Vancouver, B.C. — Starcore International Mines Ltd. (the “Company”) has filed the results for the first quarter ended October 31, 2009 for the Company and its mining operations from the San Martin Mine. Starcore had revenues from metal sales of $4.9 million, earnings from mining operations of $1.7 million, and net income of $562,000 for the quarter ended October 31, 2009. The basic and diluted income per share for the quarter ended October 31, 2009 was $0.01.
The following table contains selected highlights from the Company’s consolidated income statement for the three month period ended October 31, 2009:
For the three months
Earnings from mining operations
Net income (loss)
Net income (loss) per share – basic and diluted
While mining earnings for 2009 was higher than 2008, the revenue from mined ore was actually $1.76 million lower for the three months ended October 31, 2009, compared to the prior year, due entirely to the loss of purchased concentrate revenue in 2009 which lowered gross revenues significantly by $2.0 million from the prior year; however, this had little effect on earnings from mining operations due to the low margin on purchased concentrate. Net income improved significantly due to improved metal production combined with lower production costs. Costs were lower due both to management efforts to decrease costs and to the lower pesos exchange rate compared to the prior year.
The Company also had positive cash flow from operations of $2.4 million for the three months ended October 31, 2009 compared to $1.2 million for the same period in 2008.
The following table is selected information of mine production statistics for the San Martin mine for the first quarter of operations and for nine months of operations to October 31, 2009 under the Company.
Unit of measure
Actual results for
Actual results for
|Production of Gold in Dore|
|Production of Silver in Dore|
|Equivalent ounces of Gold*|
thousands of tonnes
|Operating Cost per Equivalent Ounce|
* assuming a 62:1 silver to gold equivalency ratio for three months and 66:1 for the nine months ended October 31, 2009.
Overall equivalent gold production was 5,400 ounces, which is comparable to the prior years’ average of 5,400 ounces per quarter.
The Company expects to maintain or increase the current ore grades over the next quarter and improve earnings further. The Company also 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
Signed “Gary Arca”
Gary Arca, Chief Financial Officer and Director
FOR FURTHER INFORMATION PLEASE CONTACT: Gary Arca
Toll Free: 1-866-602-4935 / Facsimile: 1-604-602-4936
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