Starcore Reports Q2 Results
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
December 13, 2019 TSX: SAM
Starcore Reports Q2 Results
Vancouver, B.C. – Starcore International Mines Ltd. (TSX: SAM) (“Starcore” or the “Company”) has filed the
results for the second quarter ended October 31, 2019 for the Company and its mining operations in Queretaro,
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.
“The recent operational efficiency programs are starting to take hold on the operational and administrative level.
While we saw a difficult August in production coupled with the severance costs of the employee layoffs, the mine
still produced more profitable ounces in last two months of the quarter” reported Robert Eadie, C.E.O. and President
of the company. “In addition to this transition, we are pleased with the updated 43-101 that indicates 10+ years of
mine reserves and resources and our new technical staff at the mine are focused on developing and exploring our
land package for additional gold discoveries.”
Financial Highlights for the three-month period ended October 31, 2019 (unaudited):
• Cash and short-term investments on hand is $2.7 million at October 31, 2019;
• Gold and silver sales of $5.8 million;
• Loss of $1.1 million, or $(0.02) per share;
• EBITDA(1) of $(342) for the six month period ended October 31, 2019;
The following table contains selected highlights from the Company’s unaudited consolidated statement of
operations for the three and six months ended October 31, 2019 and 2018:
(in thousands of Canadian dollars)
(Unaudited)
Three Months ended
October 31,
Six Months ended
October 31,
2019 2018 2019 2018
Revenues $ 5,804 $ 8,711 $ 12,193 $ 19,334
Cost of Sales (6,024) (9,092) (12,363) (19,042)
Earnings (Loss) from mining operations and toll processing (220) (381) (170) 292
Administrative expenses, interest and foreign exchange (939) (771) (2,028) (1,836)
Sale of Altiplano (3) - (39) -
Allowance for receivables - (441) - (441)
Impairment of plant and equipment - (5,943) - (5,943)
Disposal of E&E assets - (82) - (82)
Income tax (expense) recovery 100 (508) 344 (497)
Net income (Loss) $ (1,062) $ (8,126) $ (1,893) $ (8,507)
(i) Income (Loss) per share – basic (0.02) (0.16) $ (0.04) $ (0.17)
(ii) Income (Loss) per share – diluted (0.02) (0.16) $ (0.04) $ (0.17)
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Reconciliation of Net income to EBITDA(1)
For the six months ended October 31, 2019 2018
Net loss $ (1,893) $ (8,507)
Sale of Altiplano 39 -
Allowance for receivables - 441
Disposal of E&E assets - 82
Impairment of plant and equipment - 5,943
Income tax expense (recovery) (344) 497
Interest 173 126
Depreciation and depletion 1,683 1,979
EBITDA $ (342) $ 561
EBITDA MARGIN(2) (2.8)% 2.9%
(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 n ot 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 October 31, 2019:
• Equivalent gold production of 3,050 ounces;
• Mine operating cash cost of US$1,259/EqOz;
• All-in sustaining costs of US$1,527/EqOz for the six months ended October 31, 2019;
The following table is a summary of mine production statistics for the San Martin mine for the three and six
months ended October 31, 2019 and for the previous year ended April 30, 2019:
Actual Results for
Unit of measure
3 months ended
October 31, 2019
6 months ended
October 31, 2019
12 months ended
April 30, 2019
Mine Production of Gold in Dore thousand ounces 2.7 6.0 13.7
Mine Production of Silver in Dore thousand ounces 31.1 67.2 224.5
Gold equivalent ounces thousand ounces 3.1 6.8 16.4
Silver to Gold equivalency ratio 84.8 86.9 81.9
Mine Gold grade grams/tonne 1.78 1.90 1.63
Mine Silver grade grams/tonne 34.2 33.4 39.6
Mine Gold recovery percent 87.4% 86.0% 86.2%
Mine Silver recovery percent 52.3% 55.4% 58.4%
Milled thousands of tonnes 54.1 114.9 301.9
Mine operating cash cost per tonne milled US dollars/tonne 71 73 58
Mine operating cash cost per equivalent ounce US dollars/ounce 1,259 1,245 1,061
About Starcore
Starcore International Mines is engaged in precious metals production with focus and experience in Mexico. This
base of producing assets is complemented by exploration and development projects throughout North America. The
company is a leader in Corporate Social Responsibility and advocates value driven decisions that will increase long
term shareholder value. You can find more information on the investor friendly website here: www.starcore.com.
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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: 416-402-2341
Toll Free: 1-866-602-4935
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