Silvermet Inc.
TSX VENTURE : SYI

Silvermet Inc.

September 01, 2010 16:50 ET

Silvermet Inc. Announces 2010 Q2 Results

TORONTO, ONTARIO--(Marketwire - Sept. 1, 2010) -

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 the release of its results for the second quarter of 2010.

The financial statements and Managements' Discussion and Analysis of its results ("MD&A") can be found on SEDAR or the Company's website. The Company reports its financial results in US dollars.

Highlights



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For the three months For the six months
ended June 30 ended June 30
2010 2009 2010 2009
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Revenue $ 2,109,494 $ 837,001 $ 6,454,704 $ 837,001

Comprehensive loss (363,362) (1,105,101) (475,564) (1,601,489)
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Basic and diluted loss
per share ($0.003) ($0.010) ($0.004) ($0.016)
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Weighted average number
of shares outstanding,
basic and diluted 125,333,095 112,251,380 125,261,800 100,827,693
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Assets 9,030,083 8,330,801 9,030,083 8,330,801
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The highlights of the Company's 2010 year-to-date results include the following:



-- produced 4,281 Dry Metric Tonnes ("DMT") of zinc concentrate
-- shipped 5,807 DMT of zinc concentrate to customers, including 1,581 DMT
from inventory at December 31, 2009
-- increased gross sales revenue from $0.8 million to $6.4 million
-- switched to using only new EAFD from steel mills
-- completed significant modifications and maintenance on the kiln
-- experienced significant downtime due to maintenance, flood and coke
quality issues
-- continued improvement of operating and financial procedures
-- hired a general manager and financial controller for the facility


"Silvermet is now cash flow positive." said Stephen G. Roman, Silvermet's CEO. "Our continuous efforts in operational improvements in order to increase throughput and profitability are bearing fruit. We have implemented seventeen environmental projects over the past three months. We have, for the past two months, been operating at record production levels. With currently favourable zinc prices, new EAFD sources and a stronger local management team, Silvermet can now focus on strengthening its balance sheet while continuing to modernize the operation."

Silvermet held its Annual General Meeting yesterday, August 31, 2010, in Toronto. With a majority of shareholders present in person or by proxy, all of the resolutions, as recommended by management, were passed:



-- The shareholders received the audited consolidated financial statements
of Silvermet for the year ended December 31, 2009, and the auditors'
report thereon.
-- Messrs. Stephen G. Roman, Rein A. Lehari, Derek C. Rance, Keith Spurr,
Terence Ortslan, Douglas Scharf and Richard Faucher were elected as
directors of the Company.
-- PricewaterhouseCoopers LLP were reappointed as the Company's auditors.
-- The 10% rolling stock option plan was approved.


After the official part of the meeting, Mr. Roman made a presentation on Silvermet, summarizing achievements to date and current outlook, and answering questions from shareholders. The presentation is available on Silvermet's website: www.silvermet.ca.

Today, the Company also announced that it has issued 2,000,000 options to its newly elected directors and 1,250,000 options to the appointed officers and management of the Company to acquire common shares. The stock options are exercisable at $0.15 per common share and expire on September 1, 2015.

About Silvermet:

Silvermet's Waelz kiln facility in Iskenderun, Turkey has been operating since mid-2009 as an important Electric Arc Furnace Dust ("EAFD") recycling business for the Turkish steel industry and producing zinc oxide concentrate that is sold to smelters throughout the world.

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.


"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Contact Information

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