SilverCrest Mines Inc. (TSX:SVL; NYSE MKT:SVLC) is a Canadian precious metals producer headquartered in Vancouver, BC. SilverCrest’s flagship property is the 100%‐owned Santa Elena Mine, located 150 km northeast of Hermosillo, near Banamichi in the State of Sonora, México. The mine is a high‐grade, epithermal silver and gold producer, with an estimated life of mine of 8 years and operating cash costs of $11 per ounce of silver equivalent (55:1 Ag:Au) for the open pit heap leach and underground mine. SilverCrest anticipates that the new 3,000 tonnes per day conventional mill facility at the Santa Elena Mine should recover an average annual rate of 1.5 million ounces of silver and 32,800 ounces of gold over the current reserve. Major expansion and construction of the 3,000 tonnes per day conventional mill facility is nearing completion and is expected to significantly increase metals production at the Santa Elena Mine (open pit and underground) in 2014 and beyond. Exploration programs continue to make new discoveries at Santa Elena and also have rapidly advanced the definition of a large polymetallic deposit at the La Joya property in Durango State with stated resources of almost 200 million ounces of Ag equivalent.
Stonecap keeps SilverCrest Mines at "Outperform" after "strong" Q3 earnings
Stonecap Securities has retained its "Outperform" rating on SilverCrest Mines (CVE:SLV) after the company posted "strong" third-quarter earnings.
It has a $3.85 target price on SilverCrest, which is a Canadian precious metals producer whose flagship property is the 100 per cent-owned Santa Elena Mine, located 150 km northeast of Hermosillo, near Banamichi in Sonora, Mexico.
"SilverCrest’s Santa Elena mine has delivered another strong quarter of production and the company has increased its silver production guidance for 2012," Stonecap analyst Christos Doulis said in a note.
"SilverCrest remains on track with its plan to double annual production to approximately 4 million ounces Ag Eq at Santa Elena by 2014."
Stonecap said cash costs came in at $7.60 per silver equivalent ounce (Ag eq oz) beating both management’s guidance of $8.20/oz and Stonecap's own estimate of $10/oz.
Management increased its 2012 silver production guidance to 535,000 ounces (from 435,000) and re-iterated its 2012 gold production guidance of 33,000 ounces. Stonecap is maintaining its estimates of 538,000 ounces silver and 33,000 ounces gold.
Cash and equivalents at quarter-end were $36.1 million. Subsequent to the quarter-end, SilverCrest raised net proceeds of approximately $32.6 million and settled its hedge book at a cost of around $23.3 million, so Stonecap estimates current cash at around $45 million.
"SilverCrest continues to build cash that will ultimately be used to help fund the expansion plant at Santa Elena," Stonecap's Doulis said.