Starcore International Mines Ltd.

Starcore International Mines Ltd.

March 17, 2010 18:34 ET

Starcore Reports Positive Financial Results From the Second Quarter of 2010

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 17, 2010) - Starcore International Mines Ltd. (TSX:SAM) (the "Company") has filed the results for the second quarter ended January 31, 2010 for the Company and its mining operations from the San Martin Mine. Starcore had revenues from metal sales of $4.6 million, earnings from mining operations of $1.5 million, and net income of $77,000 for the quarter ended January 31, 2010. Over the six month period ended January 31, 2010, the Company reports revenues of $9.2 million, earnings from mining operations of $3.1 million and a net income of $0.6 million. The basic and diluted income per share for the quarter ended January 31, 2010 was $0.00, and $0.01 per share for the six months ended January 31, 2010.

The following table contains selected highlights from Starcore's consolidated income statement and consolidated balance sheet for the three and six month periods ended January 31, 2010:

  For the three months ended For the six months ended
  January 31 January 31
  000's 000's (audited)
  2010 2009 2010 2009
Total Revenue $4,616 $4,906 $9,202 $9,277
Earnings from mining operations $1,453 $1,210 $3,140 $2,169
Net Income (loss) $77 $(22) $639 $(131)
Net Income (loss) per share – basic and diluted $0.00 $(0.00) $0.01 $(0.00)

Mining earnings for 2010 were higher than 2009 due to higher equivalent metal production compared to the same periods in the prior year and to higher metal prices for the 3 and 6 month periods ending January 31, 2010. Net income also improved significantly due to higher relative margins combined with lower production costs. Costs were lower due both to management efforts to decrease costs and to the lower pesos exchange rate compared to the prior year.

The Company also had positive cash flow from operations of $2.8 million for the six months ended January 31, 2010 compared to $0.1 million for the same period in 2009.

The following table is selected information of mine production statistics for the San Martin mine for the second quarter of operations and for six months of operations to January 31, 2010:

    Actual results for Actual results for
    three months ended 12 months ended
(Unaudited) Unit of measure January 31, 2010 January 31, 2010
Production of Gold in Dore thousand ounces 5.2 19.3
Production of Silver in Dore thousand ounces 41.9 170.7
Equivalent ounces of Gold* thousand ounces 5.8 21.9
Milled thousands of tonnes 74.6 273.0
Operating Cost per Equivalent Ounce US dollars/oz 404 419
* assuming a 63:1 silver to gold equivalency ratio for three months and 66:1 for the year ended January 31, 2010.

Overall equivalent gold production was 5,800 ounces, which is higher than the prior years' average of 5,475 ounces per quarter. As a result, the operating cost per ounce was lower at US$404 compared to the prior years' average of US$419.

The Company expects to maintain or increase the current ore grades over the next quarter and improve earnings further. The Company also continues exploration efforts to increase reserves of resources and to find higher grade deposits. Management also continues efforts to cut mine and administration costs, where possible, to improve earnings and cash flow.

Full financial statements are available on SEDAR at and on Starcore's website at


Gary Arca, Chief Financial Officer and Director

The Toronto Stock Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Starcore International Mines Ltd.
    Gary Arca
    Chief Financial Officer and Director
    1-604-602-4935 or Toll Free: 1-866-602-4935
    1-604-602-4936 (FAX)