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=?UTF-8?Q?SILVERCREST=20ANNOUNCES=202011=20FINANCIAL=20RESULTS=20CASH=20FLOW=20F
ROM=20OPERATIONS=20OF=20$14.7=20MILLION=20=28$0.19=20PER=20SHARE=29
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SilverCrest Announces 2011 Financial Results Cash Flow from Operations of
$14.7 million ($0.19 per share)
TSX-V: SVL OTCQX: STVZF
For Immediate Release
Dear Subscriber,
VANCOUVER, B.C.
April 10, 2012 – SilverCrest Mines Inc.
(the “Company”) is
pleased to announce its financial results for the year and fourth quarter
ended December 31, 2011 (all figures in _U.S.
dollars_ unless otherwise
specified.)
2011 ANNUAL FINANCIAL HIGHLIGHTS:
- Cash flow from operations (1) $14.7 million ($0.19 per share)
- Cash operating cost per silver
equivalent ounce sold(2) $7.79
- Revenues reported - IFRS (3) $41.9 million
- Mine operating earnings $29.0 million
- Comprehensive earnings $8.4 million ($0.11 per share)
- Cash and cash equivalents $25.9 million (at December 31, 2011)
- Working capital $24.1 million (at December 31, 2011)
- Retirement of the Project Loan $12.5 million
- Bought deal financing proceeds $30.9 million
J.
Scott Drever, President stated; “We are extremely pleased with the
financial performance achieved in 2011.
Having achieved cash flow of $0.19
and earnings of $0.11 per share from only 9 months of commercial production
at Santa Elena is due to the extraordinary performance of both our
operations team in Mexico and our management group in Vancouver.
We have
made significant progress on all fronts and achieved or bettered our targets
in all major measures of performance.
Our strong cash position and cash flow
assures we can continue with our Expansion Plan to double production at
Santa Elena and aggressively explore the La Joya property where the Company
has a major new silver- gold - copper discovery”.
--------------------------------------------------------
Financial and
Operating
Highlights: Q4 2011 Q4 2010 FY 2011 FY 2010
----------------------------------------------------------------------------
Cash flow from
operations (1) $ 6,822,618 $ 203,072 $ 14,652,374 $ (1,625,482)
Cash flow from
operations (1) per
share $ 0.08 $ 0.00 $ 0.19 $ (0.03)
Cash operating cost
per silver
equivalent ounce
sold (2) $ 5.65 - $ 7.79 -
Revenues (3)
Silver revenue $ 3,812,535 - $ 12,086,871 -
Gold revenue -
cash basis $ 8,189,781 - $ 19,752,954 -
----------------------------------------------------------------------------
$ 12,002,316 - $ 31,839,825 -
Gold revenue - non
cash
- adjustment to
market spot
price $ 5,527,824 - $ 13,081,984 -
- amortization
of deferred
revenue $ 728,209 - $ 1,804,352 -
----------------------------------------------------------------------------
$ 18,258,349 - $ 46,726,161 -
Capitalized to
Santa Elena Mine - - $ (4,856,037) -
----------------------------------------------------------------------------
Revenues reported $ 18,258,349 - $ 41,870,124 -
Cost of sales $ (3,764,200) - $ (9,526,888) -
Depletion,
depreciation and
accretion $ (1,528,869) - $ (3,386,674) -
----------------------------------------------------------------------------
Mine operating
earnings $ 12,965,279 - $ 28,956,562 -
Gain (loss) on
derivative ($18,694,63
instruments $ 908,683 $ (6,164,801) $(11,497,957) $ 1)
Other net income
(expenses) $ (2,661,503) $ 393,242 $ (6,653,186) $ (274,728)
Taxes $ (1,349,000) - $ (1,349,000) -
Exchange gain (loss)
on translation to
US Dollars $ 520,196 $ (171,819) $ (1,022,390) $ (1,037,178)
----------------------------------------------------------------------------
Comprehensive
earnings (loss) $ 10,383,655 $ (5,943,378) $ 8,434,029 $(20,006,537)
Weighted average
number of common
shares outstanding 86,663,595 61,659,334 78,909,624 60,304,687
Comprehensive
earnings (loss) per
share - basic $ 0.12 $ (0.10) $ 0.11 $ (0.33)
----------------------------------------------------------------------------
Silver ounces sold 120,199 27,356 344,725 27,356
Gold ounces sold 9,702 933 23,962 933
Silver equivalent
ounces sold (2) 666,303 70,168 1,570,107 70,168
Ag : Au Ratio (2) 56.3:1 45.9:1 50.4:1 45.9:1
----------------------------------------------------------------------------
(1) Cash flow from operations before changes in working capital items.
(2) This is a Non-IFRS performance measure.
Silver equivalence is a
weighted volume average based on market spot prices per ounce of gold
and silver at the quarter end dates.
(3) IFRS 18 - Revenue, states revenue should be recorded at its fair value,
which for gold and silver is the market spot price on the date revenue
is recognized.
^(1) Cash flow from operations before changes in working capital items.
^(2) This is a Non-IFRS performance measure.Silver equivalence is a
weighted volume average based on market spot prices per ounce of gold and
silver at the quarter end dates.
^(3) IFRS 18 – Revenue, states revenue should be recorded at its fair value,
which for gold and silver is the market spot price on the date revenue is
recognized.
The information in this news release should be read in conjunction with the
Companys audited consolidated financial statements for the year-ended
December 31, 2011 and associated MD&A which are available from the Companys
website at [2]www.silvercrestmines.comand under the Companys profile on
SEDAR at [3]www.sedar.com.
Links:
2.
http://www.silvercrestmines.com
3.
http://www.sedar.com
Three months ended December 31, 2011
During the quarter ended December 31, 2011 reported revenue amounted to
$18,258,349 (2010 - $Nil) which included $12,002,316 in silver and gold
revenues on a cash basis and non-cash revenues of $5,527,824 for adjustments
to gold spot market prices related to hedge facility deliveries and $728,209
for amortization of deferred revenues related to payments under the
Sandstorm Agreement.
The non cash amount of $5,527,824 represents the
difference between the market spot price at the date of delivery for gold
(quarterly average of $1,677.40 per ounce) and the hedge price of $926.50
per ounce settled as required by IFRS accounting policies.
Silver sales were 120,199 ounces (2010 – 27,356) at an average realized
price of $31.72.
Gold sales were 9,702 ounces (2010 – 933).
Gold delivered into the Hedging Facility was 7,362 ounces (2010 – 746) at an
average realized price of $925.51.
Gold delivered to Sandstorm was 1,940
ounces (2010 – 187) at an average realized gold price of $725.44 for which
the Company recorded revenues of $1,407,349 consisting of $679,140 in cash
received and $728,209 from amortization of deferred revenue.
The Company
sold 400 gold ounces (2010 – Nil) at market spot realized price of $1,743.50
per ounce.
Cost of sales amounted to $3,764,200.
Cash cost per silver equivalent ounce
sold amounted to $5.65 (Non-IFRS Performance Measure).
Other significant changes;
* General and administrative expenses increased to $1,705,554 (2010 -
$667,728) primarily due to an increase in remuneration and corporate
expenditures in Vancouver and Mexico.
* Gain (loss) on derivative instruments amounted to $908,683 (2010 –
($6,164,801)).
Under IFRS the Company’s derivative instruments are fair
valued at the financial position date, with the resulting gain or losses
included in the operating results for the period.
The derivative gain
relates to the incremental fair value of the MBL Hedging Facility, which
represents the difference between the average market spot price of gold
for the quarter and strike price of $926.50 per ounce.
* Exchange gain (loss) on translation to US Dollars amounted to $520,196
(2010 – ($171,819)) resulting from the change in presentation currency
in January 1, 2011, from the Canadian Dollar to the US Dollar and
resulting translation of the Company’s Canadian holdings.
Comprehensive earnings were $10,383,655 or $0.12 per common share compared
to a comprehensive loss of $5,943,378 or ($0.10) per common share in 2010.
Twelve months ended December 31, 2011
During the twelve months ended December 31, 2011, reported revenue amounted
to $41,870,124 (2010 - $Nil) which included $31,839,825 in silver and gold
revenues on a cash basis and non-cash revenues of $13,081,984 for
adjustments to gold spot market prices related to hedge facility deliveries
and $1,804,352 for amortization of deferred revenues related to payments
under the Sandstorm Agreement.
The non cash amount of $13,081,984 represents
the difference between the market spot price at the date of delivery for
gold (annual average of $1,623 per ounce) and the hedge price of $926.50 per
ounce settled as required by IFRS accounting policies.
Silver sales were 344,725 ounces (2010 – 27,356) at an average realized
price of $35.06.
Gold sales were 23,962 ounces (2010 – 933).
Gold delivered into the Hedging Facility was 18,769 ounces (2010 – 746) at
an average realized price of $925.89.
Gold delivered to Sandstorm was 4,793
ounces (2010 – 187) at an average realized gold price of $726.40 for which
the Company recorded $3,481,658 related to the delivery of these 4,793 gold
ounces, consisting of $1,677,306 in cash received and $1,804,352 from
amortization of deferred revenue.
The Company sold 400 gold ounces (2010 –
Nil) at market spot realized price of $1,743.50 per ounce.
Prior to commencement of commercial production, proceeds from the sale of
silver and gold were applied as a reduction to the cost of the Santa Elena
Mine.
Prior to April 1, 2011, sales proceeds totaling $4,856,230 were
capitalized to the Santa Elena Mine.
Cost of sales amounted to $9,526,888.
Cash cost per silver equivalent ounce
sold amounted to $7.79 (Non-IFRS Performance Measure).
Other significant changes;
General and administrative expenses increased to $4,093,438 (2010 -
$1,949,220) primarily due to an increase in remuneration and corporate
expenditures in Vancouver and Mexico.
Loss on derivative instruments amounted to $11,497,957 (2010 - $18,694,631).
Under IFRS the Company’s derivative instruments are fair valued at the
financial position date, with the resulting gain or losses included in the
operating results for the period.
The derivative loss relates to the
incremental fair value of the MBL Hedging Facility, which represents the
difference between the average market spot price of gold for the quarter and
strike price of $926.50 per ounce.
Exchange loss on translation to US Dollars amounted to $1,022,390 (2010 –
$1,037,178) resulting from the translation of the Company’s Canadian
holdings.
As at December 31, 2011, the Company held Canadian holdings of
$23.4million in cash, cash equivalents and short term investments.
Comprehensive earnings for the twelve months ended December 31, 2011 was
$8,434,029 or $0.11 per common share compared to a comprehensive loss of
$20,006,537 or ($0.33) per common share in 2010.
Commercial Production at Santa Elena was declared on July 13, 2011, with the
second quarter of 2011 being the first period whereby operating revenues and
expenses were presented in the consolidated financial statements.
-----------------------------------------------------
Financial and Operating
Highlights: Q4, 2011 Q3, 2011 Q2, 2011 Q1, 2011
----------------------------------------------------------------------------
Cash flow from
operations (1) $ 6,822,618 $ 5,131,481 $ 3,595,218 $ (52,661)
Cash operating cost per
silver equivalent
ounce sold (2) $ 5.65 $ 7.27 $ 8.27 $ Nil
Revenues reported (3) $ 18,258,349 $ 15,055,514 $ 8,556,261 $ Nil
Mine operating earnings
(3) $ 12,965,279 $ 10,286,196 $ 5,705,087 $ Nil
Comprehensive earnings $ 10,383,655 $ 81,856 $ 790,429 $ (2,821,911)
Comprehensive earnings
per share - basic $ 0.12 $ 0.00 $ 0.01 $ (0.02)
Cash, cash equivalents
and short term
investments (4) $ 25,939,774 $ 32,122,284 $ 33,320,876 $ 6,710,196
Tonnes of ore mined 326,496 248,192 249,217 155,559
Tonnes of waste mined 1,310,764 1,058,909 707,553 501,819
Waste/Ore ratio 4.01 4.27 2.84 3.23
Silver ounces produced 131,045 106,636 74,678 64,712
Silver ounces sold 120,199 96,631 70,326 57,569
Gold ounces produced 9,536 8,805 5,476 3,152
Gold ounces sold 9,702 7,627 4,300 2,333
Silver equivalent
ounces produced 667,805 575,079 310,090 184,483
Silver equivalent
ounces sold (2) 666,303 502,402 255,182 146,219
Ag : Au Ratio (2) 56.3:1 53.2:1 43.0:1 38:1
^(1) Cash flow from operations before changes in working capital items.
^(2) This is a Non-IFRS performance measure.
Silver equivalence is a
weighted volume average based on market spot prices per ounce of gold and
silver at the quarter end dates.
^(3) Revenues reported and mine operating earnings include non cash revenues
of $5,527,824 in Q4, $4,681,312 in Q3, and $2,007,810 in Q2, from derivative
instruments and $728,209 in Q4, $572,462 in Q3 and $322,725 in Q2, from
deferred revenue.
^(4) Cash, cash equivalents and short term investments decreased in Q4 from
loan repayments of $7.1 million and settling the European gold call option
for $3,020,609 in cash.
NON-IFRS PERFORMANCE MEASURES
The discussion of financial results in this press release includes reference
to cash operating cost per silver equivalent ounce sold which is a non-IFRS
performance measure.
The Company provides this measure to provide additional
information regarding the Companys financial results and performance.
Please refer to the Companys MD&A for the year ended December 31, 2011, for
a reconciliation of this measure to reported IFRS results.
OUTLOOK FOR 2012
For 2012, the Company’s immediate focus is to diligently operate its
flagship Santa Elena open pit silver and gold mine, continue to expand the
value embedded in the Santa Elena mine by proceeding with the three year
expansion plan to double metals production, and to rapidly advance the
definition of a large polymetallic deposit at the La Joya property.
The
specific targets are expected to be as follows:
Santa Elena Open Pit Production Targets
* Estimated annual production, 33,000 gold ounces and 435,000 silver
ounces;
* Expected operating costs of $18.5 million;
* Average cash operating cost of $8.20 per ounce silver equivalent (55:1
Ag:Au);
* Sustaining capital expenditure of $2.5 million;
* Operating cash flow in excess of $2 million per month, based on $1,600
per ounce of gold, $30 per ounce of silver.
Santa Elena Expansion Targets
* Collar underground decline in January, 2012 (achieved);
* Complete underground development, including main ramp and exploration
drifts, of approximately 2,350meters;
* Secure long lead time items for mill and initiate tank fabrication;
* Complete Pre-Feasibility Study on Cruz de Mayo satellite deposit as part
of the Expansion Plan (commenced);
* Complete Pre-Feasibility Study on Expansion Plan (underground and mill
– commenced);
* Drill Santa Elena at depth to expand underground resources (commenced);
* Continue site exploration for further discoveries;
* Budgeted capital expenditure for 2012 estimated at $20 million including
expansion plan and exploration.
La Joya Project Targets
* Complete Phase II drilling program of approximately 80 holes: core (60)
and reverse circulation (20) drill holes (commenced);
* Explore the Coloradito, Esperanza and Santo Nino targets adjacent to the
Main Mineralized Trend (“MMT” (commenced);
* Complete revised resource estimation using Phase II results in Q4 2012;
* $3 million budget for exploration through June, with additional $3
million estimated through December 31, 2012.
N.
Eric Fier, CPG, P.Eng.
and Chief Operating Officer for SilverCrest Mines
Inc.
and Qualified Person for this news release has reviewed and approved
its contents.
SilverCrest Mines Inc.
(TSX-V: SVL; OTCQX: STVZF) is a Mexican precious
metals producer with headquarters based in Vancouver, BC.
SilverCrest’s
flagship property is the 100%-owned Santa Elena Mine, which is located 150
km northeast of Hermosillo, near Banamichi in the State of Sonora, México.
The mine is a high-grade, epithermal gold and silver producer, with an
estimated life of mine cash cost of US$8 per ounce of silver equivalent
(55:1 Ag:Au).
SilverCrest anticipates that the 2,500 tonnes per day facility
should recover approximately 4,805,000 ounces of silver and 179,000 ounces
of gold over the 6.5 year life of the open pit phase of the Santa Elena
Mine.
A three year expansion plan is underway to double metals production at
the Santa Elena Mine and exploration programs are rapidly advancing the
definition of a large polymetallic deposit at the La Joya property in
Durango, Mexico.
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.
The information provided in this news release is not intended to be a
comprehensive review of all matters and developments concerning the Company.
It should be read in conjunction with all other disclosure documents of the
Company.
The information contained herein is not a substitute for detailed
investigation or analysis.
No securities commission or regulatory authority
has reviewed the accuracy or adequacy of the information presented.
“J.
Scott Drever”
J.
Scott Drever, President
For further information, please contact:
Fred Cooper
570 Granville Street, Suite 501
Vancouver, BC V6C 3P1
Telephone: (604) 694-1730
Fax: (604) 694-1761
Email: [4]
Website: [5]www.silvercrestmines.com
Toll Free: 1-866-691-1730 (Canada & USA)
Links:
4.
mailto:
5.
http://www.silvercrestmines.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SilverCrest Mines Inc.
Copyright ©2008 | [6]
SilverCrest Mines Inc.
- 570 Granville St., Suite 501 V6C 3P1, Vancouver BC
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