VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 9, 2014) - Starcore International Mines Ltd. (the "Company") (TSX:SAM) 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 $0.9 million.
- 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)
(Unaudited) |
October 31, 2014 |
October 31, 2013 |
| Revenues |
$ 7,669 |
$ 8,749 |
| Cost of Sales |
(7,218) |
(5,632) |
| Earnings from mining operations |
451 |
3,117 |
| Net income |
|
|
| |
(i) Net income |
$ 870 |
$ 2,296 |
| |
(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 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:
| |
Unit of measure |
Actual results for
3 months ended
October 31, 2014 |
Actual results for
12 months ended
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.
Gary Arca, Chief Financial Officer and Director
The Toronto Stock Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.