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Re: News Releases - Monday, October 27, 2008
Starcore Reports Year-End Financial Results
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Vancouver, B.C. -- Starcore International Mines Ltd. (the "Company")
has filed the results for the year ended July 31, 2008. Starcore had
revenues from metal sales of $7.0 million, earnings from mining
operations of $0.31 million, and reports a loss of $0.65 million for
the quarter ended July 31, 2008. Over the year ended July 31, 2008, the
Company reports revenues of $27.07 million, earnings from mining
operations of $3.31 million and a net loss of $2.57 million, which
includes a $1.28 million non-cash stock-based compensation charge on
option awards vested in the year.
The following table contains selected highlights from Starcore's
consolidated income statement and consolidated balance sheet for the
three month periods and the years ended July 31, 2008:
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For the three For the year
months ended ended
July 31, 2008 July 31, 2008
000's 000's (audited)
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2008 2007 2008 2007
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Total Revenue $ 6,999 $9,232 $ 27,066 $ 18,499
Earnings from mining operations $ 305 $3,121 $ 3,305 $ 6,175
Net (loss) $ (654) $ 352 $(2,567) $(2,218)
Net (loss) per share - basic $(0.02) $ 0.01 $ (0.04) $ (0.06)
Net (loss) per share - fully diluted $(0.02) $ 0.00 $ (0.04) $ (0.06)
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The revenues and earnings from mining operations includes a full year
of mining operations for the year ended July 31, 2008 compared to six
months of operations in 2007, from the date of acquisition of the mine
on February 1, 2007 to July 31, 2007. The relative decrease in revenue
and earnings for 2008 was as a result of higher ore grades in the prior
year and lower production costs as compared to 2008. Management efforts
to decrease administrative expenses as well as lower stock-based
compensation expense in 2008 and financing fee expenses acted to
mitigate some of the loss of earnings from mine operations.
The Company also had positive cash flow from operations of $3.6 million
for the year ended July 31, 2008 compared to $3.5 million for the year
ended July 31, 2007.
The following table is selected information of mine production
statistics for the San Martin mine for the six months ended July 31,
2008 and the first complete year of operations to January 31, 2008.
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Actual Actual
results for results for
6 months Year
ended ended
April 30, January 31,
(Unaudited) Unit of measure 2008 2008
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Production of Gold in Dore thousand ounces 9.1 24.1
Production of Silver in Dore thousand ounces 72.1 213.1
Equivalent ounces of Gold(i) thousand ounces 10.45 28.2
Milled thousands of tonnes 132.4 258.1
Operating Cost per
Equivalent Ounce US dollars/tonne 460 301
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(i) assuming a 50:1 silver to gold equivalency ratio
Overall equivalent gold production was lower at 9,100 ounces, compared
to the prior years' six month average of 14,100 ounces due to lower ore
grades. In the current quarter, however, ore grades have improved to
2.73 g/t gold and 24 g/t silver over the prior quarter amounts of 2.17
g/t and 24 g/t, respectively, as the Company was able to fully exploit
ore bodies 29 to 31, which contain higher ore grades.
The Company expects to maintain or increase the current ore grades over
the next quarter and continues exploration efforts to increase reserves
of resources and to find higher grade deposits. Management also
continues efforts to cut mine and administration costs, where possible,
to improve earnings and cash flow.
Full financial statements are available on SEDAR at www.sedar.com and
on Starcore's website at www.starcore.com.
ON BEHALF OF STARCORE INTERNATIONAL
MINES LTD.
Signed "Gary Arca"
Gary Arca, Chief Financial Officer and Director
FOR FURTHER INFORMATION PLEASE CONTACT INVESTOR RELATIONS
Telephone: 1-604-602-4935
Toll Free: 1-866-602-4935 / Facsimile: 1-604-602-4936
The Toronto Stock Exchange has not reviewed nor does it accept
responsibility for the adequacy or accuracy of this press release.
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Copyright (c) 2008 STARCORE INTERNATIONAL MINES LTD. (SAM.H) All
rights reserved. For more information visit our website at
http://www.starcore.com/ or send mailto:info@starcore.com
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