Highlights of the report include cash flow from operations of $7.1 million or $0.07 per share, down 30% from $10.2 million in the same quarter in 2012. However, net earnings increased to $3.71 million, an increase of 194% from $1.26 million in the same quarter in 2012, resulting in of $0.03, up from $0.01 per share in the previous period.
The increase in net earnings during the quarter was primarily driven by the elimination of the marked-to-market derivative impact from Hedge Facility deliveries and lower income taxes in the period, partially offset by a decrease in revenue resulting from significantly lower realized prices and lower gold sales.
Silver prices fell 31% to $22 per ounce, with gold prices declining 21% to $1,346 per ounce.
Although gold sales were down slightly to 7,522 ounces, silver sales at 204,947 ounces, were up 35% for another quarterly record.
For a complete breakdown of these numbers, please refer to SilverCrest`s current news release.
N. Eric Fier, President and COO stated, "During Q3, despite sustained lower metal prices, SilverCrest generated strong positive cash flows and net earnings. Our free cash flow continues to be reinvested at Santa Elena as expenditures for the expansion plan with $14.4m invested in Q3. Management continues to focus on improving operating performance and profit margins especially in light of the new mining taxes currently being legislated in Mexico. We remain on track to achieve or better our cost guidance of $8.50 per silver equivalent ounce and production guidance of 2.44 million ounces of silver equivalent."
The company`s immediate focus is to continue to efficiently operate its Santa Elena low cost open pit silver and gold mine, where production has been reaching daily highs of 5.8 grams per tonne gold and 175 grams per tonne silver.
Major expansion and construction of a new 3,000 tonne per day mill facility is underway to significantly increase production.
SilverCrest is also advancing the large silver, copper, gold deposit at the La Joya Property in Durango State, which has stated nearing 200 million ounces of silver equivalent.
All numbers previously mentioned refer to US dollars.
SilverCrest currently trades at $1.70 on the TSX Venture Exchange, and with 108.8 million shares outstanding, the company is capitalized at $185 million.
For more information please visit the company`s website www.silvercrestmines.com, or contact Fred Cooper at 1-866-691-1730 or email email@example.com.
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Published at Investorideas.com Newswire
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