Silvermet Inc.
TSX VENTURE : SYI

Silvermet Inc.

November 25, 2010 17:41 ET

Silvermet Inc. Reports Significantly Improved Operating Results in 2010 Q3

TORONTO, ONTARIO--(Marketwire - Nov. 25, 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 third quarter of 2010.

Highlights

  • Revenues increased by 199% from $1.6 million in 2009 Q3 to $4.8 million in 2010 Q3.
  • EBITDA increased by 403% from a loss of $0.6 million in 2009 Q3 to $1.2 million in
    2010 Q3
  • Year-to-date revenue increased by 362% while EBITDA for the first three quarters increased by 236%
  • Zinc production increased by 69% from 713 DMT (Dry Metric Tonnes) zinc concentrate per month in the first half of 2010 to an average 1,205 DMT per month in 2010 Q3 – production in Q3 2009 averaged 617 DMT per month
  • At an average zinc grade of 69% in the concentrate, Q3 production approximates 5.5 million pounds contained zinc
  • As announced previously, in Q3 the Company formed a joint venture with Befesa Medio Ambiente, S.A. ("Befesa"). In connection with joint venture, Befesa acquired a 10% interest in Silvermet and the joint venture began operations with $6 million cash.
  • 12,718,000 warrants (83% of outstanding number) were exercised in September and November for proceeds of C $1,271,800
  For the three months ended September 30,   For the nine months ended September 30,  
  2010 2009   2010   2009  
Revenue $ 4,753,062 $ 1,589,329   $ 11,207,766   $ 2,426,330  
Income (loss) from operations   1,704,380   (113,994 )   1,831,771     (436,962 )
EBITDA(1)   1,242,475   (611,670 )   677,098     (1,866,796 )
                       
Comprehensive income (loss)   200,675   908,670     (274,889 )   (692,819 )
Basic and diluted income (loss) per share $ 0.002 $ 0.008     ($0.002 )   ($0.006 )
Weighted average number of shares outstanding, basic and diluted   126,389,716   121,039,651     125,642,115     107,729,462  
 
(1) EBITDA is a non-GAAP measure, does not have a standardized meaning prescribed by GAAP and may not be comparable to similar terms and measures presented by other issuers. EBITDA comprises net income (loss) before income taxes, interest and financing expense (including accretion of liabilities), amortization expense, gain on dilution, non-controlling interest and stock option expense. The Company believes it is appropriate to exclude stock option expense, gain on dilution and non-controlling interest from EBITDA as a measure of operating performance that excludes non-recurring items.

"Silvermet's strong performance in the 3rd quarter reflects the results of the continual improvements to operations, personnel and the zinc market," said Stephen G. Roman, Silvermet's Chairman, President and CEO. "In addition, with the formation of a joint venture with the world's best EAFD processor, Befesa, in the 4th quarter, Silvermet is positioned to build significant shareholder value in the future."

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