UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
 
 
For the month of August, 2024.
 
 
Commission File Number 001-38628
 
 
SilverCrest Metals Inc.
(Translation of registrant’s name into English)
 
570 Granville Street, Suite 501
Vancouver, British Columbia V6C 3P1
Canada
(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F
 
Form 20-F
o
Form 40-F
x
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   o              
 
 
Note:  Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):    o            
 
 
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.


SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 

 SILVERCREST METALS INC.
 
Date: August 7 , 2024
/s/ Sean Deissner______________
Sean Deissner
VP, Financial Reporting

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INDEX TO EXHIBITS

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,



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Unaudited Condensed Interim Consolidated Financial Statements and Notes
FOR THE THREE AND SIX MONTHS ENDING JUNE 30, 2024

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Condensed Interim Consolidated Statements of
Financial Position
(unaudited, in thousands of U.S. dollars)
June 30, 2024December 31, 2023
Assets
Current assets
Cash and cash equivalents$98,320 $85,964 
Bullion (Note 7)24,026 19,191 
Trade and other receivables436 114 
Value-added tax receivables14,558 16,250 
Inventories (Note 8)56,228 49,798 
Prepaids and other assets8,989 7,216 
202,557 178,533 
Non-current assets
Mineral properties, plant and equipment (Note 9)263,152 246,728 
Deferred tax assets (Note 18)8,658 22,723 
Long-term value-added tax receivables15,504 12,190 
Prepaids and other long-term assets8,142 - 
Total assets$498,013 $460,174 
Liabilities
Current liabilities
Accounts payable and accrued liabilities (Note 10, 6(a))$22,395 $17,924 
Tax liabilities8,438 33,614 
Derivative liabilities3,531 168 
Lease obligations164 67 
34,528 51,773 
Non-current liabilities
Long-term lease obligations362 221 
Deferred tax liabilities (Note 18)4,738 - 
Reclamation provision (Note 12)5,057 5,855 
Total liabilities44,685 57,849 
Equity (Note 13)
Issued capital420,855 406,890 
Share option reserve8,018 11,338 
Currency translation reserve(3,538)(3,538)
Retained earnings27,993 (12,365)
Total equity453,328 402,325 
Total liabilities and equity$498,013 $460,174 
See accompanying notes to the condensed interim consolidated financial statements
Approved by the Board on August 7, 2024
"signed"N. Eric Fier, Director"signed"Anna Ladd-Kruger, Director
SILVERCREST METALS INC.
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Condensed Interim Consolidated Statements of Earnings and
Comprehensive Earnings
(unaudited, in thousands of U.S. dollars except per share amounts)
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Revenue (Note 14)$72,741 $61,999 $136,387 $119,982 
Cost of sales
Production costs (Note 15)(22,680)(18,402)(40,883)(36,440)
Depreciation(8,187)(4,990)(15,963)(9,035)
Government royalties(386)(314)(576)(608)
(31,253)(23,706)(57,422)(46,083)
Mine operating earnings41,488 38,293 78,965 73,899 
General and administrative expenses (Note 16)(5,437)(2,881)(10,132)(6,414)
Exploration and project expenses(187)(151)(409)(377)
Foreign exchange losses(2,751)(8,641)(2,385)(7,522)
Earnings from operations33,113 26,620 66,039 59,586 
Interest income1,235 1,133 2,873 1,905 
Interest and finance expense (Note 17)(306)(668)(621)(2,037)
Other expense (Note 22)(1,375)— (25)— 
Earnings before income taxes32,667 27,085 68,266 59,454 
Income tax expense (Note 18)(26,173)(3,383)(27,908)(8,587)
Net earnings$6,494 $23,702 $40,358 $50,867 
Other comprehensive income
Currency translation adjustment— 9,926 — 10,255 
Total comprehensive earnings$6,494 $33,628 $40,358 $61,122 
Net earnings attributable to common shareholders
Basic earnings per share$0.04 $0.16 $0.27 $0.35 
Diluted earnings per share$0.04 $0.16 $0.27 $0.34 
Weighted average shares outstanding (in 000’s) Basic147,728 147,231 147,341 147,216 
Weighted average shares outstanding (in 000’s) Diluted149,197 150,867 148,810 150,511 
See accompanying notes to the condensed interim consolidated financial statements
SILVERCREST METALS INC.
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Condensed Interim Consolidated Statements of Cash Flows
(unaudited, in thousands of U.S. dollars)
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
(Note 19)(Note 19)
Operating activities
Net earnings for the period$6,494 $23,702 $40,358 $50,867 
Income tax expense (Note 18)26,173 3,383 27,908 8,587 
Depreciation8,187 5,008 15,963 9,075 
Share-based compensation expense1,821 294 2,886 1,414 
Unrealized foreign exchange losses2,041 15,572 2,525 13,943 
Interest income(1,235)(1,133)(2,873)(1,905)
Interest expense (Note 17)152 533 299 1,775 
Interest paid (Note 19)(164)(455)(213)(1,532)
Interest received (Note 19)1,235 1,363 2,873 2,084 
Income taxes paid(14,436)— (40,600)(987)
Other operating activities (Note 19)1,503 116 259 223 
Change in working capital (Note 19)7,802 6,333 (10,933)(2,211)
$39,573 $54,716 $38,452 $81,333 
Investing activities
Payments for mineral properties, plant and equipment(19,544)(12,919)(34,348)(20,849)
Proceeds from sale of mineral properties, plant and equipment259 — 259 — 
Purchase of bullion(930)(3,981)(930)(5,791)
Payments for derivatives(706)— (545)— 
$(20,921)$(16,900)$(35,564)$(26,640)
Financing activities
Common share proceeds9,112 — 9,770 179 
Repayment of debt (Note 11)— (25,000)— (50,000)
Payments of equipment leases(36)(28)(47)(71)
$9,076 $(25,028)$9,723 $(49,892)
Effects of exchange rate changes on cash and cash equivalents(493)(5,140)(255)(2,149)
Increase in cash and cash equivalents27,235 7,648 12,356 2,652 
Cash and cash equivalents at the beginning of the period71,085 45,765 85,964 50,761 
Cash and cash equivalents at the end of the period$98,320 $53,413 $98,320 $53,413 
Supplemental cash flow information and restatement of prior period (Note 19)
See accompanying notes to the condensed interim consolidated financial statements
SILVERCREST METALS INC.
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Condensed Interim Consolidated Statements of Changes in Equity
(unaudited, in thousands of U.S. dollars except for number of shares)
Issued
shares		Issued
capital		Share option reserveCurrency translation reserveRetained earningsTotal
Balance, December 31, 2022147,156 $405,811 $10,945 $(13,793)$(125,969)$276,994 
Total comprehensive earnings
Net earnings for the period— — — — 50,867 50,867 
Foreign exchange translation— — — 10,255 — 10,255 
— — — 10,255 50,867 61,122 
Shares issued on the exercise of stock options75 294 (115)— — 179 
Stock options forfeited— — (37)— 37 — 
Share-based compensation on option grants— — 1,280 — — 1,280 
Balance, June 30, 2023147,231 406,105 12,073 (3,538)(75,065)339,575 
Total comprehensive earnings
Net earnings for the year— — — — 65,853 65,853 
— — — — 65,853 65,853 
Shares issued on the exercise of stock options1,208 4,814 (1,862)— — 2,952 
Stock options forfeited— — 37 — (37)— 
Share-based compensation on option grants— — 1,090 — — 1,090 
Shares repurchased and cancelled(1,504)(4,029)— — (3,116)(7,145)
Balance, December 31, 2023146,935 406,890 11,338 (3,538)(12,365)402,325 
Total comprehensive earnings
Net earnings for the period— — — — 40,358 40,358 
— — — — 40,358 40,358 
Shares issued on the exercise of stock options1,590 13,946 (4,176)— — 9,770 
Shares issued on the settlement of share units3 19 — — — 19 
Share-based compensation on option grants— — 856 — — 856 
Balance, June 30, 2024148,528 $420,855 $8,018 $(3,538)$27,993 $453,328 
See accompanying notes to the condensed interim consolidated financial statements
SILVERCREST METALS INC.
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Notes to the Condensed Interim Consolidated Financial Statements
As at June 30, 2024 and December 31, 2023, and for the
three and six months ended June 30, 2024 and 2023
(unaudited with tabular amounts in thousands of shares, options and USD$
except per share amounts, unless otherwise noted)
1. Nature of Operations
SilverCrest Metals Inc. (the "Company" or "SilverCrest") is a corporation governed by the Business Corporations Act (British Columbia). The Company’s corporate office and principal address is located at 501-570 Granville Street, Vancouver, British Columbia, Canada, V6C 3P1. The Company’s registered office is 19th Floor, 885 West Georgia Street, Vancouver, BC, Canada, V6C 3H4. SilverCrest shares trade on the Toronto Stock Exchange under the symbol SIL and the NYSE-American under the symbol SILV.
SilverCrest engages in silver and gold mining and related activities, including exploration and mine development from its Las Chispas mine located in Sonora, Mexico.
2. Basis of Preparation
These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) applicable to the preparation of interim financial statements, under International Accounting Standard ("IAS") 34 - Interim Financial Reporting and have been condensed with certain disclosures from the Company's audited consolidated financial statements for the year ended December 31, 2023 (the "2023 Annual Financial Statements") omitted. Accordingly, these unaudited condensed interim consolidated financial statements should be read in conjunction with the 2023 Annual Financial Statements.
These unaudited condensed interim consolidated financial statements were approved for issuance by the Board of Directors on August 7, 2024.
3. Material Accounting Policies
The accounting policies applied in the preparation of these unaudited condensed interim consolidated financial statements, with the exception of those described in Note 4, are consistent with those applied and disclosed in the 2023 Annual Financial Statements.
4. Changes in Accounting Standards
Application of New and Revised Accounting Standards
Presentation of Financial Statements (Amendments to IAS 1)
We have adopted the amendments to IAS 1 Presentation of Financial Statements regarding the classification of liabilities as current or non-current based on contractual rights that are in existence at the end of the reporting period. A liability not due over the next twelve months is classified as non-current even if management intends or expects to settle the liability within twelve months. The amendment also introduces a definition of ‘settlement’ to make clear that settlement refers to the transfer of cash, equity instruments, other assets, or services to the counterparty. The amendment issued in October 2022 also clarifies how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. Covenants to be compiled with after the reporting date do not affect the classification of debt as current or non-current at the reporting date. The amendments are effective for annual reporting periods beginning on or after January 1, 2024. These amendments did not have a material impact on the Company.
Accounting Standards Issued but Not Yet Applied
Presentation and Disclosure in Financial Statements (IFRS 18)
IFRS 18 has been issued to achieve comparability of the financial performance of similar entities. The standard, which replaces IAS 1, impacts the presentation of primary financial statements and notes, mainly the income statement where companies will be required to present separate categories of income and expense for operating, investing, and financing activities with prescribed subtotals for each new category. IFRS 18 will require management-defined performance measures to be explained and included in a separate note within the consolidated financial statement. The standard is effective for financial statements beginning on January 1, 2027, including interim financial statements and requires retrospective application. The Company is currently assessing the impact of this amendment.
SILVERCREST METALS INC.
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Notes to the Condensed Interim Consolidated Financial Statements
As at June 30, 2024 and December 31, 2023, and for the
three and six months ended June 30, 2024 and 2023
(unaudited with tabular amounts in thousands of shares, options and USD$
except per share amounts, unless otherwise noted)
There are no other standards or amendments or interpretations to existing standards issued but not yet effective that are expected to have a material impact on the Company.
5. Significant Judgments and Estimates
In preparing the Company’s unaudited condensed interim financial statements for the three and six months ended June 30, 2024, critical judgements made in applying the Company's accounting policies and key sources of estimation uncertainty are consistent with those disclosed in Notes 5 and 6, respectively, of its 2023 Annual Financial Statements.
6. Financial Instruments
a)Carrying Values and Measurement of Financial Assets and Liabilities at Amortized Cost or Fair Value through Profit and Loss ("FVTPL")
June 30, 2024Amortized cost FVTPLTotal
Financial assets
Cash and cash equivalents$98,320 $- $98,320 
Trade and other receivables436 - 436 
Financial liabilities
Accounts payable and accrued liabilities17,345 5,050 22,395 
Derivative liabilities- 3,531 3,531 
December 31, 2023Amortized costFVTPLTotal
Financial assets
Cash and cash equivalents$85,964 $- $85,964 
Trade and other receivables114 - 114 
Financial liabilities
Accounts payable and accrued liabilities14,080 3,844 17,924 
Derivative liabilities- 168 168 
b)Derivative Instruments
The Company's derivatives are comprised of bullion contracts and foreign currency contracts. During the three and six months ended June 30, 2024, the Company sold call options and purchased put options on bullion and foreign currency contracts. The Company initially records the cash premium from the sale of an option as a liability which is then recognized as a derivative gain upon contract settlement. The value of the option is remeasured using the Black-Scholes option pricing model at each reporting date, with gains or losses recorded as other expense, along with a corresponding increase or decrease to the derivative assets or liabilities.
The derivative losses, which are recorded in other expense (Note 22), for the three and six months ended June 30, 2024 were as follows:
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
 Realized derivative losses$(489)$— $(489)$— 
 Unrealized derivative losses(3,952)— (3,418)— 
$(4,440)$- $(3,907)$- 
SILVERCREST METALS INC.
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Notes to the Condensed Interim Consolidated Financial Statements
As at June 30, 2024 and December 31, 2023, and for the
three and six months ended June 30, 2024 and 2023
(unaudited with tabular amounts in thousands of shares, options and USD$
except per share amounts, unless otherwise noted)
c)Fair Value Information
i.Fair Value Measurement
The categories of the fair value hierarchy of inputs used in the valuation techniques are as follows:
Level 1: Quoted prices in active markets for identical assets or liabilities;
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and
Level 3: Inputs for the asset or liability based on unobservable market data
The levels in the fair value hierarchy into which the Company’s financial assets and liabilities that are measured and recognized on the Condensed Consolidated Interim Statements of Financial Position at fair value on a recurring basis were categorized as follows:
At June 30, 2024At December 31, 2023
Level 1Level 2Level 1Level 2
Assets and Liabilities:
Derivative liabilities— 3,531 — 168 
The methodology and assessment of inputs for determining the fair value of financial assets and liabilities as well as the levels of hierarchy for the Company’s financial assets and liabilities measured at fair value remain unchanged from that at December 31, 2023.
d)Financial Instruments and Related Risks
The Company has exposure to risks of varying degrees of significance which could affect its ability to achieve its strategic objectives for growth and shareholder returns. The principal financial risks to which the Company is exposed are:
i)Credit risk
ii)Liquidity risk
iii)Market risk
1.Currency risk
2.Interest rate risk
3.Price risk
The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework and reviews the Company’s policies on an ongoing basis.
i.Credit Risk
Credit risk is the risk that a counterparty may fail to satisfy its performance obligations under the terms of a financial instrument. Credit risk results from cash and cash equivalents and trade and other receivables.
The Company manages credit risk on its cash and cash equivalents by diversifying these asset holdings with multiple highly rated financial institutions, including the Bank of Montreal ("BMO") and the Bank of Nova Scotia (“BNS”) in Canada and BNS in Mexico. Further, credit risk on trade and other receivables is managed by ensuring amounts are receivable from highly rated financial institutions. The Company has recognized nominal amount of credit losses with respect to trade and other receivables. For cash and cash equivalents and trade and other receivables, credit risk exposure equals the carrying amount on the balance sheet.
ii.Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company has in place a planning and budgeting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company ensures that sufficient committed loan facilities exist to meet its short-term business requirements, taking into account its anticipated cash flows from operations and its holdings of cash and cash equivalents.
As at June 30, 2024, the Company continues to maintain its ability to meet its financial obligations as they come due.
SILVERCREST METALS INC.
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Notes to the Condensed Interim Consolidated Financial Statements
As at June 30, 2024 and December 31, 2023, and for the
three and six months ended June 30, 2024 and 2023
(unaudited with tabular amounts in thousands of shares, options and USD$
except per share amounts, unless otherwise noted)
iii.Market Risk
1.Currency Risk
The functional and reporting currency of the Company including its subsidiaries is the United States dollar ("USD") and the Company reports results using USD; however, the Company operates in jurisdictions that utilize the Canadian dollar ("CAD") and Mexican peso ("MXN"). As a consequence, the financial results of the Company’s operations as reported in USD are subject to changes in the value of the USD relative to these local currencies. Since the Company’s sales are denominated in USD and a portion of the Company’s operating costs and capital spending are in local currencies, the Company is negatively impacted by strengthening local currencies relative to the USD and positively impacted by the inverse.
In order to mitigate its exposure to currency risk, the Company entered into option contracts designed to limit the effective exchange rate between the Mexican peso and US dollar. The notional value of open contracts as at June 30, 2024 totaled $97.9 million, with maturities from July 2024 until June 2025 and exchange rates between $17.31 and $18.57. During the three and six months ended June 30, 2024, the Company recorded derivative losses of $4.4 million and $3.9 million, respectively (Note 22).
2.Interest Rate Risk
Interest rate risk is the risk that the fair values or future cash flows of the Company will fluctuate because of changes in market interest rates. The average interest rate earned by the Company during the six months ended June 30, 2024 on its cash and cash equivalents was 5.32% (2023 - 5.39%).
On November 29, 2022, the Company's entered into a $120 million senior secured credit facility (the "Credit Facility") comprised of a $50 million term facility (the "Term Facility") and a $70 million revolving facility (the "Revolving Facility") (Note 11). The Company repaid the Term Facility during the first five months of 2023 and incurred a weighted average interest rate of 7.79% during that time. There were no amounts drawn on the Revolving Facility during the three and six months ended June 30, 2024 or comparative period.
3.Price Risk
The Company is exposed to price risk on precious metals that impact the valuation of the Company’s derivative positions, comprised of gold and silver call options written, which has a direct and immediate impact on net earnings. The prices of precious metals are volatile and affected by many factors beyond the Company’s control, and there can be no assurance that precious metal prices will not be subject to wide fluctuations in the future. A substantial or extended change in precious metal prices could have an adverse effect on the Company’s financial position, income, and cash flows.
7. Bullion
The Company purchases gold and silver bullion from a bullion bank as part of its liquidity management program.
Bullion held by the Company was comprised of the following:
June 30, 2024December 31, 2023
CostFair valueCostFair value
Gold bullion$6,465 $7,423 $5,535 $5,743 
Silver bullion13,139 16,603 13,139 13,448 
$19,604 $24,026 $18,674 $19,191 
The Company records bullion at fair value with gains of $3.1 million and $3.9 million, respectively, included in other expense (Note 22) for the three and six months ended June 30, 2024 and no amount recorded in the comparative period.
SILVERCREST METALS INC.
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Notes to the Condensed Interim Consolidated Financial Statements
As at June 30, 2024 and December 31, 2023, and for the
three and six months ended June 30, 2024 and 2023
(unaudited with tabular amounts in thousands of shares, options and USD$
except per share amounts, unless otherwise noted)
8. Inventories
The Company’s inventories were comprised of the following:
June 30, 2024December 31, 2023
Stockpile$30,900 $27,115 
In-process3,221 2,055 
Finished13,327 11,496 
Materials and supplies8,780 9,132 
$56,228 $49,798 
For the three and six months ended June 30, 2024, the Company recognized a $1.0 million impairment of materials and supplies inventories in production costs (Note 15). No amounts were recorded in the comparative periods.
9. Mineral Properties, Plant, and Equipment
June 30, 2024December 31, 2023
CostAccumulated DepreciationCarrying ValueCostAccumulated DepreciationCarrying Value
Producing:
MexicoLas Chispas$316,252 $(55,587)$260,665 $281,371 $(37,130)$244,241 
Non-Producing:
MexicoOther2,748 (261)$2,487 2,748 (261)$2,487 
CanadaOther58 (58)$- 58 (58)$— 
2,806 (319)2,487 2,806 (319)2,487 
Total$319,058 $(55,906)$263,152 $284,177 $(37,449)$246,728 
10. Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities consist of:
June 30, 2024December 31, 2023
Trade payables$2,797 $2,938 
Accrued liabilities11,999 9,890 
Payroll related liabilities2,549 1,957 
Share unit accrued liabilities5,050 3,139 
$22,395 $17,924 
11. Debt
Revolving Facility
On November 29, 2022, the Company entered into a $120 million Credit Facility comprised of a $50 million Term Facility, maturing November 28, 2025, and a $70 million Revolving Facility, maturing November 27, 2026. On closing the Credit Facility, the Company drew $50 million from the Term Facility and used $40 million of available cash to repay its $92.9 million secured project financing facility.
The Company fully repaid the Term Facility during the first five months of 2023 and has not drawn from the Revolving Facility in 2024 or 2023. As of June 30, 2024, the Company was in compliance with all financial covenants under the $70 million Revolving Facility.
SILVERCREST METALS INC.
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Notes to the Condensed Interim Consolidated Financial Statements
As at June 30, 2024 and December 31, 2023, and for the
three and six months ended June 30, 2024 and 2023
(unaudited with tabular amounts in thousands of shares, options and USD$
except per share amounts, unless otherwise noted)
The Revolving Facility bears interest, and the Term Facility when outstanding bore interest, at a rate based initially on an adjusted Term secured overnight financing rate ("SOFR") as administered by the Federal Reserve Bank of New York, plus an applicable margin ranging from 2.50% to 3.75%. The undrawn portion of the Revolving Facility is subject to a standby fee ranging from 0.5625% to 0.8428% per annum. During the three and six months ended June 30, 2024, $0.1 million and $0.2 million, respectively, (2023 - $0.2 million and $0.3 million, respectively) of standby fees and interest were recorded as interest and finance expense.
12. Reclamation Provision
Changes to the reclamation and closure provision for the six months ended June 30, 2024 and year ended December 31, 2023 is as follows:
June 30, 2024December 31, 2023
Balance, beginning of period$5,855 $4,590 
Accretion of reclamation provision (Note 17)276 493 
Revisions in estimates and obligations(1,074)772 
Balance, end of period$5,057 $5,855 
13. Share Capital and Employee Compensation Plans
a)Stock Options
For the three and six months ended June 30, 2024, the total share-based compensation expense relating to stock options was $0.4 million and $0.9 million, respectively (2023 - $0.3 million and $0.6 million, respectively) and is presented as a component of general and administrative expense.
Stock options
During the three and six months ended June 30, 2024, the Company granted 13,500 and 634,300 stock options, respectively (nil for the three and six months ended June 30, 2023). During the three and six months ended June 30, 2024, the Company issued 1,464,113 and 1,590,029 common shares, respectively (2023 - nil and 75,000, respectively), in connection with the exercise of stock options.
The following table summarizes changes in stock options for the six months ended June 30, 2024 and year ended December 31, 2023:
Six months ended
June 30, 2024		Year ended
December 31, 2023
Number of
options		Weighted average
exercised price CAD		Number of
options		Weighted average
exercised price CAD
Outstanding, beginning of period4,105$9.16 5,560$7.87 
Granted6347.51 657.13 
Exercised(1,590)8.39 (1,283)3.34 
Forfeited(70)10.09 (238)9.80 
Outstanding, end of period3,079$9.20 4,105$9.16 
SILVERCREST METALS INC.
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Notes to the Condensed Interim Consolidated Financial Statements
As at June 30, 2024 and December 31, 2023, and for the
three and six months ended June 30, 2024 and 2023
(unaudited with tabular amounts in thousands of shares, options and USD$
except per share amounts, unless otherwise noted)
The following table summarizes information about the Company's stock options outstanding at June 30, 2024:
Options OutstandingOptions Exercisable
Range of Exercise Prices CADNumber Outstanding as at June 30, 2024Weighted Average Remaining Contractual Life (years)Weighted Average Exercise Price CADNumber Outstanding as at June 30, 2024Weighted Average Exercise Price CAD
$4.54 - $8.21
905 3.6$7.57 204 $8.17 
$8.22 - $8.50
772 2.88.44 338 8.36 
$8.51 - $10.80
572 2.49.83 325 9.80 
$10.81 - $12.63
830 1.711.21 800 11.21 
3,079 2.7 $9.19 1,667 $9.98 
b)PSUs
The Company recorded a $0.3 million and $0.4 million expense, respectively, for PSUs for the three and six months ended June 30, 2024 (2023 - $0.2 million and $0.1 million recovery, respectively) which is included in general and administrative expense.
The following table summarizes changes in PSUs for the six months ended June 30, 2024 and year ended December 31, 2023:
Six months ended
June 30, 2024		Year ended
December 31, 2023
Number outstandingFair valueNumber outstandingFair value
Outstanding, beginning of period153$705 174 $764 
Granted9715162 451 
Settled for cash(62)(405)(83)(535)
Change in value-229— 25 
Outstanding, end of period188$679 153 $705 
c)RSUs
The Company recorded a $0.6 million and $0.8 million expense, respectively, for RSUs for the three and six months ended June 30, 2024 (2023 - $nil and $0.1 million, respectively) which is included in general and administrative expense.
The following table summarizes changes in RSUs for the six months ended June 30, 2024 and year ended December 31, 2023:
Six months ended
June 30, 2024		Year ended
December 31, 2023
Number outstandingFair valueNumber outstandingFair value
Outstanding, beginning of period235 $1,055 249 $254 
Granted387 736- - 
Settled for cash(88)(564)- - 
Settled for shares(3)(16)- - 
Forfeited(33)-(14)(20)
Change in value- 328- 821 
Outstanding, end of period498 $1,538 235 $1,055 
SILVERCREST METALS INC.
12
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Notes to the Condensed Interim Consolidated Financial Statements
As at June 30, 2024 and December 31, 2023, and for the
three and six months ended June 30, 2024 and 2023
(unaudited with tabular amounts in thousands of shares, options and USD$
except per share amounts, unless otherwise noted)
d)DSUs
The Company recorded a $0.5 million expense and a $0.8 million, respectively, for DSUs for the three and six months ended June 30, 2024 (2023 - $0.3 million and $0.1 million recovery, respectively) which is included in general and administrative expense.
The following table summarizes changes in DSUs for the six months ended June 30, 2024 and year ended December 31, 2023:
Six months ended
June 30, 2024		Year ended
December 31, 2023
Number outstandingFair valueNumber outstandingFair value
Outstanding, beginning of period228 $1,498 228 $1,364 
Granted119 970 - - 
Change in value- 364 - 134 
Outstanding, end of period347 $2,832 228 $1,498 
e)Authorized Shares
The Company's authorized capital stock consists of an unlimited number of common shares and an unlimited number of preferred shares without nominal or par value.
14. Revenue
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Gold$32,432 $26,680 $63,355 $53,356 
Silver40,309 35,319 73,032 66,626 
Revenue$72,741 $61,999 $136,387 $119,982 
15. Production Costs
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Materials and consumables (1)
$13,819 $9,404 $25,069 $18,485 
Salaries and benefits2,883 2,961 5,697 6,116 
Contractors6,460 5,556 12,440 9,683 
Refining and transportation459 453 911 1,060 
Other689 602 1,205 1,088 
Changes in inventories(1,630)(574)(4,439)8 
$22,680 $18,402 $40,883 $36,440 
(1)Includes a $1.0 million impairment of materials and supplies inventories in production costs for the three and six months ended June 30, 2024 with no amounts recorded in the comparative periods.
SILVERCREST METALS INC.
13
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Notes to the Condensed Interim Consolidated Financial Statements
As at June 30, 2024 and December 31, 2023, and for the
three and six months ended June 30, 2024 and 2023
(unaudited with tabular amounts in thousands of shares, options and USD$
except per share amounts, unless otherwise noted)
16. General and Administrative Expenses
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Corporate administration$3,616 $3,043 $7,246 $5,858 
Share-based compensation1,821 (162)2,886 556 
$5,437 $2,881 $10,132 $6,414 
17. Interest and Finance Expense
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Interest expense$152 $526 $299 $1,765 
Reclamation accretion expense (Note 12)140 116 276 223 
Other financing costs14 26 46 49 
$306 $668 $621 $2,037 
18. Income Taxes
The income taxes recognized in net earnings and comprehensive earnings are as follows:
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Current tax (recovery) expense$11,838 $2,717 $9,105 $5,200 
Deferred tax expense14,335 666 18,803 3,387 
$26,173 $3,383 $27,908 $8,587 
Reconciliation of effective income tax rate:
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Earnings for the period before income taxes$32,667 $27,085 $68,266 $59,454 
Statutory tax rate27 %27 %27 %27 %
Income taxes computed at statutory rates8,820 7,313 18,432 16,052 
Increase (decrease) due to:
Permanent differences44 3,279 448 17 
Effect of other taxes (recovered) paid, mining and withholding3,132 2,717 5,031 5,200 
Change in unrecognized temporary differences and other14,177 (9,926)3,997 (12,682)
$26,173 $3,383 $27,908 $8,587 
SILVERCREST METALS INC.
14
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Notes to the Condensed Interim Consolidated Financial Statements
As at June 30, 2024 and December 31, 2023, and for the
three and six months ended June 30, 2024 and 2023
(unaudited with tabular amounts in thousands of shares, options and USD$
except per share amounts, unless otherwise noted)
19. Supplemental Cash Flow
The following table summarizes other operating activities adjustments for non-cash income statement items in operating activities:
Three months ended
June 30,		Six months ended
June 30,
Other operating activities2024202320242023
Adjustments for non-cash income statement items:
Reclamation accretion expense (Note 12)$140 $116 $276 $223 
Bullion gains (Note 7)(3,057)- (3,904)- 
Derivative losses (Note 6)4,440 - 3,907 - 
Gains on sale of mineral properties, plant and equipment (Note 9)(20)- (20)- 
$1,503 $116 $259 $223 
The following table summarizes the change in working capital in operating activities:
Three months ended
June 30,		Six months ended
June 30,
Change in working capital2024202320242023
Trade and other receivables$6,770 $5,525 $(1,942)$1,468 
Inventories(1,456)(997)(3,988)3,183 
Prepaid expenses1,287 1,510 (6,527)1,271 
Accounts payable826 295 1,149 (8,133)
Provisions375 - 375 - 
$7,802 $6,333 $(10,933)$(2,211)
During the year ended December 31, 2023, the Company retrospectively applied an accounting policy change. This adjustment involved the inclusion of cash flows from both interest paid and received within operating activities in the consolidated statements of cash flows. This decision was made as the Company views these forms of financing and investment to be for the benefit of operations, in consideration of a full year of production. The following table provides a reconciliation of the impact of the accounting policy change on the amounts presented for the three and six months ended June 30, 2023:
Three monthsSix months
Interest paid(1)
$(455)$(1,532)
Interest received(2)
$1,363 $2,084 
(1)Previously presented as loan interest payments included in financing activities.
(2)Previously presented in investing activities.
SILVERCREST METALS INC.
15
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Notes to the Condensed Interim Consolidated Financial Statements
As at June 30, 2024 and December 31, 2023, and for the
three and six months ended June 30, 2024 and 2023
(unaudited with tabular amounts in thousands of shares, options and USD$
except per share amounts, unless otherwise noted)
20. Segmented Information
The Company’s reportable operating segment is assessed regularly for performance by the Company’s Chief Executive Officer, who is the Company’s chief operating decision maker ("CODM"). The Company has concluded that it has a single operating segment: Las Chispas Mine, which includes Picacho. Corporate includes the corporate team that provides administrative, technical, financial, and other support to the Company’s business units.
Segments and their performance measures are listed below:
For the three months ended June 30, 2024
SegmentRevenueProduction costs and government royaltiesDepreciationMine operating earningsCapital expenditures
Las Chispas$72,741 $23,066 $8,187 $41,488 $19,544 
For the three months ended June 30, 2023
SegmentRevenueProduction costs and government royaltiesDepreciationMine operating earningsCapital expenditures
Las Chispas$61,999 $18,716 $4,990 $38,293 $12,919 
For the six months ended June 30, 2024
SegmentRevenueProduction costs and government royaltiesDepreciationMine operating earningsCapital expenditures
Las Chispas$136,387 $41,459 $15,963 $78,965 $34,348 
For the six months ended June 30, 2023
SegmentRevenueProduction costs and government royaltiesDepreciationMine operating earningsCapital expenditures
Las Chispas$119,982 $37,048 $9,035 $73,899 $20,849 
At June 30, 2024
SegmentAssetsLiabilitiesNet assets
Las Chispas$423,864 $30,204 $393,660 
Corporate72,856 14,473 58,383 
Other1,293 7 1,286 
$498,013 $44,684 $453,329 
At December 31, 2023
SegmentAssetsLiabilitiesNet assets
Las Chispas$420,613 $43,899 $376,714 
Corporate38,039 13,926 24,113 
Other1,522 24 1,498 
$460,174 $57,849 $402,325 
21. Related Party Transactions
The Company’s related parties include its subsidiaries, and key management personnel. Related party transactions primarily consist of short-term employee benefits and share-based compensation paid to key management personnel. Transactions with the Company's subsidiaries have been eliminated on consolidation.
SILVERCREST METALS INC.
16
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Notes to the Condensed Interim Consolidated Financial Statements
As at June 30, 2024 and December 31, 2023, and for the
three and six months ended June 30, 2024 and 2023
(unaudited with tabular amounts in thousands of shares, options and USD$
except per share amounts, unless otherwise noted)
22. Other Expense
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Derivative losses (Note 6(b))$(4,440)$- $(3,907)$- 
Bullion gains3,057 - 3,904 - 
Mineral properties, plant and equipment losses (Note 9)20 - 20 - 
Miscellaneous expense(12)- (42)- 
$(1,375)$- $(25)$- 
SILVERCREST METALS INC.
17





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Management's Discussion and Analysis
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024

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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
Cautionary Note
Forward-Looking Information
This MD&A contains “forward-looking statements” and “forward-looking information” (collectively, “forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation. Such forward-looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development of its properties, planned expenditures and plans related to its business and other matters that may occur in the future. In addition, these statements include, but are not limited to: the future price of commodities; the estimation of Mineral Resource and Mineral Reserve Estimates; the realization of Mineral Resource and Mineral Reserve Estimates; the timing and amount of estimated future production; costs of production; capital expenditures; costs and timing of the development of new deposits; timing of completion of exploration programs; technical reports and studies; the success of exploration and development activities and mining operations; future financings, the Company’s share price and on the timing and completion of exploration programs, the productivity and timing of mine operation activities; permitting timelines; currency fluctuations; requirements for additional capital; government regulation of exploration and production operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; completion of acquisitions and their potential impact on the Company and its operations; limitations on insurance coverage; maintenance of adequate internal control over financial reporting; and the development and advancement of the Company’s environmental, social, and corporate governance strategy.
Forward-looking statements are made based upon certain assumptions and other important factors that, while considered reasonable by the Company, are inherently subject to significant business economic, competitive, political and social uncertainties and contingencies. The Company has made assumptions based on many of these factors which include, without limitation: the Company’s expectations of future performance, including gold and silver production and planned work programs; present and future business strategies; the environment in which the Company will operate in the future, including the price of gold and silver; currency exchange rates; estimates of capital and operating costs; production estimates; Mineral Resource and Mineral Reserve Estimates, and metallurgical recoveries; and mining operational and development risks. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: fluctuating prices and availability of commodities; price inflation of goods and services; the timing and content of work programs; interest rate risks; global market conditions; fluctuations in the Company’s share prices; results of exploration activities; the interpretation of drilling results and other geological data; reliability of Mineral Resource and Reserve estimates; receipt, maintenance and security of permits and mineral property titles; enforceability of contractual interests in mineral properties; environmental and other regulatory risks; the effects of climate change; compliance with changing environmental regulations; dependence on local community relationships; risks of local violence; risks related to natural disasters, terrorism, civil unrest, public health concerns (including the impact on operations of health epidemics or outbreaks of communicable diseases such as the COVID-19 pandemic) and other geopolitical uncertainties; reliability of costs estimates; project cost overruns or unanticipated costs and expenses; precious metals price fluctuations; fluctuations in the foreign exchange rate (particularly Mexican peso ("MXN"), Canadian dollar ("CAD"), and United States dollar("USD")); risks associated with taxation in multiple jurisdictions; uncertainty in the Company’s ability to fund the exploration and development of its mineral properties or the completion of further exploration programs; uncertainty as to whether the Company’s exploration programs will result in the discovery, development or production of commercially viable ore bodies or yield reserves; operational, health and safety risks; infrastructure risks; risks associated with costs of reclamation; development plans and costs differing materially from the Company’s expectations; risks and uncertainties related to the timing of mine operation activities; risks related to mineral properties being subject to prior unregistered agreements, transfers, claims, and other defects in title; uncertainty in the ability to obtain financing if required; maintaining adequate internal control over financial reporting; dependence on key personnel; and general market and industry conditions. This list is not exhaustive of the factors that may affect the Company’s forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements.
The Company’s forward-looking statements are based on beliefs, expectations, and opinions of management on the date the statements are made. While the Company has attempted to identify important factors that could cause actual actions, events, or results to differ from those described in forward-looking statements, there may be factors that cause actions, events, or results not to be as anticipated, estimated, or intended. The Company undertakes no obligation to update or

silvercrest_color6a.jpg
Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
revise any forward-looking statements included in this MD&A if these beliefs, expectations and opinions or other circumstances should change, except as otherwise required by applicable law.
Cautionary Note to U.S. Investors
This MD&A includes Mineral Resource and Reserve classification terms that comply with reporting standards in Canada and the Mineral Resource and Reserve estimates are made in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ from the requirements of the United States Securities and Exchange Commission (the "SEC") applicable to domestic United States reporting companies. Consequently, Mineral Resource and Reserve information included in this MD&A may not be comparable to similar information that would generally be disclosed by United States domestic reporting companies subject to the reporting and disclosure requirements of the SEC. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with US standards.
Qualified Person
Technical information contained in this MD&A has been prepared by or under the supervision of N. Eric Fier, CPG, P.Eng., and Chief Executive Officer of the Company, who is a Qualified Person for the purpose of NI 43-101.

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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)



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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
1. Introduction
This Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand SilverCrest Metals Inc. (“SilverCrest”, “we”, “our” or the “Company”), our liquidity, capital resources, and operational and financial performance as at, and for the three and six months ended June 30, 2024, in comparison to the corresponding prior-year periods.
This MD&A should be read in conjunction with the Company's unaudited condensed interim consolidated financial statements and notes (the "Financial Statements"), prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) applicable to the preparation of interim financial statements under International Accounting Standard 34 Interim Financial Reporting (“IAS 34”), for the three and six months ended June 30, 2024.
This MD&A should also be read in conjunction with the Company’s audited consolidated financial statements and notes for the year ended December 31, 2023 (the “2023 Annual Financial Statements”), related annual MD&A, Form 40-F/Annual Information Form, and other continuous disclosure materials available on our website at www.silvercrestmetals.com, on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov, as applicable (for avoidance of doubt, unless specifically noted, no items from these or other websites mentioned in this MD&A are incorporated by reference).
All amounts in this MD&A and the unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2024 are presented in United States dollars (“USD”) unless identified otherwise.
The following are other abbreviations used throughout this MD&A: Au (gold), Ag (silver), AgEq (silver equivalent), oz (ounces), koz (kilo-ounces), gpt (grams per tonne), kt (kilotonne), km (kilometres), tpd (tonnes per day) and VAT (value added tax).
The AgEq ratio used in this MD&A is based on the gold to silver ratio of 79.51:1 from the technical report titled “Las Chispas Operation Technical Report” dated September 5, 2023 with an effective date of July 19, 2023 (the “2023 Technical Report”).
The effective date of this MD&A is August 7, 2024.
Non-GAAP Financial Measures
This MD&A refers to various non-GAAP measures which are used by the Company to manage and evaluate operating performance at the Company's Las Chispas mine and though widely reported in the mining industry as benchmarks for performance, do not have standardized meanings under IFRS Accounting Standards, and the methodology by which these measures are calculated may differ from similar measures reported by other companies. To facilitate a better understanding of these non-GAAP measures as calculated by the Company, additional information has been provided in this MD&A. Please refer to the section of this MD&A entitled “Non-GAAP Financial Measures” for a detailed description, and a reconciliation to the most comparable GAAP measure, of the following measures used in this MD&A:
•Average realized gold and silver price
•Sustaining and non-sustaining capital expenditures
•Free cash flow & free cash flow per share (basic)
•Working capital
•Operating cash flow before change in working capital & Operating cash flow before change in working capital per share (basic)
•Operating cash flow per share (basic)
•Treasury assets
•Cash costs
•All-in sustaining costs ("AISC")
2. Description of Business
SilverCrest is a Canadian-based precious metals producer headquartered in Vancouver, BC. The Company's principal focus is operating its Las Chispas silver and gold operation ("Las Chispas" or the "Las Chispas Operation" or the "Las Chispas Mine"). SilverCrest has an ongoing initiative to increase its asset base by expanding current Mineral Resource and Reserve Estimates, acquiring, discovering and developing high value precious metal projects, and ultimately operating multiple silver-gold mines in the Americas. The Company is listed on the Toronto Stock Exchange (Symbol: SIL) and on the NYSE-American (Symbol: SILV).
SILVERCREST METALS INC.
5
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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
3. Highlights
The following highlights refer to free cash flow, cash costs, AISC, operating cash flow before changes in working capital, and treasury assets which are described in more detail in section "9. Non-GAAP Financial Measures" of this MD&A.
Q2 2024
•Recovered 15,303 ounces oz Au and 1.5 million oz silver Ag, or 2.7 million oz AgEq.
•Sold 14,500 oz Au and 1.4 million oz Ag, or 2.6 million oz AgEq, for H1 2024 sales to 29,500 oz Au and 2.8 million oz Ag, or 5.2 million oz AgEq, resulting in an increase to 2024 sales guidance to 10 to 10.3 million oz AgEq. Average realized prices for the quarter were $2,237 per oz Au and $27.84 per oz Ag.
•Record quarterly revenue of $72.7 million exceeded revenue of $63.6 million in Q1 2024.
•Record mine operating earnings of $41.5 million (57% operating margin), exceeded the $37.5 million generated in Q1 2024.
•Net earnings of $6.5 million or basic earnings of $0.04 per share ($33.9 million or $0.23 per share in Q1 2024) was negatively impacted by non-cash deferred tax expense of $14.3 million and foreign exchange losses of $2.8 million which were as a result of the depreciation of the peso following the Mexican general election in early June.
•Cash costs of $8.87 per oz AgEq in the quarter and $7.98 per oz AgEq in H1 2024 were below initial guidance, allowing for a reduction to 2024 guidance to $9.25 to $9.75 per oz AgEq.
•AISC of $16.88 per oz AgEq increased from Q1 2024, as expected, due largely to the advancement of mine development and projects, and a $1.0 million impairment of materials and supplies inventories recorded during the quarter. H1 2024 AISC of $14.89 per oz AgEq was also below initial annual guidance, allowing for a reduction to 2024 guidance to $14.90 to $15.75 per oz AgEq.
•Mining rates increased to 1,099 tpd, benefiting from maintaining two mining contractors at site through the quarter.
•Operating cash flow was $39.6 million and operating cash flow before changes in working capital was $31.8 million or $0.22 per share. Both figures are net of the payment of taxes and duties, which totaled $14.4 million.
•Free cash flow generation of $24.3 million or $0.16 per share for the quarter, an increase of $35.7 million from Q1 2024.
•Increased retained earnings by 30% to $28.0 million, from $21.5 million at the end of Q1 2024.
•Ended the quarter with treasury assets totaling $122.3 million ($98.3 million cash and $24.0 million in bullion) an increase of 34% from $91.1 million at the end of Q1 2024.
4. Revised 2024 Guidance
In H1 2024 silver equivalent sales totaled 5.2 million oz AgEq with cash costs and AISC averaging $7.98 per oz AgEq and $14.89 per oz AgEq, respectively.
Based on strong results in the first half of 2024 and our outlook for the remainder of the year, the Company is improving the guidance range for AgEq oz sales to 10.0 to 10.3 million oz. The Company is also lowering its full-year 2024 cash costs estimate to be between $9.25 and $9.75 per AgEq sold (1) and lowering its AISC estimate to be between $14.90 and $15.75 per oz AgEq sold (1).
Guidance MetricUnit2024 Original Guidance2024 Revised Guidance
AgEq Ounces
million oz sold
9.8 to 10.2
10.0 to 10.3
Cash Costs (1)
$/oz AgEq sold
$9.50 to $10.00
$9.25 to $9.75
AISC (1)
$/oz AgEq sold
$15.00 to $15.90
$14.90 to $15.75
(1)Cash costs and AISC are described in more detail in section "9. Non-GAAP Financial Measures" of this MD&A.
2024 sustaining capital guidance of $40.0 million to $44.0 million and exploration guidance of $12.0 million to $14.0 million remain unchanged.
SILVERCREST METALS INC.
6
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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
5. Environmental, Social, and Governance ("ESG")
In Q2 2024 SilverCrest achieved 90% completion of the latest phase of the reconstruction of the local sewage system in Arizpe. In the quarter 2.5 kilometres for agricultural irrigation pipelines and 0.25 of 0.50 kilometres of aqueduct rehabilitation were completed ahead of the rainy season in Sonora which will limit work through September.
Subsequent to quarter, SilverCrest released its second annual ESG Report. The 2023 ESG Report supports the Company’s ongoing efforts to make a valuable difference in the lives of stakeholders in the communities in which it operates. By identifying initiatives and earmarking funds through materiality assessments, a TCFD report and community engagement, efforts are concentrated on projects with potential for the most positive impact. Notably, as a direct result of SilverCrest’s water stewardship plan designed to address water scarcity in the region and improve reliability of water access, many local farmers and ranchers have established second planting seasons, boosting income potential and developing agricultural resilience.
6. Operating Performance
The following operating performance refers to operating cash flow per share (basic), free cash flow, free cash flow per share (basic), cash costs, AISC, and treasury assets which are described in more detail in section "9. Non-GAAP Financial Measures" of this MD&A.
Three months ended
June 30,		Six months ended
June 30,
OPERATIONALUnit2024202320242023
Ore minedtonnes100,01974,400185,756138,000
Underground developmentkm4.73.48.86.3
Ore milled(1)
tonnes110,645107,900204,018212,300
Average daily mill throughput
tpd
1,2161,1861,1211,173
Gold
Average gradegpt4.364.844.644.46
Recovery%98.6 %98.4 %98.6 %98.0 %
Recoveredoz15,30316,50030,02229,800
Soldoz14,50013,40029,50027,600
Silver
Average gradegpt418449446434
Recovery%98.3 %97.9 %98.1 %95.1 %
Recoveredmillion oz1.461.532.872.82
Soldmillion oz1.451.452.852.81
Silver equivalent
Average gradegpt765834815789
Recovery%98.4 %98.1 %98.3 %96.4 %
Recoveredmillion oz2.682.845.265.19
Soldmillion oz2.602.525.195.01
SILVERCREST METALS INC.
7
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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
Three months ended
June 30,		Six months ended
June 30,
FINANCIALUnit2024202320242023
Revenue$ millions$72.7 $62.0 $136.4 $120.0 
Cost of sales$ millions$(31.3)$(23.7)$(57.4)$(46.1)
Mine operating earnings
$ millions$41.5 $38.3 $79.0 $73.9 
Earnings for the period$ millions$6.5 $23.7 $40.4 $50.9 
Earnings per share (basic)$/share$0.04 $0.16 $0.27 $0.35 
Operating cash flow
$ millions$39.6 $54.7 $38.5 $81.3 
Operating cash flow per share (basic)
$/share$0.27 $0.37 $0.26 $0.55 
Free cash flow$ millions$24.3 $44.6 $13.0 $66.0 
Free cash flow per share (basic)
$/share
$0.16 $0.30 $0.09 $0.45 
Cash costs(2)
$/oz AgEq$8.87 $7.44 $7.98 $7.40 
AISC(2)
$/oz AgEq$16.88 $12.65 $14.89 $11.78 
June 30, 2024December 31, 2023
Cash and cash equivalents$ millions$98.3 $86.0 
Bullion$ millions$24.0 $19.2 
Treasury assets$ millions$122.3 $105.2 
(1)Ore milled includes material from stockpiles and ore mined.
(2)Q1 2023 and H1 2023 figures have been recast to align with the presentation of the current period. For the three and six months ended June 30, 2024, cash costs increased by $0.1 million and $2.2 million, respectively, from the exclusion of adjustments for corporate salaries and other expenses, and changes in inventories.
Mine
In Q2 2024, the Company mined 100,019 tonnes from the underground, which was 34% higher than the 74,400 tonnes mined in Q2 2023. The Company also completed 4.7 km of horizontal and vertical underground development in Q2 2024 compared to 3.4 km in Q2 2023.
In H1 2024, the Company mined 185,756 tonnes from the underground, which was 35% higher than the 138,000 tonnes mined in H1 2023. The Company completed 8.8 km of horizontal and vertical underground development in H1 2024 compared to 6.3 km in H1 2023.
Mining rates and underground development continue to track above expected rates from the 2023 Technical Report as a direct result of the operational focus on ramp up efforts and having two underground mining contractors working simultaneously at Las Chispas, which has continued at the start of H2, 2024.
Plant
In Q2 2024, the mill processed 110,645 tonnes at 90.7% availability, above 107,900 tonnes at 89.3% availability in Q2 2023. In Q2 2024, average processed grades of 4.36 gpt Au and 418 gpt Ag, or 765 gpt AgEq, were above reserve grade and compared to Q2 2023 processed grades of 4.84 gpt Au and 449 gpt Ag, or 834 gpt AgEq. Average process recoveries in the quarter were 98.6% Au and 98.3% Ag, or 98.4% AgEq, another record for the plant and exceeded the 98.4% Au 97.9% Ag and 98.1% AgEq achieved in the comparable period.
In H1 2024, the mill processed 204,018 tonnes at 93.7% availability compared to 212,300 tonnes at 91.2% availability in H1 2023. In H1 2024, average processed grades of 4.64 gpt Au and 446 gpt Ag, or 815 gpt AgEq compared to grades of 4.46 gpt Au and 434 gpt Ag, or 789 gpt AgEq in H1 2023. Average process recoveries in H1 2024 of 98.6% Au and 98.1% Ag, or 98.3% AgEq, were higher than the recoveries of 98.0% Au and 95.1% Ag, or 96.4% AgEq achieved in H1 2023.
Production
In Q2 2024, the Company produced 2.68 million oz AgEq, compared to 2.84 million oz AgEq produced in the comparable period. This marginal decline in production resulted from slightly lower processed grades in the quarter.
In H1 2024, the Company produced 5.26 million oz AgEq, consistent with the 5.19 million oz AgEq produced in H1 2023.
SILVERCREST METALS INC.
8
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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
Sustaining Capital
In Q2 2024, the Company spent $15.3 million on sustaining capital, an increase from the $10.1 million spent in Q2 2023. In H1 2024, the Company spent $25.5 million on sustaining capital, an increase from the $15.3 million spent in H1 2023.
The increased sustaining capital resulted from an increase in underground mine development, the timing of some capital spending and the decision to maintain two underground mining contractors to accelerate ramp up of the underground.
Cash Costs and AISC
In Q2 2024, cash costs averaged $8.87 per oz AgEq, increasing from $7.44 per oz in Q2 2023. In H1 2024, cash costs averaged $7.98 per oz, increasing from $7.40 per oz in H1 2023, but below the initial cash cost guidance released for 2024.
In Q2 2024, AISC averaged $16.88 per oz AgEq, increasing from $12.65 per oz AgEq in Q2 2023. In H1 2024 AISC averaged $14.89 per oz AgEq, increasing from $11.78 per oz in H1 2023, but below the initial AISC guidance released for 2024.
The increase in cash costs and AISC for both periods is directly related to higher mining costs due to the continued ramp up of mining rates, and a $1.0 million impairment of materials and supplies inventories in the quarter. Also contributing to the increases were higher sustaining capital and increases in G&A primarily related to share-based compensation as a result of strong share price performance.
As discussed in the "Revised 2024 Guidance" section, 2024 cash cost and AISC guidance has been lowered to reflect strong H1 2024 performance on both metrics.
Exploration
The Company continued its exploration program at Las Chispas, focusing on converting high-potential Inferred resources to Indicated resources with additional focus on identifying new targets at Las Chispas and regionally. In Q2 2024, the program expenditures increased to $4.3 million from $2.8 million in Q2 2023. In H1 2024, the program expenditures increased to $8.9 million from $5.6 million in H1 2023. These program expenditures were in line with the plan for total spend within the 2024 guidance range of $12 million to $14 million.
SILVERCREST METALS INC.
9
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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
7. Financial Performance
Net earnings
During the three and six months ended June 30, 2024, net earnings were $6.5 million and $40.4 million, respectively, compared to net earnings of $23.7 million and $50.9 million for the three and six months ended June 30, 2023. Net earnings in Q2 2024 decreased primarily due to a high effective tax rate which was impacted by the depreciation of the Mexican peso, which impacted Mexican tax attributes, increasing the deferred tax expense. Current taxes were higher in Q2 2024 than year prior as a result of the utilization of all Mexican tax loss carryforwards in 2023 following strong operating performance since commercial production was achieved in Q4 2022 .
The following table summarizes the three and six month differences in net earnings in 2024 relative to the comparable period of 2023:
Three monthsSix monthsNote
Net earnings, period ended June 30, 2023
$23,702 $50,867 
Increased revenue10,742 16,405 1
Increased production costs and government royalties(4,350)(4,411)
Increased depreciation(3,197)(6,928)
Increased cost of sales$(7,547)$(11,339)2
Increased mine operating earnings$3,195 $5,066 
Increased income tax expense(22,790)(19,321)3
Increased general and administrative expenses(2,556)(3,718)4
Decreased other income(1,375)(25)5
Decreased foreign exchange losses5,890 5,137 6
Decreased interest and finance expense362 1,416 
Other66 936 
Net earnings, period ended June 30, 2024
$6,494 $40,358 
1)Revenue
In Q2 2024, the Company sold 14,500 ounces of gold and 1.4 million ounces of silver at average realized prices of $2,237 per ounce of gold and $27.84 per ounces of silver, generating record revenue of $72.7 million. In Q2 2023, the Company sold 13,400 ounces of gold and 1.5 million ounces of silver at average realized prices of $1,991 per ounce of gold and $24.36 per ounce of silver, generating revenue of $62.0 million.
In H1 2024, the Company sold 29,500 ounces of gold and 2.8 million ounces of silver at average realized prices of $2,148 per ounce of gold and $25.64 per ounce of silver, generating revenue of $136.4 million. In H1 2023, the Company sold 27,600 ounces of gold and 2.8 million ounces of silver at average realized prices of $1,933 per ounce of gold and $23.70 per ounce of silver, generating revenue of $120.0 million.
The increase for the quarter and year-to-date periods was driven by higher gold and silver prices and higher quantities of gold sold.
Realized Metal Prices ($ per oz)Quantities of Metal Sold (oz)
Three months ended
June 30,		Six months ended
June 30,		Three months ended
June 30,		Six months ended
June 30,
20242023202420232024202320242023
Gold$2,237 $1,991 $2,148 $1,933 14,500 13,400 29,500 27,600 
Silver$27.84 $24.36 $25.64 $23.70 1,448,000 1,450,000 2,848,000 2,811,000 
2)Cost of sales
In Q2 2024, cost of sales of $31.3 million was $7.5 million higher than $23.7 million in Q2 2023, which was largely due to a $4.3 million increase in production costs, and $3.2 million increase in depreciation. In H1 2024, cost of sales of $57.4 million was $11.3 million higher than $46.1 million in H1 2023, which was due to a $4.4 million increase in production costs, and $6.9 million increase in depreciation.
SILVERCREST METALS INC.
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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
In the quarter and year-to-date periods, the increase in production costs was due to higher tonnage and development as a result of site's ramp up efforts, including maintaining two contractors through the quarter, combined with a $1.0 million impairment of materials and supplies inventories in the quarter. The increased depreciation was due to sustaining capital invested in mine development and increased sales.
3)Income Tax Expense
In Q2 2024, income tax expense was $26.2 million, which was $22.8 million higher than the $3.4 million recognized during Q2 2023. In H1 2024, income tax expense was $27.9 million, or $19.3 million greater than the $8.6 million recognized during H1 2023.
In the quarter and year-to-date periods, the increased income tax expense was largely due to increased current tax expense from the utilization of all Mexican tax loss carryforwards in 2023 following strong operating performance, and increased deferred tax expense from a depreciation of the Mexican Peso following the Mexican general election, which reduced the Company's foreign denominated tax attributes.
4)General and administrative ("G&A") expenses
In Q2 2024, G&A expenses amounted to $5.4 million, an increase of $2.6 million compared to the $2.9 million recorded in Q2 2023. In H1 2024, G&A expenses totaled $10.1 million, an increase of $3.7 million from the $6.4 million recorded in H1 2023.
In the quarter and year-to-date periods, the increased G&A expenses were largely due to increased share-based compensation, which is sensitive to share price performance, as well as increased professional fees.
5)Other income
The Company recorded other expenses of $1.4 million in Q2 2024, as a result of $4.4 million in derivative losses, which were partially offset by $3.1 million in gains on bullion holdings. In H1 2024, the Company's $3.9 million in derivative losses were fully offset by $3.9 million in gains on bullion holdings. There were no amounts recorded in the corresponding quarter or year-to-date period of 2023, as the Company had not yet entered into foreign currency contracts or purchased bullion holdings at that time.
In both periods, derivative losses were recorded on foreign currency contracts due to the depreciation of the Mexican Peso following the Mexican general election. These losses were partially offset in the quarter and largely offset in the year-to-date period by gains on bullion holdings.
6)Foreign Exchange Losses
The Company determined the functional currency of its parent entity to be the Canadian Dollar ("CAD") until July 1, 2023, at which point the parent entity's functional currency changed to be USD.
In Q2 and H1 2023, the Company experienced significant foreign exchange losses due to translating foreign currency balances in the parent entity to CAD (functional currency) and then to USD (presentation currency). Under IFRS Accounting Standards, differences due to the translation to the functional currency are recorded in the income statement, while differences due to the translation back to the presentation currency are recorded in the currency translation reserve on the balance sheet.
The Company recognized foreign exchange losses of $2.8 million in Q2 2024, a decrease of $5.9 million compared to the $8.6 million loss reported in Q2 2023. In H1 2024, the Company recorded foreign exchange losses of $2.4 million, a decrease of $5.1 million from the $7.5 million expense recognized in H1 2023.
This reduction was due to the absence of significant foreign exchange losses in Q2 and H1 2024, as the Company's functional currency was USD, compared to CAD in the previous year. Current period foreign currency losses were attributed to the depreciation of the Mexican Peso following the Mexican General Election.
SILVERCREST METALS INC.
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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
Statement of Cash Flows
1)Operating activities
Cash flows provided by operations in Q2 2024 totaled $39.6 million, a $15.1 million decrease relative to the $54.7 million generated in Q2 2023. The decrease was primarily driven by income tax installments of $14.4 million made in Q2 2024 with no installments required in 2023 which was Las Chispas' first full year of commercial production.
Cash flows generated by operations in H1 2024 totaled $38.5 million, compared to $81.3 million in H1 2023. This difference was driven primarily by H1 2024 income tax payments of $40.6 million which included 2023 full-year tax payments and 2024 installments, with minimal payments and no installments required in the prior period.
2)Investing activities
Investing activities utilized $20.9 million of cash in Q2 2024, a $4.0 million increase from $16.9 million utilized in Q2 2023. This increase was due to $6.6 million in increased payments for mineral property, plant and equipment ("MPPE"), partially offset by a $3.1 million reduction in bullion purchases.
In H1 2024, investing activities utilized $35.6 million of cash, an $8.9 million increase compared to the $26.6 million utilized in H1 2023. This was primarily due to $13.5 million in increased payments for MPPE, partially offset by a $4.9 million reduction in bullion purchases.
The increased payments for MPPE were a result of higher sustaining capital development resulting from the Company's focus on ramping up the underground mine.
3)Financing activities
Financing activities generated $9.1 million of cash in Q2 2024, compared to $25.0 million of outflows in Q2 2023. In H1 2024, financing activities generated $9.7 million of cash, compared to $49.9 million outflows in H1 2023.
The cash inflows for the current quarter and year-to-date period were due to the exercise of stock options, while the cash outflows in the comparative periods were attributed to the repayment of the Term Facility.
8. Liquidity and Capital Position
Liquidity and Capital MeasuresJun 30,
2024		Dec 31,
2023		Change
Cash and cash equivalents$98,320 $85,964 $12,356 
Bullion$24,026 $19,191 $4,835 
Treasury assets(1)
$122,346 $105,155 $17,191 
Working capital(2)
$168,029 $126,760 $41,269 
(1)Treasury assets is a non-GAAP measure. Please refer to "9. Non-GAAP Financial Measures" section of the MD&A.
(2)Working capital, calculated as current assets less current liabilities, is a non-GAAP measure. Please refer to "9. Non-GAAP Financial Measures" section of the MD&A.
During the quarter ended June 30, 2024, the Company's working capital increased by $19.8 million, inclusive of a $31.2 million increased in treasury assets. The working capital increase was mainly due to the increase in treasury assets and the build-up of inventory, partially offset by decreases to receivables and increases to payables, tax liabilities, and derivative liabilities.
Management believes the Company has sufficient financial resources, including access to the undrawn $70 million revolving facility (the "Revolving Facility"), to cover its business for a period greater than 12 months, including capital expenditures, and meeting working capital requirements.
To ensure alignment with its capital needs, the Company develops annual budgets. These budgets are regularly reviewed and incorporate estimated production, exploration efforts, financing availability, and industry conditions.
The impact of inflation on the Company’s financial position, operating performance, or cash flows over the next 12 months cannot be determined with any degree of certainty due to a number of factors outside of the Company’s control. The Company attempts to mitigate inflationary risks through various strategies including, but not limited to, continuous balance sheet management in which the Company invests in assets in an attempt to generate a rate of return. As of June 30, 2024, the Company held bullion with a fair value of $24.0 million, (comprised of 3,184 gold ounces and 565,319 silver ounces).
SILVERCREST METALS INC.
12
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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
The cost basis of the bullion held as of June 30, 2024 was $19.6 million. The Company has strategically diversified its treasury assets into bullion to mitigate the effects of inflation on its cash reserves.
Outstanding Share and Option Amounts
As at June 30, 2024, the Company had approximately 3.1 million stock options outstanding (each exercisable for one common share of the Company), with exercise prices in the range of CAD $4.54 to CAD $12.63 and a weighted average life of 2.7 years. Approximately 1.7 million of the stock options were vested and exercisable at June 30, 2024, with an average weighted exercise price of CAD $9.98 per share.

The following table sets out the common shares and options outstanding as at the date of this MD&A:
Outstanding as at August 7, 2024
Common Shares148,553,850 
Options(1)
3,053,222 
151,607,072 
(1)Each option is convertible or exchangeable into one common share of the Company.
9. Non-GAAP Financial Measures
Management believes that the following non-GAAP financial measures will enable certain investors to better evaluate the Company's performance, liquidity, and ability to generate cash flow. These measures do not have any standardized definition under IFRS Accounting Standards, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. Other companies may calculate these measures differently.
Average realized gold and silver price
Average realized gold and silver price per ounce is calculated by dividing the Company’s gross revenue from gold or silver sales for the relevant period by the gold or silver ounces sold, respectively. The Company believes the measure is useful in understanding the metal prices realized by the Company throughout the period. The following table reconciles revenue and metal sold during the period with average realized prices:
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Gold revenue32,43226,68063,35553,356
Gold ounces sold during the period14,50013,40029,50027,600
Average realized gold price (per oz sold)$2,237 $1,991 $2,148 $1,933 
Silver revenue40,30935,31973,03266,626
Silver ounces sold during the period1,448,0001,450,0002,848,0002,811,000
Average realized silver price (per oz sold)$27.84 $24.36 $25.64 $23.70 
SILVERCREST METALS INC.
13
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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
Capital expenditures
Capital expenditures are classified into sustaining capital expenditures or non-sustaining capital expenditures depending on the nature of the expenditure. Sustaining capital expenditures are those required to support current production levels. Non-sustaining capital expenditures represent the capital spending at new projects and major, discrete projects at existing operations intended to increase production or extend mine life. Management believes this to be a useful indicator of the purpose of capital expenditures and this distinction is an input into the calculation of AISC.
The following table reconciles payments for mineral properties, plant and equipment, and equipment leases to sustaining and non-sustaining capital expenditures:
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Payments for mineral properties, plant and equipment$19,544 $12,919 $34,348 $20,849 
Payments for equipment leases36 28 47 71 
Total capital expenditures19,580 12,947 34,395 20,920 
Less: Non-sustaining capital expenditures(4,327)(2,844)(8,913)(5,636)
Sustaining capital expenditures$15,253 $10,103 $25,482 $15,284 
Free cash flow
Free cash flow, a non-GAAP financial metric, subtracts sustaining capital expenditures from net cash provided by operating activities, serving as a valuable indicator of our capacity to generate cash from operations post-sustaining capital investments. The following table reconciles this non-GAAP financial measure to the most directly comparable IFRS Accounting Standard measure.
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Operating cash flow (1)
$39,573 $54,716 $38,452 $81,333 
Less: sustaining capital expenditures(15,253)(10,103)(25,482)(15,284)
Free cash flow$24,320 $44,613 $12,970 $66,049 
Free cash flow per share (basic)$0.16 $0.30 $0.09 $0.45 
Weighted average shares outstanding (basic)147,728147,231147,341147,216
(1)For the three and six months ened June 30, 2023, operating cash flow has been adjusted to include $0.5 million and $1.5 million, respectively, in interest paid and $1.4 million and $2.1 million, respectively, in interest received which was previously presented in financing and investing activities, respectively.
Working capital
Working capital is calculated as current assets less current liabilities. The Company uses working capital as a measure of the Company’s operational efficiency and short-term financial health.
SILVERCREST METALS INC.
14
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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
Operating cash flow before change in working capital
The Company uses operating cash flow before change in working capital to determine the Company’s ability to generate cash flow from operations, and is calculated by adding back the change in working capital to operating cash flow as reported in the consolidated statements of cash flows.
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Operating cash flow (1)
$39,573 $54,716 $38,452 $81,333 
Less: change in working capital(7,802)(6,333)10,933 2,211 
Operating cash flow before change in working capital$31,771 $48,383 $49,385 $83,544 
Operating cash flow per share (basic)$0.27 $0.37 $0.26 $0.55 
Operating cash flow before change in working capital per share (basic)$0.22 $0.33 $0.34 $0.57 
Weighted average shares outstanding (basic)147,728147,231147,341147,216
(1)For the three and six months ened June 30, 2023, operating cash flow has been adjusted to include $0.5 million and $1.5 million, respectively, in interest paid and $1.4 million and $2.1 million, respectively, in interest received which was previously presented in financing and investing activities, respectively.
Treasury assets
SilverCrest calculates treasury assets as cash and cash equivalents plus bullion as reported in the consolidated statements of financial position. Management believes that treasury assets provide a useful measure of the Company's most liquid assets that can be used to settle short-term obligations or provide liquidity. Treasury assets are calculated as follows:
June 30
2024		December 31
2023
Cash and cash equivalents$98,320 $85,964 
Bullion24,026 19,191 
Treasury assets$122,346 $105,155 
Cash costs
Cash costs are a non-GAAP financial metric which includes production costs, and government royalties. Management uses this measure to monitor the performance of its mining operation and ability to generate positive cash flow on a site basis.
SILVERCREST METALS INC.
15
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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
AISC
All-in sustaining costs, a non-GAAP financial measure, starts with cash costs and includes general and administrative costs, reclamation accretion expense and sustaining capital expenditures. Management uses this measure to monitor the performance of its mining operation and ability to generate positive cash flow on an overall company basis.
Cash costs and AISC are calculated as follows:
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Production costs$22,680 $18,402 $40,883 $36,440 
Government royalties386 314 576 608 
Total cash costs (1)
23,06618,71641,45937,048
General and administrative expenses5,4372,88110,1326,414
Reclamation accretion expense140116276223
Sustaining capital expenditures15,253 10,103 25,482 15,284 
Total AISC$43,896 $31,816 $77,349 $58,969 
Silver equivalent ounces sold (koz)2,6012,5155,1945,005
Cash costs (per AgEq sold)(1)
$8.87 $7.44 $7.98 $7.40 
AISC (per AgEq sold)(1)
$16.88 $12.65 $14.89 $11.78 
(1)2023 Figures have been recast to align with the presentation of the current period. For the three and six months ended June 30, 2023, cash costs increased by $0.1 million and $2.2 million, respectively, from the exclusion of adjustments for corporate salaries and other expenses, and changes in inventories.
10. Review of Quarterly Results
The following table sets out selected quarterly results over a period encompassing the most recently completed eight quarters. The most significant factors affecting results in the quarters presented were the commissioning of the Las Chispas plant during Q2 2022 with revenue, production costs and depreciation recognized starting in Q3 2022. Additionally, the Company's earnings were impacted by foreign exchange gains and losses on foreign denominated cash and cash equivalents and VAT receivables, in addition to a 80% effective tax rate for the three months ended June 30, 2024.
Quarter Ended
Q2 2024Q1 2024Q4 2023Q3 2023
Revenue$72,741 $63,646 $61,320 $63,828 
Mine operating earnings$41,488 $37,477 $36,947 $37,460 
Earnings for the period$6,494 $33,864 $35,917 $29,936 
Earnings per common share - basic$0.04 $0.23 $0.24 $0.20 
Earnings per common share - diluted$0.04 $0.23 $0.24 $0.20 
Quarter Ended
Q2 2023Q1 2023Q4 2022Q3 2022
Revenue$61,999 $57,983 $40,791 $2,719 
Mine operating earnings$38,293 $35,606 $26,496 $1,924 
Earnings for the period$23,702 $27,165 $5,231 $25,212 
Earnings per common share - basic$0.16 $0.18 $0.03 $0.17 
Earnings per common share - diluted$0.16 $0.18 $0.04 $0.17 
11. Related Party Transactions
The Company’s related parties include its subsidiaries, and key management personnel, which primarily consists of short-term employee benefits and share-based compensation. Transactions with the Company's subsidiaries have been eliminated on consolidation.
SILVERCREST METALS INC.
16
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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
12. Risks and Uncertainties
The Company is exposed to many risks in conducting its business such as, including but not limited to: financial instrument risks being: liquidity risk, price risk, credit risk, currency risk, and interest rate risk. Other risks include mineral project risk, income tax risk, and health crisis risk. These risks are described below.
Financial Instrument Risk
The Company is exposed to financial risks, including credit risk, liquidity risk, price risk, interest rate risk, and currency risk.
1)Credit Risk
Credit risk is the risk that a counterparty may fail to satisfy its performance obligations under the terms of a financial instrument. Credit risk results from cash and cash equivalents and trade and other receivables.
The Company manages credit risk on its cash and cash equivalents by diversifying these asset holdings with multiple highly rated financial institutions, including the Bank of Montreal ("BMO") and the Bank of Nova Scotia (“BNS”) in Canada and BNS in Mexico. Further, credit risk on trade and other receivables is managed by ensuring amounts are receivable from highly rated financial institutions. The Company has recognized nominal amount of credit losses with respect to trade and other receivables. For cash and cash equivalents and trade and trade and other receivables, credit risk exposure equals the carrying amount on the balance sheet.
2)Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. We manage liquidity risk through the ongoing monitoring of projected and actual cash flows. Our reporting, planning, and budgeting procedures play a crucial role in assessing the funds necessary to sustain both our regular operational needs, expansion and exploration initiatives. We consistently scrutinize both capital and operating expenses, actively seeking opportunities to reduce and limit non-essential expenditures. The Company also ensures its cash and cash equivalents are held with high quality financial institutions and available on demand. The Company also has access to its $70 million Revolving Credit Facility which remains undrawn at June 30, 2024.
3)Currency Risk
The functional and reporting currency of the Company including its subsidiaries is the United States dollar ("USD") and the Company reports results using USD; however, the Company operates in jurisdictions that utilize the Canadian dollar ("CAD") and Mexican peso ("MXN"). As a consequence, the financial results of the Company’s operations as reported in USD are subject to changes in the value of the USD relative to these local currencies. Since the Company’s sales are denominated in USD and a portion of the Company’s operating costs and capital spending are in local currencies, the Company is negatively impacted by changes in local currencies relative to the USD.
In order to mitigate its exposure to currency risk, the Company has entered into option contracts designed to limit the effective exchange rate between the Mexican peso and US dollar. The notional value of open contracts as at June 30, 2024 totaled $97.9 million, with maturities from July 2024 until June 2025 and exchange rates between $17.31 and $18.57. During the three and six months ended June 30, 2024, the Company recorded total derivative losses of $4.4 million and $3.9 million, respectively.
4)Interest Rate Risk
Interest rate risk is the risk that the fair values and future cash flows of the Company will fluctuate because of changes in market interest rates which will impact the yield generated on cash and cash equivalent balances and the interest rates paid on any drawn portion of the Company's Revolving Credit Facility, as noted in the MD&A section "8. Liquidity and Capital Position".
5)Price Risk
The Company is exposed to price risk on precious metals that impact the valuation of the Company’s derivative positions, comprised of gold and silver call options written, which has a direct and immediate impact on net earnings. The prices of precious metals are volatile and affected by many factors beyond the Company’s control, and there can be no assurance that precious metal prices will not be subject to wide fluctuations in the future. A substantial or extended change in precious metal prices could have an adverse effect on the Company’s financial position, income, and cash flows.
SILVERCREST METALS INC.
17
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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
Mineral Project Risk
The Company is exposed to risk factors inherent in operating a precious metals mine. The commercial viability of these operations hinges on various elements, including mining and processing costs, deposit characteristics such as size, grade, and infrastructure accessibility, as well as the cyclical nature of metal prices and governmental regulations. Factors such as flooding, permit issues, infrastructure failures, and community-related concerns also pose threats to our mining operation. While the precise impact of these factors is uncertain, their convergence could render the mine economically unfeasible, potentially leading to closure.
Income Tax and VAT Risk
In the normal course of business, the Company is subject to assessment by taxation authorities in various jurisdictions. VAT, income tax provisions and income tax filing positions (together "Tax") require estimates and interpretations of income tax rules and regulations of the various jurisdictions in which the Company operates and judgments as to their interpretation and application to the Company's specific situation. The Company's business and operations of the business and operations of its subsidiaries is complex, and the Company has, historically, undertaken a number of significant financings and other material transactions. While the Company's management believes that the provision for Taxes is appropriate and in accordance with IFRS Accounting Standards and applicable legislation and regulations, Tax filing positions are subject to review and adjustment by taxation authorities, which may challenge the Company's interpretation of the applicable tax legislation and regulations. Any review or adjustment may have a material adverse effect on the Company's financial condition.
The introduction of new Tax laws, Tax reforms, regulations or rules, or changes to, or differing interpretation of, or application of, existing Tax laws, regulations or rules in Canada or México or any other countries in which the Company's subsidiaries may be located, or to which shipments of products are made, could result in an decrease or increase in the Company's Taxes receivables or payables, respectively, or other governmental charges, interest and penalties, duties or impositions. No assurance can be given that new Tax laws, tax reforms, regulations or rules will not be enacted or that existing Tax laws, regulations or rules will not be changed, interpreted or applied in a manner which could result in the Company's profits being subject to additional taxation, interest and penalties, or which could otherwise have a material adverse effect on the Company.
Health Crises Risk
Global markets, including the mining industry, have faced adverse impacts from emerging infectious diseases, notably the recent COVID-19 pandemic. A significant resurgence or continued outbreaks of COVID-19 or other health pandemics could trigger a widespread crisis, leading to economic downturns affecting many countries. Such volatility in global economic conditions could adversely affect commodity prices, demand for metals, credit availability, investor confidence, and overall financial market liquidity, thereby impacting the Company's business operations and the market value of its securities. Moreover, inadequate responses to infectious diseases or government-imposed restrictions may disrupt mining operations, leading to labor shortages, supply chain disruptions, and regulatory challenges. Given the uncertainties surrounding the geographic spread and duration of outbreaks, the Company cannot accurately predict the extent of the impact on its operations or financial results.
Given that the Company operates internationally, determining how the Company may be impacted or when operations may return to normal is complex. Any new outbreaks or the persistence of existing ones present substantial risks to the Company's business and operational performance. Hence, continuous monitoring of global health situations and implementing responsive measures are crucial for mitigating potential adverse effects.
Besides the risks discussed elsewhere in this MD&A, there are other risks and uncertainties that have affected the Company's financial statements or that may affect them in the future. See "Risk Factors" in the Company's AIF for other risks affecting or that could potentially affect the Company.
Macroeconomic Risk
Global financial markets have experienced extreme volatility as a result of the recent COVID-19 pandemic and current geopolitical conflicts. Events in global financial markets, and the volatility of global financial conditions, will continue to have an impact on the global economy. Many industries, including the mining sector, are impacted by financial markets. Some of the key impacts of financial market turmoil include devaluations and high volatility in global equity, commodity, foreign exchange and precious metal markets and a lack of market liquidity. Financial institutions and large corporations may be forced into bankruptcy or need to be rescued by government authorities. Access to financing may also be negatively impacted by future liquidity crises throughout the world. These factors may impact the Company’s ability to obtain equity or debt financing and, where available, to obtain such financing on terms favorable to the Company. Increased levels of
SILVERCREST METALS INC.
18
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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
volatility and market turmoil could have an adverse impact on the Company’s operations and planned growth and the trading price of the securities of the Company may be adversely affected.
Bullion Risk
The Company has strategically allocated funds into physical gold and silver bullion, aiming to establish a stable store of value to counteract the effects of inflation on its cash reserves. These bullion holdings are recorded at fair value, with any resulting gains or losses reflected in the Consolidated Statement of Earnings. Due to the inherent volatility in precious metal prices, there is no guarantee that these bullion investments will effectively shield against inflation. In fact, fluctuations in market prices may lead to potential mark-to-market losses.
13. Material Accounting Policies, Standards and Judgements
During the year ended December 31, 2023, the Company retrospectively applied an accounting policy change. This adjustment involved the inclusion of cash flows from both interest paid and received within operating activities in the consolidated statements of cash flows. This decision was made as the Company views these forms of financing and investment to be for the benefit of operations, in consideration of a full year of production. The following table provides a reconciliation of the impact of the accounting policy change on the amounts presented for the three and six months ended June 30, 2023:
Three monthsSix months
Interest paid(1)
(455)(1,532)
Interest received(2)
1,363 2,084 
(1)Previously presented as loan interest payments included in financing activities.
(2)Previously presented in investing activities.
The accounting policies applied in the preparation of the unaudited condensed interim consolidated financial statements as at and for the three and six months ended June 30, 2024, are consistent with those applied and disclosed in the 2023 Annual Financial Statements with the exception of the mandatory adoption of certain amendments noted below:
Application of New and Revised Accounting Standards
Presentation of Financial Statements (Amendments to IAS 1)
We have adopted the amendments to IAS 1 Presentation of Financial Statements regarding the classification of liabilities as current or non-current based on contractual rights that are in existence at the end of the reporting period and affected by expectations about whether an entity will exercise its right to defer settlement. A liability not due over the next twelve months is classified as non-current even if management intends or expects to settle the liability within twelve months. The amendment also introduces a definition of ‘settlement’ to make clear that settlement refers to the transfer of cash, equity instruments, other assets, or services to the counterparty. The amendment issued in October 2022 also clarifies how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. Covenants to be compiled with after the reporting date do not affect the classification of debt as current or non-current at the reporting date. The amendments are effective for annual reporting periods beginning on or after January 1, 2024. These amendments did not have a material impact on the Company.
Accounting Standards Issued but Not Yet Applied
Presentation and Disclosure in Financial Statements (IFRS 18)
IFRS 18 has been issued to achieve comparability of the financial performance of similar entities. The standard, which replaces IAS 1, impacts the presentation of primary financial statements and notes, mainly the income statement where companies will be required to present separate categories of income and expense for operating, investing, and financing activities with prescribed subtotals for each new category. IFRS 18 will require management-defined performance measures to be explained and included in a separate note within the consolidated financial statement. The standard is effective for financial statements beginning on January 1, 2027, including interim financial statements and requires retrospective application. The Company is currently assessing the impact of this amendment.
There are no other standards or amendments or interpretations to existing standards issued but not yet effective that are expected to have a material impact on the Company.
SILVERCREST METALS INC.
19
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Management Discussion and Analysis
For the three and six months ended June 30, 2024
(All amounts are in USD with tabular
amounts in thousands of USD)
14. Disclosure and Internal Control Procedures
Management is responsible for establishing and maintaining effective internal control over financial reporting and disclosure controls and procedures as defined in our 2023 annual MD&A.
The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of the Company’s financial reporting for external purposes in accordance with IFRS Accounting Standards. Disclosure controls and procedures are designed to provide reasonable assurance that other financial information disclosed publicly fairly presents in all material respects the financial condition, results of operations and cash flows of the Company.
Together, the internal control over financial reporting and disclosure controls and procedures frameworks provide internal control over financial reporting and disclosure. Due to its inherent limitations, internal control over financial reporting and disclosure may not prevent or detect all misstatements. Further, the effectiveness of internal control is subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may change.
There were no changes in the Company’s internal control over financial reporting and disclosure controls and procedures during the three and six months ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
The Company's management, at the direction of the CEO and CFO, will continue to assess the effectiveness of the Company's internal control over financial reporting and disclosure controls and procedures, and may make modifications if required.
SILVERCREST METALS INC.
20

Form 52-109F2
Certification of Interim Filings
Full Certificate

I, N. Eric Fier, Chief Executive Officer of SilverCrest Metals Inc., certify the following:
1.    Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of SilverCrest Metals Inc. (the “issuer”) for the interim period ended June 30, 2024.

2.     No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)     designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)    material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)    information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)     designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1    Control framework: The control framework the issuer’s other certifying officer and I used to design the issuer’s ICFR is the Internal Control – Integrated Framework (2013) (COSO Framework) published by The Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2    ICFR – material weakness relating to design: N/A

5.3    Limitation on scope of design: N/A

6.    Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2024 and ended on June 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: August 7, 2024

“N. Eric Fier”
_______________________
N. Eric Fier
Chief Executive Officer

1


Form 52-109F2
Certification of Interim Filings
Full Certificate

I, Anne Yong, Chief Financial Officer of SilverCrest Metals Inc., certify the following:
1.    Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of SilverCrest Metals Inc. (the “issuer”) for the interim period ended June 30, 2024.

2.     No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)     designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)    material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)    information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)     designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1    Control framework: The control framework the issuer’s other certifying officer and I used to design the issuer’s ICFR is the Internal Control – Integrated Framework (2013) (COSO Framework) published by The Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2    ICFR – material weakness relating to design: N/A

5.3    Limitation on scope of design: N/A

6.    Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2024 and ended on June 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: August 7, 2024

“Anne Yong”
_______________________
Anne Yong
Chief Financial Officer
1



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SilverCrest Reports Second Quarter 2024 Financial Results
Record Operating Earnings Drives Treasury Growth
2024 Sales Guidance Increased and Cash Cost and AISC Guidance Reduced
TSX: SIL | NYSE American: SILV                               For Immediate Release
VANCOUVER, BC – August 7, 2024 – SilverCrest Metals Inc. (“SilverCrest” or the “Company”) is pleased to announce its financial results for the three months ended June 30, 2024 (“Q2 2024”). This release provides additional operational results to supplement the July 11, 2024 release of Q2 2024 operational highlights from the Company’s Las Chispas operation (“Las Chispas” or the “Las Chispas Operation”) located in Sonora, Mexico. All amounts herein are presented in United States Dollars (“US$”), unless otherwise stated.
N. Eric Fier, CEO, commented, “We are proud to announce another quarter of strong operational and financial performance. Our mining rates continued to increase in the quarter, and we expect the H2 2024 ramp-up to continue at a quicker pace than originally planned as we retain two mining contractors for a longer period. This strategic decision is expected to provide greater operational flexibility and further reduce risk. In the quarter, we also set new records for revenue and mine operating earnings, which contributed to growth in treasury assets of 34% or $31.2 million, including additions to our bullion holdings. As free cash flow is expected to continue in H2 2024, we plan to opportunistically increase exposure to bullion for our shareholders throughout the year.
With gold and silver prices remaining robust and strong operational performance continuing at the start of H2 2024, we are well positioned to benefit from continued momentum and are pleased to increase our 2024 sales guidance and reduce our annual cash cost and all-in sustaining cost guidance”.
Q2 2024 Highlights
•Recovered 15,303 ounces (“oz”) gold (“Au”) and 1.5 million oz silver (“Ag”), or 2.7 million oz silver equivalent (“AgEq”)(2).
•Sold 14,500 oz Au and 1.4 million oz Ag, or 2.6 million oz AgEq, for H1 2024 sales to 29,500 oz Au and 2.8 million oz Ag, or 5.2 million oz AgEq, resulting in an increase to 2024 sales guidance to 10.0 to 10.3 million oz AgEq. Average realized prices for the quarter were $2,237 per oz Au(1) and $27.84 per oz Ag(1).
•Record quarterly revenue of $72.7 million, exceeded revenue of $63.6 million in Q1 2024.
•Record mine operating earnings of $41.5 million (57% operating margin), exceeded the $37.5 million generated in Q1 2024.
•Net earnings of $6.5 million or basic earnings of $0.04 per share ($33.9 million or $0.23 per share in Q1 2024) was negatively impacted by non-cash deferred tax expense of $14.3 million and foreign exchange losses of $2.8 million which were as a result of the depreciation of the peso following the Mexican general election in early June.
•Cash costs of $8.87 per oz AgEq(1) in the quarter and $7.98 per oz AgEq(1) in H1 2024 were better than initial guidance, allowing for a reduction to 2024 guidance to $9.25 to $9.75 per oz AgEq.
•All-in sustaining cost (“AISC”) of $16.88 per oz AgEq(1) increased from Q1 2024, as expected, due largely to the advancement of mine development and projects, and a $1.0 million impairment of materials and supplies inventories recorded during the quarter. H1 2024 AISC of $14.89 per oz AgEq (1) was also below initial annual guidance, allowing for a reduction to 2024 guidance to $14.90 to $15.75 per oz AgEq.
•Mining rates increased to 1,099 tpd, benefiting from maintaining two mining contractors at site through the quarter.
1


•Operating cash flow was $39.6 million and operating cash flow before changes in working capital was $31.8 million or $0.22 per share(1). Both figures are net of the payment of taxes and duties, which totaled $14.4 million.
•Free cash flow generation of $24.3 million or $0.16 per share(1) for the quarter, an increase of $35.7 million from Q1 2024.
•Increased retained earnings by 30% to $28.0 million, from $21.5 million at the end of Q1 2024.
•Ended the quarter with treasury assets totaling $122.3 million(1) ($98.3 million cash and $24.0 million in bullion), an increase of 34% from $91.1 million at the end of Q1 2024.
(1)Refer to the “Non-GAAP Financial Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
(2)Silver equivalent (“AgEq”) ratio used in this news release of 79.51:1 based on the Las Chispas Operation Technical Report dated September 5, 2023, with an effective date of July 19, 2023 (the “2023 Technical Report”).
Revised 2024 Guidance
In H1 2024, silver equivalent sales totaled 5.2 million oz AgEq with cash costs and AISC averaging $7.98 per oz AgEq and $14.89 per oz AgEq, respectively.
Based on strong results in the first half of 2024 and the outlook for the remainder of the year, the Company is improving the guidance range for AgEq sales to 10.0 to 10.3 million oz. The Company is also lowering its full-year 2024 cash costs estimate to be between $9.25 and $9.75 per oz AgEq sold(1) and lowering its AISC estimate to be between $14.90 and $15.75 per oz AgEq sold(1).
Guidance Metric
Unit
2024 Original Guidance
2024 Revised Guidance
Silver Equivalent (“AgEq”) Ounces
million oz sold
9.8 to 10.2
10.0 to 10.3
Cash Costs (1)
$/oz AgEq sold
$9.50 to $10.00
$9.25 to $9.75
AISC (1)
$/oz AgEq sold
$15.00 to $15.90
$14.90 to $15.75
(1)Refer to the “Non-GAAP Financial Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
2024 sustaining capital guidance of $40.0 million to $44.0 million and exploration guidance of $12.0 million to $14.0 million remain unchanged.
Second Quarter Operating Performance
The following operating performance refers to operating cash flow per share (basic), free cash flow, free cash flow per share (basic), cash costs, AISC, and treasury assets which are described in more detail in the “Non-GAAP Financial Measures" section of this news release.
Three months ended
June 30,		Six months ended
June 30,
OPERATIONALUnit2024202320242023
Ore minedtonnes100,01974,400185,756138,000
Underground development
kilometres (“km”)
4.73.48.86.3
Ore milled(1)
tonnes110,645107,900204,018212,300
Average daily mill throughput
tonnes per day (“tpd”)
1,2161,1861,1211,173
Gold
Average grade
grams per tonne (“gpt”)
4.364.844.644.46
Recovery%98.6 %98.4 %98.6 %98.0 %
Recoveredoz15,30316,50030,02229,800
Soldoz14,50013,40029,50027,600
Silver
Average gradegpt418449446434
Recovery%98.3 %97.9 %98.1 %95.1 %
Recoveredmillion oz1.461.532.872.82
2


Soldmillion oz1.451.452.852.81
Silver equivalent
Average gradegpt765834815789
Recovery%98.4 %98.1 %98.3 %96.4 %
Recoveredmillion oz2.682.845.265.19
Soldmillion oz2.602.525.195.01
Three months ended
June 30,		Six months ended
June 30,
FINANCIALUnit2024202320242023
Revenue$ millions$72.7 $62.0 $136.4 $120.0 
Cost of sales$ millions$(31.3)$(23.7)$(57.4)$(46.1)
Mine operating earnings
$ millions$41.5 $38.3 $79.0 $73.9 
Earnings for the period$ millions$6.5 $23.7 $40.4 $50.9 
Earnings per share (basic)$/share$0.04 $0.16 $0.27 $0.35 
Operating cash flow
$ millions$39.6 $54.7 $38.5 $81.3 
Operating cash flow per share (basic)
$/share$0.27 $0.37 $0.26 $0.55 
Free cash flow$ millions$24.3 $44.6 $13.0 $66.0 
Free cash flow per share (basic)
$/share
$0.16 $0.30 $0.09 $0.45 
Cash costs(2)
$/oz AgEq$8.87 $7.44 $7.98 $7.40 
AISC(2)
$/oz AgEq$16.88 $12.65 $14.89 $11.78 
June 30, 2024December 31, 2023
Cash and cash equivalents$ millions$98.3 $86.0 
Bullion$ millions$24.0 $19.2 
Treasury assets$ millions$122.3 $105.2 
(1)Ore milled includes material from stockpiles and ore mined.
(2)Q1 2023 figures have been recast to align with the presentation of the current period. For the three and six months ended June 30, 2024, cash costs increased by $0.1 million and $2.2 million, respectively, from the exclusion of adjustments for corporate salaries and other expenses, and changes in inventories.
Mine
In the quarter, a total of 100,019 tonnes were mined from the underground. Mining rates in Q2 2024 averaged 1,099 tpd, a 17% increase from Q1 2024, and above the originally targeted 2024 exit rate of 1,050 tpd. The Company completed 4.7 km of horizontal and vertical underground development, 0.9 km ahead of plan.
Mining rates and underground development continue to track above expected rates from the 2023 Technical Report as a direct result of the operational focus on ramp up efforts and having two underground mining contractors working simultaneously at Las Chispas, which has continued at the start of H2, 2024.
Plant
Average daily mill throughput was 1,216 tpd in Q2 2024, inline with the expected average rate for the remainder of 2024 of 1,200 tpd. Process plant availability was 93.7% for the quarter, inline with plan and a record for the plant.
Average processed grades of 4.36 gpt Au and 418 gpt Ag, or 765 gpt AgEq compared to Q1 2024 grades of 4.97 gpt Au and 479 gpt Ag, or 874 gpt AgEq. Processed grades were lower in the quarter, as expected, but remained above reserve grade.
Average process recoveries in Q2 2024 were 98.6% Au and 98.3% Ag, or 98.4% AgEq, which was another record for the plant.
Production
The Company produced 2.7 million oz AgEq in Q2 2024, up from 2.6 million oz AgEq in Q1 2024. This increase was primarily due to higher mill throughput following planned maintenance in the prior quarter.
3


Sustaining Capital
Sustaining capital totaled $15.3 million in Q2 2024, up from $10.2 million in Q1 2024 as a result of the increase in underground mine development and timing of some capital spending shifting from Q1 2024 to Q2 2024.
Cash Costs and AISC
During the quarter, cash costs averaged $8.87 per oz AgEq. As expected, cash costs increased in the quarter partially attributable to higher mining costs due to the continued ramp up of mining rates and a $1.0 million impairment of materials and supplies inventories in the quarter.
Cash costs for H1 2024 averaged $7.98 per oz AgEq, positioning the Company below the low end of the original 2024 cost guidance.
AISC averaged $16.88 per oz AgEq in Q2 2024, higher than in Q1 2024, as anticipated. Average AISC for H1 2024 was $14.89 per oz AgEq, which positioned the Company below the low end of initial annual AISC guidance of $15.00 to $15.90 per oz AgEq. AISC for Q2 2024 was impacted by the same factors that caused increases in cash costs, together with higher sustaining capital and increases in general and administrative expenses primarily related to share-based compensation as a result of strong share price performance.
As discussed in the ‘Revised 2024 Guidance” section, 2024 cash cost and AISC guidance has been lowered to reflect strong H1 2024 performance on both metrics.
Exploration
The Company continued its exploration program at Las Chispas, focusing on converting high-potential Inferred resources to Indicated resources with additional focus on identifying new targets at Las Chispas and regionally. The expenditures for this program were $4.3 million and $8.9 million for Q2 2024 and H1 2024, respectively. These program expenditures were in line with the plan for total spend within the 2024 guidance range of $12.0 million to $14.0 million.
Selected Q2 2024 Financial Results
Revenue
During Q2 2024, the Company sold a total of 14,500 oz Au and 1.4 million oz Ag at average realized prices of $2,237 per oz Au and $27.84 per oz Ag, generating record revenue of $72.7 million. During Q1 2024, the Company sold a total of 15,000 oz Au and 1.4 million oz Ag at average realized prices of $2,062 per oz Au and $23.37 per oz Ag, generating revenue of $63.6 million. The record revenue for Q2 2024 was driven by higher gold and silver prices from Q1 2024.
Net Earnings
Q2 2024 net earnings of $6.5 million, or $0.04 per share, compared to net earnings of $33.9 million, or $0.23 per share in Q1 2024. Net earnings in the quarter were impacted by more notable movements in the Mexican peso which impacted Mexican tax attributes and increased the deferred tax expense, coupled with increased current taxes in Q2 2024 than year prior as a result of the utilization of all Mexican tax loss carryforwards in 2023 following strong operating performance.
Cash Flow
In Q2 2024, cash flow generated by operating activities was $39.6 million or $0.27 per share compared to $1.1 million used in Q1 2024. Operating cash flow before changes in working capital was $31.8 million or $0.22 per share which compares to $17.6 million or $0.12 per share in Q1 2024.
During the quarter, the Company remitted $14.4 million in tax installments that will be attributable to 2024 payable income taxes. Tax payments for the first half of 2024 totaled $40.6 million. Guidance for total tax payments in 2024 (including payments for 2023 taxes) is $56.0 to $63.0 million based on metal prices of $1,850 per oz Au and $22.80 per oz Ag and Mexican peso to US dollar of 17:1.
During the quarter, the Company recorded mineral properties, plant and equipment additions of $19.5 million, of which $15.3 million was related to sustaining capital expenditures and the remainder related to brownfield exploration at Las Chispas. This compares with $14.8 million of mineral property, plant and equipment additions, with $10.2 million related to sustaining capital additions in Q1 2024.
4


Q2 2024 free cash flow of $24.3 million ($0.16 per share) increased notably from Q1 2024 free cash outflow of $11.4 million ($0.08 per share) as a result of improved operating cash flow. An additional $9.1 million was generated in financing activities from the exercise of stock options.
Financial Position
As at June 30, 2024, the Company had treasury assets of $122.3 million ($98.3 million cash and $24.0 million in bullion), an increase of $31.2 million from $91.1 million at the end of Q1 2024 ($71.1 million cash and $20.0 million bullion). The Company remains debt free with access to an undrawn $70.0 million revolving facility.
Bullion assets increased by 20% during the quarter as a result of adding $0.9 million to the holdings, as well as strong metal prices contributing to a mark to market increase of $3.1 million. Subsequent to the quarter, an additional $7.6 million of bullion was purchased.
The Company’s working capital was $168.0 million at June 30, 2024, an increase of $19.8 million from March 31, 2024, primarily due to increases in cash and bullion balances.
Environmental, Social and Governance (“ESG”)
In Q2 2024, SilverCrest achieved 90% completion of the latest phase of the reconstruction of the local sewage system in Arizpe. In the quarter 2.5 km for agricultural irrigation pipelines and 0.25 of 0.50 km of aqueduct rehabilitation were completed ahead of the rainy season in Sonora which will limit work through September.
Subsequent to quarter, SilverCrest released its second annual ESG Report. The 2023 ESG Report supports the Company’s ongoing efforts to make a valuable difference in the lives of stakeholders in the communities in which it operates. By identifying initiatives and earmarking funds through materiality assessments, a Task Force on Climate-related Financial Disclosure (TCFD) report and community engagement, efforts are concentrated to projects with potential for the most positive impact. Notably, as a direct result of SilverCrest’s water stewardship plan designed to address water scarcity in the region and improve reliability of water access, many local farmers and ranchers have established second planting seasons, boosting income potential and developing agricultural resilience.
Management Change
Effective immediately, SilverCrest’s Board of Directors has named Rob Doyle as Interim Chief Financial Officer. Mr. Doyle was previously the Chief Financial Officer for Pan American Silver Corp. for more than 18 years and has been providing advisory services to SilverCrest over the last year. Mr. Doyle brings more than 20 years of international experience in corporate finance, functional management, and capital planning with roles in consulting, banking, and public companies.
As part of the management change Anne Yong will assume the role of VP, Governance, Risk and Sustainability. Ms. Yong has been a critical part of the success of SilverCrest since it was founded. In her new role she will focus on further evolving the SilverCrest’s ESG and risk management programs and maintaining the Company’s strong governance processes.
Q2 2024 Conference Call
A conference call to discuss the Company’s Q2 2024 operational and financial results will be held Thursday, August 8, 2024 at 8:00 a.m. PT / 11:00 a.m. ET. To participate in the conference call, please dial the numbers below.
Date & Time:     Thursday August 8, 2024 at 8:00 a.m. PT / 11:00 a.m. ET

Telephone:    North America Toll Free: 1-800-274-8461
        Conference ID: SILVER (745837)
Webcast:     https://silvercrestmetals.com/investors/presentations/
ABOUT SILVERCREST METALS INC.
SilverCrest is a Canadian precious metals producer headquartered in Vancouver, BC. The Company’s principal focus is its Las Chispas Operation in Sonora, Mexico. SilverCrest has an ongoing initiative to increase its asset base by expanding current resources and reserves, acquiring, discovering, and developing high value precious metals projects and ultimately operating multiple silver-gold mines in the Americas. The Company is led by a proven management team in all aspects of the precious metal mining sector, including taking projects through discovery, finance, on time and on budget construction, and production.
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For Further Information:
SilverCrest Metals Inc.
Contact:
Telephone:
Fax:
Toll Free:
Email:
Website:
Lindsay Bahadir, Manager Investor Relations and Corporate Communications
+1 (604) 694-1730
+1 (604) 357-1313
1-866-691-1730 (Canada & USA)
info@silvercrestmetals.com
www.silvercrestmetals.com
570 Granville Street, Suite 501
Vancouver, British Columbia V6C 3P1
Non-GAAP Financial Measures
Management believes that the following non-GAAP financial measures will enable certain investors to better evaluate the Company's performance, liquidity, and ability to generate cash flow. These measures do not have any standardized definition under IFRS, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these measures differently.
Average realized gold and silver price
Average realized gold and silver price per ounce is calculated by dividing the Company’s gross revenue from gold or silver sales for the relevant period by the gold or silver ounces sold, respectively. The Company believes the measure is useful in understanding the metal prices realized by the Company throughout the period. The following table reconciles revenue and metal sold during the period with average realized prices:
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Gold revenue32,43226,68063,35553,356
Gold ounces sold during the period14,50013,40029,50027,600
Average realized gold price (per oz sold)$2,237 $1,991 $2,148 $1,933 
Silver revenue40,30935,31973,03266,626
Silver ounces sold during the period1,448,0001,450,0002,848,0002,811,000
Average realized silver price (per oz sold)$27.84 $24.36 $25.64 $23.70 
Capital expenditures
Capital expenditures are classified into sustaining capital expenditures or non-sustaining capital expenditures depending on the nature of the expenditure. Sustaining capital expenditures are those required to support current production levels. Non-sustaining capital expenditures represent the capital spending at new projects and major, discrete projects at existing operations intended to increase production or extend mine life. Management believes this to be a useful indicator of the purpose of capital expenditures and this distinction is an input into the calculation of AISC.
The following table reconciles payments for mineral properties, plant and equipment, and equipment leases to sustaining and non-sustaining capital expenditures:
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Payments for mineral properties, plant and equipment$19,544 $12,919 $34,348 $20,849 
Payments for equipment leases36 28 47 71 
Total capital expenditures19,580 12,947 34,395 20,920 
Less: Non-sustaining capital expenditures(4,327)(2,844)(8,913)(5,636)
Sustaining capital expenditures$15,253 $10,103 $25,482 $15,284 
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Free cash flow
Free cash flow subtracts sustaining capital expenditures from net cash provided by operating activities, serving as a valuable indicator of our capacity to generate cash from operations post-sustaining capital investments. The following table reconciles this non-GAAP financial measure to the most directly comparable IFRS measure.
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Operating cash flow (1)
$39,573 $54,716 $38,452 $81,333 
Less: sustaining capital expenditures(15,253)(10,103)(25,482)(15,284)
Free cash flow$24,320 $44,613 $12,970 $66,049 
Free cash flow per share (basic)$0.16 $0.30 $0.09 $0.45 
Weighted average shares outstanding (basic)147,728147,231147,341147,216
(1)For the three and six months ended June 30, 2024, operating cash flow has been adjusted to include $0.5 million and $1.5 million, respectively, in interest paid and $1.4 million and $2.1 million, respectively, in interest received which was previously presented in financing and investing activities, respectively.
Working capital
Working capital is calculated as current assets less current liabilities. The Company uses working capital as a measure of the Company’s operational efficiency and short-term financial health.
Operating cash flow before change in working capital
The Company uses operating cash flow before change in working capital to determine the Company’s ability to generate cash flow from operations, and is calculated by adding back the change in working capital to operating cash flow as reported in the consolidated statements of cash flows.
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Operating cash flow (1)
$39,573 $54,716 $38,452 $81,333 
Less: change in working capital(7,802)(6,333)10,933 2,211 
Operating cash flow before change in working capital$31,771 $48,383 $49,385 $83,544 
Operating cash flow per share (basic)$0.27 $0.37 $0.26 $0.55 
Operating cash flow before change in working capital per share (basic)$0.22 $0.33 $0.34 $0.57 
Weighted average shares outstanding (basic)147,728147,231147,341147,216
(1)For the three and six months ended June 30, 2024, operating cash flow has been adjusted to include $0.5 million and $1.5 million, respectively, in interest paid and $1.4 million and $2.1 million, respectively, in interest received which was previously presented in financing and investing activities, respectively.
Treasury assets
SilverCrest calculates treasury assets as cash and cash equivalents plus bullion as reported in the consolidated statements of financial position. Management believes that treasury assets provide a useful measure of the Company's most liquid assets that can be used to settle short-term obligations or provide liquidity. Treasury assets are calculated as follows:
June 30
2024		December 31
2023
Cash and cash equivalents$98,320 $85,964 
Bullion24,026 19,191 
Treasury assets$122,346 $105,155 
Cash costs
Cash costs include production costs, and government royalties. Management uses this measure to monitor the performance of its mining operation and ability to generate positive cash flow on a site basis.
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AISC
All-in sustaining costs, a non-GAAP financial measure, starts with cash costs and includes general and administrative costs, reclamation accretion expense and sustaining capital expenditures. Management uses this measure to monitor the performance of its mining operation and ability to generate positive cash flow on an overall company basis.
Cash costs and AISC are calculated as follows:
Three months ended
June 30,		Six months ended
June 30,
2024202320242023
Production costs$22,680 $18,402 $40,883 $36,440 
Government royalties386 314 576 608 
Total cash costs (1)
23,06618,71641,45937,048
General and administrative expenses5,4372,88110,1326,414
Reclamation accretion expense140116276223
Sustaining capital expenditures15,253 10,103 25,482 15,284 
Total AISC$43,896 $31,816 $77,349 $58,969 
Silver equivalent ounces sold (koz)2,6012,5155,1945,005
Cash costs (per AgEq sold)$8.87 $7.44 $7.98 $7.40 
AISC (per AgEq sold)$16.88 $12.65 $14.89 $11.78 
(1)2023 Figures have been recast to align with the current period’s presentation. For the three and six months ended June 30, 2024, cash costs increased by $0.1 million and $2.2 million, respectively, from the exclusion of adjustments for corporate salaries and other expenses, and changes in inventories.
Forward-Looking Statements
This news release contains “forward-looking statements” and “forward-looking information” (collectively “forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation. These include, without limitation, statements with respect to: the Company’s revised 2024 guidance and outlook; the amount of future production of gold and silver over any period; the strategic plans and expectations for the Company’s operation and exploration program; working capital requirements; expected recoveries; expected cash costs and outflows, Au and Ag prices and currency exchange rates. Such forward-looking statements or information are based on a number of assumptions, which may prove to be incorrect. Assumptions have been made regarding, among other things: present and future business strategies; continued commercial operations at the Las Chispas Operation; the environment in which the Company will operate in the future, including the price of gold and silver; estimates of capital and operating costs; production estimates; estimates of mineral resources, mineral reserves and metallurgical recoveries and mining operational risk; the reliability of mineral resource and mineral reserve estimates; mining and development costs; the conditions in general economic and financial markets; availability of skilled labour; timing and amount of expenditures related to exploration programs; and effects of regulation by governmental agencies and changes in Mexican mining legislation. The actual results could differ materially from those anticipated in these forward-looking statements as a result of risk factors including: the timing and content of work programs; results of exploration activities; the interpretation of drilling results and other geological data; receipt, maintenance and security of permits and mineral property titles; environmental and other regulatory risks; project cost overruns or unanticipated costs and expenses; fluctuations in gold and silver prices and currency exchange rates; and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made. The Company undertakes no obligation to update or revise any forward-looking statements included in this news release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
Qualified Persons Statement
The Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects for this news release is N. Eric Fier, CPG, P.Eng, CEO for SilverCrest, who has reviewed and approved its contents.
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