Santacruz hit by San Felipe impairment

By
Thursday, December 1, 2016

Santacruz Silver reported an US$11.1mn Q3 loss, mainly due to an impairment of its San Felipe project in Mexico's Sonora state, compared to a loss of US$1.63mn a year before, according to a statement.

The Vancouver-based company recorded a US$16.7mn impairment charge at the silver-lead-zinc project, which is considered a non-core asset, as the focus shifts to the Veta Grande operation in Zacatecas state, which began commercial production in October.

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Santacruz recorded a US$19.4mn impairment on San Felipe in 4Q15. The project was suspended in 2014.

RESULTS

Santacruz's results were positively impacted by a gain on debt settlement of US$6.38mn.

Revenue was US$3.03mn, up from US$2.59mn, due to higher realized silver prices, partly offset by lower silver equivalent volumes sold.

All-in sustaining cost fell to US$15.88/oz silver equivalent sold from US$17.52/oz. Santacruz also has the Rosario mine in Mexico.