Starcore International Ventures Ltd.

Starcore International Ventures Ltd.

October 30, 2007 09:30 ET

Starcore Reports Year-End Financial Results and Results from the Second Quarter of Production

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 30, 2007) - Starcore International Ventures Ltd. (the "Company") (TSX:SAM) has filed the results for the fiscal year ended July 31, 2007, and the second quarter of its mining operations from the San Martin Mine which was acquired February 1, 2007 from Goldcorp Inc. (the "Acquisition"). Starcore had revenues from metal sales of $9.2 million, earnings from mining operations of $3.1 million, and net income of $0.4 million for the quarter ended July 31, 2007. Over the year ended July 31, 2007, which includes two quarters of mining operations, the Company reports revenues of $18.5 million, earnings from mining operations of $6.2 million and a net loss of $2.2 million, due largely to the financing fees of $1.2 million related to the Acquisition and a $2.5 million non-cash stock-based compensation charge on option awards. The basic income per share for the quarter ended July 31, 2007 was $0.01 per share and $NIL fully diluted. Basic and diluted loss of $0.06 per share was reported for the year ended July 31, 2007.

The following table contains selected highlights from Starcore's consolidated income statement and consolidated balance sheet for the three month periods and years ended July 31, 2007 and July 31, 2006:

For the
three months ended For the year ended
July 31 July 31
000's 000's (audited)
2007 2006 2007 2006
Total Revenue $ 9,232 -- $ 18,499 --
Earnings from
mining operations $ 3,121 -- $ 6,175 --
Net income (loss) $ 352 $ (330) $ (2,218) $ (890)
Net income (loss)
per share - basic $ (0.01) $ (0.03) $ (0.06) $ (0.07)
Net income (loss)
per share - fully diluted $ 0.00 $ 0.03 $ (0.06) $ (0.07)

The earnings from mining operations of $6.2 million, which is calculated as gross revenue less mine cash operating costs, purchased ore costs, reclamation costs and cost of amortization and depletion, was equivalent to a basic earnings per share (EPS) of $0.10 over the two quarters of mining operations ended July 31, 2007 and does not include administrative expenses, other items and income taxes of the Company. Management believes that this non-GAAP measure of EPS illustrates the specific performance of the mining operations in evaluating the recent Acquisition, due to the fact it is based on earnings from mining operations solely. Administrative and other items excluded from the earnings from mining operation are corporate office expenses, fees and salaries, shareholder relations, travel, regulatory, professional fees, stock based compensation, future income tax, investment and interest income, foreign exchange gain and write-off of mineral properties, as well as the cost of completing the Acquisition and the related financing. The Company also had positive cash flow from operations of $3.5 million for the year ended July 31, 2007.

The following table is selected information of mine production statistics for the San Martin mine for the second quarter of operations and the two quarters of operations under the Company.

Actual Actual
results for results for
3 months 6 months
ended ended
July 31, July 31,
(Unaudited) Unit of measure 2007 2007
Production of Gold thousand ounces 6.9 13.6
Production of Silver thousand ounces 65.3 126.6
Equivalent ounces of Gold(i) thousand ounces 8.1 16.1

Milled thousands of tonnes 62.2 117.7

Operating Cost per
Equivalent Ounce US dollars/tonne 262 253
(i) assuming a 50:1 silver to gold equivalency ratio

Chief Executive Officer, Robert Eadie, stated, "The results of our second quarter of production show a consistent production level and the mine operations are producing excellent cash flow for the Company. This confirms our long-term growth strategy of increasing production and allows Starcore to pursue other producing mining assets."

Full financial statements are available on SEDAR at and on Starcore's website at


Gary Arca, Chief Financial Officer and Director

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

Contact Information