VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/14/12 -- Starcore International Mines Ltd. (TSX: SAM) (the "Company") has filed the results for the first quarter ended October 31, 2012 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.
Three months ended October 31, 2012 First Quarter Highlights:
-- The mine experienced significant metallurgical recovery problems over the last two quarters due to ore characteristics in one of the ore zones and to water quality;-- Over the current quarter, gold recovery averaged only 69% and at the same time, ore grades were lowered to an average of 2.01 g/t;-- The mine, however, produced sufficient tonnage, compared to prior periods, to increase production of metal where possible;-- As a result of the above, the Company only produced 3,900 equivalent ounces ("EqOz") of gold;-- We have fixed the recovery problems as of mid October and gold recovery has subsequently improved to over 75%;-- November production is estimated at 1,598 EqOz at a grade of 2.37 g/t of gold and 17 g/t of silver with recoveries of 75% and 55%, respectively, on over 25,300 tonnes of ore;-- As a result of the above issues, mined ore revenues were only $6.5 million, compared to $10.6 million in mined ore revenues during the comparative prior year period.-- Mine operating cash costs were $1,073EqOz compared to $548EqOz in the comparative period and $724EqOz for the prior fiscal year ended July 31, 2012, due mainly to lower metal production and to higher mine preparation and exploration costs coupled with generally higher global price increases in consumables used in gold production;-- Earnings from mining operations were $1.25 million compared to $7.32 million in the comparative prior year period.-- Other total expenses of $1,597 include financing costs of $427, management fees and salaries of $455 and deferred income tax expense of $311. Included in these expenses are $266 of non-cash share based compensation expense;-- Loss for the period was $346 compared to earnings of $3.2 million during the comparative prior year period. Basic and diluted loss per share was $0.0, compared to $0.03 and $0.02, respectively, in the comparative period in the previous year;-- Cash flows from operations were $2.0 million, compared to $6.0 million during the comparative prior year period. Cash decreased to $1.7 million at October 31, 2012 after investing $838 in mine development, plant and assets and repaying $2.8 million of the loan;
"The Company has endured a difficult few months of poor mine production due to production issues which have largely been resolved. We expect to return to historical production levels with improved recovery and ore grade over the next few quarters and to improve cash flows so as to pursue our exploration objectives with a view to finding more reserves, as previously stated," said Robert Eadie, Executive Chairman and CEO of the Company.
Starcore is engaged in exploring, extracting and processing gold and silver through its wholly-owned subsidiary, Compania Minera Pena 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 Mexico.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained herein may constitute forward-looking statements and are made pursuant to the provisions of Canadian securities laws. Forward-looking statements are statements which relate to future events. Such statements include estimates, forecasts and statements as to management's expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to production, exploration drilling, reserves and resources, exploitation activities and events or future operations. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, the Company does not intend to update any forward-looking statements to conform these statements to actual results.
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.
Starcore International Mines Ltd.
Chief Financial Officer and Director
1-604-602-4935 or Toll Free: 1-866-602-4935