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U.S. Silver Reports Year End 2010 Results - 270%
increase in Operating Cash Flow and Appointment of Chief Operating Officer
April 29th, 2011 - Toronto, Ontario - U.S. Silver Corporation (TSX-V: USA,
US OTCQX: USSIF, Frankfurt: QE2) ("US Silver" or "the
Company") is pleased to announce financial results in U.S. dollars for
the year ended December 31, 2010.
"We are pleased with our financial performance for 2010," said Mr.
Tom Parker, CEO of U.S. Silver. "Despite slight production declines due
to lower head grades, rehabilitation work and efforts to ensure full
compliance with regulatory requirements, we increased our revenue by more
than 35% and generated operating cash flow of nearly $9 million. Given the
recent upsurge in silver prices and our commitment to improving production
output, we anticipate that our performance will be sustained through
2011."
Key Financial and Operating Highlights
- Revenue totalled
$62.4 million, up 35% from $45.9 million for 2009
- Pre
tax net income was $4.9 million, up 145% from $2.0
million for 2009
- Cash Flow from Operating
Activities was $8.9 million, up 272% from $2.4 million for 2009
- Cash and restricted cash on
hand was $8.6 million
- Silver production totalled 2,275,817 ounces, down 6% from 2,427,156
for 2009
- Generated gross proceeds of
$6.9 million through a bought deal private placement
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For the years ended December 31 (US$ millions)
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2010
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2009
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Revenue
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$62.4
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$45.9
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Cost of Mining
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46.4
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39.3
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General and administrative
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3.7
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2.8
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Exploration
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1.7
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0.7
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Selling and marketing
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0.2
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0.1
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$10.4
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3.0
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Other expenses
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5.5
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1.0
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Net income
before tax
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$4.9
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2.0
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Net income
after tax
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$3.6
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$6.8
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Cash flow from
operations
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$8.9
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$2.4
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Production
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Silver (ounces)
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2,275,817
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2,427,156
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Lead (pounds)
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5,613,689
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6,446,856
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Copper (pounds)
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1,000,319
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1,075,307
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Cash Costs ($/oz after by-product credits)
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$13.50
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$11.67
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"As we have communicated previously, our production output will vary
from quarter to quarter due to our narrow vein mining operations," added
Mr. Parker. "Nevertheless, we remain confident that we will deliver an
average annual production in excess of 2.4 million ounces of silver in 2011.
To that end, we are currently exploring ways to improve and expand production
in periods ahead."
Appointment of Chief Operating Officer
U.S. Silver is very pleased to announce the appointment of Steve Long as
Chief Operating Officer and Mine Manager effective May 9th, 2011. Steve's
vast experience in underground mining in various senior management roles over
a 33 year career, most recently with Newmont Mining Corporation in Elko,
Nevada and previously with Barrick, Echo Bay and Homestake Mining will be a most welcome addition to the
management of the Company. Steve will be based in Wallace, Idaho at the
Galena mine.
U.S. Silver will file its financial statements for the year ended December
31, 2010 and related management's discussion and analysis (MD&A) with
securities regulatory authorities within applicable timelines. The Company's
financial statements, MD&A and related documents are available from
SEDAR.
ABOUT U.S. SILVER CORPORATION
U.S. Silver, through its wholly owned subsidiaries, owns and/or operates the
Galena, Coeur, Caladay and Dayrock
silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine
being the second most prolific silver mine in US history. Total silver
production from U.S. Silver's mining complex has exceeded 217 million ounces
of silver production since 1953. U.S. Silver controls a land package now
totaling approximately 14,000 acres in the heart of the Coeur d'Alene Mining
District. U.S. Silver is focused on expanding the production from existing
operations as well as exploring and developing its extensive SilverValley holdings in the Coeur d'Alene Mining
District.
Neither TSX Venture
Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.
Certain information in
this press release may contain forward-looking statements. This information
is based on current expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might differ
materially from results suggested in any forward-looking statements. The
Company assumes no obligation to update the forward-looking statements, or to
update the reasons why actual results could differ from those reflected in
the forward looking-statements unless and until required by securities laws
applicable to the Company. Additional information identifying risks and
uncertainties is contained in filings by the Company with the Canadian
securities regulators, which filings are available at www.sedar.com.
FOR INFORMATION PLEASE CONTACT:
Tom Parker, CEO (208) 752-0400
Chris Hopkins, CFO (416) 907-9539
The Equicom Group, Patrick Piette
(416) 815-0700 x267
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