SilverCrest, in its Q3 2023 earnings call, reported that it remains on course to meet its sales and cost guidance for the year. The mining company reported robust gold and silver sales, an increase in treasury assets, and a positive outlook on its exploration efforts. It also revealed plans for a share buyback program and increased exposure to gold and silver bullion.

Key takeaways from the call include:

• SilverCrest reported gold sales of 14,500 ounces and silver sales of 1.53 million ounces, bringing year-to-date sales to 7.69 million ounces.
• The company’s all-in sustaining costs were better than expected.
• The total treasury assets of the company increased by nearly 40% to $81.7 million.
• A collaboration agreement for agricultural infrastructure and water concessions for nearby communities was signed as part of a five-year water stewardship plan.
• The company plans to continue its exploration efforts with a $10 million drilling budget through Q1 2024.
• Management discussed their capital allocation strategy, focusing on exploration and buying back shares.
• The company is well-positioned to execute its 2023 sales and cost guidance.

During the call, management addressed various topics, including their capital allocation strategy and the focus on exploration and share buyback. They mentioned their goal to return capital to shareholders but did not provide specific details on the budget or price thresholds set by the Board.

Management also revealed a special mining duty purchase rate of 7.5% and addressed concerns about cartel obstruction and labor issues. They stated that they did not experience such problems in Sonora and had a 500-man camp for employees.

The company’s growth plan includes continued exploration at Las Chispas, a regional program within haulage distance of the mill, and potential M&A projects in the Americas. They emphasized the importance of maintaining flexibility and being selective in their choices.

Further, the company disclosed that it is returning to the 118 zone of the Las Chispas main vein for further exploration after a four-year focus on the Babicanora area. As of Q3 end, the company had between 7 to 8 drills in operation.

The lag time for processing drill findings has decreased to three to four weeks, and the company is expecting further improvement with the certification of their own lab by the end of the year. The call ended with a comment encouraging the company to continue buying back its stock.