Mr. Gary Arca reports
STARCORE REPORTS Q2 2016 RESULTS
Starcore International Mines Ltd. has filed the results for the quarter ended Jan. 31, 2016, 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 or on SEDAR. All financial information is prepared in accordance with international financial reporting standards and all dollar amounts are expressed in thousands of Canadian dollars unless otherwise indicated.
Financial highlights for quarter ended Jan. 31, 2016:
-
Cash and short-term investments on hand are $10.5-million at Jan. 31,
2016, compared with $6-million at July 31, 2015;
- Gold and silver sales of $6.9-million for the quarter ended Jan. 31,
2016, compared with $7.1-million for the quarter ended Jan. 31, 2015, a
decrease of 2.8 per cent;
- Net income of $200,000 for the quarter ended Jan. 31, 2016,
compared with net loss of $100,000 for the quarter ended Jan. 31,
2015;
- Earnings before interest, taxes, depreciation and
amortization of $3,911 for the six months ended Jan. 31, 2016, compared
with $3,160 for the six months ended Jan. 31, 2015, an increase of 24 per cent.
The attached table contains selected highlights from the company's unaudited consolidated statement of operations for the three and six months ended Jan. 31, 2016, and 2015.
SELECTED FINANCIAL HIGHLIGHTS
(in thousands of Canadian dollars, except per-share amounts)
Three months ended Six months ended
Jan. 31, Jan. 31,
2016 2015 2016 2015
Revenues $6,954 $7,143 $14,658 $14,812
Cost of sales 6,284 6,930 (12,852) (14,148)
Earnings from mining operations 670 213 1,806 664
Administrative expenses (670) (512) (1,578) (1,011)
Income tax recovery 240 183 574 1,101
Net income (loss) $240 $(116) $802 $754
Income (loss) per share -- basic 0.00 (0.00) 0.02 0.01
Income (loss) per share -- diluted 0.00 (0.00) 0.02 0.01
Reconciliation of net income to
EBITDA (1)
Income tax recovery (574) (1,101)
Interest 252 44
Depreciation and depletion 3,431 3,463
EBITDA $3,911 $3,160
EBITDA margin (2) 27% 21%
(1) EBITDA is a non-GAAP (generally accepted accounting principles)
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 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 quarter ending Jan. 31, 2016:
-
Equivalent gold production of 4,544 ounces in quarter ended Jan. 31,
2016, compared with 5,130 ounces in the quarter ended Jan. 31, 2015, a
decrease of 11 per cent;
- Mine operating cash cost is $786 (U.S.) per equivalent ounce for the quarter ended Jan. 31, 2016, compared with $936 (U.S.) per equivalent ounce for the quarter ended Jan. 31, 2015,
a decrease of 16 per cent;
- All-in sustaining costs of $943 (U.S.) per equivalent ounce for the quarter ended Jan. 31,
2016, compared with $1,080 (U.S.) for the quarter ended Jan. 31, 2015, a
decrease of 13 per cent.
The attached table is a summary of mine production statistics for the San Martin mine for three and six months ended Jan. 31, 2016, and the year ended July 31, 2015.
SAN MARTIN MINE PRODUCTION STATISTICS
Actual results Actual results Actual results
for the three for the six for the 12
months ended months ended months ended
Jan. 31, Jan. 31, July 31,
Unit of measure 2016 2016 2015
Production of gold in dore thousand ounces 4.2 9.0 18.3
Production of silver in dore thousand ounces 27.7 56.1 97.1
Equivalent ounces of gold thousand ounces 4.5 9.7 19.6
Silver-to-gold-equivalency ratio 76.2:1 75.6:1 71.6:1
Gold grade grams/tonne 1.99 2.11 2.14
Silver grade grams/tonne 20.9 21.2 18.2
Gold recovery per cent 84.2% 85.5% 85.1%
Silver recovery per cent 53.2% 53.1% 53.1%
Milled thousands of tonnes 77.5 155.5 311.9
Operating cost per tonne milled U.S. dollars/tonne 46 49 57
Operating cost per equivalent ounce U.S. dollars/ounces 786 786 903
"This quarter, we were able to announce two significant milestones; we entered into an agreement to sell our San Pedrito property, expecting to net the company approximately $7-million (U.S.); and we poured our first dore bar from the newly commissioned Altiplano concentrate processing plant located in Matehuala, Mexico. Along with our continued production and positive cash flow from our San Martin mine in Queretaro, we are expanding our profitable footprint in Mexico in accordance with our long-term goals," reported Robert Eadie, president of the company.
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