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Reports Results for 2008

posted on Apr 01, 2009 01:18AM
April 1, 2009
Genco Reports Results for 2008
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 31, 2009) - Genco Resources Ltd. (TSX:GGC) announces results for the financial year ended December 31, 2008.

Financial Overview

- Sales for the year ended 2008 were $6,604,496, an increase of 6% from the year ended 2007.

- Gross loss on operations for the year ended 2008 was $708,115, a decrease from the gross profit on operations of $132,618 for the year ended 2007.

- Investment in exploration, new mine development and equipment totalled $11,102,856 during the year ended December 31, 2008.

Summary Financial and Operational Results

---------------------------------------------------------------------------
                                    December 31, 2008     December 31, 2007
                                    ---------------------------------------
Sales                                     $ 6,604,496           $ 6,212,545
Gross Profit                                ($708,115)          $   132,618
Net loss                                  $ 9,990,220           $ 5,738,367
Loss per share                            $      0.24           $      0.16
Average shares fully diluted               41,320,712            36,415,304

Tonnes milled                                  67,620                59,342
eAg ounces sold                               458,568               520,054
Silver sales (ounces)                         316,704               269,109
Gold sales (ounces)                             2,572                 4,839
Average realized silver price                US$16.08              US$13.39
Average realized gold price                 US$886.89             US$694.39
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Sales increased during 2008 as a result of higher metal prices for the Company's silver and gold production. Total silver and gold production decreased in 2008 when compared to 2007 due to the mining and milling of lower grade ore during 2008, and a labour dispute at the Company's La Guitarra Mine. Lower average grade ore was economically mined during the period as higher prices permitted lower cut-off grades and increased mine development produced more development ore.

As shown in the summary financial results, the net loss for 2008 was higher than 2007. The main reasons for the higher net loss were: costs related to the June 2008 Annual General Meeting; costs associated with a labour dispute in Mexico; costs relating to the ongoing Feasibility Study for mine expansion at La Guitarra; increased amortization expenses during the year, and a loss on the impairment of Genco's investment in the Chief Consolidated Mining Company.

Additional information regarding Genco's 2008 financial results is contained in Genco's Audited Annual Financial Statements for 2008, associated MD&A and Annual Information Form which are available on the Company's website at www.gencoresources.com. These documents are also available online at www.sedar.com.

About Genco Resources Ltd.

Genco's core asset is the producing La Guitarra silver/gold mine, which is located in the Temascaltepec Mining District of Mexico. La Guitarra mine currently consists of two underground operation centres---La Guitarra and San Raphael---and a flotation mill with a proven capacity of 320 tonnes per day. Genco believes significant potential exists to expand production within the 39,714 hectares of mining concessions it currently owns or leases in the Temascaltepec Mining District.
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