Starcore Reports First Quarter 2015 Results
December 9, 2014 TSX: SAM
Starcore Reports First Quarter 2015 Results
Vancouver, B.C. – Starcore International Mines Ltd. (the “Company”) has filed the results for the three months ended October 31, 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.
First Quarter Ended October 31, 2014 Highlights:
- Earnings from mining operations was $0.5 million, or 6% of gross revenue, compared to $3.1 million, or 36% of gross revenue, in the comparative quarter.
- Net Earnings after taxes for the quarter was $0.9 million, or $0.01 per share compared to $2.3 million, or $0.02 per share for the prior comparative quarter. Current quarter Net Earnings were largely due to current and deferred tax recoveries of $0.9million.
- The following table contains selected highlights from the Company’s unaudited consolidated statement of operations for the three months ended October 31, 2014 and 2013:
(in thousands of Canadian dollars) October 31, 2014 October 31, 2013 (Unaudited)
| Revenues | $ 7,669 | $ 8,749 |
| Cost of Sales | (7,218) | (5,632) |
| Earnings from mining operations | 451 | 3,117 |
Net income
(i) Net income $ 2,296
$ 870
(ii) Income per share – basic $ 0.01 $ 0.02
(iii) Income per share – diluted $ 0.01 $ 0.02
- The lower earnings were largely due to lower metal production coupled with lower metal prices in the quarter. Overall metal production was lower for the quarter at 5,382 equivalent ounces (“EqOz”), compared to 6,920 EqOz in the previous year. Mine ore grade for the quarter decreased to 2.36 g/t and 18.2 g/t for gold and silver, respectively, compared to an average of 2.55 g/t and 24.2 g/t for the prior year, respectively.
- Mine operating cash costs increased overall to US$916/EqOz compared to an average of US$750/EqOz in the previous year due mainly to lower metal production coupled with higher input costs in the current period compared to the prior year average. All-in Sustaining Costs, which includes sustaining capital
Suite 750 – 580 Hornby Street, Box 113, Vancouver, British Columbia, Canada V6C 3B6 Telephone: (604) 602-4935 Fax: (604) 602-4936 e-mail. [email protected] website: www.starcore.com
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expenditures, exploration, reclamation, corporate and administrative and share-based compensation cost were US$1,094/EqOz, compared to US$989 in the comparative quarter.
The following table is a summary of mine production statistics for the San Martin mine for the three months ended October 31, 2014 and for the year ended July, 2014:
Actual results for Actual results for 3 months ended 12 months ended Unit of measure October 31, 2014 July 31, 2014 Production of Gold in Dore thousand ounces 5.0 22.0 Production of Silver in Dore thousand ounces
25.9 126.5
| Equivalent ounces of Gold | thousand ounces | 5.38 | 24.0 |
| Silver to Gold equivalency ratio | 67.6:1 | 62.7:1 | |
| Gold grade | grams/tonne | 2.36 | 2.55 |
| Silver grade | grams/tonne | 18.24 | 24.2 |
Gold recovery percent
83.9% 87.1% Silver recovery percent
56.2% 52.7%
| Milled | thousands of tonnes | 78.6 | 308.6 |
| Operating Cost per tonne milled | US dollars/tonne | 63 | 58 |
| Operating Cost per Equivalent Ounce | US dollars/ounces | 916 | 750 |
“As stated in our previous production news release, while we experienced lower than expected ore grade and recoveries in this last quarter, we fully expect to meet our annual projections for 2014,” said Robert Eadie, President of the Company. “Starcore maintains its strong cash position and will continue to build on that cash position by undergoing a cost reduction plan in the coming year.”
About Starcore
Starcore is engaged in exploring, extracting and processing gold and silver through its wholly-owned subsidiary, Compañia Minera Peña 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.
Signed “Gary Arca”
Gary Arca, Chief Financial Officer and Director
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
The Toronto Stock Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.