Mr. Gary Arca reports
STARCORE REPORTS Q2 RESULTS
Starcore International Mines Ltd. has filed the results for the second quarter ended Oct. 31, 2018, for the company and its mining operations in Queretaro, Mexico, and toll processing operations in Matehuala, Mexico. The full version of the company's financial statements and management's discussion and analysis can be viewed on the company's website or SEDAR. All financial information is prepared in accordance with international financial reporting standards, and all dollar amounts are expressed in thousands of dollars unless otherwise indicated.
Financial highlights for the three-month period ended Oct. 31, 2018 (unaudited):
- Cash and short-term investments on hand are $4.0-million at Oct. 31, 2018;
- Gold and silver sales of $8.7-million;
- Loss of $8.1-million, or (16 cents per share), which includes a non-cash impairment charge of $5.9-million against the Altiplano concentrate processing facility assets;
- EBITDA (earnings before interest, taxes, depreciation and amortization) (1) of $651.
The attached financial results table contains selected highlights from the company's unaudited consolidated statement of operations for the three and six months ended Oct. 31, 2018, and 2017.
FINANCIAL RESULTS
(in thousands of dollars)
Three months ended Oct. 31, Six months ended Oct. 31,
2018 2017 2018 2017
Revenues $8,711 $6,407 $19,334 $14,502
Cost of sales (9,092) (7,761) (19,042) (16,235)
-------- -------- -------- --------
Earnings (loss) from mining operations (381) (1,354) 292 (1,733)
-------- -------- -------- --------
Administrative expenses (771) (1,311) (1,836) (1,831)
Allowance for receivables (441) - (441) -
Impairment of plant and equipment (5,943) - (5,943) -
Disposal of E&E assets (82) - (82) -
Income tax (expense) recovery (508) 720 (497) 1,405
-------- -------- -------- --------
Net income (loss) $(8,126) $(1,945) $(8,507) $(2,159)
Income (loss) per share -- basic (0.16) (0.04) (0.17) (0.04)
Income (loss) per share -- diluted (0.16) (0.04) (0.17) (0.04)
-------- -------- -------- --------
(1) EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-generally accepted accounting principle financial performance measure with no standard definition under international financial reporting standards. 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 Oct. 31, 2018:
- Equivalent gold production of 4,050 ounces;
- Mine operating cash cost of $1,075 (U.S.) per equivalent ounce;
- All-in sustaining costs of $1,247 (U.S.) per equivalent ounce for the six months ended Oct. 31, 2018.
The attached mine production statistics table is a summary of mine production statistics for the San Martin mine for the three and six months ended Oct. 31, 2018, and for the previous year ended April 30, 2018.
MINE PRODUCTION STATISTICS
Actual results for
Unit of measure Three months Six months 12 months
ended ended ended
Oct. 31, 2018 Oct. 31, 2018 April 30, 2018
Mine production of gold in dore thousand ounces 3.2 6.6 11.9
Mine production of silver in dore thousand ounces 67.9 140.7 102.1
------------------ ------ ------ ------
Gold equivalent ounces thousand ounces 4.1 8.3 13.2
Silver to gold equivalency ratio 82.4 80.4 78.2
Mine gold grade grams/tonne 1.42 1.47 1.62
Mine silver grade grams/tonne 43.5 46.2 21.3
Mine gold recovery per cent 86.8% 87.5% 84.5%
Mine silver recovery per cent 58.7% 59.2% 55.2%
Milled thousands of tonnes 81.4 158.8 269.6
Mine operating cash cost per tonne milled U.S. dollars $53 $54 $61
Mine operating cash cost per equivalent ounce U.S. dollars 1,075 1,035 1,237
------------------ ------ ------ ------
About Starcore International Mines Ltd.
Starcore International Mines is engaged in precious metal production with a 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 increase long-term shareholder value.
© 2024 Canjex Publishing Ltd. All rights reserved.