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TORONTO, ONTARIO--(Marketwire - June 27, 2011) -
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Silvermet Inc. ("Silvermet" or the "Company") (News - Market indicators) is pleased to announce the release of its financial and operating results for 2011 Q1.
- Operations are cash flow positive and profitable in 2001 Q1
- Production increased by 43% to 3,144 DMT (Dry Metric Tonnes zinc concentrate containing 68% zinc on average) from 2,195 DMT in Q1 2010 despite a 15 day planned shutdown in March for maintenance.
- Sales volumes increased by 6% to 3,626 DMT in Q1 2011 from 3,434 DMT in Q1 2010. (Q1 2010 sales included 1,581 DMT that had been shipped to port in Q3 2009 but were not accounted for as sales until Q1 2010.)
- Revenues increased by 14% to $5.0 million (at 100%) in Q1 2011 (Silvermet's share - $2.4 million) from $4.3 million in Q1 2010.
- Monthly production increased by 43% from 731 DMT per month in Q1 2010 to 1,048 DMT per month in Q1 2011.
- Repaid the C $500,000 convertible debenture financing in February 2011.
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For the three months ended March 31, |
|
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|
2011 |
|
2011 |
|
|
|
2010 |
|
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|
100% |
|
proportional |
|
|
|
100% |
|
| Gross sales revenues |
$ |
4,963,404 |
$ |
2,432,068 |
|
|
$ |
4,345,210 |
|
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|
| Direct operating costs |
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2,311,754 |
|
1,084,387 |
|
|
|
2,512,673 |
|
| Treatment & transportation |
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1,366,470 |
|
669,570 |
|
|
|
1,522,362 |
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| General and administration |
|
137,671 |
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137,671 |
|
|
|
212,303 |
|
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|
|
|
|
|
|
|
|
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| EBITDA(1) |
$ |
1,147,508 |
$ |
540,440 |
|
|
$ |
97,872 |
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| Interest and financing |
|
|
|
38,403 |
|
|
|
15,797 |
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| Amortization - Turkey |
|
|
|
65,063 |
|
|
|
110,287 |
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| Amortization - Canada |
|
|
|
991 |
|
|
|
2,370 |
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| Investment & other (gain) loss |
|
|
|
(72,081 |
) |
|
|
(3,241 |
) |
| Foreign exchange loss |
|
|
|
11,859 |
|
|
|
50,982 |
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| Stock option expense |
|
|
|
27,357 |
|
|
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14,687 |
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| Accretion of liabilities |
|
|
|
135,715 |
|
|
|
65,672 |
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| Income tax |
|
|
|
120,772 |
|
|
|
- |
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| Future income tax expense (recovery) |
|
|
|
(31,340 |
) |
|
|
- |
|
| Non-controlling interest in net income of consolidated affiliates |
|
|
|
- |
|
|
|
92,054 |
|
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|
|
|
|
|
|
|
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| Net income (loss) available to common shareholders |
|
|
$ |
243,701 |
|
|
$ |
(250,736 |
) |
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(1) EBITDA is a non-GAAP measure, does not have a standardized meaning prescribed by GAAP and may not be comparable to similar terms and measures presented by other issuers. EBITDA comprises net income (loss) before income taxes, interest and financing expense (including accretion of liabilities), amortization expense, gain on dilution, non-controlling interest and stock option expense. The Company believes it is appropriate to exclude stock option expense, gain on dilution and non- controlling interest from EBITDA as a measure of operating performance that excludes non-recurring items. |
"Results of the first quarter reflect a continuation of the production stability that was achieved at the Turkish operation, beginning in Q3 2010. Our engineers continue to improve throughput and efficiency of the Waelz kiln, with a view of achieving a higher grade zinc content and increased throughput." said Stephen G. Roman, Silvermet's Chairman, President and CEO. "We are now aggressively seeking a suitable location for construction of a new state of the art facility to address the EAFD processing capacity deficiency in Turkey."
About Silvermet:
Silvermet's principal business activity is the recycling of electric arc furnace dust ("EAFD") obtained from steel companies through a Waelz kiln to recover zinc concentrates that are then sold to zinc smelters throughout the world. The Company owns 49% of a joint venture, Befesa Silvermet Turkey S.L. ("BST"), which operates a Waelz kiln facility located in Iskenderun, Turkey.
Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raised additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. "Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Silvermet Inc.
Stephen G. Roman
Chairman, President & CEO
(416) 203-8336
www.silvermet.ca
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