Vancouver, British Columbia--(Newsfile Corp. - August 16, 2013) - SilverCrest Mines (TSXV: SVL) (NYSE-MKT: SVLC). has reported results for its second quarter ended June 30, 2013. Highlights of the report include cash flow from operations of US$5.58 million or $0.05 per share, and net earnings of US$2.87 million or $0.03 per share.
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SilverCrest, a precious metals producer, operates its flagship 100% owned Santa Elena Mine, located in the State of Sonora, Mexico. The Santa Elena Mine is a high-grade, epithermal gold and silver producer, with an estimated life of mine cash cost of US$8.00 per ounce of silver equivalent.
J. Scott Drever, Chairman and CEO stated, "As with most of the industry, second quarter financial results for SilverCrest were less robust when compared to previous quarters. However, we were able to sell a record amount of silver, and in spite of persistent metal price declines and volatility, we were able to generate both positive cash flow and net earnings. Our operating team continues to focus on controlling operating costs which resulted in an average cash operating cost of US$7.80 per silver equivalent ounce for the quarter, which was substantially better than our corporate guidance of US$8.50 per silver equivalent ounce. "
Silver sales were a quarterly record of 181,398 ounces, 45% higher than the same period in 2012, while the average price realized was 24% lower at $22 per ounce versus $29 the previous year. The decrease in net earnings from $0.11 per share to $0.03 per share, was primarily driven by a decrease in revenue resulting from lower gold sales, lower average realized prices, and absence of marked-to-market derivative impact from Hedge Facility deliveries.
The company ended the quarter with cash and cash equivalents totalling USD$29.6 million, after capital investments of US$12.4 million.
The company's immediate focus is to continue to efficiently operate its Santa Elena low cost open pit operation and complete the construction of the new 3,000 tonne per day mill facility on schedule and on budget.
SilverCrest is also advancing the large silver, copper, gold deposit at the La Joya Property (point on map) in Durango State, which has stated resources nearing 200 million ounces of silver equivalent, by completing a Preliminary Economic Assessment. Depending on the results of this report, further evaluation and infill drilling of the resource area may be completed in late 2013. Other exploration targets in the vicinity of La Joya are under review.
J. Scott Drever further stated, "Our operating team continues to optimize production to ensure we meet our market production guidance of 675,000 ounces of silver and 33,000 ounces of gold for 2013."
SilverCrest currently trades at $1.84 on the TSX Venture Exchange, and with 108.7 million shares outstanding, the company is capitalized at $200 million.
For more detailed information please refer to today's news release on the company's website www.silvercrestmines.com, or contact Fred Cooper at 1-866-691-1730 or email [email protected].
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