| | Published : November 04th, 2011 | Announces Third Quarter Financial Results |
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Scorpio Mining Announces Third 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 third quarter ("Q3") ended September 30,
2011. This press release should be read in conjunction with the Corporation's
Management Discussion & Analysis and Financial Statements for the nine month
period ended September 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.
Highlights for the Three and Nine Months Ended
September 30, 2011:
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Three
months ended Sep 30, 2011
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Three
months ended Sep 30, 2010
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Nine
months ended Sep 30, 2011
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Nine
months ended Sep 30, 2010
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Mine
operating earnings ($000s)
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$6,773
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$1,192
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$29,618
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$3,471
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Net
earnings (loss) ($000s)(1)
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$3,801
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$(1,810)
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$13,618
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$15,658
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Earnings (loss) per share (basic)
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$0.02
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$(0.01)
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$0.07
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$0.10
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Adjusted EBITDA(2) ($000s)
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$6,717
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$2,307
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$30,273
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$6,686
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Cash flows from operating activities ($000s)
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$9,951
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$2,328
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$32,740
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$4,888
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Underground
ore production (tonnes)
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126,725
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87,328
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358,824
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249,710
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Plant
throughput (tonnes)
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126,975
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106,636
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377,711
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268,342
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Head
grades:
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Silver grade (g/t)
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90
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96
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104
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94
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Zinc
grade (%)
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1.77
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1.91
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2.19
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2.05
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Lead
grade (%)
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0.77
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1.05
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0.89
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2.05
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Copper
grade (%)
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0.28
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0.28
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0.32
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0.29
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Surface
stockpile (tonnes)
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6,220
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32,034
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6,220
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32,034
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Contained metals:
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Silver (ounces)
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308,211
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252,450
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1,042,769
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635,611
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Zinc
(pounds)
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4,028,925
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3,628,163
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15,473,451
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9,966,765
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Lead
(pounds)
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1,410,286
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1,767,900
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5,116,769
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4,495,911
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Copper
(pounds)
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451,017
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385,082
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1,620,623
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1,039,986
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Revenue from metal payable ($000s)
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$15,762
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$10,548
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$56,547
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$26,535
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Distribution:
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Silver
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61%
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43%
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58%
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43%
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Zinc
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21%
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30%
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22%
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30%
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Lead
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9%
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15%
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9%
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15%
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Copper
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9%
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12%
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11%
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12%
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Recovered silver equivalent
ounces(3)
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604,975
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537,698
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2,153,520
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1,401,190
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Silver payable ounces
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264,809
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252,450
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909,298
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615,669
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Total cash cost (recovery) per silver payable ounce(2)
(US$)
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$6.22
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$3.03
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$(0.68)
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$3.54
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Results of Operations
- Mine operating earnings for Q3
2011 increased 468% to $6.8 million compared to $1.2 million for Q3 2010.
- Net earnings for Q3 2011
increased 310% to $3.8 million or $0.02 per share (basic) compared to a
net loss of ($1.8) million or $(0.01) per share (basic) for Q3 2010.
- Adjusted EBITDA(2)
for Q3 2011 increased 191% to $6.7 million compared to $2.3 million for Q3
2010.
- Cash flows from operating
activities in Q3 2011 increased by 335% to $10.0 million compared to $2.3
million in Q3 2010.
- Underground ore production and
plant throughput in Q3 2011 increased 45% and 19% respectively compared to
Q3 2010.
- Contained metals produced in
concentrates in Q3 2011 reflect an increase of 22%, 11% and 17% for
silver, zinc and copper respectively, and a decrease of 20% for lead
compared to Q3 2010.
- Recovered silver equivalent ounces(3) for Q3 2011 increased
13% to 604,975 ounces compared to 537,698 ounces in Q3 2010.
- As of September 30, 2011, the
Corporation had $30.2 million in cash compared to $16.8 million as of June
30, 2011.
- As of June 15, 2011 the
Corporation no longer maintained significant influence over the operations
of Scorpio Gold Corporation ("Scorpio Gold"). The Corporation
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 other
comprehensive income for the three-month period ended September 30, 2011
is an unrealized gain on these shares of $3.5 million. As of September 30,
2011, Scorpio Mining still holds approximately 15.5 million shares in
Scorpio Gold representing 13.7% of Scorpio Gold's issued and outstanding
shares.
(1) Includes a $19.8 million gain on
dilution and deconsolidation of Scorpio Gold Corporation for the nine-months
ended September 30, 2010.
(2) This is a non-IFRS performance measure; please see Non-IFRS
Performance Measures section in the Corporation's Management Discussion and
Analysis.
(3) Silver equivalent ounces in 2011 were established using budgeted
prices as follows: silver US$24 per oz.; zinc US$1.01 per lb.; lead US$1.02 per
lb.; and copper US$3.58 per lb.
During Q3 2011, the operation was able to maintain a high processing rate with
the introduction of profitable lower grade ore from contingent sources despite
problems with mobile mining equipment which disrupted production from
higher-grade mining areas.
Delivery was taken of a new jumbo drill, which was commissioned at the end of
the quarter and is accelerating the advance of development for production and
exploration purposes. The Corporation has made a further $4.5M purchase of new
mining equipment that will replace aging machines as delivery occurs in Q1 and
Q2 of 2012. As a contingency, the Corporation has engaged a contractor in the
key area of production drilling to ensure that adequate long hole
stoping tonnes are
available in the near term. This contractor is expected to mobilize to site in
early November 2011.
Review of Resources at Nuestra Se�ora
The Corporation has recognized an unexpected divergence between the Nuestra Se�ora mineral reserve
estimate set out in the independent technical report (the "Technical
Report") dated March 28, 2011 and entitled Mineral Reserve Update, Nuestra Se�ora, 43-101 Technical
Report prepared for Scorpio Mining Corporation by Genivar
Inc., and the actual mineralization that the Corporation has encountered in the
main production areas between Levels 8 and 12 at the Nuestra
Se�ora Mine. While the Corporation has encountered
lower than estimated lead and copper grades in these production areas,
development and definition drilling has resulted in a shortfall of tonnes in some of the mineralized zones in these areas,
compared to the reserve estimate in the Technical Report. In order to better
understand this discrepancy, the Corporation has initiated a comprehensive
review of the Nuestra Se�ora
mineral reserve and resource estimates set out in the Technical Report. As part
of this review, the Corporation has engaged an independent expert to review and
produce a new resource and reserve estimate that is compliant with NI 43-101,
and that takes into account, among other things, the Corporation's most recent
available results and data. The Corporation expects the new resource and
reserve estimate to be available by the end of the Q2 2012. Based on current
information from production at the Nuestra Se�ora Mine, the Corporation expects that the new estimate
will show a reduction of the Corporation's resources and reserves at Nuestra Se�ora, the amount of
which cannot be accurately quantified at this time.
Other Developments and Exploration
Development at Candelaria continued on three levels
with 8,500 tonnes of high-grade ore excavated in Q3
2011 grading 202 g/t silver, 2.89% zinc, 1.38% lead and 0.67% copper. In the
coming quarter, open stope mining will be tested at Candelaria to assess the impact of dilution that results
from that bulk mining method.
The Corporation is aggressively advancing its exploration activities to further
build its mineral resource base and prove additional reserves. In the Cosal� District, the Corporation has NI 43-101 compliant
mineral resources at the San Rafael and El Caj�n
deposits (see independent technical report prepared by Mine Development
Associates and filed on SEDAR December 4, 2009), and over 40 exploration
targets at various stages of advance. An 8,000 m delineation drilling program
is currently underway with the objective of adding to and upgrading mineral
resources at the San Rafael Deposit and recently operating La Verde Mine, to
support near-term production growth.
There are currently six diamond drilling rigs operating on multiple projects,
including step-out exploration drilling at the Nuestra
Se�ora, Candelaria and La
Verde deposits in the Cosal� District, and
exploration drilling at the La Revancha and Tepozan deposits in the Parral
District, Chihuahua. The potential for expanding known mineralization and
discovering new zones of high-grade mineralization is high, and continued
exploration success in these areas could potentially result in significant
increases to the mineral resource base and overall mine life.
Corporate Update
Scorpio is pleased to announce the appointment of Victoria Vargas to the
position of Vice President Investor Relations and Corporate Communications. In
this role, Ms. Vargas will be the primary liaison between Scorpio Mining and
its investors, analysts and the financial community globally.
Ms. Vargas has over 18 years of experience in the mining industry and brings a
wealth of experience in investor relations and stakeholder communications to
Scorpio Mining. She holds an honors B.Sc in Economics
with an MBA in Finance.
Prior to joining Scorpio Mining, she held senior roles with a variety of
publicly traded mining sector companies. These include serving as Vice
President of Investor Relations with Greystar
Resources Ltd., Romarco Minerals Inc. and VP Investor
Relations and Corporate Communications for Iberian Minerals Corp. Previously,
Victoria worked for almost 5 years at Alamos Gold Inc. and held a variety of
financial and corporate development positions at Kinross from 1994 until 1999.
"Victoria is a seasoned investor relations leader who has a deep
understanding of the investment community" said Scorpio Mining President
and Chief Executive Officer, Parviz Farsangi. "She has been involved in a number of
industry-leading transactions and has held senior communications roles with
industry advocacy associations and advisory boards with Peruvian, Mexican and
Canadian mining industry organizations that will help in the future growth of
Scorpio Mining. We are extremely pleased that Victoria has decided to join us."
About Us
Scorpio Mining Corporation is a silver producer operating in Mexico with
significant base metal by-product credits. The 100%-owned Nuestra
Senora Mine and plant located in the Cosal� district
of Sinaloa State, Mexico, has proven to be a low-cost operation with the
benefit of flexible mining methods and diversified metal production. It boasts
a fully mechanized underground operation and a processing facility built for
expansion to 4,000 tonnes per day. The plant produces
zinc, copper and lead concentrates; with a significant silver component in the
copper and lead concentrates. In addition, the company has over 40 exploration
targets mostly in the vicinity of its current operations. The Corporation also
holds a 100% interest in the prospective La Revancha
silver and Tepoz�n silver-gold projects in the Parral District of Chihuahua State, Mexico.The
Corporation's strategy focuses on exploring and developing its existing mineral
properties.
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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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