Starcore Int'l earns $77,000 in fiscal Q2 2010Starcore Int'l earns $77,000 in fiscal Q2 2010
2010-03-17 18:48 ET - News Release
Mr. Gary Arca reports
STARCORE REPORTS POSITIVE FINANCIAL RESULTS FROM THE SECOND QUARTER OF 2010
Starcore International Mines Ltd. has filed the results for the second quarter ended Jan. 31, 2010, for the company and its mining operations from the San Martin mine. Starcore had revenues from metal sales of $4.6-million, earnings from mining operations of $1.5-million and net income of $77,000 for the quarter ended Jan. 31, 2010. Over the six-month period ended Jan. 31, 2010, the company reports revenues of $9.2-million, earnings from mining operations of $3.1-million and a net income of $600,000. The basic and diluted income per share for the quarter ended Jan. 31, 2010, was nil, and one cent per share for the six months ended Jan. 31, 2010.
FINANCIAL HIGHLIGHTS (in thousands of dollars) For the three months ended For the six months ended Jan. 31, Jan. 31, 2010 2009 2010 2009Total revenue $4,616 $4,906 $9,202 $9,277Earnings from miningoperations 1,453 1,210 3,140 2,169Net income (loss) 77 (22) 639 (131)Net income (loss) pershare -- basic and diluted 0.00 (0.00) 0.01 (0.00)
Mining earnings for 2010 were higher than 2009 due to higher equivalent metal production compared with the same periods in the prior year and to higher metal prices for the three- and six-month periods ending Jan. 31, 2010. Net income also improved significantly due to higher relative margins combined with lower production costs. Costs were lower due both to management efforts to decrease costs and to the lower pesos exchange rate compared with the prior year.
The company also had positive cash flow from operations of $2.8-million for the six months ended Jan. 31, 2010, compared with $100,000 for the same period in 2009.
PRODUCTION HIGHLIGHTS Actual results for Actual results for three months ended 12 months ended(Unaudited) Unit of measure Jan. 31, 2010 Jan. 31, 2010Production ofgold in dore thousand ounces 5.2 19.3Production ofsilver in dore thousand ounces 41.9 170.7Equivalent ouncesof gold(i) thousand ounces 5.8 21.9Milled thousands of tonnes 74.6 273.0Operating costper equivalentounce U.S. dollars/ounce $404 $419(i) Assuming a 63:1 silver to gold equivalency ratio for three months and 66:1 for the year ended Jan. 31, 2010.
Overall equivalent gold production was 5,800 ounces, which is higher than the prior years' average of 5,475 ounces per quarter. As a result, the operating cost per ounce was lower at $404 (U.S.) compared with the prior years' average of $419 (U.S.).
The company expects to maintain or increase the current ore grades over the next quarter and improve earnings further. The company also continues exploration efforts to increase reserves of resources and to find higher grade deposits. Management also continues efforts to cut mine and administration costs, where possible, to improve earnings and cash flow.
Full financial statements are available on SEDAR and on Starcore's website.
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