Silvermet Inc.
TSX VENTURE : SYI

Silvermet Inc.

November 29, 2011 08:30 ET

Silvermet Releases 2011 Q3 Results

TORONTO, ONTARIO--(Marketwire - Nov. 29, 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 the release of its financial and operating results for Q3, 2011.

Highlights

  • Revenues in YTD-Q3 2011 increased by 15% to $12.8 million (at 100%) (Silvermet's share - $6.3 million) from $11.2 million in YTD-Q3 2010.
  • The Company was cash flow positive and profitable.
  • Operations continued to benefit from reduced smelter treatment charges in Q3 2011.
  • Production in Q3 2011 reflected the stabilization of operations at 3,669 DMT (Dry Metric Tonnes zinc concentrate containing 68.5% zinc on average) compared to Q3 2010 production of 3,615 DMT.
  • Sales volume in YTD-Q3 2011 increased by 5% to 9,871 DMT from 9,421 DMT in YTD- Q3 2010)
  • Revenues in Q3 2011 decreased by 15% to $4.0 million (at 100%) (Silvermet's share - $2.0 million) from $4.8 million in Q3 2010 reflecting effect of timing of shipments and a declining zinc price trend in Q3 2011 compared to increasing prices in Q3 2010.

The following table summarizes comparative quarterly results and reconciles net earnings, a GAAP measure, to EBITDA. The 2010 figures reflect operational results at 100% and 2011 figures reflect operational results at a proportionally consolidated level of 49%.

Three months ended September 30, Nine months ended September 30,
2011 2011 2010 2011 2011 2010
100% proportional 100% 100% proportional 100%
Gross sales revenues $ 4,042,257 $ 1,980,706 $ 4,753,062 $ 12,839,562 $ 6,291,385 $ 11,207,766
Direct operating costs 2,112,600 1,041,890 1,882,488 6,199,183 2,959,079 6,372,187
Treatment & transportation 1,051,912 506,886 1,282,809 3,388,928 1,560,065 3,528,950
Corporate costs 114,636 114,636 341,616 405,719 405,719 681,366
EBITDA(1) $ 763,109 $ 317,294 $ 1,246,149 $ 2,845,732 $ 1,366,522 $ 625,263
Interest and financing 27,932 146,029 232,610 314,998
Amortization - Turkey 70,486 115,258 206,355 335,795
Amortization - Canada 1,275 4,916 3,256 8,674
Investment & other gain (4,949 ) (201,731 ) (137,906 ) (206,748 )
Foreign exchange loss (gain) (61,153 ) 205,405 (44,408 ) 154,913
Stock option expense 19,710 267,253 71,749 293,813
Income tax 149,564 - 307,041 -
Non-controlling interest in net income of consolidated affiliates - 524,736 - 128,562
Net income (loss) available to common shareholders $ 114,429 $ 184,283 $ 727,825 $ (404,744 )
(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.

About Silvermet:

Silvermet's principal business activity is the recycling of electric arc furnace dust ("EAFD") obtained from steel companies through a Waelz kiln to recover zinc concentrates that are then sold to zinc smelters throughout the world. The Company owns 49% of a joint venture, Befesa Silvermet Turkey S.L. ("BST"), which operates a Waelz kiln facility located in Iskenderun, Turkey.

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

    Silvermet Inc.
    Ian D. Atacan
    Chief Financial Officer
    (416) 203-8336
    info@silvermet.ca
    www.silvermet.ca