Silvermet Inc.
TSX VENTURE : SYI

Silvermet Inc.

February 03, 2011 12:02 ET

Silvermet Announces Significantly Improved 2010 Operating Results

TORONTO, ONTARIO--(Marketwire - Feb. 3, 2011) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Silvermet Inc. ("Silvermet" or the "Company") (TSX VENTURE:SYI) is pleased to announce significantly improved results for 2010 and a continuation of the third quarter improvements into the fourth quarter:

  • Production more than doubled to 11,605 DMT (dry metric tonnes zinc concentrate containing 68% zinc on average) in 2010 from 5,484 DMT in 2009.
  • Q4 production improved to 3,709 DMT from 3,615 DMT in Q3, despite a 10 day planned shutdown in October for maintenance.
  • Sales volumes tripled to 12,580 DMT in 2010 from 3,903 DMT in 2009.
  • Revenues more than tripled to $16.0 million in 2010 from $4.5 million in 2009 as a result of the combination of improved shipments and improved zinc prices.

The foregoing results are detailed as follows:

  Production (DMT)    Sales (DMT)    Revenues ($ million)
  2009 2010 Change   2009 2010 Change   2009 2010 Change
 
Q1 0 2,195 100%   0 3,434 100%   0.0 4.3 100%
Q2 1,197 2,086 74%   979 2,372 142%   0.8 2.1 152%
Q3 1,850 3,615 95%   1,523 3,615 137%   1.6 4.8 199%
Q4 2,437 3,709 52%   1,401 3,159 125%   2.1 4.8 126%
Total 5,484 11,605 112%   3,903 12,580 222%   4.5 16.0 252%

On October 27, 2010, Silvermet closed the joint venture and strategic investment transaction with an affiliate of Befesa Medio Ambiente, S.A. ("Befesa") of Erandio, Spain. As a result, the Turkish operations are now held through the newly established joint venture company, Befesa Silvermet Turkey, S.L. ("Befesa Silvermet"), in which Silvermet has a 49% interest. The results shown above are at 100% and do not reflect the impact of any changes to Silvermet's accounting for the Turkish operations after October 27, 2010.

"We are very pleased with the improvements in our operating results experienced throughout 2010. With the additional technical and operational expertise that Befesa provides, we expect this improving trend to continue into the future as we optimize the operations of our existing kiln and plan for expansion," said Stephen G. Roman, Chairman, President and CEO of Silvermet.

The formation of Befesa Silvermet included a cash injection into this joint venture company, of which approximately $5.3 million remains available to be invested in major capital improvements to the existing kiln or investment in additional kiln capacity.

About Silvermet:

The Waelz kiln operations in Iskenderun, Turkey were acquired by Silvermet in February 2009 and have been in production since May 2009. Electric arc furnace dust is a waste product of steel mills and is processed through a Waelz kiln to recover zinc. Silvermet holds a 49% interest in a joint venture company, Befesa Silvermet, which holds 100% of the Turkish operations.

Befesa is headquartered in Spain and operates a number of Waelz kilns throughout Europe.

Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raised additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

The TSX Venture Exchange has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Silvermet Inc.
    Stephen G. Roman
    Chairman, President & CEO
    (416) 203-8336
    www.silvermet.ca