Silvermet Inc.
TSX VENTURE : SYI

Silvermet Inc.

May 04, 2011 08:00 ET

Silvermet Reports Significantly Improved Results for 2010

TORONTO, ONTARIO--(Marketwire - May 4, 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 2010.

Highlights

  • Silvermet achieved cash flow positive operations in Q3, 2010.
  • Silvermet signed a 51%/49% joint venture with Befesa Medio Ambiente, S.A. ("Befesa") of Spain, and formed Befesa Silvermet Turkey S.L. ("BST").
  • Production increased 110% to 11,548 DMT (Dry Metric Tonnes zinc concentrate containing 68% zinc) from 5,484 DMT in 2009.
  • Sales volumes increased 222% to 12,581 DMT from 3,903 DMT in 2009.
  • Revenues increased 251% to $15.9 million (at 100%) in 2010 from $4.5 million in 2009 due to increased shipments of zinc concentrates and higher zinc prices
For the year ended December 31,

2010 100%
2010 proportional
2009 100%
Revenue$15,936,718$14,276,672$4,531,233
Income (loss) from operations2,053,4251,721,468(322,660)
EBITDA(1)1,274,897903,914(1,139,479)
Comprehensive income (loss)1,019,821(635,067)
Basic income/(loss) per share$0.008($0.006)
Diluted income/(loss) per share$0.008($0.006)
Basic weighted-average number of shares outstanding131,591,447112,097,156
Diluted weighted-average number of shares outstanding133,206,460112,097,156
(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 is now an operationally stable company with significant growth potential through expansion of its operations in Turkey. During the past three quarters we have been generating positive cash flow from our business. Our joint venture company, BST, currently has $5.3 million cash available to be used for capital improvements to the existing facility and to further progress with a new kiln," said Stephen G. Roman, Silvermet's Chairman, President and CEO. "For 2011 we will focus on continued improvements and building additional capacity".

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's Waelz kiln facility is located in Iskenderun, Turkey and has been operational since May 2009.

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