News

March 16, 2016

Starcore Reports Q2 2016 Results

Vancouver, B.C. – Starcore International Mines Ltd. (the “Company”) has filed the results for the quarter ended January 31, 2016 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.

Financial Highlights for quarter ended January 31, 2016:

  • Cash and short-term investments on hand is $10.5 million at January 31, 2016 compared to $6.0 million at July 31 2015;
  • Gold and silver sales of $6.9 million for the quarter ended January 31, 2016 compared to $7.1 million for the quarter ended January 31, 2015, a decrease of 2.8%;
  • Net income of $0.2 million for the quarter ended January 31, 2016 compared to net loss of $0.1 million for the quarter ended January 31, 2015;
  • EBITDA(1) of $3,911 for the six months ended January 31, 2016 compared to $3,160 for the six months ended January 31, 2015, an increase of 24%.
  • Equivalent gold production of 4,544 ounces in quarter ended January 31, 2016 compared to 5,130 ounces in the quarter ended January 31, 2015, a decrease of 11%;
  • Mine operating cash cost is US$786/EqOz for the quarter ended January 31, 2016 compared to US$936/EqOz for the quarter ended January 31, 2015, a decrease of 16%;
  • All-in sustaining costs of US$943/EqOz for the quarter ended January 31, 2016 compared to US$1,080 for the quarter ended January 31, 2015, a decrease of 13%;

The following table contains selected highlights from the Company’s unaudited consolidated statement of operations for the three and six months ended January 31, 2016 and 2015:

(in thousands of Canadian dollars)

(Unaudited)

Three Months ended January 31,

Six Months ended

January 31,

2016

2015

2016

2015

Revenues

$ 6,954

$ 7,143

$ 14,658

$ 14,812

Cost of Sales

6,284

6,930

(12,852)

(14,148)

Earnings from mining operations

670

213

1,806

664

Administrative expenses

(670)

(512)

(1,578)

(1,011)

Income tax recovery

240

183

574

1,101

Net income (loss)

$ 240

$ (116)

$ 802

$ 754

(i) Income (loss) per share – basic

0.00

(0.00)

$ 0.02 0.00

$ 0.01

(ii) Income (loss) per share – diluted

0.00

(0.00)

$ 0.02 0.00

$ 0.01


Reconciliation of Net income to EBITDA(1)

For the six months ending January 31,

2016

2015

Net Income

$ 802

$ 754

Income tax recovery

(574)

(1,101)

Interest

252

44

Depreciation and depletion

3,431

3,463

EBITDA

$ 3,911

$ 3,160

EBITDA MARGIN(2)

27%

21%

(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 quarter ending January 31, 2016:

  • Equivalent gold production of 4,544 ounces in quarter ended January 31, 2016 compared to 5,130 ounces in the quarter ended January 31, 2015, a decrease of 11%;
  • Mine operating cash cost is US$786/EqOz for the quarter ended January 31, 2016 compared to US$936/EqOz for the quarter ended January 31, 2015, a decrease of 16%;
  • All-in sustaining costs of US$943/EqOz for the quarter ended January 31, 2016 compared to US$1,080 for the quarter ended January 31, 2015, a decrease of 13%;

The following table is a summary of mine production statistics for the San Martin mine for three and six months ended January 31, 2016 and the year ended July 31, 2015:

Unit of measure

Actual results for
3 months ended
January 31
, 2016

Actual results for
6 months ended
January 31
, 2016

Actual results for
12 months ended
July 31, 2015

Production of Gold in Dore

thousand ounces

4.2

9.0

18.3

Production of Silver in Dore

thousand ounces

27.7

56.1

97.1

Equivalent ounces of Gold

thousand ounces

4.5

9.7

19.6

Silver to Gold equivalency ratio

76.2:1

75.6:1

71.6:1

Gold grade

grams/tonne

1.99

2.11

2.14

Silver grade

grams/tonne

20.9

21.2

18.2

Gold recovery

percent

84.2%

85.5%

85.1%

Silver recovery

percent

53.2%

53.1%

53.1%

Milled

thousands of tonnes

77.5

155.5

311.9

Operating Cost per tonne milled

US dollars/tonne

46

49

57

Operating Cost per Equivalent ounce

US dollars/ounces

786

786

903

“This quarter we were able to announce two significant milestones; we entered into an agreement to sell our San Pedrito Property, expecting to net the Company approximately US$7million; and we poured our first doré bar from the newly commissioned Altiplano Concentrate Processing Plant located in Matehuala, Mexico. Along with our continued production and positive cash flow from our San Martin mine in Queretaro, we are expanding our profitable footprint in Mexico in accordance with our long term goals.” reported Robert Eadie, President of the Company.

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 North America.

ON BEHALF OF STARCORE INTERNATIONAL
MINES LTD.

Signed “Gary Arca”
Gary Arca, Chief Financial Officer and Director

FOR FURTHER INFORMATION PLEASE CONTACT:

GARY ARCA EVAN EADIE

Telephone: (604) 602-4935 Investor Relations
Facsimile: 1-604-602-4936 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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