U.S. Silver Reports Year End 2010 Results ? 270% Increase in Operating Cash Flow and Appointment of Chief Operating Officer
U.S. Silver Corporation (TSX-V: USA, US OTCQX: USSIF, Frankfurt: QE2)
('US Silver? or 'the Company?) is pleased to announce financial results
in U.S. dollars for the year ended December 31, 2010.
'We are pleased with our financial performance for 2010,? said Mr. Tom
Parker, CEO of U.S. Silver. 'Despite slight production declines due to
lower head grades, rehabilitation work and efforts to ensure full
compliance with regulatory requirements, we increased our revenue by
more than 35% and generated operating cash flow of nearly $9 million.
Given the recent upsurge in silver prices and our commitment to
improving production output, we anticipate that our performance will be
sustained through 2011.?
Key Financial and Operating Highlights
Revenue totalled $62.4 million, up 35% from $45.9 million for 2009
Pre tax net income was $4.9 million, up 145% from $2.0 million for 2009
Cash Flow from Operating Activities was $8.9 million, up 272% from
$2.4 million for 2009
Cash and restricted cash on hand was $8.6 million
Silver production totalled 2,275,817 ounces, down 6% from 2,427,156
for 2009
Generated gross proceeds of $6.9 million through a bought deal private
placement
| For the years ended December 31 (US$ millions) | 2010 | 2009 | ||
| Revenue | $62.4 | $45.9 | ||
Cost of Mining | 46.4 | 39.3 | ||
General and administrative | 3.7 | 2.8 | ||
Exploration | 1.7 | 0.7 | ||
Selling and marketing | 0.2 | 0.1 | ||
$10.4 | 3.0 | |||
Other expenses | 5.5 | 1.0 | ||
Net income before tax | $4.9 | 2.0 | ||
| Net income after tax | $3.6 | $6.8 | ||
| Cash flow from operations | $8.9 | $2.4 | ||
| Production | ||||
Silver (ounces) | 2,275,817 | 2,427,156 | ||
Lead (pounds) | 5,613,689 | 6,446,856 | ||
Copper (pounds) | 1,000,319 | 1,075,307 | ||
| Cash Costs ($/oz after by-product credits) | $13.50 | $11.67 |
'As we have communicated previously, our production output will vary
from quarter to quarter due to our narrow vein mining operations,? added
Mr. Parker. 'Nevertheless, we remain confident that we will deliver an
average annual production in excess of 2.4 million ounces of silver in
2011. To that end, we are currently exploring ways to improve and expand
production in periods ahead.?
Appointment of Chief Operating Officer
U.S. Silver is very pleased to announce the appointment of Steve Long as
Chief Operating Officer and Mine Manager effective May 9th,
2011. Steve′s vast experience in underground mining in various senior
management roles over a 33 year career, most recently with Newmont
Mining Corporation in Elko, Nevada and previously with Barrick, Echo Bay
and Homestake Mining will be a most welcome addition to the management
of the Company. Steve will be based in Wallace, Idaho at the Galena mine.
U.S. Silver will file its financial statements for the year ended
December 31, 2010 and related management′s discussion and analysis
(MD&A) with securities regulatory authorities within applicable
timelines. The Company′s financial statements, MD&A and related
documents are available from SEDAR.
ABOUT U.S. SILVER CORPORATION
U.S. Silver, through its wholly owned subsidiaries, owns and/or operates
the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in
Shoshone County, Idaho, with the Galena mine being the second most
prolific silver mine in US history. Total silver production from U.S.
Silver's mining complex has exceeded 217 million ounces of silver
production since 1953. U.S. Silver controls a land package now totaling
approximately 14,000 acres in the heart of the Coeur d'Alene Mining
District. U.S. Silver is focused on expanding the production from
existing operations as well as exploring and developing its extensive
SilverValley holdings in the Coeur d'Alene Mining District.
Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Certain information in this press release may contain
forward-looking statements. This information is based on current
expectations that are subject to significant risks and uncertainties
that are difficult to predict. Actual results might differ materially
from results suggested in any forward-looking statements. The Company
assumes no obligation to update the forward-looking statements, or to
update the reasons why actual results could differ from those reflected
in the forward looking-statements unless and until required by
securities laws applicable to the Company. Additional information
identifying risks and uncertainties is contained in filings by the
Company with the Canadian securities regulators, which filings are
available at www.sedar.com.
U.S. Silver Corporation
Tom Parker, CEO
208-752-0400
or
Chris Hopkins, CFO
416-907-9539
or
The Equicom Group,
Patrick
Piette, 416-815-0700 x 267