Silvermet Releases 2011 Q2 Results
8 King Street East, Suite 1700 Toronto, Ontario, Canada M5C 1B5 Telephone: (416) 203-8336 Facsimile: (416) 368-5146
SILVERMET RELEASES 2011 Q2 RESULTS
Toronto, August 16, 2011: Silvermet Inc. (“Silvermet” or the “Company”) (TSXV: SYI) is pleased to announce the release of its financial and operating results for Q2, 2011.
Highlights
- Operations were cash flow positive and profitable
- Benefited from reduced smelter treatment charges in Q2, 2011
- Production increased by 63% to 3,400 DMT from 2,086 DMT in Q2, 2010 (Dry Metric Tonnes zinc concentrate containing an average grade of 69% zinc)
- Average production increased by 63% to 1,133 DMT per month from 695 DMT per month in Q2, 2010
- Sales volumes increased by 17% to 2,772 DMT from 2,372 DMT in Q2, 2010
- Sales volumes increased by 10% to 6,399 DMT in H1, 2011 from 5,807 DMT in H1, 2010
- Revenues increased by 82% to $3.8 million (at 100%) from $2.1 million in Q2, 2010
- Completed refractory lining change with planned four week shutdown spanning March- April 2011.
The following table summarizes comparative quarterly results and reconciles net earnings, a GAAP measure, to EBITDA. The 2010 figures reflect operational results at 100% and 2011 figures reflect operational results at a proportionally consolidated level of 49%.
| For the three months ended June 30, For the six months ended June 30, 2011 2011 2010 2011 2011 2010 100% proportional 100% 100% proportional 100% | ||
|---|---|---|
| Gross sales revenues | $ 3,833,901 | $ 1,878,611 $ 2,109,494 $ 8,797,305 $ 4,310,679 $ 6,454,704 |
| Direct operating costs 1,774,829 832,802 1,977,026 4,086,583 1,917,189 4,489,699 Treatment & transportation 970,546 383,609 723,779 2,337,016 1,053,179 2,246,141 | ||
| Corporate costs | 153,412 153,412 127,447 291,083 291,083 339,750 | |
| EBITDA(1) $ 935,114 $ 508,788 $ (718,758) $ 2,082,622 $ 1,049,228 $ (620,886) | ||
| Interest and financing 30,560 87,500 204,678 168,969 Amortization - Turkey 70,806 110,250 135,869 220,537 Amortization - Canada 990 1,388 1,981 3,758 Investment & other gain (60,876) (1,776) (132,957) (5,017) Foreign exchange loss (gain) 4,886 (101,474) 16,745 (50,492) Stock option expense 24,682 11,873 52,039 26,560 Income tax 68,045 - 157,477 - Non-controlling interest in net income of consolidated affiliates - (488,228) - (396,174) | ||
| Net income (loss) available to common shareholders $ 369,695 $ (338,291) $ 613,396 $ (589,027) |
(1) EBITDA is a non-GAAP measure, does not have a standardized meaning prescribed by GAAP and may not be comparable to similar terms and measures presented by other issuers. EBITDA comprises net income (loss) before income taxes, interest and financing expense (including accretion of liabilities), amortization expense, gain on dilution, non-controlling interest and stock option expense. The Company believes it is appropriate to exclude stock option expense, gain on dilution and non-controlling interest from EBITDA as a measure of operating performance that excludes non-recurring items.
About Silvermet:
Silvermet’s principal business activity is the recycling of electric arc furnace dust (“EAFD”) obtained from steel companies through a Waelz kiln to recover zinc concentrates that are then sold to zinc smelters throughout the world. The Company owns 49% of a joint venture, Befesa Silvermet Turkey S.L. (“BST”), which operates a Waelz kiln facility located in Iskenderun, Turkey.
For further information, please contact:
Stephen G. Roman Ian D. Atacan Chairman, President & CEO Chief Financial Officer
Silvermet Inc.
Tel: (416) 203-8336 www.silvermet.ca
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
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Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raised additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward- looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.