Vancouver, B.C. — Starcore International Mines Ltd. (the “Company”) has filed the results for the quarter ended April 30, 2011 for the Company and its mining operations from the San Martin Mine, Queretaro, Mexico. Starcore had earnings from mining operations of $ 5.18 million, which was an increase of $1.78 million over the prior quarter ended January 31, 2011 of $3.4 million, and loss for the period of $0.97 million for the quarter ended April 30, 2011, on revenues from metal sales of $13.86 million. Over the nine month period ended April 30, 2011, the Company reports revenues of $29.96 million, earnings from mining operations of $11.24 million and a loss for the period of $2.87 million. The basic and diluted loss per share for the quarter ended April 30, 2011 was $0.01 and $0.03 per share for the nine months ended April 30, 2011. The loss for the quarter includes a net $3.28 million non-cash unrealized loss on forward sales contracts, and the net loss for the nine months ended April 30, 2011, includes a $4.66 million unrealized loss on forward sales contracts.
The mine increased production to a total of 9,500 equivalent ounces of Gold for the quarter ended April 30, 2011, compared to 7,900 for the previous quarter ended April 30, 2011, due mainly to the additional metal produced from purchased concentrate of 3,200 equivalent ounces versus 2,500 equivalent ounces in the previous quarter. The following table is a summary of mine production statistics for the San Martin mine for the three months ended April 30, 2011 and the twelve months ended January 31, 2011:
|(Unaudited)||Unit of measure||Actual results for
3 months ended
April 30, 2011
|Actual results for
12 months ended
January 31, 2011
|Mine Production of Gold in Dore||thousand ounces||4.4||15.6|
|Mine Production of Silver in Dore||thousand ounces||76.0||170.0|
|Mine Equivalent ounces of Gold||thousand ounces||6.3||18.5|
|Purchased Concentrate Equivalent ounces||thousand ounces||3.2||2.5|
|Total Mine Production – Equivalent Ounces||thousand ounces||9.5||21.0|
|Mine Gold grade||grams/tonne||2.3||2.05|
|Mine Silver grade||grams/tonne||45||31|
|Milled||thousands of tonnes||71||274|
|Mine Operating Cost per tonne milled||US dollars/tonne||46||39|
|Mine Operating Cost per Equivalent Ounce||US dollars/ounces||522||577|
* assuming a 40:1 silver to gold equivalency ratio for three months ended April 30, 2011 and 60:1 for the twelve months ended January 31, 2011.
Overall equivalent gold production from mine operations, excluding purchased concentrate, was 6,300 ounces over the three months ended April 30, 2011, compared to an average of 4,625 per quarter for the previous twelve month period. The higher production was due mainly to higher ore grades, which averaged 2.3g/t and 45g/t for gold and silver, respectively, compared to an average of 2.05g/t and 31g/t in the twelve month period. The mine also increased tonnage through the mill to 71,000 tonnes for the quarter compared to 68,500 tonnes per quarter average for the twelve months.
The following table contains selected highlights from the Company’s unaudited consolidated statement of operations for the three months ending April 30, 2011and 2010 (all amounts per table and discussion below are stated in thousands of Canadian dollars):
|(unaudited) (000’s)||April 30, 2011||April 30, 2010|
|Mined ore||$ 9,189||$ 5,532|
|$ 13,859||$ 5,934|
|Cost of Sales|
|Amortization and depletion and reclamation||600||450|
|$ (8,682)||$ (4,002)|
|Earnings from mining operations||5,177||1,932|
|(i) Net loss||$ (966)||$ (2,753)|
|(ii) Loss per share – basic and diluted||$ (0.01)||$ (0.03)|
Revenues for the quarter ended April 30, 2011 were higher at $13,859 than 2010 revenues of $5,934 due mainly to the sale of metal from purchased concentrate, but also due to higher metal prices in 2011 and higher metal production from mine operations. In addition costs were lower at an average operating cost of US$522/EqOz for the quarter ended April 30, 2011, compared to an average operating cost of US$581/EqOz in the quarter ended April 30, 2010. This decrease was due mainly to the higher equivalent metal production from the mine of 6,300 ounces compared to 4,100 ounces in the same period in the prior year, offset by increased mining costs. Loss for the three months ended April 30, 2011 decreased by $1,787 to a loss of $966 due mainly to the fluctuation in unrealized forward sales contracts. Net realized and unrealized loss on forward contracts for the quarter ended April 30, 2011 was $5,672 compared to $4,023 for 2010. The large loss on forward contracts resulted mainly from the $3,281 unrealized loss on forward contracts in the quarter which resulted from the increase in the price of gold from US$1,336 at January 31, 2011 to US$1,508 at April 30, 2011 on the remaining 24,758 ounces which are to be sold at 1,179 ounces per month until January 31, 2013.
The Company also had positive cash flow from operations of $263 for the three months ended April 30, 2011 compared to $552 for the same period in 2010.
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 INVESTOR RELATIONS
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