Starcore Reports Q3 2017 Results
March 17, 2017 TSX: SAM
Starcore Reports Q3 2017 Results
Vancouver, B.C. – Starcore International Mines Ltd. (the “Company”) has filed the results for the quarter
ended January 31, 2017 for the Company and its mining operations (Bernal) and purchased concentrate operations
(Altiplano). 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 quarter ended January 31, 2017:
• Cash and short-term investments on hand is $4.7 million at January 31, 2017 compared to $10 million at April
30, 2016;
• Altiplano purchased concentrate operations became operational at November 1, 2016, having been removed
from the pre-operational phase. This is the first full quarter that the Altiplano plant is reported in operations;
• Gold and silver sales of $6.2 million for the three months ended January 31, 2017 compared to $7.0 million
for the three months ended January 31, 2016, which includes $756 from purchased concentrate processing, a
decrease of 11%,
• Loss from operations of $0.5 million for the three months ended January 31, 2017 compared to earnings of
$0.7 million for the three months ended January 31, 2016;
• EBITDA(1) of $3,123 for the nine months ended January 31, 2017 compared to $4,499 for the nine months
ended January 31, 2016.
The following table contains s elected highlights from the Company’s unaudited consolidated statement of
operations for the three and nine months ended January 31, 2017 and 2016:
(in thousands of Canadian dollars)
(Unaudited)
Three Months ended
January 31,
Nine Months ended
January 31,
2017 2016 2017 2016
Revenues $ 6,164 $ 6,954 $ 20,413 $ 21,024
Cost of Sales (6,659) (6,284) (18,491) (19,611)
Earnings from mining operations (495) 670 1,922 1,413
Administrative expenses (1,246) (670) (3,333) (2,152)
Income tax recovery 195 240 538 1,445
Net income $ (1,546) $ 240 $ (873) $ 706
(i) Income per share – basic (0.03) 0.00 $ (0.02) $ 0.02
(ii) Income per share – diluted (0.03) 0.00 $ (0.02) $ 0.02
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 nine months ending January 31, 2017 2016
Net Income $ (873) $ 706
Income tax recovery (538) (1,445)
Interest 442 252
Depreciation and depletion 4,092 4,953
EBITDA $ 3,123 $ 4,466
EBITDA MARGIN(2) 15.3% 21.2%
(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 anoth er 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 Corpo ration. 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 quarter ending January 31, 2017:
• Equivalent gold production from mine operations of 11,794 ounces in period ended January 31, 2017
compared to production of 13,215 ounces in period ended January 31, 2016, a decrease of 11%;
• Altiplano production of 65 ounces of gold and 20,470 ounces of silver in its first quarter of operations;
• Mine operating cash cost is US$924/EqOz for the period ended January 31, 2017 compared to cost of
US$846/EqOz for the period ended January 31, 2016;
• All-in sustaining costs of US$1,171/EqOz for the period ended January 31, 2017 com pared to costs of
US$930/EqOz for the period ended January 31, 2016;
The following table is a summary of mine production statistics for the San Martin mine for the three and nine
month periods ended January 31, 2017 and for the previous nine month period ended April 30, 2016:
Actual Results for Unit of measure
3 months ended
January 31, 2017
9 months ended
January 31, 2017
9 months ended
April 30, 2016
Production of Gold in Dore thousand ounces 3.0 11.1 12.3
Production of Silver in Dore thousand ounces 15.5 51.9 70.2
Equivalent ounces of Gold thousand ounces 3.2 11.8 13.2
Silver to Gold equivalency ratio 70.7:1 70.4:1 76.2:1
Gold grade grams/tonne 1.91 2.02 1.96
Silver grade grams/tonne 14.7 16.9 18.4
Gold recovery percent 70.7% 81.3% 84.9%
Silver recovery percent 47.1% 45.7% 51.7%
Milled thousands of tonnes 69.7 209.3 229.6
Operating Cost per tonne milled US dollars/tonne 51 52 49
Operating Cost per Equivalent ounce US dollars/ounce 1,105 924 846
“We achieved some significant milestones this quarter, largely at the expense of production results and reported
earnings.” reported Robert Eadie, President of the Company. “Firstly, we moved the Altiplano Plant into
operational status, thereby reporting its earning as part of Company operations, and achieved a modest positive
cash flow from very low production thereby providing confidence that this operation will produce good cash flow
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under full capacity. Secondly, we completed the construction of the CIL plant at San Martin allowing us to
process the higher grade carbonaceous ore from our mine. While we have experienced overall lower recovery and
mine production as a result of issues with the initial start up of this plant, we have fully tested the CIL plant using
purchased carbon and have proven that it is fully functional and operating as planned”.
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. Through
its wholly-owned subsidiary, Altiplano Goldsilver S.A. de C.V, Starcore also owns and operates the Altiplano
concentrate processing facility for precious metals in Matehuala, Mexico. Starcore is a public repo rting issuer on
the Toronto Stock Exchange. Starcore is also engaged in owning, acquiring, exploiting, exploring and evaluating
mineral properties, and either joint venturing or developing these properties further. Starcore has interests in
properties lo cated in Mexico, Canada and the United States. For more information concerning Starcore, see
documents filed under its profile on SEDAR, or visit its website at 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: (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.