Shares fell 4% as investors reacted negatively to the sharp decline in average silver selling price compared to Q1, dampening revenue momentum despite operational improvements. The cautious tone on pricing and limited commentary on margin expansion likely pressured sentiment.
- Q2 production reached 1.7 million ounces of silver equivalent, up 61% year-over-year and 12% quarter-over-quarter, driven by improved mining and milling rates.
- Average silver selling price dropped significantly from ~$83 in Q1 to $68.29 in Q2, reflecting a meaningful correction in market prices.
- Cash costs at Zgounder improved modestly to $17.69 per ounce from $18.64 in Q1, with sustaining costs remaining low at approximately $3 per ounce.
- Boumadine contributed 187,000 ounces at a cash cost of $10.58 per ounce, generating around $3.6 million of free cash flow despite seasonal headwinds from rain.
- Cash flow generation remained strong with $119 million operating cash flow in H1, but large exploration/sustaining CapEx of $38 million and debt repayments constrained liquidity deployment.
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