Silvermet Announces First Shipment of New Product
8 King Street East, Suite 1700 Toronto, Ontario, Canada M5C 1B5 Telephone: (416) 203-8336 Facsimile: (416) 368-5146
SILVERMET ANNOUNCES FIRST SHIPMENT OF NEW PRODUCT
TORONTO, January 6, 2010: Silvermet Inc. (“Silvermet” or the “Company”) (TSXV: SYI) began shipping its new double washed Waelz oxide product this week, with a shipment of 500 tonnes to a smelter in Europe.
After reviewing production costs from the Company’s first six months of operations, along with current global market requirements, the Company decided to cease production of zinc clinker and begin producing double washed Waelz oxide in the middle of December. The new product requires less energy, therefore reducing the production cost per tonne, while generating similar levels of zinc recovery when compared with clinker.
In addition to the expected improved contribution from the new product, the Company continues to experience general cost reductions throughout its operations.
“Through the tireless efforts of our local management team in Turkey and our ongoing process improvement initiatives, we saw plant availability increase 7% and production increase 35% between the third and fourth quarters”, commented President Rein Lehari.
During the fourth quarter, the Company produced 8% more zinc clinker than in the previous quarter, despite closing the clinker operation on December 13th in order to begin its double washed Waelz oxide production. To date, Silvermet has shipped 5,621 tonnes of zinc concentrate to smelters in Asia and Europe.
“Silvermet has faced the start-up challenges that are typical of any new operation in a foreign country and has overcome many of these. We continue to work on process improvements which should benefit our 2010 operating results. In addition to performance improvements, we are also now experiencing the benefits of an LME zinc price that has increased from an average $0.80/lb in the third quarter to $1.00/lb in the fourth quarter (at December 31st, the zinc price was $1.17/lb). We look forward to a positive year in 2010,” said Stephen G. Roman, Silvermet’s Chairman & CEO.
About Silvermet:
Silvermet’s Waelz kiln operations in Iskenderun, Turkey have been operating since mid-May to recover zinc contained in the Electric Arc Furnace Dust (“EAFD”) that is produced as a waste product by local steel mills.
For further information, please contact:
Silvermet Inc.
Stephen G. Roman, Chairman & CEO Rein A. Lehari, President & COO (416) 203-8336 (416) 203-8336 Website: www.silvermet.ca
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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.