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News - net income reported for 3rd qtr
Jun 14, 2008 06:09PM
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 13, 2008) - Starcore International Mines Ltd. (TSX:SAM) (the "Company") has filed the results for the third quarter ended April 30, 2008. Starcore had revenues from metal sales of $7.2 million, earnings from mining operations of $1.2 million, and reports a net income of $0.2 million for the quarter ended April 30, 2008. Over the nine month period ended April 30, 2008, the Company reports revenues of $20.1 million, earnings from mining operations of $3.7 million and a net loss of $1.2 million, due largely to a $1.1 million non-cash stock-based compensation charge on option awards.
The net income in the quarter resulted from a combination of higher metal prices and a marked decrease in corporate administrative expenses due largely to management's efforts to lower administrative costs.
The Company also had positive cash flow from operations of $1.4 million for the quarter and $3.8 million for the nine months ended April 30, 2008.
The following table is selected information of mine production statistics for the San Martin mine for the April 30, 2008 quarter of operations and the first complete year of operations to January 31, 2008. Chief Executive Officer Robert Eadie stated, "Management is encouraged by the development of the Guadalupe vein and by re-establishing access to the higher grade ore bodies which has directly increased ore grade from that of the prior quarter and which will provide better results into the coming year. We have reported a quarterly profit for the second time since acquiring the mine last year and hope to maintain this trend."
results forresults for
April 30,January 31,
(Unaudited)Unit of measure20082008
Production of Gold in Dorethousand ounces4.124.1
Production of Silver in Dorethousand ounces30.3213.1
Equivalent ounces of Gold(i)thousand ounces4.6528.2
Milledthousands of tonnes67.0258.1
Operating Cost per
Equivalent OunceUS dollars/tonne487301
(i) assuming a 50:1 silver to gold equivalency ratio
Overall equivalent gold production was lower at 4,650 ounces, compared to the prior years' average of 7,050 ounces per quarter. The decrease is due to lower ore grades in the quarter, however, ore grades have improved to 2.17 g/t gold and 24 g/t silver over the prior quarter amounts of 2.04 g/t and 24 g/t, respectively. The Company placed ore bodies 29 to 31 back into full production by the end of the quarter, which is expected to result in higher ore grades over the next quarter. In addition, the Company has mined over 8,100 tonnes grading 3.18 g/t of gold and 26 g/t silver from the Guadalupe vein during the quarter and expects to increase the tonnage milled from this vein in the future.
Full financial statements are available on SEDAR at www.sedar.com and on Starcore's website at www.starcore.com.