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Starcore Reports Q3 Results

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Vancouver, British Columbia--(Newsfile Corp. - March 17, 2021) - Starcore International Mines Ltd. (TSX: SAM) ("Starcore" or the "Company") has filed the results for the third quarter ended January 31, 2021 for the Company and its mining operations in Queretaro, Mexico. The full version of the Company's Financial Statements and Management's Discussion and Analysis can be viewed on the Company's website at www.starcore.com, or SEDAR at www.sedar.com. All financial information is prepared in accordance with IFRS and all dollar amounts are expressed in thousands of Canadian dollars unless otherwise indicated.

"Our operational excellence programs continue to yield positive results in our efforts to produce profitable ounces and build the company's cash position," reported Robert Eadie, President and C.E.O. "The recently announced sale of our non-core asset, the Toiyabe property in Nevada, will provide further working capital to explore and develop our Mexican properties in order to find new opportunities and continue to extend the San Martin mine life."

Financial Highlights for the three-month period ended January 31, 2021 (unaudited):

  • Cash and short-term investments on hand is $4.0 million at January 31, 2021;

  • Gold and silver sales of $6.6 million;

  • Earnings from mining operations of $1.24;

  • Net Income of $0.7 million, or $0.01 per share;

  • EBITDA(1) of $6.5 million for the nine month period ended January 31, 2021.

The following table contains selected highlights from the Company's unaudited consolidated statement of operations for the three and nine months ended January 31, 2021 and 2020:

(in thousands of Canadian dollars)
(Unaudited)


Three Months ended January 31,



Nine Months ended
January 31,


2021

2020

2021

2020

Revenues

$

6,614


$

6,275


$

21,676


$

18,468


Cost of Sales

(5,378

)

(5,006

)

(15,289

)

(17,369

)

Earnings from mining operations and toll processing

1,236

1,269

6,387

1,099

Administrative expenses, interest and foreign exchange


(703

)


(1,251

)


(2,883

)


(3,279

)

Sale of Altiplano


-



-



-



(39

)

Income tax recovery

118

4

263

348

Net income (Loss)

$

651


$

22


$

3,767


$

(1,871

)

(i) Income (Loss) per share - basic

$

0.01


$

0.00


$

0.08


$

(0.04

)

(ii) Income (Loss) per share - diluted

$

0.01


$

0.00


$

0.08


$

(0.04

)

Reconciliation of Net income to EBITDA(1)



For the nine months ended January 31,

2021

2020

Net income (loss)

$

3,767


$

(1,871

)

Sale of Altiplano


-



39


Income tax expense (recovery)


(263

)


(348

)

Interest


24



259


Depreciation and depletion

2,942

2,541

EBITDA

$

6,470

$

620

EBITDA MARGIN(2)

29.8

%

3.4

%

(1) EBITDA ("Earnings before Interest, Taxes, Depreciation and Amortization") is a non-GAAP financial performance measure with no standard definition under IFRS. It is therefore possible that this measure could not be comparable with a similar measure of another Corporation. The Corporation uses this non-GAAP measure which can also be helpful to investors as it provides a result which can be compared with the Corporation's market share price.
(2) EBITDA MARGIN is a measurement of a company's operating profitability calculated as EBITDA divided by total revenue. EBITDA MARGIN is a non-GAAP financial performance measure with no standard definition under IFRS. It is therefore possible that this measure could not be comparable with a similar measure of another Corporation. The Corporation uses this non-GAAP measure which can also be helpful to investors as it provides a result which can be compared with the Corporation's market share price.

Production Highlights for the three month period ended January 31, 2021:

  • Equivalent gold production of 3,063 ounces;

  • Mine operating cash cost of US$1,042/EqOz;

  • All-in sustaining costs of US$1,361/EqOz for the nine months ended January 31, 2021.

The following table is a summary of mine production statistics for the San Martin mine for the three and nine months ended January 31, 2021 and for the previous year ended April 30, 2020:



Actual Results for


Unit of measure

3 months ended
January 31, 2021

9 months ended
January 31, 2021

12 months ended
April 30, 2020

Mine Production of Gold in Dore

thousand ounces

2.7

8.2

11.8

Mine Production of Silver in Dore

thousand ounces

23.8

79.3

121.8

Gold equivalent ounces

thousand ounces

3.1

9.2

13.1






Silver to Gold equivalency ratio


74.2

82.5

90.3

Mine Gold grade

grams/tonne

1.66

1.66

1.82

Mine Silver grade

grams/tonne

22.9

24.7

30.5

Mine Gold recovery

percent

88.8%

88.7%

87.7%

Mine Silver recovery

percent

57.1%

56.8%

54.4%

Milled

thousands of tonnes

57.3

173.1

229.8

Mine operating cash cost per tonne milled

US dollars/tonne

55

53

66

Mine operating cash cost per equivalent ounce

US dollars/ounce

1,042

1,004

1,149

Salvador Garcia, P. Eng., a director of the Company and Chief Operating Officer, is the Company's qualified person on the project as required under NI 43-101 and has prepared the technical information contained in this press release.

About Starcore

Starcore International Mines is engaged in precious metals production with focus and experience in Mexico. This base of producing assets is complemented by exploration and development projects throughout North America. The Company is a leader in Corporate Social Responsibility and advocates value driven decisions that will increase long term shareholder value. You can find more information on the investor friendly website here: www.starcore.com.

ON BEHALF OF STARCORE INTERNATIONAL
MINES LTD.

Signed "Gary Arca"
Gary Arca, Chief Financial Officer and Director

FOR FURTHER INFORMATION PLEASE CONTACT:

GARY ARCA
Telephone: (604) 602-4935
Facsimile: 1-604-602-4936

EVAN EADIE
Investor Relations
Telephone: (604) 602-4935 x 203
Toll Free: 1-866-602-4935

The Toronto Stock Exchange has not reviewed nor does it accept responsibility
for the adequacy or accuracy of this press release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/77521