. The company announced these impressive 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. This figure 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.
SilverCrest Surpasses Sales Expectations for Full Year 2023
SilverCrest Metals Inc.’s sales for the full year of 2023 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, commended the company’s teams in Mexico and Canada for their success in their first full year of commercial production at the Las Chispas mine. Despite some unplanned downtime at the processing plant, SilverCrest’s operational flexibility allowed them to exceed their guidance figures.
Strong Financial Position and Growth Opportunities for SilverCrest
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 but emphasized its financial strength and flexibility.
SilverCrest also announced a change in its underground mining contract, with Dumas set to take over in February 2024 under a five-year service agreement. The current contractor will continue operations until Dumas is fully mobilized.
SilverCrest’s Remarkable Performance Attracts Investor Attention
With a market capitalization of $858.61 million and a notable price-to-earnings (P/E) ratio of 9.99, SilverCrest Metals Inc. 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.
Conclusion: SilverCrest Metals Inc. Positioned for Continued Success in Mining Sector
SilverCrest Metals Inc.’s strong return over the last three months, combined with its impressive sales figures and financial health, suggests the company is positioned for continued success. With its remarkable performance and growth opportunities, it could be a compelling consideration for investors looking for opportunities in the mining sector.
Analyst comment
Positive news: SilverCrest Metals Inc. exceeded sales guidance and increased its treasury assets in Q4 2023. The company also surpassed sales expectations for the full year 2023 and announced strong financial position and growth opportunities. Its remarkable performance attracts investor attention. Analyst prediction: SilverCrest is positioned for continued success in the mining sector, making it a compelling consideration for investors.
