News

December 15, 2009

Starcore Reports Positive Financial Results from the First Quarter of 2010

Vancouver, B.C. — Starcore International Mines Ltd. (the “Company”) has filed the results for the first quarter ended October 31, 2009 for the Company and its mining operations from the San Martin Mine. Starcore had revenues from metal sales of $4.9 million, earnings from mining operations of $1.7 million, and net income of $562,000 for the quarter ended October 31, 2009. The basic and diluted income per share for the quarter ended October 31, 2009 was $0.01.

The following table contains selected highlights from the Company’s consolidated income statement for the three month period ended October 31, 2009:

For the three months
ended October 31
000’s

2009

2008

Total Revenue

$ 4,866

$ 6,629

Earnings from mining operations

$ 1,687

$ 959

Net income (loss)

$ 562

$ (109)

Net income (loss) per share – basic and diluted

$ 0.01

$ (0.00)

While mining earnings for 2009 was higher than 2008, the revenue from mined ore was actually $1.76 million lower for the three months ended October 31, 2009, compared to the prior year, due entirely to the loss of purchased concentrate revenue in 2009 which lowered gross revenues significantly by $2.0 million from the prior year; however, this had little effect on earnings from mining operations due to the low margin on purchased concentrate. Net income improved significantly due to improved metal production combined with lower production costs. Costs were lower due both to management efforts to decrease costs and to the lower pesos exchange rate compared to the prior year.

The Company also had positive cash flow from operations of $2.4 million for the three months ended October 31, 2009 compared to $1.2 million for the same period in 2008.

The following table is selected information of mine production statistics for the San Martin mine for the first quarter of operations and for nine months of operations to October 31, 2009 under the Company.

(Unaudited)

Unit of measure

Actual results for
3 months ended
October 31, 2009

Actual results for
9 months ended
October 31, 2009

Production of Gold in Dore

thousand ounces

4.7

14.1

Production of Silver in Dore

thousand ounces

42.2

128.8

Equivalent ounces of Gold*

thousand ounces

5.4

16.0

Milled

thousands of tonnes

69.1

198.4

Operating Cost per Equivalent Ounce

US dollars/oz

449

424

* assuming a 62:1 silver to gold equivalency ratio for three months and 66:1 for the nine months ended October 31, 2009.

Overall equivalent gold production was 5,400 ounces, which is comparable to the prior years’ average of 5,400 ounces per quarter.

The Company expects to maintain or increase the current ore grades over the next quarter and improve earnings further. The Company also continues exploration efforts to increase reserves of resources and to find higher grade deposits. Management also continues efforts to cut mine and administration costs, where possible, to improve earnings and cash flow.

Full financial statements are available on SEDAR at www.sedar.com and on Starcore’s website at 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: 1-604-602-4935
Toll Free: 1-866-602-4935 / Facsimile: 1-604-602-4936

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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