SilverCrest Metals Inc. (SILV): history, ownership, mission, how it works & makes money

A Brief History of SilverCrest Metals Inc. (SILV)

Founding and Early Development

SilverCrest Metals Inc. was founded in 2015 in Vancouver, Canada. The company's primary focus is on the exploration and development of silver mining projects in the Americas. In the same year, SilverCrest acquired the Las Chispas property in Sonora, Mexico, which would become the cornerstone of its operations.

Public Offering and Initial Growth

In 2016, SilverCrest completed its initial public offering on the TSX Venture Exchange under the ticker SILV. The IPO raised approximately $14 million. The company leveraged this capital to further explore and develop its mining assets.

Las Chispas Project Developments

The Las Chispas project, located in the historic silver mining district of the Sierra Madre Occidentals, has seen substantial exploration success. By 2018, SilverCrest reported a Measured and Indicated Resource of 2.8 million ounces of silver and 36,000 ounces of gold. The Preliminary Economic Assessment (PEA) released in 2019 indicated a post-tax NPV of $161 million at a discount rate of 5%, with an IRR of 48%.

Recent Achievements and Financial Performance

In 2021, SilverCrest Metals reported a revenue of $41.8 million, driven by the commencement of production at Las Chispas. The company achieved an average realized silver price of $25.55 per ounce for that year.

Current Status and Future Prospects

As of 2023, SilverCrest continues to expand its resources at Las Chispas and evaluate other potential projects. The company has a robust cash position, holding approximately $30 million in cash as of the latest financial report. Analysts project that the future production at Las Chispas could yield around 1.3 million ounces of silver annually, enhancing the company's operational footprint.

Market Performance

SilverCrest Metals has shown strong performance on the TSX, trading around $7.50 per share as of October 2023. The market capitalization stands at approximately $1.2 billion. The company has demonstrated resilience in fluctuating markets, capitalizing on rising silver prices driven by industrial demand and inflation hedging.

A Who Owns SilverCrest Metals Inc. (SILV)

Overview of Shareholding

As of October 2023, SilverCrest Metals Inc. (SILV) has several key shareholders, comprising institutional investors, retail investors, and insider ownership.

Major Shareholders

Institutional Ownership Trends

As of the latest filings, institutional investors own approximately 23.8% of SilverCrest Metals Inc. This trend reflects a growing interest from larger financial entities in the mining sector.

Insider Ownership

Insider ownership has been a crucial part of SilverCrest's equity structure, with key executives holding significant stakes. The management team owns approximately 22.4% of the total shares outstanding.

Ownership Breakdown

Recent Ownership Changes

In the past year, SilverCrest has seen fluctuations in its ownership structure, with notable increases in institutional investments. For instance:

• Fidelity Investments increased its stake from 8.5% to 10.2%.
• BlackRock, Inc. maintained a stable position with a 8.5% ownership.
• VanEck Associates Corporation has decreased its share from 6.2% to 5.1%.

Market Capitalization

As of October 2023, SilverCrest Metals Inc. has a market capitalization of approximately $650 million. This valuation reflects the company’s performance and investor sentiment in the mining sector.

Share Performance

Over the past year, SILV shares have seen a notable price increase of approximately 75%, driven by rising gold prices and strong operational performance.

Conclusion on Ownership Landscape

The ownership structure of SilverCrest Metals Inc. represents a mix of institutional and retail investors along with significant insider participation, which plays a pivotal role in its strategic direction and governance.

SilverCrest Metals Inc. (SILV) Mission Statement

Core Values

The mission statement of SilverCrest Metals Inc. emphasizes its commitment to responsible mining practices while delivering value to shareholders, employees, and communities. The company upholds the following core values:

• Integrity: Conducting business with honesty and transparency.
• Responsibility: Ensuring sustainable practices that minimize environmental impact.
• Excellence: Striving for the highest standards in all operations.
• Innovation: Embracing new technologies to improve efficiency.
• Collaboration: Working with stakeholders to foster positive relationships.

Strategic Objectives

SilverCrest Metals aims to achieve several strategic objectives outlined in its mission:

• Developing and operating high-quality precious metal projects.
• Maximizing shareholder value through disciplined financial management.
• Prioritizing safety and health in the workplace.
• Engaging with local communities to promote socio-economic development.
• Upholding environmental stewardship in all mining activities.

Financial Overview

As of October 2023, SilverCrest Metals reported the following financial metrics:

Operational Focus

SilverCrest focuses on the development of the Las Chispas Project located in Sonora, Mexico. Key operational highlights include:

• Production Start Date: 2022.
• Annual Production Forecast: Approximately 1.2 million ounces of silver equivalent.
• Resource Estimate (2023): 3.6 million ounces of gold and 47.5 million ounces of silver.

Community Engagement

SilverCrest is dedicated to engaging with local communities. Recent initiatives include:

• Investment in Local Infrastructure: $1 million invested in community projects.
• Job Creation: Over 150 jobs created directly from the mining operations.
• Community Partnerships: Collaborations with local educational institutions for training programs.

Environmental Commitment

The company adheres to strict environmental practices, highlighted by:

• Water Usage Reduction: 30% reduction in water consumption compared to previous projects.
• Reclamation Projects: 100 hectares of land rehabilitated.
• Carbon Footprint: Commitment to reducing GHG emissions by 15% over the next 5 years.

Future Outlook

Looking ahead, SilverCrest Metals aims to:

• Expand Resource Base: Exploration plans to increase mineral reserves.
• Optimize Operations: Implementing new technologies to enhance production efficiency.
• Sustainability Goals: Achieve full carbon neutrality by 2030.

How SilverCrest Metals Inc. (SILV) Works

Company Overview

SilverCrest Metals Inc. (TSX: SILV) is a Canadian precious metals exploration company headquartered in Vancouver, British Columbia. The company primarily focuses on the acquisition, exploration, and development of silver and gold mineral properties in North America. As of October 2023, SilverCrest operates the Las Chispas Project located in Sonora, Mexico.

Operational Model

SilverCrest employs a comprehensive approach to its operations that includes various stages from exploration to production.

• Exploration
• Development
• Production
• Reclamation

Current Projects

The Las Chispas Project has become a focal point for SilverCrest, characterized by high-grade silver and gold mineralization. The project was acquired in 2016 and has undergone extensive drilling and resource estimation since then.

Financial Performance

As of Q3 2023, SilverCrest reported the following financial metrics:

Stock Performance

SilverCrest's stock performance has been influenced by various market factors, including precious metals prices and operational milestones.

As of October 2023, SilverCrest's stock price is approximately $6.50 CAD, with a 52-week range between $4.20 and $9.00 CAD.

Key Performance Indicators (KPIs)

• Annual Production Guidance: 1.2 million ounces of silver and 15,000 ounces of gold for 2023
• All-in Sustaining Cost (AISC): $15.00 per ounce of silver
• Cash Cost: $10.00 per ounce of silver

Management and Governance

SilverCrest is led by an experienced management team with backgrounds in mining and finance.

Market Trends and Challenges

SilverCrest faces market trends such as fluctuating silver prices, geopolitical risks associated with mining in Mexico, and the overall demand for silver in industrial applications.

Future Outlook

The company aims to expand its resource base and increase production levels while maintaining a focus on operational efficiency.

How SilverCrest Metals Inc. (SILV) Makes Money

Revenue Streams

SilverCrest Metals Inc. generates its revenue primarily through the mining and sale of precious metals, chiefly silver and gold. The company operates in the Sierra Madre Occidental region of Mexico, specifically focusing on the Las Chispas project.

Mining Operations

The company's flagship project is the Las Chispas project, which has an estimated production capacity of approximately 1,500 tons per day. The cost of production is projected to be around $90 per ton, leading to significant gross margins from sales.

Financial Performance

As of Q3 2023, SilverCrest Metals reported the following financial metrics:

Production Costs and Margins

The company has focused on maintaining low production costs. Key statistics include:

Sales and Distribution

SilverCrest sells its silver and gold directly to various refiners and bullion dealers. The average selling price of silver in 2023 has been around $21 per ounce. The Company’s focus on operational efficiency has allowed it to secure favorable contracts for off-take agreements.

Market Cap and Stock Performance

As of October 2023, SilverCrest Metals has a market capitalization of approximately $305 million. The stock has shown a growth trajectory with the following performance indicators:

Exploration and Development

Investments in exploration and development are crucial for the company's future profitability. SilverCrest has allocated approximately $10 million for exploration initiatives in the next fiscal year to expand resource reserves.

Risk Factors

• Commodity Price Fluctuations
• Regulatory Changes in Mexico
• Operational Risks in Mining
• Global Economic Conditions

Future Outlook

Projecting revenues based on current production estimates and market conditions, SilverCrest aims to increase its output to approximately 2 million ounces of silver annually by 2025, maintaining its strategy of cost control and operational efficiency.