SilverCrest Metals Inc.

Q3 2024 revenue was a record $80.4 million, and mine operating earnings were a record $47 million, producing operating margins of 59%. Adjusted net earnings were $26.3 million, or $0.18 per share; operating cash flow was $44.2 million, or $0.30 per share; and free cash flow was $36.2 million, or $0.24 per share, up 49% from Q2. Treasury assets ended the quarter at $158.2 million, up 29% or $35.9 million sequentially, including $37.4 million of bullion, up 56% from Q2. Operationally, the plant recovered 2.6 million silver equivalent ounces at grades of 674 g/t and recoveries of 98.4%. Year-to-date cash cost was $8.28/oz versus 2024 guidance of $9.25 to $9.75/oz, and year-to-date AISC was $14.50/oz versus guidance of $14.90 to $15.75/oz. Sustaining capital totaled $33.4 million through Q3 and is expected to finish closer to the top end of the $40 million to $44 million guidance range; exploration spending was $11.5 million year-to-date versus $12 million to $14 million full-year guidance. Management said it may meet or possibly beat 2024 sales, cash cost, and AISC guidance, and expects plant throughput to remain 1,200 tpd for the remainder of 2024.

Eric Fier emphasized that Las Chispas continues to show “quality and flexibility” with another quarter of strong operating and financial results, and he highlighted free cash flow as a key proof point. He said the company exited the quarter debt-free with nearly $160 million in treasury assets and described SilverCrest as having one of the best balance sheets in the silver space. His tone was confident and upbeat, especially on the pending Coeur transaction and the company’s ability to meet or possibly beat 2024 guidance.

Rob Doyle focused on the quarter’s record financial performance and the cash conversion from operations. He cited record revenue of $80.4 million, mine operating earnings of $47 million, adjusted net earnings of $26.3 million, operating cash flow of $44.2 million, and free cash flow of $36.2 million, while also explaining the new adjusted EPS reporting approach and noting that it removes certain noncash FX, deferred tax, and transaction-cost items. On capital and returns, the call highlighted a debt-free balance sheet, treasury assets of $158.2 million, and bullion holdings of $37.4 million, with management saying the bullion strategy has added value to the treasury portfolio.

The main analyst question centered on whether the Coeur transaction could create tax savings through consolidation with Coeur’s Palmarejo mine and whether SilverCrest’s management team would take on larger roles in the combined company. Eric Fier said integration planning is still underway and that the company does not yet have answers on director selection or management roles. Rob Doyle added that potential tax synergies may exist, but it is too early to comment and the topic will be part of the integration work over the next few months.