Starcore Reports Second Quarter Earnings of $3.5 Million and $6.7 Million for the Six Months Ended January 31, 2012
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/16/12 -- Starcore International Mines Ltd. (TSX: SAM) (the "Company") has filed the results for the quarter and six months ended January 31, 2012, for the Company and its mining operations. Over the second quarter ended January 31, 2012, the Company is pleased to report record quarterly results, including revenues of $15.0 million, earnings from mining operations of $5.5 million and earnings for the period of $3.5 million, which includes a net $0.1 million realized and unrealized gain on forward sales contracts. The basic and diluted income per share for the quarter ended January 31, 2012 was $0.03. Over the six months ended January 31, 2012, the Company reports revenues of $35.4 million, earnings from mining operations of $12.8 million and earnings for the period of $6.7 million, which includes a net $3.0 million realized and unrealized loss on forward sales contracts. The basic and diluted income per share for the six month period ended January 31, 2012 was $0.06 and $0.05, respectively.
The following table is a summary of mine production statistics for the San Martin mine for the three and twelve months ended January 31, 2012:
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Actual results for Actual results for
3 months ended 12 months ended
(Unaudited) Unit of measure January 31, 2012 January 31, 2012
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Mine Production of
Gold in Dore thousand ounces 4.8 17.7
Mine Production of
Silver in Dore thousand ounces 66.7 268.9
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Mine Equivalent
ounces of Gold thousand ounces 6.1 23.7
Purchased
Concentrate
Equivalent ounces thousand ounces 2.8 13.6
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Total Mine
Production -
Equivalent Ounces thousand ounces 8.9 37.3
Mine Gold grade grams/tonne 2.14 2.12
Mine Silver grade grams/tonne 35 39
Milled thousands of tonnes 79 300
Mine Operating
Cost per tonne
milled US dollars/tonne 49 50
Mine Operating
Cost per
Equivalent Ounce US dollars/ounces 640 654
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(i) assuming a 54:1 and 46:1 silver to gold equivalency ratio for three and
twelve months ended January 31, 2012, respectively.
Overall equivalent gold production was 8,900 ounces over the three months ended January 31, 2012, compared to an average of 9,325 per quarter for the previous twelve month period. While ore grade remained comparable to the previous twelve month period, the lower production was due mainly to higher ore grades in the previous quarter along with significantly more concentrate ore purchases in the prior quarter. The mine did increased tonnage through the mill to 79,000 tonnes for the quarter, compared to 75,000 tonnes per quarter average for the twelve months, in order to offset the lower grade. Mine production alone was better at 6,100 ounces for the quarter, compared to an average of 5,925 per quarter for the previous twelve month period, due mainly due to increased production and recovery percentages.
The following table contains selected highlights from the Company's unaudited consolidated statement of operations for the three months ending January 31, 2012 and 2011:
(unaudited) (in thousands of
Canadian dollars) January 31, 2012 January 31, 2011
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Revenues
Mined ore $ 9,913 $ 6,643
Purchased ore 5,112 3,012
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$ 15,025 $ 9,655
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Cost of Sales
Mined Ore 4,551 3,289
Purchased ore 4,950 2,941
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$ (9,501) $ (6,230)
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Earnings from mining operations $ 5,524 3,425
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Net loss
(i) Net income (loss) $ 3,501 $ 1,418
(ii) Income (loss) per share -
basic $ 0.03 $ 0.02
(iii) Income (loss) per share
- diluted $ 0.03 $ 0.01
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Revenues for the quarter ended January 31, 2012 were higher at $15,025 compared to 2011 revenues of $9,655 due mainly to higher metal prices and higher metal production of 8,900 ounces compared to 7,900 ounces over the same period in the prior year. Overall revenues were also higher due to the increased supply of purchased concentrates from the suppliers in fiscal 2012. Costs were somewhat higher at an average operating cost of US$640/EqOz for the quarter ended January 31, 2012, compared to an average operating cost of US$548/EqOz in the quarter ended January 31, 2011. Net income for the three months ended January 31, 2012, increased by $2,083 to $3,501 due to the improved operations discussed above. While net income was higher than the previous quarter ended October 31, 2011 of $3,163, the prior quarter results were decreased by the additional $2,877 in financing costs which included realized and unrealized forward sales contracts losses. Net realized and unrealized gain on forward contracts for the quarter ended January 31, 2012 was $81 compared to a net loss for the quarter ended October 31, 2011 of ($3,101) and a net gain for the quarter ended January 31, 2011 of $714. The net unrealized gain or loss on forward contracts results solely from the fluctuation in the price of gold from quarter to quarter applied against the remaining open contracts to January 31, 2013.
"The mining operations continue to perform, producing over 2,000 equivalent ounces per month for over a year now and with the current metal prices the Company is consistently reporting positive cash flows and positive income results which, on an undiluted basis, have averaged $0.03 per share per quarter for the past two quarters," said Robert Eadie, President & CEO of the Company.
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.
Gary Arca
Chief Financial Officer and Director
1-604-602-4935 or Toll Free: 1-866-602-4935
1-604-602-4936 (FAX)
info@starcore.com
www.starcore.com