Starcore Earns $1.24 Million in the Second Quarter
13 June 2014 - 6:30AM
Marketwired Canada
Starcore International Mines Ltd. (the "Company") (TSX:SAM) has filed the
results for the third quarter ended April 30, 2014 for the Company and its
mining operations. The full version of the Company's Financial Statements and
Management's Discussion and Analysis can be viewed on the Company's website at
www.starcore.com, or SEDAR at www.sedar.com. All financial information is
prepared in accordance with IFRS and all dollar amounts are expressed in
thousands of Canadian dollars unless otherwise indicated.
Third Quarter, April 30, 2014 Highlights:
-- Earnings from mining operations was $2.0 million, or 29% of gross
revenue, compared to $2.4 million, or 29% of gross revenue, in the prior
quarter;
-- Income for the quarter was $1.24 million, or $0.01 per share compared to
$1.6 million, or $0.01 per share for the prior quarter;
-- The following table contains selected highlights from the Company's
unaudited consolidated statement of operations for the three and nine
months ended April 30, 2014:
Three months Nine months
ended ended
April 30, April 30,
(in thousands of Canadian dollars) 2014 2014
----------------------------------------------------------------------------
Revenues $ 8,267 $ 25,394
Cost of Sales (6,310) (17,932)
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Earnings from mining operations 1,957 7,462
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Net income
(i) Net income $ 1,239 $ 5,135
(ii) Income per share - basic $ 0.01 $ 0.03
(iii) Income per share - diluted $ 0.01 $ 0.03
----------------------------------------------------------------------------
-- The mine ore grade was lower for the quarter averaging 2.34 g/t and 22.9
g/t for gold and silver, respectively, compared to 2.55 g/t and 21.3 g/t
for the prior quarter, respectively.
-- Overall metal production was lower than the second quarter at 5,338
equivalent ounces ("EqOz"), compared to 6,028 EqOz in the previous
quarter. The third quarter is typically the most difficult because it
covers a shorter time period due to February being the shortest month of
the year and to "Holy Easter Week" celebrations with vacations impacting
throughput at the mine, and this year the early arrival of the rainy
season caused some short unexpected grid power interruptions;
-- Mine operating cash costs increased to US$833/EqOz compared to
US$718/EqOz in the previous quarter due mainly to lower production. All-
in Sustaining Costs, which includes sustaining capital expenditures,
exploration, reclamation, corporate and administrative and share-based
compensation cost were US$1,066/EqOz. (for the third quarter only).
The following table is a summary of mine production statistics for the San
Martin mine for the three and nine months ended April 30, 2014 and for the year
ended July, 2013:
----------------------------------------------------------------------------
Actual Actual Actual
results for results for results for
3 months 9 months 12 months
ended ended ended
April 30, April 30, July 31,
(Unaudited) Unit of measure 2014 2014 2013
----------------------------------------------------------------------------
Production of Gold in
Dore thousand ounces 4.9 16.8 18.2
Production of Silver
in Dore thousand ounces 28.5 94.0 110
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Equivalent ounces of
Gold thousand ounces 5.3 18.3 20.1
Silver to Gold
equivalency ratio 64:1 62:1 57:1
Gold grade grams/tonne 2.34 2.59 2.36
Silver grade grams/tonne 22.9 23.7 21.0
Gold recovery percent 86.3% 87.2% 77.9%
Silver recovery percent 51.4% 53.4% 53.7%
Milled thousands of tonnes 75.4 230.9 307.3
Operating Cost per
tonne milled US dollars/tonne 59 57 55
Operating Cost per
Equivalent Ounce US dollars/ounces 833 717 844
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"Although we were short of our internal target for the quarter, the Company
continues to outperform the previous year's production. We are very cognizant of
shareholder value and of building the company on behalf of shareholders. We
believe this is a time to be prudent, save money, reduce costs, and have the
company in a position of strength to weather any unexpected financial storms.
Our vision remains steadfast," said Robert Eadie, President and CEO of Starcore.
About Starcore
Starcore is engaged in exploring, extracting and processing gold and silver
through its wholly-owned subsidiary, Compania Minera Pena de Bernal, S.A. de
C.V., which owns the San Martin mine in Queretaro, Mexico. The Company is a
public reporting issuer on the Toronto Stock Exchange. The Company is also
engaged in owning, acquiring, exploiting, exploring and evaluating mineral
properties, and either joint venturing or developing these properties further.
The Company has interests in properties which are exclusively located in Mexico.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
GARY ARCA
Telephone: 604-602-4935
Facsimile: 1-604-602-4936
EVAN EADIE
Investor Relations
Telephone: (416) 640-1936
Toll Free: 1-866-602-4935
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