Scorpio Mining announced its unaudited financial and operating results for the first quarter of 2011.
|Q1 2011||Q1 2010|
|Revenue (‘000 of $CAD)||$18,265||$6,022|
|Mine operating earnings (‘000 of $CAD)||$12,547||$1,359|
|Gain on dilution and deconsolidation of
Scorpio Gold Corporation (‘000 of $CAD)
|Net earnings (‘000 of $CAD)||$6,557||$18,644|
|Earnings per share – Basic||$0.03||$0.17|
|Earnings per share – Diluted||$0.03||$0.16|
|Adjusted EBITDA(1) (‘000 of $CAD)||$11,554||$1,982|
|Cash operating cost per tonne (1)||US$42.93||US$36.80|
|Cash operating cost per silver equivalent ounce(2)||US$7.10||US$8.12|
|Silver equivalent ounces produced(2)||737,833||419,681|
Parviz Farsangi, President & CEO comments, “We are very pleased to report record production of all metals in the first quarter of 2011 and a further substantial increase in mine operating earnings from our turnaround quarter, Q4 2010. Combined with a strong operational cash flow and relatively low operating cost, Scorpio Mining is well positioned among the best performing silver producers with significant base metal by-product credits in Mexico. We are committed to continue building on our current assets with an aggressive exploration program in 2011 and planned plant expansion.”
Highlights for the First Quarter Ended March 31, 2011 and Subsequent Events:
|(1)||This is a non-IFRS performance measure; please see Non-IFRS Performance Measures section in the Corporation’s Management Discussion & Analysis.|
|(2)||The non-IFRS measure of cash operating cost per silver equivalent ounce is used by the Corporation to manage and evaluate operating performance and is widely reported in the silver mining industry as a benchmark for performance, but does not have a standardized meaning. Silver equivalent above is calculated on a produced metal basis using weighted average Q1 2011 prices of silver US$31.31/oz, zinc US$1.08/lb, lead US$1.14/lb and copper US$4.29/lb.|
The existing mineral reserves at the Nuestra Señora mine provide the equivalent of six years of production at the current processing capacity of the Nuestra Señora plant. In the Cosalá district, the Corporation has NI 43-101 compliant mineral resources at the San Rafael and El Cajón projects, as well as having several advanced exploration projects. The Corporation is aggressively advancing its exploration activities to further increase mineral resources and prove additional reserves.
The Nuestra Señora processing plant has an existing capacity of approximately 1,500 tonnes per day (“TPD”), but is expandable up to approximately 4,000 TPD. The Corporation has commenced engineering studies to quantify the investment required for varying expansion scenarios. Other growth alternatives being evaluated include the development of a second processing facility in the Cosalá district. Such expansion would allow for the diversification of process circuits and reduce the distances between multiple ore sources and processing facilities.
The Corporation will advance feasibility studies for the expansion of processing capacity and make development decisions during 2011.
Scorpio Mining’s Mexico Country Manager, John A. Sadek, B.Eng. (Mining), MAusIMM, is a Qualified Person for the Corporation’s Mexico projects and has reviewed the content of this release.