SilverCrest Reports Q1 2014 Financial Results
- Cash Flow from Operations of $6.6 million
- Net Earnings of $2.5 million
- Q1 Conference Call at 10am PDT (1pm EDT) on May 15, 2014
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 14, 2014) -
SilverCrest Mines Inc. (the "Company") (TSX:SVL)(NYSEMKT:SVLC) is
pleased to announce its financial results for the first quarter
ended March 31, 2014. All financial information is prepared in
accordance with IFRS and all dollar amounts are expressed in U.S.
dollars unless otherwise specified. The information in this news
release should be read in conjunction with the Company's unaudited
condensed consolidated interim financial statements for the three
months ended March 31, 2014 and associated management discussion
and analysis ("MD&A") which are available from the Company's
website at www.silvercrestmines.com and under the Company's profile
on SEDAR at www.sedar.com.
N. Eric Fier, President and COO stated; "We are pleased with the
steady start to 2014, for which operating costs and production were
consistent with budget, although our financial performance compared
to the first quarter of 2013 was impacted by lower metal prices.
Our all-in sustaining cash costs per silver equivalent ounce sold
(2) at $9.71 continues to makes us one of the lowest cost precious
metal producers. With the commissioning of our new 3,000 tpd mill,
SilverCrest is well positioned to continue to generate strong
operating cash flows in H2 2014, with continued strengthening of
its cash position of $54.5 million at March 31, 2014."
FINANCIAL HIGHLIGHTS OF
Q1, 2014, Compared to Q1, 2013:
- Cash flow from operations (1) decreased 25% to $6.6 million
($0.06 per share).
- Cash operating cost per silver equivalent ounce sold (2)
decreased 7% to $7.14.
- All-in sustaining cash cost per silver equivalent ounce sold
(2) decreased 40% to $9.71.
- Revenues reported decreased 15% to $13.0 million.
- Metal sales of 198,800 ounces of silver and 7,650 ounces of
gold increased 27% and 4% respectively.
- Realized spot metal prices declined from $30 to $21 (30%) for
silver and from $1,626 to $1,319 (19%) for gold.
- Net earnings were $2.5 million ($0.02 per share), compared to
$6.0 million ($0.06 per share).
- Cash and cash equivalents were $54.5 million (at March 31,
2014), compared to $41.1 million (at March 31, 2013).
- Working capital was $63.7 million (at March 31, 2014), compared
to $48.9 million (at March 31, 2013).
- Bullion inventory at March 31, 2014, included 59,114 ounces of
silver and 2,084 ounces of gold.
Comparison of the three months ended March 31, 2014 to March 31,
2013
Net earnings were $2,467,989 ($0.02 per share basic) for the
first quarter compared with $6,002,276 ($0.06 per share basic) in
2013. The decrease in net earnings during the first quarter was
primarily attributed by lower revenues resulting from significantly
lower realized prices.
Silver and gold revenue totalled $13,005,527 (2013 -
$15,329,642) in the first quarter. Silver sales totalled 198,800
ounces (2013 - 157,088), 27% higher than the same period in 2013.
The foregoing, combined with a 30% lower average realized price at
$21 (2013 - $30) per ounce, resulted in 12% less silver revenue.
Total gold revenue reported in the first quarter decreased 16%
compared to the same period in 2013. Total gold sales were 7,650
ounces (2013 - 7,370) or 4% above 2013. The Company sold 6,120
(2013 - 5,896) ounces of gold at an average realized price of
$1,319 (2013 - $1,626) per ounce, a 19% decline and delivered 1,530
gold ounces (2013 - 1,474) under the Sandstorm Purchase Agreement
at $350 per ounce.
Cost of sales amounted to $4,686,523 (2013 - $4,368,519).
Operating cash cost per silver equivalent ounce sold amounted to
$7.14, Ag:Au 60.0:1 (2013 - $7.69, Ag:Au 55.8:1). The decrease in
operating cash cost per silver equivalent ounce sold is driven
generally by the difference in silver equivalence ratios. The 40%
decrease in all-in sustaining cash costs from Q1 2013, is primarily
due to lower exploration costs incurred by the Company during Q1
2014.
General and administrative expenses increased by 10% to
$1,477,002 (2013 - $1,340,926) primarily due to an increase in
regulatory expenses resulting from the onetime TSX listing fee.
|
|
|
|
|
FINANCIAL AND OPERATING HIGHLIGHTS: |
Q1 2014 |
|
Q1 2013 |
|
Cash flow from operations (1)(2) |
$ |
6,597,397 |
|
$ |
8,775,212 |
|
Cash flow from operations (1)(2) per share |
$ |
0.06 |
|
$ |
0.08 |
|
Cash operating cost per silver equivalent ounce sold (2) |
$ |
7.14 |
|
$ |
7.69 |
|
All-in sustaining cash cost per silver equivalent ounce sold
(2) |
$ |
9.71 |
|
$ |
16.05 |
|
Revenues reported |
$ |
13,005,527 |
|
$ |
15,329,642 |
|
Cost of sales |
$ |
4,686,523 |
|
$ |
4,368,519 |
|
Depletion, depreciation and amortization |
$ |
1,721,406 |
|
$ |
1,378,945 |
|
Mine operating earnings |
$ |
6,597,598 |
|
$ |
9,582,178 |
|
Other net expenses |
$ |
(1,403,161 |
) |
$ |
(2,076,475 |
) |
Foreign exchange (loss) gain |
$ |
(485,448 |
) |
$ |
488,573 |
|
Tax expense |
$ |
(2,241,000 |
) |
$ |
(1,992,000 |
) |
Net earnings |
$ |
2,467,989 |
|
$ |
6,002,276 |
|
Exchange loss on translation to US Dollars |
$ |
- |
|
$ |
(878,199 |
) |
Comprehensive earnings |
$ |
2,467,989 |
|
$ |
5,124,077 |
|
Weighted average number of common shares outstanding |
|
111,315,927 |
|
|
107,170,245 |
|
Earnings per share - basic |
$ |
0.02 |
|
$ |
0.06 |
|
Earnings per share - diluted |
$ |
0.02 |
|
$ |
0.05 |
|
Adjusted earnings per share (2) |
$ |
0.02 |
|
$ |
0.06 |
|
Silver ounces sold |
|
198,800 |
|
|
157,088 |
|
Gold ounces sold |
|
7,650 |
|
|
7,370 |
|
Silver equivalent ounces sold (2) |
|
657,800 |
|
|
568,380 |
|
Ag : Au Ratio (2) |
|
60.0:1 |
|
|
55.8:1 |
|
(1) Cash flow from operations before changes in working capital
items. |
(2) These are Non-IFRS performance measures. Refer to
"CAUTIONARY NOTE REGARDING NON-IFRS PERFORMANCE MEASURES".
Silver equivalent ("AgEq") ounces consist of the number of ounces
of silver production/sold plus the number of ounces of gold
production/sold multiplied by a 60:1 gold price to silver price
ratio. Prior to Q1 2014, the AgEq ratio was based on the spot gold
price to the spot silver price at the quarter end dates for
financial reporting. All numbers are rounded. |
OUTLOOK
SilverCrest's immediate focus is to (i) continue its efficient
operation of its flagship Santa Elena low cost silver and gold
mine, (ii) complete commissioning of the new 3,000 tonne per day
CCD-MC processing plant, (iii) complete accelerated development of
the underground mine for initial underground production, (iv)
expand resources and subsequent reserves at Santa Elena by
systematic exploration of the deposit, (v) evaluate and acquire
exploration properties in proximity to Santa Elena, (vi) complete
evaluation of certain aspects at the La Joya Project to a
Pre-Feasibility Study level in 2014.
CONFERENCE
CALL
A conference call to discuss the results will be held on
Thursday, May 15th. The call will be held at 10am PDT (1pm EDT). To
participate in the conference call, please dial the following:
Participant Dial In Number(s)
Local / International: 416-849-5572
North American Toll-Free: 1-866-809-6768
A replay of the conference call will be archived for later
playback on the Company's website at www.silvercrestmines.com.
SilverCrest Mines Inc. (TSX:SVL)(NYSEMKT:SVLC) is a Canadian
precious metals producer headquartered in Vancouver, BC.
SilverCrest's flagship property is the 100%‐owned Santa Elena Mine,
located 150 km northeast of Hermosillo, near Banamichi in the State
of Sonora, México. The mine is a high‐grade, epithermal silver and
gold producer, with an estimated life of mine of 8 years and
operating cash costs of $11 per ounce of silver equivalent (55:1
Ag:Au). SilverCrest anticipates the new 3,000 tonnes per day
conventional mill facility at the Santa Elena Mine should recover
average silver and gold annual quantities of 1.5 million ounces of
silver and 32,800 ounces of gold over the current 8 year reserve.
Exploration programs continue to make new discoveries at Santa
Elena and also have rapidly advanced the definition of a large
polymetallic deposit at the La Joya property in Durango State,
Mexico.
CAUTIONARY NOTE REGARDING 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.
CAUTIONARY NOTE REGARDING NON-IFRS PERFORMANCE
MEASURES
This news release includes certain terms or performance
measures commonly used in the mining industry that are not defined
under International Financial Reporting Standards ("IFRS"), "Cash
flows from operations before changes in working capital items",
"Cash operating cost per silver equivalent ounce sold" "All-in
sustaining cash cost per silver equivalent ounce sold", and
"Adjusted earnings per share". The Company believes that, in
addition to conventional measures prepared in accordance with IFRS,
certain investors use this information to evaluate SilverCrest's
performance and its ability to generate cash flow. The data
presented is intended to provide additional information and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Please refer to the
Company's MD&A for the three months ended March 31, 2014, for a
reconciliation of these measure to reported IFRS results.
N. Eric Fier, President & COO
SILVERCREST MINES INC.
SilverCrest Mines Inc.Fred Cooper(604) 694-1730 ext. 108 or Toll
Free: 1-866-691-1730(604)
694-1761info@silvercrestmines.comwww.silvercrestmines.com
(AMEX:SVLC)
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