Starcore Reports Record Quarterly Earnings of $3.2 Million for First Quarter of 2012
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/17/12 -- Starcore International Mines Ltd. (the 'Company') (TSX: SAM) has filed the results for the quarter ended October 31, 2011 for the Company and its mining operations. Over the first quarter ended October 31, 2011, the Company is pleased to report record quarterly results, including revenues of $20.4 million, earnings from mining operations of $7.3 million and earnings for the period of $3.2 million, which includes a net $3.1 million realized and unrealized loss on forward sales contracts. The basic and diluted income per share for the quarter ended October 31, 2011 was $0.03 and $0.02, respectively.The following table is a summary of mine production statistics for the San Martin mine for the three and nine months ended October 31, 2011:
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Actual results Actual results
for for
3 months ended 9 months ended
October 31, October 31,
(Unaudited) Unit of measure 2011 2011
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Mine Production of Gold in
Dore thousand ounces 5.0 12.8
Mine Production of Silver in
Dore thousand ounces 67.4 202.2
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Mine Equivalent ounces of Gold thousand ounces 6.5 17.6
Purchased Concentrate
Equivalent ounces thousand ounces 3.4 8.6
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Total Mine Production -
Equivalent Ounces thousand ounces 9.9 26.2
Mine Gold grade grams/tonne 2.4 2.11
Mine Silver grade grams/tonne 41 40
thousands of
Milled tonnes 75 221
Mine Operating Cost per tonne
milled US dollars/tonne 42 48
Mine Operating Cost per US
Equivalent Ounce dollars/ounces 548 635
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(i) assuming a 47:1 silver to gold equivalency ratio for three months ended
October 31, 2011 and 43:1 for the nine months ended October 31, 2011.
Overall equivalent gold production was 9,900 ounces over the three months ended October 31, 2011, compared to an average of 8,733 per quarter for the previous nine month period. The higher production was due mainly to higher ore grades, which averaged 2.4g/t and 41g/t for gold and silver, respectively, compared to an average of 2.11g/t and 40g/t in the nine month period. The mine also increased tonnage through the mill to 75,000 tonnes for the quarter compared to 73,667 tonnes per quarter average for the nine months. This quarter represents a significant increase in production and earnings over the prior quarter.
The following table contains selected highlights from the Company's unaudited consolidated statement of operations for the three months ending October 31, 2011 and 2010 (all amounts per table and discussion below are stated in thousands of Canadian dollars):
October 31, October 31,
(unaudited) (000's) 2011 2010
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Revenues
Mined ore $ 10,610 $ 6,398
Purchased ore 9,789 52
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$ 20,399 $ 6,450
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Cost of Sales
Mined Ore 3,759 3,626
Purchased ore 9,323 57
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$ 13,082 $ (3,683)
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Earnings from mining operations $ 7,317 $ 2,767
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Net loss
(i) Net income (loss) $ 3,163 $ (3,398)
(ii) Income (loss) per share - basic $ 0.03 $ (0.04)
(iii) Income (loss) per share - diluted $ 0.02 $ (0.04)
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Revenues for the quarter ended October 31, 2011 were higher at $20,399 compared to 2010 revenues of $6,450, due mainly to higher metal prices and higher metal production of 9,900 ounces compared to 4,900 ounces in the same period in the prior year. Overall revenues were also increased by the increase in purchased concentrate in 2011 as the suppliers increased deliveries to San Martin. Costs were similar at an average operating cost of US$548/EqOz for the quarter ended October 31, 2011, compared to an average operating cost of US$555/EqOz in the quarter ended October 31, 2010. Net income for the three months ended October 31, 2011, increased by $6,561 to $3,163 due both to the improved operations and to a decrease of $2,883 in financing costs which includes realized and unrealized forward sales contracts losses over the prior year. Net realized and unrealized loss on forward contracts for the quarter ended October 31, 2011 was $3,101 compared to a net loss for 2010 of $6,102.
The Company also had positive cash flow from operations of $2,593 for the three months ended October 31, 2011 compared to $294 for the same period in 2010.
Full financial statements are available on SEDAR at www.sedar.com and on Starcore's website at www.starcore.com.
ON BEHALF OF STARCORE INTERNATIONAL MINES LTD.
Gary Arca, Chief Financial Officer and Director
The Toronto Stock Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.
Contacts:
Starcore International Mines Ltd.
Investor Relations
1-604-602-4935 or Toll Free: 1-866-602-4935
1-604-602-4936 (FAX)
info@starcore.com
www.starcore.com