23. Cost of sales

Cost of sales is costs that directly relate to production at the mine operating segments and excludes depletion and amortization. The following are components of cost of sales:

		Year ended			Year ended
		December 31,			December 31,
		2025			2024
Salaries and employee benefits	$	28,815		$	32,097
Raw materials and consumables		20,676			34,027
Utilities		4,190			4,439
Transportation costs		2,344			5,212
Other costs		7,782			7,063
Costs before intended use		20,845			1,949
Changes in inventories		(3,459	)		(3,346	)
Inventory write-downs (Note 8)		3,670			1,299
	$	84,863		$	82,740

 

Costs before intended use represent cost of sales of direct mining costs incurred on sale of silver-copper concentrate mined from the EC120 Project at the Cosalá Operations as it progresses toward commercial production declaration. Approximately $5.8 million of costs before intended use relates to salaries and employee benefits.