U.S. Silver Corporation

U.S. Silver Corporation

August 29, 2007 21:50 ET

U.S. Silver Corporation Announces 2nd Quarter Financial Results for 2007

TORONTO, ONTARIO--(Marketwire - Aug. 29, 2007) - U.S. Silver Corporation (TSX VENTURE:USA) ("U.S. Silver" or the "Company") announces its unaudited consolidated financial results for the quarter ended June 30, 2007. The unaudited consolidated financial statements and Management's Discussion and Analysis ("MD&A") have been filed on SEDAR and can be viewed at www.sedar.com.

For the period from April 1st, 2007 to June 30, 2007 U.S. Silver generated consolidated revenue of approximately U.S. $5.4 Million. Its operating subsidiary, U.S. Silver Idaho Inc., recorded an operating profit of U.S. $636,000 compared to a loss of U.S. $457,000 for the 1st quarter 2007. Consolidated Net loss for the period was $2.7 million, equaling a loss per share of U.S. $0.02. As the Company was formed in June of 2006, there are no comparables to the second quarter of 2007. The difference between the net loss and the operating profit from the wholly owned subsidiary was principally because of the non-cash costs of approximately $1,000,000 in the treatment of incentive options granted during the 2nd qtr, depreciation and a one-time payment of $365,000 to clear an unused line of credit.

"These financial results are in line with our expectation, given all of the work and effort that has taken place to bring the mine back to profitability," said Bruce Reid, CEO. "We anticipate returning to full net profitability for the fourth quarter of 2007. We expect further improvements in costs and revenues to continue through 2007 as production levels at the mine are increased."

The Company produced 302,188 ounces of silver during the 2nd Quarter of 2007 at an average cash cost of U.S. $10.63 per ounce. This compared with 200,044 ounces in the 4th Qrt, 2006 at cash costs of U.S. $13 per ounce. By way of further comparison, the company produced 149,646 ounces of silver during the 3rd Qrt 2006 at a cash cost of over U.S. $19 per oz. The headgrades averaged 17.0 oz./sdt up from 12.7 oz./sdt during the 3rd Qrt 2006. The company expects the headgrade to continue to improve through 2007.

U.S. Silver's balance sheet at June 30, 2007 showed over U.S. $16.3 million in working capital and approximately $43 million in total assets. At June 30, 2007 the Company had no long-term debt and over U.S. $32.1 million in shareholders equity. During the second quarter, U.S. Silver successfully completed an Early Exercise Warrant Incentive Program (see press release dated May 11, 2007). In total the company raised CDN $15.4 million during the 2nd quarter through this program.

The Company continues to implement a turnaround at the mine which includes an extensive redevelopment of new reserves (see press release dated April 18, 2007), a redesign of the mining method in some areas and numerous challenging repairs of facilities and equipment. "The company is well on its way to make 2007 the production turnaround year at the Galena Mine, and with continued strong metal prices we should be fully profitable by the end of 2007," stated Mark Hartmann, President of U.S. Silver.


U.S. Silver owns and operates the producing Galena silver mine in Shoshone County, Idaho, which is the second most prolific silver mine in US history. Total silver production from U.S. Silver's Galena and Coeur mining complex has exceeded 210 million ounces of silver production since 1953. The mine is currently anticipated to produce 2.5 million ounces of silver in 2007. In June 2006, U.S. Silver acquired the Galena mine, Coeur mine, and Caladay property along with a land package of 11,000 acres in the heart of the Coeur d'Alene Mining District. U.S. Silver is focused on the production and exploration of its extensive Silver Valley holdings.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • U.S. Silver Corporation
    Bruce Reid
    Chief Executive Officer
    (647) 500-4495
    U.S. Silver Corporation
    Vance Loeber
    Investor Relations
    (604) 805-3530