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 15, 2020 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, 2020 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 S EDAR 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.
“We continue to show excellent cash flow from our mining operations and report our second quarter of $0.03 per
share earnings bringing us to $0.06 per share for the 6 month period ” reported Robert Eadie, CEO and President
of the Company. “We expect this trend to continue into the new year as we continue to develop the mine to deliver
consistent production tonnage to the plant.”
Financial Highlights for the three-month period ended October 31, 2020 (unaudited):
• Cash and short-term investments on hand is $2.7 million at October 31, 2020;
• Gold and silver sales of $7.0 million;
• Earnings from mining operations of $2.2;
• Net Income of $1.5 million, or $0.03 per share;
• EBITDA(1) of $5.1 million for the six month period ended October 31, 2020.
The following table contains selected highlights from the Company’s unaudited consolidated statement of
operations for the three and six months ended October 31, 2020 and 2019:
(in thousands of Canadian dollars)
(Unaudited)
Three Months ended
October 31,
Six Months ended
October 31,
2020 2019 2020 2019
Revenues $ 6,972 $ 5,804 $ 15,062 $ 12,193
Cost of Sales (4,747) (6,024) (9,911) (12,363)
Earnings (Loss) from mining operations and toll processing 2,225 (220) 5,151 (170)
Administrative expenses, interest and foreign exchange (865) (939) (2,180) (2,028)
Sale of Altiplano - (3) - (39)
Income tax recovery 92 100 145 344
Net income (Loss) $ 1,452 $ (1,062) $ 3,116 $ (1,893)
(i) Income (Loss) per share – basic $ 0.03 $ (0.02) $ 0.06 $ (0.04)
(ii) Income (Loss) per share – diluted $ 0.03 $ (0.02) $ 0.06 $ (0.04)
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Reconciliation of Net income to EBITDA(1)
For the six months ended October 31, 2020 2019
Net income (loss) $ 3,116 $ (1,893)
Sale of Altiplano - 39
Income tax expense (recovery) (145) (344)
Interest 24 173
Depreciation and depletion 2,107 1,683
EBITDA $ 5,102 $ (342)
EBITDA MARGIN(2) 33.9% (2.8)%
(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 C orporation. 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 ca lculated 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 October 31, 2020:
• Equivalent gold production of 2,867 ounces;
• Mine operating cash cost of US$1,048/EqOz;
• All-in sustaining costs of US$1,276/EqOz for the six months ended October 31, 2020.
The following table is a summary of mine production statistics for the San Martin mine for the three and six
months ended October 31, 2020 and for the previous year ended April 30, 2020:
Actual Results for
Unit of measure
3 months ended
October 31, 2020
6 months ended
October 31, 2020
12 months ended
April 30, 2020
Mine Production of Gold in Dore thousand ounces 2.6 5.5 11.8
Mine Production of Silver in Dore thousand ounces 22.9 55.4 121.8
Gold equivalent ounces thousand ounces 2.9 6.1 13.1
Silver to Gold equivalency ratio 75.1 86.6 90.3
Mine Gold grade grams/tonne 1.59 1.66 1.82
Mine Silver grade grams/tonne 22.0 26.3 30.5
Mine Gold recovery percent 88.5% 88.6% 87.7%
Mine Silver recovery percent 57.0% 56.6% 54.4%
Milled thousands of tonnes 56.7 115.8 229.8
Mine operating cash cost per tonne milled US dollars/tonne 53 52 66
Mine operating cash cost per equivalent ounce US dollars/ounce 1,048 985 1,149
Salvador Garcia, P. Eng., a director of the Company and Chief Operating Officer, is the Company’s qualified
person on the project as required under NI 43 -101and has prepared the technical information contained in this
press release.
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
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increase long term shareholder value . You can find more information on the investor friendly website here:
www.starcore.com.
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: (604) 602-4935 x 203
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.