Starcore Reports Q1 2018 Results
September 13, 2017 TSX: SAM
Starcore Reports Q1 2018 Results
Vancouver, B.C. – Starcore International Mines Ltd. (the “Company”) has filed the results for the first quarter ended July 31, 2017 for the Company and its mining operations in Queretaro, Mexico and toll processing operations in Matehuala, Mexico. 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.
Financial Highlights for the three-month period ended July 31, 2017 (unaudited):
- Cash and short-term investments on hand is $7.4 million at July 31, 2017;
- Gold and silver sales of $8.1 million;
- Loss of $0.3 million, or $(0.01) per share;
- EBITDA(1) of $443;
The following table contains selected highlights from the Company’s unaudited consolidated statement of operations for the quarters ended July 31, 2017 and 2016:
(in thousands of Canadian dollars) Quarter ended (unaudited) July 31, 2017 2016 Revenues $ 7,188
$ 8,095
Cost of Sales (8,474) (6,040) Earnings (loss) from mining and toll processing (379) 1,148 operations
| Administrative Expenses | (600) | (857) |
| Income tax recovery (expense) | 685 | 195 |
| Net income | $ (294) | $ 486 |
| (i) Income (loss) per share – basic | $ (0.01) | $ 0.01 |
| (ii) Income (loss) per share – diluted | $ (0.01) | $ 0.01 |
Suite 750 – 580 Hornby Street, Box 113, Vancouver, British Columbia, Canada V6C 3B6 Suite 904 – 85 Richmond Street West, Toronto Ontario M5H 2C9 Telephone: (604) 602-4935 Fax: (604) 602-4936 e-mail. [email protected] website: www.starcore.com
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Reconciliation of Net income to EBITDA(1)
For the three months ended July 31,
2017 2016
| Net income | $ | (294) | $ | 486 |
| Income tax recovery | (685) | (195) | ||
| Interest | 26 | 212 | ||
| Depreciation and depletion | 1,396 | 1,361 | ||
| EBITDA | $ | 443 | $ 1,864 | |
| EBITDA MARGIN(2) | 5.5% | 25.9% |
(1) EBITDA (“Earnings before Interest, Taxes, Depreciation and Amortization”) is a non-GAAP financial performance measure with no standard definition under IFRS. It is therefore possible that this measure could not be comparable with a similar measure of another Corporation. The Corporation uses this non-GAAP measure which can also be helpful to investors as it provides a result which can be compared with the Corporation’s market share price.
(2) EBITDA MARGIN is a measurement of a company’s operating profitability calculated as EBITDA divided by total revenue. EBITDA MARGIN is a non-GAAP financial performance measure with no standard definition under IFRS. It is therefore possible that this measure could not be comparable with a similar measure of another Corporation. The Corporation uses this non-GAAP measure which can also be helpful to investors as it provides a result which can be compared with the Corporation’s market share price.
Production Highlights for the three month period ended July 31, 2017:
- Equivalent gold production of 3,888 ounces;
- Mine operating cash cost of US$1,052/EqOz;
- All-in sustaining costs of US$1,244/EqOz;
The following table is a summary of mine production statistics for the San Martin mine for the periods ended July 31, 2017 and 2016 and for the previous year ended April 30, 2017:
Actual Results for 3 months ended 3 months ended 12 months ended
| Unit of measure | July 31, 2017 | July 31, 2016 | April 30, 2017 | |
|---|---|---|---|---|
| Mine Production of Gold in Dore | thousand ounces | 3.7 | 4.0 | 14.2 |
| Minie Production of Silver in Dore | thousand ounces | 15.2 | 15.8 | 66.1 |
| Gold equivalent ounces | thousand ounces | 3.9 | 4.2 | 15.2 |
| Silver to Gold equivalency ratio | 74.9 | 71.6 | 70.2 | |
| Mine Gold grade | grams/tonne | 1.97 | 2.17 | 1.97 |
| Mine Silver grade | grams/tonne | 12.6 | 16.2 | 16.1 |
| Mine Gold recovery | percent | 85.0% | 86.6% | 81.5% |
| Mine Silver recovery | percent | 51.2% | 46.0% | 46.5% |
| Milled | thousands of tonnes | 69.8 | 66.1 | 275.1 |
| Mine operating cash cost per tonne milled | US dollars | 59 | 54 | 53 |
| Mine operating cash cost per equivalent ounce | US dollars | 1,052 | 853 | 969 |
“We are focused on production and additions to management will assist in restoring production to normal levels,” reported Robert Eadie, President of the Company.
About Starcore
Starcore is engaged in exploring, extracting and processing gold and silver through its wholly-owned subsidiaries, Compañia Minera Peña de Bernal, S.A. de C.V., which owns the San Martin mine in Queretaro, Mexico, and Altiplano Gold Silver, S.A. de C.V., which operates the newly commissioned Altiplano Concentrate Processing Plant located in Matehuala, Mexico. The Company is a public reporting issuer on the Toronto Stock Exchange.
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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 North America.
ON BEHALF OF STARCORE INTERNATIONAL MINES LTD.
Signed “Gary Arca”
Gary Arca, Chief Financial Officer and Director FOR FURTHER INFORMATION PLEASE CONTACT:
GARY ARCA EVAN EADIE Telephone: (604) 602-4935 Investor Relations Facsimile: 1-604-602-4936 Telephone: (416) 640-1936 Toll Free: 1-866-602-4935 The Toronto Stock Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.