| | Published : May 19th, 2011 | Reports Record Silver Production in Q1 2011 and Increases Mine Operating Earnings by 123% from Q4 20 |
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News - Thursday, May 19, 2011 Scorpio Mining Reports Record Silver Production in Q1 2011 and Increases Mine Operating Earnings by 123% from Q4 2010
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Toronto, May 19, 2011 - Scorpio Mining Corporation (TSX: SPM) ("Scorpio" or the "Corporation") is pleased to announce its unaudited financial and operating results for the first quarter of 2011 ("Q1"). This press release should be read in conjunction with the Corporation's Management Discussion & Analysis, Financial Statements and Notes to Financial Statements for the three month period ended March 31, 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:
|
Q1 2011 |
Q1 2010 |
Revenue ('000 of $CAD) |
$18,265 |
$6,022 |
Mine operating earnings ('000 of $CAD) |
$12,547 |
$1,359 |
Gain on dilution and deconsolidation of Scorpio Gold Corporation ('000 of $CAD) |
$1,051 |
$19,796 |
Net earnings ('000 of $CAD) |
$6,557 |
$18,644 |
Earnings per share (Basic) |
$0.03 |
$0.17 |
Earnings per share (Diluted) |
$0.03 |
$0.16 |
Adjusted EBITDA(1) ('000 of $CAD) |
$11,554 |
$1,982 |
Cash operating cost per tonne(1) |
US$42.93 |
US$36.80 |
Cash operating cost per silver equivalent ounce(2) |
US$7.10 |
US$8.12 |
Silver equivalent ounces produced(2) |
737,833 |
419,681 | Parviz Farsangi, President & CEO comments, "We are very pleased to report record production of all metals in the first quarter of 2011 and a further substantial increase in mine operating earnings from our turnaround quarter, Q4 2010. Combined with a strong operational cash flow and relatively low operating cost, Scorpio Mining is well positioned among the best performing silver producers with significant base metal by-product credits in Mexico. We are committed to continue building on our current assets with an aggressive exploration program in 2011 and planned plant expansion."
Highlights for the First Quarter Ended March 31, 2011 and Subsequent Events:
- The Corporation achieved record mine operating earnings of $12.5 million in Q1 2011, an increase of 823% over mine operating earnings in Q1 2010 and 123% over mine operating earnings in Q4 2010.
- Net earnings were $6.6 million or $0.03 per share (basic) for Q1 2011 compared to $18.6 million or $0.17 per share (basic) for Q1 2010. The Q1 2010 net earnings included a $19.8 million gain on dilution and deconsolidation of Scorpio Gold Corporation ("Scorpio Gold"). Basic earnings per share of $0.09 in Q4 2010 was due to the inclusion of $12.4 million of non-cash corporate tax recoveries.
- Adjusted EBITDA(1) increased 483% to $11.6 million in Q1 2011 compared to $2.0 million for Q1 2010.
- Cash flow from operating activities increased by 506% to $10.8 million in Q1 2011, primarily as a result of higher production, higher grades and better metal prices compared to Q1 2010.
- Underground ore production in Q1 2011 increased 14% over Q1 2010 to 113,826 tonnes.
- The Nuestra Se�ora plant processed 122,062 tonnes in Q1 2011, a 32% increase over Q1 2010.
- Processed head grades during Q1 2011 averaged 115 g/t silver, 2.49% zinc, 0.98% lead and 0.42% copper compared to 88 g/t silver, 2.07% zinc, 1.17% lead and 0.25% copper during Q1 2010.
- In Q1 2011, contained metals produced in concentrates amounted to 368,866 ounces of silver, 5.856 million pounds of zinc, 731,000 pounds of copper and 1.835 million pounds of lead; reflecting increases from Q1 2010 of 89%, 68%, 161% and 2%, respectively.
- Total cash operating cost per silver equivalent ounce(2) in Q1 2011 was US$7.10 (Q1 2010: US$8.12) based on silver equivalent ounces of 737,833 (Q1 2010:419,681).
- Revenue from metal payable for the quarter totalled $20.8 million (Q1 2010: $7.9 million) and was distributed as follows: silver 53% (2010: 38%); zinc 23% (2010: 33%); lead 9% (2010: 21%); copper 15% (2010: 8%).
- Following the construction of a new power line and the installation of a sub-station, the Nuestra Se�ora mine was energized from the national electrical grid on January 19, 2011. This has reduced the mine's dependence on diesel-generated power.
- On March 9, 2011, the Corporation announced an updated mineral resource and reserve estimate at its Nuestra Se�ora mine. The proven and probable reserves increased to 2.764 million tonnes, providing an estimated mine life of six years at current production levels.
- During Q1 2011, Scorpio Gold issued 21.9 million shares, none of which were subscribed for by the Corporation. This resulted in the Corporation's investment in Scorpio Gold decreasing from approximately 35% to approximately 27% and creating a gain on dilution recorded in the statement of operations of $1.1 million. On March 24, 2011, the Corporation sold 8,139,568 shares of Scorpio Gold for proceeds of $5.2 million. Following this transaction, Scorpio Mining still holds approximately 19.8 million shares in Scorpio Gold, representing 19.6% of Scorpio Gold issued and outstanding shares.
- As of March 31, 2011, the Corporation had $27.7 million in cash, compared to $12.6 million as of December 31, 2010. The Corporation used existing cash to repay the $20 million outstanding convertible debentures at maturity on May 5, 2011.
(1)This is a non-IFRS performance measure; please see Non-IFRS Performance Measures section in the Corporation's Management Discussion & Analysis. (2)The non-IFRS measure of cash operating cost per silver equivalent ounce is used by the Corporation to manage and evaluate operating performance and is widely reported in the silver mining industry as a benchmark for performance, but does not have a standardized meaning. Silver equivalent above is calculated on a produced metal basis using weighted average Q1 2011 prices of silver US$31.31/oz, zinc US$1.08/lb, lead US$1.14/lb and copper US$4.29/lb.
Outlook
The existing mineral 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.
Scorpio Mining's Mexico Country Manager, John A. Sadek, B.Eng. (Mining), MAusIMM, 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
For further information contact: Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America) Email: rkaiser@scorpiomining.com
This news release includes certain statements that may be deemed "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the Corporation's operations, plans, estimates, expectations, forecasts, objectives, predictions and projections of the future. Generally, these forward-looking statements can be identified by the forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "projects", "intends", "anticipates", or "does not anticipate", or "believes", or "variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might", or "will" be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Scorpio Mining Corporation to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and development and operation of the Corporation's projects in Mexico, risks related to international operations, construction delays and cost overruns, the actual results of current exploration, development and construction activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of silver, zinc, copper, lead and gold, risks relating to completing acquisition transactions as well as those factors discussed in the sections relating to risk factors of our business filed in Scorpio Mining Corporation's required securities filings on SEDAR, including its Annual Information Form dated March 29, 2011. Although Scorpio Mining Corporation has attempted to identify important factors that could cause results to differ materially from those contained in forward-looking statements, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended.
There can be no assurance that any forward-looking statements will prove accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Scorpio Mining Corporation does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
Copyright � 2011 SCORPIO MINING CORPORATION (TSX: SPM) All rights reserved. For more information visit our website at http://scorpio.pubco.net/ or send email to scorpio@scorpiomining.com .. To Unsubscribe from this email list, please click on the link below: http://www.scorpiomining.coms/Contact.asp?ReportID=437771
Data and Statistics for these countries : Mexico | All Gold and Silver Prices for these countries : Mexico | All
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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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