| | Published : July 29th, 2011 | Announces Second Quarter Financial Results |
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Scorpio Mining Announces Second Quarter Financial Results
Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining" or the
"Corporation") is pleased to announce its unaudited financial and
operating results for the second quarter ("Q2") of 2011. This press
release should be read in conjunction with the Corporation's Management
Discussion & Analysis, Financial Statements and Notes to Financial
Statements for the six month period ended June 30, 2011, available on the
Corporation's website at www.scorpiomining.com and on SEDAR at www.sedar.com.
All monetary figures are expressed in Canadian dollars unless otherwise
specified.
Performance Highlights:
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Three months ended June 30, 2011
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Three months ended June 30, 2010
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Six months ended June 30, 2011
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Six months ended June 30, 2010
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$
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$
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$
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$
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Revenue ('000)
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17,637
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6,464
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35,902
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12,486
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Mine operating earnings ('000)
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10,298
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920
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22,844
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2,280
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Investment in
Scorpio Gold Corporation ('000)
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(1,020)
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176
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(1,251)
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19,562
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Net earnings (loss) ('000)
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3,259
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(1,176)
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9,817
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17,468
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Earnings (loss) per share
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0.02
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(0.01)
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0.05
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0.12
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Adjusted EBITDA(1)
('000)
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11,644
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2,005
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23,555
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3,180
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Cash operating cost per tonne(2) USD
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46.66
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48.80
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44.36
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41.04
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Cash operating cost per silver
payable ounce net of base metal credits(2) USD
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(0.08)
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5.39
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(3.51)
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3.89
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Ounces
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Silver payable (ounces)
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322,776
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167,780
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644,489
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363,219
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Silver equivalent produced(2) (ounces)
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745,826
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403,025
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1,548,174
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863,492
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Parviz Farsangi, President
and CEO, reports: "We are very pleased to report another solid quarter of
production and financial performance from Scorpio Mining's Nuestra
Se�ora operations. A robust operating cash flow
allowed the Corporation to eliminate its debt during the quarter, placing us in
an ideal position to advance our stated growth initiatives, including process
expansion and development of our existing assets."
Highlights for the Second Quarter Ended June 30, 2011
Second Quarter
- Mine operating earnings for Q2
2011 were $10,297,681 (Q2 2010: $920,266).
- Net earnings were $3,259,339 or
$0.02 per share (basic) for Q2 2011 compared to a net loss of $(1,175,928)
or $(0.01) per share (basic) for Q2 2010.
- Adjusted EBITDA(1)
for Q2 2011 was $11,644,000 (Q2 2010: $2,005,437).
- Cash flows from operating
activities in Q2 2011 were $11,953,854 (Q2 2010: $769,781).
- Underground ore production in
Q2 2011 was 135,970 tonnes (Q2 2010: 62,703);
representing an increase of 117% from Q2 2010.
- Mill throughput at the Nuestra Senora plant for Q2 2011 was 128,674 tonnes (Q2 2010: 69,138); representing an increase of
86% from Q2 2010.
- Processed head grades during Q2
2011 averaged 106 g/t silver, 2.31% zinc, 0.91% lead and 0.27% copper
compared to 114 g/t silver, 2.22% zinc, 0.96% lead and 0.36% copper during
Q2 2010. As of June 30, 2011, surface ore stockpiles amounted to 16,915 tonnes compared to 45,444 tonnes
as of June 30, 2010.
- In Q2 2011, contained metals
produced in concentrates consisted of 365,692 ounces of silver (Q2 2010:
187,496), 5,588,179 pounds of zinc (Q2 2010: 2,859,765), 438,529 pounds of
copper (Q2 2010: 374,904) and 1,871,789 pounds of lead (Q2 2010: 923,700);
reflecting increases from Q2 2010 of 95%, 95%, 17% and 103%, respectively.
- Recovered silver equivalent ounces(2) for Q2 2011 was 745,826 ounces (Q2 2010:
403,025); an increase of 85% compared to Q2 2010.
- Total cash (recovery)/cost per
silver payable ounce in Q2 2011 was US$(0.08) (Q2
2010: $5.39) based on silver payable ounces of 322,776 (Q2 2010: 167,680).
- Revenue from metal payable for
Q2 2011 totalled $19,972,125 (Q2 2010:
$8,038,897) and was distributed as follows: silver 59% (2010: 48%); zinc
23% (2010: 28%); lead 9% (2010: 10%); copper 9% (2010: 14%).
- As of June 30, 2011, the
Corporation had $16,801,384 in cash compared to $27,662,589 as of March
31, 2011. The Corporation used existing cash to repay the $20,000,000
outstanding convertible debenture at maturity on May 5, 2011.
- As of June 15, 2011, the
Corporation no longer maintains significant influence over the operations
of Scorpio Gold Corporation ("Scorpio Gold"). The Corporation
has elected to record its investment in Scorpio Gold as an
available-for-sale financial instrument measured at fair value with
changes in fair value being recognized in other comprehensive income.
Included in the statements of operations for the three-month period ended
June 30, 2011 is a loss on adjustment to fair value of Scorpio Gold upon
initial recognition as available-for-sale instrument of $738,897. Included
in other comprehensive income for the three-month period ended June 30,
2011 is an unrealized loss on these shares of $395,231. As of June 30,
2011, Scorpio Mining still holds approximately 19.8 million shares in
Scorpio Gold representing 19.4% of Scorpio Gold's issued and outstanding
shares.
While comparisons to the second quarter of 2010 show large production
increases, it should be noted that Q2 2010 suffered from a significant
throughput reduction due to a ball mill failure.
Six Months
- Mine operating earnings were
$22,844,323 for the six-month period ended June 30, 2011 compared to
$2,279,549 for the same period of 2010.
- Net earnings were $9,816,780 or
$0.05 per share (basic) for the six-month period ended June 30, 2011
compared to $17,468,001 or $0.12 per share (basic) for the same period of
2010. The six-month 2010 results include a $20,162,832 gain on dilution
and deconsolidation of Scorpio Gold Corporation.
- Adjusted
EBITDA(1) was $23,554,955
(2010: $3,179,773).
- Cash flows from operating
activities for the six-month period ended June 30, 2011 were $22,789,718
(Q2 2010: $2,557,617).
- Mill throughput at the Nuestra Senora plant was 250,736 tonnes
(2010: 161,706).
- Processed head grades for the
six-month period ended June 30, 2011 averaged 111 g/t silver, 2.39% zinc,
0.94% lead and 0.34% copper compared to 99 g/t silver, 2.14% zinc, 1.08%
lead and 0.30% copper for the same period in 2010.
- In the six-month period ended
June 30, 2011, contained metals produced in concentrates consisted of
734,558 ounces of silver (2010: 383,161), 11,444,526 pounds of zinc (2010:
6,338,765), 1,169,607 pounds of copper (2010: 654,904) and 3,706,483
pounds of lead (2010: 2,726,700); reflecting increases from the same
period in 2010 of 92%, 81%, 79% and 36%, respectively.
- Recovered silver equivalent ounces(2) was 1,548,174 ounces (2010: 863,492),
representing an increase of 79% from 2010.
- Total cash (recovery)/cost(2) per silver payable ounce for the six-months
ended June 30, 2011 was US$(3.51) (2010: $3.89) based on silver payable
ounces of 644,489 (2010: 363,219).
- Revenue from metal payable for
the six-months ended June 30, 2011 totalled $40,784,273
(Q2 2010: $15,987,640) and was distributed as follows: silver 56% (2010:
43%); zinc 23% (2010: 30%); lead 9% (2010: 16%); copper 12% (2010: 11%).
(1) This is a non-IFRS performance measure; please see Non-IFRS
Performance Measures section in the Corporation's Management Discussion and
Analysis.
(2) Silver equivalent ounces in 2011 were established using
budgeted prices as follows: lead US$1.02 per lb; zinc
US$1.01 per lb; copper US$3.58 per lb and silver US$24 per oz.
Outlook
As of October 31, 2010, the existing reserves at the Nuestra
Se�ora mine provide the equivalent of six years of
production at the current processing capacity of the Nuestra
Se�ora plant. In the Cosal�
district, the Corporation has NI 43-101 compliant mineral resources at the San
Rafael and El Caj�n projects, as well as having
several advanced exploration projects. The Corporation is aggressively
advancing its exploration activities to further increase mineral resources and
prove additional reserves.
The Nuestra Se�ora processing
plant has an existing capacity of approximately 1,500 tonnes
per day ("TPD"), but is expandable up to approximately 4,000 TPD. The
Corporation has commenced engineering studies to quantify the investment
required for varying expansion scenarios. Other growth alternatives being
evaluated include the development of a second processing facility in the Cosal� district. Such expansion would allow for the
diversification of process circuits and reduce the distances between multiple
ore sources and processing facilities.
The Corporation will advance feasibility studies for the expansion of
processing capacity and make development decisions during 2011.
The Corporation continues to seek new projects that would increase its asset
base as well as enhance value for its shareholders.
Scorpio Mining's President and CEO, Parviz Farsangi, MEng, MBA, PhD, PEng, is a Qualified Person for the Corporation's Mexico
projects and has reviewed the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
Parviz Farsangi
President & CEO
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Scorpio Mining Corporation
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PRODUCER |
CODE : SPM.TO |
ISIN : CA80917V1058 |
CUSIP : 80917V |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Scorpio Mining is a silver and zinc development stage company based in Canada. Scorpio Mining produces silver, zinc, copper, gold and lead in Mexico, and holds various exploration projects in Mexico. Its main asset in production is NUESTRA SENORA in Mexico and its main exploration properties are SAN RAFAEL - MAIN & UPPER ZONE, SAN RAFAEL - 120 ZONE, EL CAJON DEPOSIT, LA VERDE SINALOA, COSALA DISTRICT and LA REVANCHA in Mexico. Scorpio Mining is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 27.8 millions as of today (US$ 20.0 millions, € 17.9 millions). Its stock quote reached its highest recent level on April 16, 2004 at CA$ 4.00, and its lowest recent point on February 05, 2016 at CA$ 0.06. Scorpio Mining has 347 230 016 shares outstanding. |
Annual reports of Scorpio Mining Corporation |
Financings of Scorpio Mining Corporation |
Option Grants of Scorpio Mining Corporation |
Nominations of Scorpio Mining Corporation |
Financials of Scorpio Mining Corporation |
Project news of Scorpio Mining Corporation |
4/30/2013 | Announces Granting of Environmental Permitfor El Caj=F3n an... |
4/4/2013 | Announces 2013 Exploration Program |
1/18/2013 | Reports Q4 Operating Results and 2012 Production for Nuestra... |
10/9/2012 | Deepens Hole EC-109 at New El Caj=F3n La Emma Zone and Inter... |
10/1/2012 | Announces Increased Mineral Resources and Contained Metals a... |
9/24/2012 | Announces Increase in Resource Estimate for El Caj=F3n |
1/30/2012 | (Nuestra Senora)Advances Expansion Planning to Increase Production Capacity ... |
1/27/2012 | Reports Record 2011 Production Results and2012 Guidance for ... |
6/27/2011 | (Nuestra Senora)to Advance Feasibility Study of an Additional Plant and Plan... |
3/17/2011 | (Cosala District)Acquires Additional Mineral Concessions inCosal=E1 District ... |
3/13/2011 | (Nuestra Senora)Reports Nuestra Senora Mineral Reserve of 2.764 Mt @287 AgEq... |
5/6/2010 | (Nuestra Senora)Drilling Reports 42.4 metres grading 198.03 g/t Silver, 1.37... |
11/5/2009 | (San Rafael - Main & Upper Zone)Reports Drill Highlights of Platte River Gold=E2??s La Verde... |
2/26/2009 | (Nuestra Senora)Reports on Drilling of the Main Zone from the 9th Level |
11/6/2008 | Drilling of the North West Main Zone from the 10th Level Co... |
11/4/2008 | (Nuestra Senora)Provides October Operations Update on Nuestra Senora Mine, M... |
9/6/2008 | (Nuestra Senora)?s Drilling of the North West Main Zone Intersects 13,671 g/... |
9/3/2008 | (Nuestra Senora)Provides Operations Update on Nuestra Senora Project, Mexico |
7/3/2008 | (Nuestra Senora)Drilling on 9th Level of the Main Zone Reports 5.80 metres g... |
6/16/2008 | (Nuestra Senora)Mexican Subsidiary Enters Into Agency Agreement for Marketin... |
5/13/2008 | (Nuestra Senora)Receives New Resource Estimate |
5/5/2008 | (Nuestra Senora)Drilling of the Main Zone from the 8th Level of the Nuestra ... |
4/24/2008 | (Nuestra Senora) Commences Production Mining at the Nuestra Senora Project, ... |
4/11/2008 | (Nuestra Senora)Discovers Another New Zone Reporting 11.50 metres grading 16... |
3/31/2008 | (Nuestra Senora)Receives Mill Facility Construction Completion Certificate A... |
3/18/2008 | (Nuestra Senora)Santa Teresa Extension Continues to Produce High-Grade Resul... |
3/12/2008 | (Nuestra Senora)Nuestra Senora Main Zone Increases In Size With Underground ... |
2/28/2008 | (Nuestra Senora)Santa Teresa Deposit Continues to Deliver with Underground D... |
2/26/2008 | (Nuestra Senora) Reports on Mineralized Stockpile for Initial Mill Throughpu... |
2/14/2008 | (Nuestra Senora) Provides Nuestra Senora Project Update, Sinaloa State, Mexi... |
1/16/2008 | (Nuestra Senora)Underground Drilling of Santa Teresa Deposit Reports 32.8 me... |
11/2/2007 | (Nuestra Senora)Deep Drilling of Nuestra Senora Deposit From 11th level Hits... |
10/2/2007 | Reports High-Grade Intercept of 1,158 g/t Ag, 29.95% Zn, 4.2... |
9/25/2007 | (Nuestra Senora)Scorpio's Underground Drilling of Sept 9 Zone Hits 1,483 g/t... |
9/19/2007 | (Nuestra Senora)Underground Drilling of Nuestra Señora Deposit Hits 21 metr... |
8/30/2007 | (Nuestra Senora)Mexico Team Fully Staffed and Ready for Production |
8/20/2007 | (Nuestra Senora)Scorpio's Underground Drilling from the 9th Level of Nuestra... |
8/13/2007 | (Nuestra Senora)Scorpio's Underground Drilling of Nuestra Senora Deposit Hi... |
8/8/2007 | (Nuestra Senora) Provides Nuestra Senora Project Update, Sinaloa State, Mexi... |
7/30/2007 | (Nuestra Senora)First Ever Surface Drilling of Santo Domingo Satellite Depos... |
7/10/2007 | (Nuestra Senora)8 Level Underground Drilling of Nuestra Señora Deposit Repor... |
6/14/2007 | AMENDED: Scorpio Receives Positive Results from the Pre-Feas... |
6/13/2007 | (Nuestra Senora)Receives Positive Results from the Pre-Feasibility Study on ... |
6/8/2007 | (Nuestra Senora)2007 Technical report |
4/23/2007 | (Nuestra Senora)Drilling of Nuestra Señora Main Zone Reports 4.4 metres grad... |
3/26/2007 | (Nuestra Senora)Drilling of Nuestra Senora Zone Hits 11 Mineralized Intercep... |
3/19/2007 | (Nuestra Senora)Drilling of Nuestra Senora Zone Hits 8 Mineralized Intercept... |
2/21/2007 | (Nuestra Senora)Receives Metallurgical Test Work and Moves Forward |
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Corporate news of Scorpio Mining Corporation |
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