Starcore Reports Second Quarter 2015 Results

Vancouver, B.C. — Starcore International Mines Ltd. (the “Company”) has filed the results for the second quarter ended January 31, 2015 for the Company and its mining operations. The full version of the Company’s Financial Statements and Management’s Discussion and Analysis can be viewed on the Company’s website at, or SEDAR at All financial information is prepared in accordance with IFRS and all dollar amounts are expressed in thousands of Canadian dollars unless otherwise indicated.

Second Quarter, January 31, 2015 Highlights:

  • Earnings from mining operations was $0.2 million, or 3% of gross revenue, compared to $2.4 million, or 29% of gross revenue, in the comparative quarter.
  • Loss after taxes for the quarter was $0.1 million, or $0.00 per share compared to Net Earnings of $1.6 million, or $0.01 per share for the comparative quarter. Current quarter results were bolstered by foreign exchange gains of $0.9million on US dollar cash balances and net working capital.
  • The following table contains selected highlights from the Company’s unaudited consolidated statement of operations for the three and six months ended January 31, 2015 and 2014:
(in thousands of Canadian dollars) (Unaudited)   Three months ended
January 31,
Six months ended
January 31,
    2015 2014 2015 2014
Revenues   $ 7,143 $ 8,378 $ 14,812 $ 17,127
Cost of Sales   (6,930) (5,990) (14,148) (11,622)
Earnings from mining operations   213 2,388 664 5,505
Net income          
(i) Net income (loss)   $ (116) $ 1,600 $ 754 $ 3,896
(ii) Income per share — basic   $ 0.00 $ 0.01 $ 0.01 $ 0.03
(iii) Income per share — diluted   $ 0.00 $ 0.01 $ 0.01 $ 0.03
  • The lower earnings were mainly due to lower metal prices in the quarter. Overall metal production for the quarter was 5,130 equivalent ounces (“EqOz”), compared to 5,382 EqOz in the previous quarter and an average of 6,009 EqOz per quarter in the previous year. Mine ore grade for the quarter decreased to 2.22 g/t and 18.9 g/t for gold and silver, respectively, compared to 2.36 g/t and 18.2 g/t for the previous quarter, respectively, and an average of 2.55 g/t and 24.2 g/t for the prior year, respectively.
  • Mine operating cash costs increased overall to US$936/EqOz compared to US$916/EqOz in the previous quarter and an average of US$750/EqOz per quarter in the previous year due both to lower average metal production and increasing costs at the mine and to the reclassification of certain mine development expenditures which were generally capitalized in the prior year. Management believes a more conservative expensing of certain costs was appropriate resulting in higher cash costs and lower CAPEX expenditures overall. All-in Sustaining Costs, which includes sustaining capital expenditures, exploration, reclamation, corporate and administrative and share-based compensation cost were US$1,081/EqOz, compared to US$1,094 in the comparative quarter and an average of US$989/EqOz in the previous year .

The following table is a summary of mine production statistics for the San Martin mine for the three and six months ended January 31, 2015 and for the year ended July, 2014:

  Unit of measure Actual results for
3 months ended
January 31, 2015
Actual results for
6 months ended

January 31, 2015
Actual results for
12 months ended

July 31, 2014
Production of Gold in Dore thousand ounces 4.8 9.8 22.0
Production of Silver in Dore thousand ounces 23.5 49.4 126.5
Equivalent ounces of Gold thousand ounces 5.1 10.5 24.0
Silver to Gold equivalency ratio   73.6:1 70.4:1 62.7:1
Gold grade grams/tonne 2.22 2.29 2.55
Silver grade grams/tonne 18.91 18.6 24.2
Gold recovery percent 84.4% 84.1% 87.1%
Silver recovery percent 48.4% 52.2% 52.7%
Milled thousands of tonnes 79.8 158.4 308.6
Operating Cost per tonne milled US dollars/tonne 60 61 58
Operating Cost per Equivalent Ounce US dollars/ounces 936 926 750

“Our objectives have been steadfast to continue cost reduction plans and we expect lower mine costs and consistent production in 2015 to offset the lower metal prices” said Robert Eadie, President of the Company. “Our strong cash position has allowed us to acquire significantly undervalued assets such as Creston Moly and we will continue to review strategic acquisitions in the coming year.”

About Starcore

Starcore is engaged in exploring, extracting and processing gold and silver through its wholly-owned subsidiary, Compañia Minera Peña de Bernal, S.A. de C.V., which owns the San Martin mine in Queretaro, Mexico. The Company is a public reporting issuer on the Toronto Stock Exchange. The Company is also engaged in owning, acquiring, exploiting, exploring and evaluating mineral properties, and either joint venturing or developing these properties further. The Company has interests in properties which are exclusively located in Mexico.


Signed “Gary Arca”
Gary Arca, Chief Financial Officer and Director


Telephone: (604) 602-4935
Facsimile: 1-604-602-4936

Investor Relations
Telephone: (416) 640-1936
Toll Free: 1-866-602-4935


The Toronto Stock Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.