Mining Stocks News: SilverCrest (TSX: SVL) (NYSE
MKT: SVLC) Announces Q1, 2015 Financial Results Cash Flow from Operations of
$7.3 million ($0.06 per share) Net Earnings of $2.5 million ($0.02 per share)
Vancouver, BC - May 14, 2015 (Investorideas.com
Mining Stocks Newswire) SilverCrest Mines Inc. (TSX:SVL) (NYSE MKT: SVLC) (the “Company” or “SilverCrest”) is pleased to announce its
consolidated interim financial results for the first quarter (“Q1”) ended March
31, 2015. All financial information is prepared in accordance with
International Financial Reporting Standards (“IFRS”) and all dollar amounts are
expressed in U.S. dollars unless otherwise specified. The information in this
news release should be read in conjunction with the Company's unaudited
condensed consolidated interim financial statements for the three months ended
March 31, 2015 and associated management discussion and analysis (“MD&A”)
which are available from the Company's website at www.silvercrestmines.com and under the Company's profile on SEDAR at www.sedar.com.
FINANCIAL HIGHLIGHTS OF Q1, 2015, COMPARED TO Q1,
2014
·
Cash flow from operations (1) (2) was $7.3 million
($0.06 per share, basic and diluted), an increase of 10%.
·
Cash operating cost per AgEq ounce sold (2)(3) was
$8.49, an increase of 28%.
·
All-in sustaining cash cost per AgEq ounce sold
(2)(3) was $11.25, an increase of 25% .
·
Revenues increased 50% to $19.5 million.
·
Metal sales of 413,250 ounces of silver and 11,748
ounces of gold increased 108% and 54%, respectively.
·
Realized average spot metal prices declined from
$20.70 to $16.62 (20%) for silver and from $1,319 to $1,196 (9%) for gold.
·
Net earnings remained consistent at $2.5 million
($0.02 per share, basic and diluted).
·
Adjusted earnings (2) increased 48% to $4.0 million
($0.03 per share, basic and diluted).
·
Cash and cash equivalents totalled $35.2 million
(at March 31, 2015), compared to $54.5 million (at March 31, 2014).
·
Working capital was $45.4 million (at March 31,
2015), compared to $63.7 million (at March 31, 2014).
·
Bullion inventory at March 31, 2015 included 82,445
(2014 - 59,114) ounces of silver and 2,524 (2014 - 2,084) ounces of gold.
·
Scotiabank Credit Facility $15.0 million drawn from
$30.0 million available (at March 31, 2015).
J. Scott Drever, Chief Executive Officer, stated ; "We are pleased with the strong start to 2015. Santa
Elena's record AgEq (3) production delivered solid Q1, 2015 financial results,
generating cash flow from operations (1) (2) of $7.3 million and net earnings
of $2.5 million. We are confident in Santa Elena's ability to continue to
generate positive cash flows during 2015, notwithstanding the lower precious
metals price environment. We are pleased our tight cost control measures and
record production resulted in cash operating cost (1) (2) of $8.49 per AgEq (3)
ounce sold and all-in sustaining cash cost (2) of $11.25 per AgEq (3) ounce
sold. These cash operating numbers came in below our annual cost guidance range
and continue to make us one of the lowest cost precious metal producers. We
continue to have a strong balance sheet at the end of Q1, 2015 with $35.2
million in cash and cash equivalents, working capital of $45.4 million and
undrawn credit facility of $15 million. SilverCrest is well situated to further
strengthen its balance sheet in the upcoming quarters as underground production
rates and grades continue to improve and mill recoveries rates continue above
92% for gold and 75% for silver. SilverCrest maintains its 2015 corporate
production guidance range of 4.0 - 4.4 million AgEq (3) ounces for 2015".
·
Cash flow from operations before changes in working
capital items .
·
These are Non-IFRS performance measures. Refer to
"CAUTIONARY NOTE REGARDING NON-IFRS PERFORMANCE MEASURES".
·
Silver equivalent ("AgEq") ratio for Q1,
2015 of 66.7:1 was calculated using metal prices of $1,200/oz for gold and
$18/oz for silver. For consistency with, comparative periods, the AgEq ratio
reported during 2014 was changed from 60:1 to 66.7:1. All numbers are rounded.
Comparison of the Three Months Ended March 31,
2015, to March 31, 2014
Net earnings were $2,511,581 ($0.02 per share basic
and diluted) for the first quarter compared with $2,467,989 ($0.02 per share
basic and diluted) in the first quarter of 2014. The small increase in net
earnings in the first quarter was primarily attributed to a significant
increase in ounces produced offset by lower metal prices and an increase in
mine operating costs.
Silver and gold revenue amounted to $19,512,360
(2014 - $13,005,527) in the first quarter. Silver sales totalled 413,250 ounces
(2014 - 198,800), 108% higher than the same period in 2014. The foregoing,
combined with a 20% lower average realized price of $16.62 (2014 - $20.70) per
ounce, resulted in 67% more silver revenue. Total gold revenue in the first
quarter increased 42% compared to the same period in 2014. Total gold sales
were 11,748 ounces (2014 - 7,650) or 54% above 2014. The Company sold 9,524
(2013 - 6,120) ounces of gold at an average realized price of $1,196 (2014 -
$1,319) per ounce, a 9% decline, and delivered 2,224 gold ounces (2014 - 1,530)
under the Sandstorm Purchase Agreement at $354 per ounce.
Cost of sales amounted to $10,157,498 (2014 -
$4,686,523). Cash operating cost and all-in sustaining cash cost per AgEq ounce
sold in Q1, 2015 were $8.49 and $11.25 (Ag:Au 66.7:1) per ounce, respectively,
compared to $6.63 and $9.01 (Ag:Au 66.7:1) per ounce in the comparable 2014
quarter. The increase in cash operating cost per AgEq ounce sold for Q1, 2015,
is a result of additional direct production costs due to the transition of
Santa Elena during 2014 from an open pit heap leach operation to an underground
mining and milling operation. The increase in all-in sustaining cash operating
cost per AgEq ounce sold for Q1, 2015, is a result of higher production costs
and the inclusion of Santa Elena's sustaining underground development,
infrastructure and equipment costs. The first two quarters of 2015 are
estimated to be the lower cash cost quarters while SilverCrest mines the
remaining open pit reserves at Santa Elena. The Company may revise its cost
guidance at the end of Q2, 2015, but currently expects its average 2015 cash
cost to range $10 - $11 per AgEq ounce sold and average all-in sustaining cash
cost to range $14 - $15 per AgEq ounce sold. Cash operating costs for Q1, 2015
experienced a favourable foreign exchange effect, as the quarterly average
Mexican Peso rate weakened against the U.S. Dollar by 13% compared to Q1, 2014.
Approximately 50% of Q1, 2015 cash operating costs are in Mexican Pesos. (Refer
to "Cautionary Note Regarding Non-IFRS Performance Measures").
Depletion, depreciation and amortization increased
to $3,013,434 (2014 - $1,721,406) with the incorporation of a depletion charge
for the underground mine and depreciation charges for Santa Elena's mill and
CCD/MC processing facilities that were not recorded in Q1 2014.
Current income tax expense amounted to $97,000
(2014 - $2,243,000). The decrease in income tax expense compared with Q1, 2014,
is primarily attributable to the Company taking a 100% tax deduction for
development costs incurred at Santa Elena.
Deferred tax expense amounted to $1,564,000 (2014 -
recovery $2,000). The increase in deferred tax expense is primarily due to
differences between the financial statement carrying amounts and the respective
Mexican tax bases resulting from the development cost deductions taken for
income tax purposes.
OUTLOOK
SilverCrest's immediate focus is to (i) continue
the efficient operation of its flagship Santa Elena low cost silver and gold
mine, (ii) increase underground ore production rates to 1,500 tpd by the end of
2015 to achieve an average rate of 1,320 tpd for fiscal 2015, (iii) expand
resources and associated reserves at Santa Elena by continued systematic
exploration of the deposit, (iv) continue to evaluate and acquire low cost
exploration properties in proximity to Santa Elena, (v) update the La Joya
resource model for a new resource estimate in 2015, and (vi) manage a strong
cash position to support growth while sustaining existing operations.
Q1 FINANCIALS CONFERENCE CALL
A conference call to discuss the results for the
2015 first quarter financial results will be held on Thursday, May 14, 2015.
The call will be held at 10am PDT (1pm EDT). To participate in the conference
call, please dial the following:
Updated Participant Dial-In Number(s)
Local - Toronto: 1-416-764-8688
Local - Vancouver: 1-778-383-7413
North American toll-free: 1-888-390-0546
A replay of the conference call will be archived
for later playback on the Company's website www.silvercrestmines.com.
The Qualified Person under National
Instrument 43-101 Standards of Disclosure for Mineral Projects for
this news release is N. Eric Fier, CPG, P.Eng and Chief Operating Officer for
SilverCrest Mines Inc., who has reviewed and approved its contents.
SilverCrest
Mines Inc. (NYSE MKT: SVLC; TSX: SVL) is a Canadian precious
metals producer headquartered in Vancouver, BC . SilverCrest's flagship
property is the 100%owned Santa Elena Mine, located 150 kilometres northeast of
Hermosillo , near Banamichi in the State of Sonora , Mexico. The mine is a
highgrade, epithermal silver and gold producer, with a current reserve
estimated life of mine of 8 years and average operating cash costs of $12 per
ounce of silver equivalent (64.5:1 Ag:Au based on ounces sold). SilverCrest
anticipates the 3,000 tonnes per day conventional mill facility at the Santa
Elena Mine should recover an average of 1.6 million ounces of silver and 33,800
ounces of gold per annum over the current reserve life. Exploration programs
continue to result in discoveries at Santa Elena and have advanced the
definition of a large polymetallic deposit at the La Joya property in Durango
State, Mexico.
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking
statements" within the meaning of Canadian securities legislation and the
United States Securities Litigation Reform Act of 1995. These include, without
limitation, statements with respect to: the economic viability of a project;
strategic plans and expectations for the development of the Company's
operations and properties; estimates of mineral reserves and mineral resources;
the amount of future production of gold and silver over any period; the amount
of expected grades and ounces of metals and minerals; expected cash operating
costs and outflows; life of mine and prices of metals and minerals.
These forward-looking statements relate to analyses
and other information that are based on, without limitation, the following
estimates and assumptions: presence of and continuity of metals at the
Company's projects; cost of production and productivity levels at the Santa
Elena Mine; availability and costs of mining equipment and skilled labour;
accuracy of the interpretations and assumptions used in calculating reserve and
resource estimates; operations not being disrupted or delayed by unusual
geological or technical problems; and ability to develop and finance projects.
Forward-looking statements are subject to a variety
of known and unknown risks, uncertainties and other factors which could cause
actual events or results to differ from those expressed or implied by the
forward-looking statements, including, without limitation: risks related to
precious and base metal price fluctuations; risks related to the fluctuations
in the price of consumed commodities; risks related to fluctuations in the
currency markets (particularly the Mexican peso, Canadian dollar and United
States dollar); risks related to the inherently dangerous activity of mining,
including conditions or events beyond our control, and operating or technical
difficulties in mineral exploration, development and mining activities;
uncertainty in the Company's ability fund the exploration and development of
its mineral properties; uncertainty as to actual capital costs, operating
costs, production and economic returns, and uncertainty that development
activities will result in profitable mining operations; risks related to
reserves and mineral resource figures being estimates based on interpretations
and assumptions which may result in less mineral production under actual
conditions than is currently estimated and to diminishing quantities or grades
of mineral reserves as properties are mined; and risks related to governmental
regulations and obtaining necessary licenses and permits.
Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from those described in the forward-looking statements. The
Company's forward-looking statements are based on beliefs, expectations and
opinions of management on the date the statements are made. For the reasons set
forth above, investors should not place undue reliance on forward-looking
statements. The Company undertakes no obligation to update or revise any
forward-looking statements, except as otherwise required by applicable law.
Contact:
Fred Cooper
Telephone: (604) 694-1730 ext. 108
Fax: (604) 694-1761
Toll Free: 1-866-691-1730
Email: info@silvercrestmines.com
Website: www.silvercrestmines.com
Suite 501 - 570 Granville Street, Vancouver, BC Canada V6C 3P1
Telephone: (604) 694-1730 ext. 108
Fax: (604) 694-1761
Toll Free: 1-866-691-1730
Email: info@silvercrestmines.com
Website: www.silvercrestmines.com
Suite 501 - 570 Granville Street, Vancouver, BC Canada V6C 3P1
Published at
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