Vancouver, British Columbia - May 15, 2014 (Investorideas.com Mining Stocks Newswire) SilverCrest Mines Inc. (
TSX:SVL) (
NYSE MKT: SVLC) is pleased to announce its
financial
results for the first quarter ended March 31, 2014. All financial
information is prepared in accordance with 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, 2014 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.
N. Eric Fier, President and COO stated, "We are
pleased with the steady start to 2014, for which operating costs and
production were consistent with budget, although our financial
performance compared to the first quarter of 2013 was impacted by lower
metal prices. Our all-in sustaining
cash
costs per silver equivalent ounce sold (2) at $9.71 continues to makes
us one of the lowest cost precious metal producers. With the
commissioning of our new 3,000 tpd mill, SilverCrest is well positioned
to continue to generate strong operating cash flows in H2 2014, with
continued strengthening of its cash position of $54.5 million at March
31, 2014."
FINANCIAL HIGHLIGHTS OF Q1, 2014, Compared to Q1, 2013:
- Cash flow from operations (1) decreased 25% to $6.6 million ($0.06 per share).
- Cash operating cost per silver equivalent ounce sold (2) decreased 7% to $7.14.
- All-in sustaining cash cost per silver equivalent ounce sold (2) decreased 40% to $9.71.
- Revenues reported decreased 15% to $13.0 million.
- Metal sales of 198,800 ounces of silver and 7,650 ounces of gold increased 27% and 4% respectively.
- Realized spot metal prices declined from $30 to $21 (30%) for silver and from $1,626 to $1,319 (19%) for gold.
- Net earnings were $2.5 million ($0.02 per share), compared to $6.0 million ($0.06 per share).
- Cash and cash equivalents were $54.5 million (at March 31, 2014), compared to $41.1 million (at March 31, 2013).
- Working capital was $63.7 million (at March 31, 2014), compared to $48.9 million (at March 31, 2013).
- Bullion inventory at March 31, 2014, included 59,114 ounces of silver and 2,084 ounces of gold.
Comparison of the three months ended March 31, 2014 to March 31, 2013
Net earnings were $2,467,989 ($0.02 per share basic) for the first
quarter compared with $6,002,276 ($0.06 per share basic) in 2013. The
decrease in net earnings during the first quarter was primarily
attributed by lower revenues resulting from significantly lower realized
prices.
Silver and gold revenue totalled $13,005,527 (2013 - $15,329,642)
in the first quarter. Silver sales totalled 198,800 ounces (2013 -
157,088), 27% higher than the same period in 2013. The foregoing,
combined with a 30% lower average realized price at $21 (2013 - $30) per
ounce, resulted in 12% less silver revenue. Total gold revenue reported
in the first quarter decreased 16% compared to the same period in 2013.
Total gold sales were 7,650 ounces (2013 - 7,370) or 4% above 2013. The
Company
sold 6,120 (2013 - 5,896) ounces of gold at an average realized price
of $1,319 (2013 - $1,626) per ounce, a 19% decline and delivered 1,530
gold ounces (2013 - 1,474) under the Sandstorm Purchase Agreement at
$350 per ounce.
Cost of sales amounted to $4,686,523 (2013 - $4,368,519). Operating
cash cost per silver equivalent ounce sold amounted to $7.14, Ag:Au
60.0:1 (2013 - $7.69, Ag:Au 55.8:1). The decrease in operating cash cost
per silver equivalent ounce sold is driven generally by the difference
in silver equivalence ratios. The 40% decrease in all-in sustaining cash
costs from Q1 2013, is primarily due to lower exploration costs
incurred by the Company during Q1 2014.
General and administrative expenses increased by 10% to $1,477,002
(2013 - $1,340,926) primarily due to an increase in regulatory expenses
resulting from the onetime TSX listing fee.
(1)
Cash flow from operations before changes in working capital items.
(2) These are Non-IFRS performance measures. Refer to "CAUTIONARY
NOTE REGARDING NON-IFRS PERFORMANCE MEASURES". Silver equivalent
("AgEq") ounces consist of the number of ounces of silver
production/sold plus the number of ounces of gold production/sold
multiplied by a 60:1 gold price to silver price ratio. Prior to Q1 2014,
the AgEq ratio was based on the spot gold price to the spot silver
price at the quarter end dates for financial reporting. All numbers are
rounded.
OUTLOOK
SilverCrest's immediate focus is to (i) continue its efficient
operation of its flagship Santa Elena low cost silver and gold mine,
(ii) complete commissioning of the new 3,000 tonne per day CCD-MC
processing plant, (iii) complete accelerated development of the
underground mine for initial underground production, (iv) expand
resources and subsequent reserves at Santa Elena by systematic
exploration of the deposit, (v) evaluate and acquire exploration
properties
in proximity to Santa Elena, (vi) complete evaluation of certain
aspects at the La Joya Project to a Pre-Feasibility Study level in 2014.
CONFERENCE CALL
A conference call to discuss the results will be held on Thursday,
May 15th. The call will be held at 10am PDT (1pm EDT). To participate in
the conference call, please dial the following:
Participant Dial In Number(s)
Local / International: 416-849-5572
North American Toll-Free: 1-866-809-6768
A replay of the conference call will be archived for later playback on the Company's website at
www.silvercrestmines.com.
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 km northeast of
Hermosillo, near Banamichi in the State of Sonora, México. The mine is a
high-grade, epithermal silver and gold producer, with an estimated life
of mine of 8 years and operating cash costs of $11 per ounce of silver
equivalent (55:1 Ag:Au) for the open pit heap leach and underground
mine. SilverCrest anticipates that the new 3,000 tonnes per day
conventional mill facility at the Santa Elena Mine should recover an
average annual rate of 1.5 million ounces of silver and 32,800 ounces of
gold over the current reserve. Major expansion and construction of the
3,000 tonnes per day conventional mill facility is nearing completion
and is expected to significantly increase metals production at the Santa
Elena Mine (open pit and underground) in 2014 and beyond. Exploration
programs continue to make new discoveries at Santa Elena and also have
rapidly 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. Such forward-looking
statements concern the Company's anticipated results and developments in
the Company's operations in future periods, planned exploration and
development of its properties, plans related to its
business
and other matters that may occur in the future. These statements relate
to analyses and other information that are based on expectations of
future performance, including silver and gold production and planned
work programs. Statements concerning reserves and mineral resource
estimates may also constitute forward-looking statements to the extent
that they involve estimates of the mineralization that will be
encountered if the property is developed and, in the case of mineral
reserves, such statements reflect the conclusion based on certain
assumptions that the mineral deposit can be economically exploited.
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
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 to raise financing and 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; risks related to governmental regulations and
obtaining necessary licenses and permits; risks related to the business
being subject to environmental laws and regulations which may increase
costs of doing business and restrict our operations; risks related to
mineral properties being subject to prior unregistered agreements,
transfers, or claims and other defects in title; risks relating to
inadequate insurance or inability to obtain insurance; risks related to
potential litigation; risks related to the global economy; risks related
to the Company's status as a foreign private issuer in the United
States; risks related to all of the Company's properties being located
in Mexico and El Salvador, including political, economic, social and
regulatory instability; and risks related to officers and directors
becoming associated with other natural resource companies which may give
rise to conflicts of interests. 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.
N. Eric Fier, President & COO
SILVERCREST MINES INC.
Neither TSX Exchange nor its Regulation Services Provider (as
defined in the policies of the TSX Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Contact:
Fred Cooper
Telephone: (604) 694-1730 ext. 108
Toll Free: 1-866-691-1730
Email:
info@silvercrestmines.com
Website:
www.silvercrestmines.com
Address: Suite 501 - 570 Granville Street
Vancouver, BC Canada V6C 3P1
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value through discoveries and strategic development of its assets in
some of the most prolific mining regions in Mexico and British Columbia.
At the present time, the geometry of the mineralized system is not
known and true width for the drill intercepts remains to be determined.
The widths given are downhole core lengths. The cut-off for the 7-meter
intercept is 20 g/t Ag. The hole was drilled to a length of 100 meters.