News

June 12, 2014

Starcore Earns $1.24 million in the Second Quarter

Vancouver, B.C. - Starcore International Mines Ltd. (the “Company”) has filed the results for the third quarter ended April 30, 2014 for the Company and its mining operations. 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.

Third Quarter, April 30, 2014 Highlights:

  • Earnings from mining operations was $2.0 million, or 29% of gross revenue, compared to $2.4 million, or 29% of gross revenue, in the prior quarter;
  • Income for the quarter was $1.24 million, or $0.01 per share compared to $1.6 million, or $0.01 per share for the prior quarter;
  • The following table contains selected highlights from the Company’s unaudited consolidated statement of operations for the three and nine months ended April 30, 2014:
(in thousands of Canadian dollars)

Three months ended
April 30, 2014

Nine months ended
April 30, 2014

Revenues

$ 8,267

$ 25,394

Cost of Sales

(6,310)

(17,932)

Earnings from mining operations

1,957

7,462

Net income

(i) Net income

$ 1,239

$ 5,135

(ii) Income per share - basic

$ 0.01

$ 0.03

(iii) Income per share - diluted

$ 0.01

$ 0.03


  • The mine ore grade was lower for the quarter averaging 2.34 g/t and 22.9 g/t for gold and silver, respectively, compared to 2.55 g/t and 21.3 g/t for the prior quarter, respectively.
  • Overall metal production was lower than the second quarter at 5,338 equivalent ounces (“EqOz”), compared to 6,028 EqOz in the previous quarter. The third quarter is typically the most difficult because it covers a shorter time period due to February being the shortest month of the year and to “Holy Easter Week” celebrations with vacations impacting throughput at the mine, and this year the early arrival of the rainy season caused some short unexpected grid power interruptions;
  • Mine operating cash costs increased to US$833/EqOz compared to US$718/EqOz in the previous quarter due mainly to lower production. All-in Sustaining Costs, which includes sustaining capital expenditures, exploration, reclamation, corporate and administrative and share-based compensation cost were US$1,066/EqOz. (for the third quarter only).
The following table is a summary of mine production statistics for the San Martin mine for the three and nine months ended April 30, 2014 and for the year ended July, 2013:

(Unaudited)

Unit of measure

Actual results for
3 months ended
April 30, 2014

Actual results for
9 months ended
April 30, 2014

Actual results for
12 months ended
July 31, 2013

Production of Gold in Dore

thousand ounces

4.9

16.8

18.2

Production of Silver in Dore

thousand ounces

28.5

94.0

110

Equivalent ounces of Gold

thousand ounces

5.3

18.3

20.1

Silver to Gold equivalency ratio

64:1

62:1

57:1

Gold grade

grams/tonne

2.34

2.59

2.36

Silver grade

grams/tonne

22.9

23.7

21.0

Gold recovery

percent

86.3%

87.2%

77.9%

Silver recovery

percent

51.4%

53.4%

53.7%

Milled

thousands of tonnes

75.4

230.9

307.3

Operating Cost per tonne milled

US dollars/tonne

59

57

55

Operating Cost per Equivalent Ounce

US dollars/ounces

833

717

844



“Although we were short of our internal target for the quarter, the Company continues to outperform the previous year’s production. We are very cognizant of shareholder value and of building the company on behalf of shareholders. We believe this is a time to be prudent, save money, reduce costs, and have the company in a position of strength to weather any unexpected financial storms. Our vision remains steadfast,” said Robert Eadie, President and CEO of Starcore.

About Starcore

Starcore is engaged in exploring, extracting and processing gold and silver through its wholly-owned subsidiary, Compañia Minera Peña de Bernal, S.A. de C.V., which owns the San Martin mine in Queretaro, Mexico. The Company is a public reporting issuer on the Toronto Stock Exchange. The Company is also engaged in owning, acquiring, exploiting, exploring and evaluating mineral properties, and either joint venturing or developing these properties further. The Company has interests in properties which are exclusively located in Mexico.

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: (416) 640-1936
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.




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