Starcore International Mines Ltd.
TSX : SAM

Starcore International Mines Ltd.

September 14, 2016 16:58 ET

Starcore Reports Q1 2017 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 14, 2016) - Starcore International Mines Ltd. (TSX:SAM) (the "Company") has filed the results for the first quarter ended July 31, 2016 for the Company and its mining operations. The full version of the Company's Financial Statements and Management's Discussion and Analysis can be viewed on the Company's website at www.starcore.com, or SEDAR at www.sedar.com. All financial information is prepared in accordance with IFRS and all dollar amounts are expressed in thousands of Canadian dollars unless otherwise indicated.

On May 13, 2016, the Company changed its fiscal year end from July 31 to April 30. With this year‐end change, the Company reported a one‐time transitional year-end period for the nine months ended April 30, 2016. This is the first quarter of the 2017 fiscal year.

Financial Highlights for the three-month period ended July 31, 2016 (unaudited) compared to the year ended April 30, 2016 (audited) and three-month period ended July 31, 2015 (unaudited):

  • Cash and short-term investments on hand is $8 million compared to $10 million at April 30, 2016;
  • Gold and silver sales of $7.2 million compared to $6.4 million for the period ended July 31, 2015, an increase of 12%;
  • Earnings from mining operations of $1.1 million compared to loss of $0.4 million for the period ended July 31, 2015;
  • Net income of $0.5 million compared to net loss of $0.1 million for the period ended July 31, 2015;
  • EBITDA(1) of $1,864 compared to $649 for the period ended July 31, 2015.

The following table contains selected highlights from the Company's unaudited consolidated statement of operations for the quarters ended July 31, 2016 and 2015:

(in thousands of Canadian dollars)
(Unaudited)
Quarter ended
July 31,
2016 2015
Revenues $ 7,188 $ 6,366
Cost of Sales (6,040 ) (6,759 )
Earnings (loss) from mining operations 1,148 (393 )
Administrative expenses (857 ) (574 )
Income tax recovery 195 871
Net income (loss) $ 486 $ (96 )
(i) Income per share - basic $ 0.01 $ (0.00 )
(ii) Income per share - diluted $ 0.01 $ (0.00 )

Reconciliation of Net income to EBITDA(1)
For the three months ending July 31, 2016 2015
Net income (loss) $ 486 $ (96 )
Income tax recovery (195 ) (871 )
Interest 212 71
Depreciation and depletion 1,361 1,545
EBITDA $ 1,864 $ 649
EBITDA MARGIN(2) 25.93 % 10.19 %
(1) EBITDA ("Earnings before Interest, Taxes, Depreciation and Amortization") is a non-GAAP financial performance measure with no standard definition under IFRS. It is therefore possible that this measure could not be comparable with a similar measure of another Corporation. The Corporation uses this non-GAAP measure which can also be helpful to investors as it provides a result which can be compared with the Corporation's market share price.
(2) EBITDA MARGIN is a measurement of a company's operating profitability calculated as EBITDA divided by total revenue. EBITDA MARGIN is a non-GAAP financial performance measure with no standard definition under IFRS. It is therefore possible that this measure could not be comparable with a similar measure of another Corporation. The Corporation uses this non-GAAP measure which can also be helpful to investors as it provides a result which can be compared with the Corporation's market share price.

Production Highlights for the three month period ended July 31, 2016 compared to the three month period ended July 31, 2015:

  • Equivalent gold production of 4,206 ounces compared to 4,694 ounces in the quarter ended July 31, 2015, a decrease of 10%;
  • Mine operating cash cost is US$853/EqOz compared to US$849/EqOz for the quarter ended July 31, 2015, a negligible increase;
  • All-in sustaining costs of US$1,036/EqOz compared to US$975/EqOz for the period ended July 31, 2015, an increase of 6%;

The following table is a summary of mine production statistics for the San Martin mine for the periods ended July 31, 2016 and 2015 and for the previous nine month period ended April 30, 2016:

Unit of measure Actual results for
3 months ended
July 31, 2016
Actual results for
3 months ended
July 31, 2015
Actual results for
9 months ended
April 30, 2016
Production of Gold in Dore thousand ounces 4.2 4.3 18.3
Production of Silver in Dore thousand ounces 27.7 27.1 97.1
Equivalent ounces of Gold thousand ounces 4.5 4.7 19.6
Silver to Gold equivalency ratio 71.6:1 73:1 76.2:1
Gold grade grams/tonne 2.17 2.00 1.96
Silver grade grams/tonne 16.2 19.0 18.4
Gold recovery percent 86.6% 86.9% 84.9%
Silver recovery percent 46.0% 57.4% 51.7%
Milled thousands of tonnes 66.1 77.3 229.6
Operating Cost per tonne milled US dollars/tonne 54 52 49
Operating Cost per Equivalent ounce US dollars/ounces 853 849 846

"We continue to report positive cash flow," said Robert Eadie, President of the Company, "and the improved market for metal prices and our ability to keep costs per ounce low have allowed us to report a profit this quarter despite lower equivalent gold production for the quarter."

About Starcore

Starcore is engaged in exploring, extracting and processing gold and silver through its wholly-owned subsidiary, Compañia Minera Peña de Bernal, S.A. de C.V., which owns the San Martin mine in Queretaro, Mexico. The Company is a public reporting issuer on the Toronto Stock Exchange. The Company is also engaged in owning, acquiring, exploiting, exploring and evaluating mineral properties, and either joint venturing or developing these properties further. The Company has interests in properties which are exclusively located in North America.

ON BEHALF OF STARCORE INTERNATIONAL MINES LTD.

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
    (604) 602-4935
    1-604-602-4936 (FAX)

    Starcore International Mines Ltd.
    Evan Eadie
    Investor Relations
    (416) 640-1936
    Toll Free: 1-866-602-4935