| | Published : August 15th, 2012 | Reports Q2=2C 2012 Financial Results |
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SilverCrest Reports Q2, 2012 Financial Results
SilverCrest Mines Inc. (the �Company�) is pleased to
announce its financial results for the second quarter ended June 30, 2012 (all
figures in U.S. dollars
unless otherwise specified).
HIGHLIGHTS OF Q2,
2012 (Compared to Q2, 2011):
� Cash flow from operations (1)
increased 148% to $7.2
million.
� Cash operating cost per
silver equivalent ounce sold (2) decreased 16% to $6.94.
� Revenues reported - IFRS (3)
rose 87% to $16.0 million on sales of 124,739 silver ounces and 8,679
gold ounces.
� Comprehensive earnings
amounted to $9.2 million ($0.10 ps), compared to $0.8 million ($0.01 ps).
� Working capital increased 64%
to $29.6 million, up from $18.0 million.
� Cash and cash equivalents
were $34.9 million (at June 30, 2012).
J. Scott Drever,
President stated; �We had a strong second quarter of 2012. We
sold 637,050 silver equivalent ounces (2), for gross revenues of
$16.0 million, with an average cash operating cost of $6.94 per silver
equivalent ounce. The Santa Elena low cost, open pit heap leach mine operations
continue to perform well and generated cash flows of $7.2 million which will
contribute to the financing of the Santa Elena Expansion plan and the
development of our major polymetallic La Joya Project. Q2, 2012, production was
consistent with our budget and cash operating costs were below our budget of
$8.20 per silver equivalent ounce. As a result, we are confident in meeting or
exceeding our 2012 production guidance of 435,000 silver ounces and 33,000 gold
ounces."
Financial and Operating
Highlights:
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Q2
2012
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Q2
2011
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Cash
flow from operations (1)
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$7,177,713
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$2,898,739
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Cash
flow from operations (1) per share
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$0.08
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$0.04
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Cash
operating cost per silver equivalent ounce sold (2)
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$6.94
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$8.27
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Revenues (3)
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Silver revenue
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$3,588,568
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$2,737,801
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Gold revenue � cash basis
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$9,012,344
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$3,487,925
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$12,600,912
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$6,225,726
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Gold revenue � non cash
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- adjustment to market spot price
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$2,729,657
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$2,007,810
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- amortization of deferred revenue
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$651,462
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$322,725
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Revenues reported
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$15,982,031
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$8,556,261
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Cost of sales
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($4,420,287)
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($2,109,801)
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Depletion, depreciation and accretion
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($1,496,297)
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($741,373)
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Mine operating earnings
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$10,065,447
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$5,705,087
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Gain
(loss) on derivative instruments
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$2,360,560
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($3,506,088)
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Other net expenses
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($1,657,126)
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($1,466,301)
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Tax expense
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($1,243,000)
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-
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Exchange
(loss) gain on translation to US Dollars
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($360,236)
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$57,731
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Comprehensive earnings
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$9,165,645
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$790,429
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Weighted
average number of common shares outstanding
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89,736,379
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75,821,542
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Comprehensive
earnings per share � basic
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$0.10
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$0.01
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Silver ounces sold
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124,739
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70,326
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Gold ounces sold
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8,679
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4,300
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Silver equivalent ounces sold (2)
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637,050
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255,182
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Silver ounces produced
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139,850
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74,678
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Gold ounces produced
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8,584
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5,476
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Silver equivalent ounces produced (2)
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646,553
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310,090
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Ag : Au Ratio (2)
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59:1
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43:1
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(1) Cash flow from operations before changes in working capital items.
(2) This is a Non-IFRS performance measure. Silver equivalent
ounces consist of the number of ounces of silver production plus the number of
ounces of gold production multiplied by the ratio of the spot gold price to the
spot silver price at the quarter end dates.
There are variances in produced and sold ounces due to carry forward
inventories from previous quarter.
(3) Per �IFRS 18 � Revenue�, revenue should be recorded at its
fair value, which for gold and silver is the market spot price on the date
revenue is recognized.
Comparison of Q2, 2012,
to Q2, 2011
Comprehensive earnings were $9.2 million ($0.10 per share) compared with $0.8
million ($0.01 per share) for the same period in 2011. The significant increase
in comprehensive earnings was largely driven by higher silver and gold sales
volumes and a positive marked-to-market derivative impact, partially offset by
lower realized silver and gold prices, increases in income and deferred tax
expense and a larger exchange loss on translation to US Dollars.
In the second quarter 2012, silver and gold revenues totaled $16.0 million
(2011 � $8.6 million), up 87% compared to the same quarter in 2011. Silver and
gold revenues include $12.6 million (2011 - $6.2 million) earned on a cash
basis and $2.7 million (2011 � $2.0 million) of non-cash revenues due to
adjustments to gold spot market prices related to hedge facility deliveries and
$0.7 million (2011 - $0.3 million) related to amortization of deferred revenues
associated with the Sandstorm Agreement.
Silver sales were 124,739 ounces (2011 � 70,326) at an average realized price
of $29 (2011 - $39). All silver production is unencumbered by hedging
arrangements and sold at spot prices.
Gold sales were 8,679 ounces (2011 � 4,300). The Company sold 2,734 gold ounces
(2011 � Nil) at market spot realized price of $1,649 (2011 - $Nil) per ounce.
Gold delivered into the Hedging Facility was 4,210 ounces (2011 � 3,440) at an
average realized price of $925 (2011 � $926). The non cash amount reported of
$2.7 million (2011 - $2.0 million) represents the difference between the market
spot price at the date of delivery for gold (at an average realized price of
$1,574 (2011 - $1,510) per ounce) and the hedge price of $926.50 per ounce
settled. This non-cash revenue reported is required by IFRS accounting
policies. Gold delivered to Sandstorm was 1,735 ounces (2011 � 860) at an
average realized gold price of $725 (2011 - $725) for which the Company
recorded revenues of $1.3 million (2011 - $0.6 million) consisting of $0.6
million (2011 - $0.3 million) in cash received and $0.7 million (2011 - $0.3
million) from amortization of deferred revenue.
Cost of sales amounted to $4.4 million (2011 - $2.1 million). Cash cost per silver
equivalent ounce sold amounted to $6.94 (2011 - $8.27). The decrease in cash
cost per silver equivalent ounce over the same period in prior year reflects a
significant increase in production volumes, crusher throughput and gold to
silver ratio.
Under IFRS the Company�s derivative instruments are fair valued at the
financial position date, with the resulting gain or losses included in the
operating results for the period. The derivative gain (loss) relates to the
incremental fair value of the MBL Hedging Facility, which represents the
difference between the market spot price of gold at the quarter end and strike
price of $926.50 per ounce. Gain (loss) on derivative instruments during
the period amounted to $2.4 million (2011 � ($3.5 million)) resulting from a
change at the quarter end to $1,606 (2011 - $1,518) in the gold forward price
from $1,671 (2011 - $1,456) in the previous quarter.
Comparison of Q2, 2012,
to Q1, 2012
Comprehensive earnings were up 44% to $9.2 million ($0.10 per share), from $6.3
million ($0.07 per share). The increase in comprehensive earnings was largely
driven by a positive marked-to-market derivative impact, partially offset by
slightly lower sales volumes, lower realized silver and gold prices, lower
income tax expense and exchange loss on translation to US Dollars.
Operating cash flows were down 41% to $7.2 million ($0.08 per share), from
$12.2 million ($0.14 per share) primarily due to lower realized silver and gold
prices and more gold deliveries into the Hedging Facility. The realized price
of silver sales and gold spot sales were down 12% and 4% respectively.
SilverCrest accelerated gold deliveries into the Hedging Facility, 4,210 ounces
were delivered into the Hedging Facility during Q2 compared with 1,359 ounces
in the previous quarter.
The financial information in this news release should be read in conjunction
with the Company's unaudited condensed consolidated interim financial
statements for the three and six months ended June 30, 2012 and associated
MD&A which are available on the Company's website at www.silvercrestmines.com and under the Company's profile on
SEDAR at www.sedar.com .
NON-IFRS PERFORMANCE
MEASURES
The discussion of financial results in this press release includes reference to
cash operating cost per silver equivalent ounce sold, which is a non-IFRS
performance measure. The Company uses this measure to provide additional
information regarding the Company's financial results and performance. Please
refer to the Company's MD&A for the three and six months ended June 30,
2012, for a reconciliation of this measure to reported IFRS results.
OUTLOOK FOR REMAINDER
OF 2012
SilverCrest�s immediate focus is to continue to efficiently operate its
flagship Santa Elena low cost open pit silver and gold mine, realize the full
potential and value of the Santa Elena mine by executing the three year
expansion plan to double metals production, and to rapidly advance the
delineation of our major polymetallic deposit at the La Joya Property. Specific
targets for H2, 2012 are as follows:
Santa Elena Open Pit
Production
� Meet or exceed estimated 2012
production, 33,000 gold ounces and 435,000 silver ounces;
� Maintain cash operating cost
at or below plan of $8.20 per ounce silver equivalent sold (55:1 Ag:Au);
� Maintain operating cash flow
in excess of $2 million per month, based on current silver and gold prices
Santa Elena Expansion
� Complete underground decline
development of main ramp, approximately 550 metres complete with, 950 metres
remaining;
� Secure long lead time items
for mill and initiate tank fabrication;
� Drill Santa Elena along
strike and depth to expand underground resources;
� Complete Pre-Feasibility
Study on Expansion Plan (underground and mill);
� Complete Pre-Feasibility
Study on Cruz de Mayo satellite deposit as part of the Expansion Plan;
� Continue site and regional
exploration for further discoveries;
La Joya Project
� Complete Phase II 80 hole
drilling program (15 core and 20 reverse circulation drill holes remaining);
� Explore the Coloradito,
Esperanza and Santo Nino targets which are adjacent to the MMT;
� Complete further
metallurgical test work to initially determine amenability and potential
polymetallic recoveries for Ag, Cu, Au, Pb, Zn, W, Sn, and Mo;
� Complete revised resource
estimation using Phase II results by Q4 2012.
N. Eric Fier, CPG, P.Eng. and Chief Operating Officer
for SilverCrest Mines Inc. and Qualified Person for this news release has
reviewed and approved its contents.
SilverCrest Mines Inc.
(TSX-V: SVL; OTCQX: STVZF)
operates in Mexico and is a low cost precious metals producer
with its headquarters based in Vancouver, BC. SilverCrest�s flagship property
is the 100%-owned Santa Elena Mine, which is located 150 km northeast of
Hermosillo, near Banamichi in the State of Sonora, M�xico. The mine is a
high-grade, epithermal gold and silver producer, with an estimated life of mine
cash cost of US$8 per ounce of silver equivalent (55:1 Ag:Au).
SilverCrest anticipates that the 2,500 tonnes per day facility should recover
approximately 4,805,000 ounces of silver and 179,000 ounces of gold over the
6.5 year life of the open pit phase of the Santa Elena Mine. A three year
expansion plan is underway to double metals production at the Santa Elena Mine
and exploration programs are rapidly advancing the definition of a large
polymetallic deposit at the La Joya property in Durango, Mexico.
FORWARD-LOOKING
STATEMENTS
This news release contains
�forward-looking statements� within the meaning of Canadian securities
legislation and the United States Securities Litigation Reform Act of 1995.
Such forward-looking statements concern the Company�s anticipated results and
developments in the Company�s operations in future periods, planned exploration
and development of its properties, plans related to its business and other
matters that may occur in the future. These statements relate to analyses
and other information that are based on expectations of future performance,
including silver and gold production and planned work programs. Statements
concerning reserves and mineral resource estimates may also constitute
forward-looking statements to the extent that they involve estimates of the
mineralization that will be encountered if the property is developed and, in
the case of mineral reserves, such statements reflect the conclusion based on
certain assumptions that the mineral deposit can be economically exploited.
Forward-looking statements
are subject to a variety of known and unknown risks, uncertainties and other
factors which could cause actual events or results to differ from those
expressed or implied by the forward-looking statements, including, without limitation:
risks related to precious and base metal price fluctuations; risks related to
fluctuations in the currency markets (particularly the Mexican peso, Canadian
dollar and United States dollar); risks related to the inherently dangerous
activity of mining, including conditions or events beyond our control, and
operating or technical difficulties in mineral exploration, development and
mining activities; uncertainty in the Company�s ability to raise financing and
fund the exploration and development of its mineral properties; uncertainty as
to actual capital costs, operating costs, production and economic returns, and
uncertainty that development activities will result in profitable mining
operations; risks related to reserves and mineral resource figures being
estimates based on interpretations and assumptions which may result in less
mineral production under actual conditions than is currently estimated and to
diminishing quantities or grades of mineral reserves as properties are mined;
risks related to governmental regulations and obtaining necessary licenses and
permits; risks related to the business being subject to environmental laws and
regulations which may increase costs of doing business and restrict our
operations; risks related to mineral properties being subject to prior
unregistered agreements, transfers, or claims and other defects in title; risks
relating to inadequate insurance or inability to obtain insurance; risks
related to potential litigation; risks related to the global economy; risks
related to the Company�s status as a foreign private issuer in the United
States; risks related to all of the Company�s properties being located in
Mexico and El Salvador, including political, economic, social and regulatory
instability; and risks related to officers and directors becoming associated
with other natural resource companies which may give rise to conflicts of
interests. Should
one or more of these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those
described in the forward-looking statements. The Company�s
forward-looking statements are based on beliefs, expectations and opinions of
management on the date the statements are made. For the reasons set forth
above, investors should not place undue reliance on forward-looking statements.
The information provided in
this news release is not intended to be a comprehensive review of all matters
and developments concerning the Company. It should be read in conjunction with
all other disclosure documents of the Company. The information contained herein
is not a substitute for detailed investigation or analysis. No securities
commission or regulatory authority has reviewed the accuracy or adequacy of the
information presented.
�J. Scott Drever�
J. Scott Drever,
President
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SilverCrest Mines
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PRODUCER |
CODE : SVL.V |
ISIN : CA8283651062 |
CUSIP : 828365 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
SilverCrest Mines is a silver and gold producing company based in Canada. SilverCrest Mines develops silver, gold and zinc in El Salvador, and holds various exploration projects in Mexico. Its main asset in production is SANTA ELENA in Mexico, its main asset in development is EL ZAPOTE in El Salvador and its main exploration properties are SILVER ANGEL, CRUZ DE MAYO and LA JOYA DURANGO in Mexico. SilverCrest Mines is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 287.2 millions as of today (US$ 259.0 millions, € 188.5 millions). Its stock quote reached its lowest recent point on December 17, 2002 at CA$ 0.08, and its highest recent level on March 02, 2012 at CA$ 3.17. SilverCrest Mines has 107 952 000 shares outstanding. |
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1/23/2012 | (Cruz De Mayo)s Corporate Resources Silver Equivalent Inferred Resources ... |
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9/22/2011 | (Santa Elena)Begins Drilling at Cruz de Mayo, Reports on Santa Elena Nort... |
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8/10/2011 | (La Joya Durango)Video Tour of La Joya Mine Project, Durango Mexico |
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Corporate news of SilverCrest Mines |
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