Silvermet Releases 2011 Q2 Results
16 August 2011 - 1:00PM
Marketwired Canada
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES.
Silvermet Inc. ("Silvermet" or the "Company") (TSX VENTURE:SYI) is pleased to
announce the release of its financial and operating results for Q2, 2011.
Highlights
-- Operations were cash flow positive and profitable
-- Benefited from reduced smelter treatment charges in Q2, 2011
-- Production increased by 63% to 3,400 DMT from 2,086 DMT in Q2, 2010 (Dry
Metric Tonnes zinc concentrate containing an average grade of 69% zinc)
-- Average production increased by 63% to 1,133 DMT per month from 695 DMT
per month in Q2, 2010
-- Sales volumes increased by 17% to 2,772 DMT from 2,372 DMT in Q2, 2010
-- Sales volumes increased by 10% to 6,399 DMT in H1, 2011 from 5,807 DMT
in H1, 2010
-- Revenues increased by 82% to $3.8 million (at 100%) from $2.1 million in
Q2, 2010
-- Completed refractory lining change with planned four week shutdown
spanning March-April 2011.
The following table summarizes comparative quarterly results and reconciles net
earnings, a GAAP measure, to EBITDA. The 2010 figures reflect operational
results at 100% and 2011 figures reflect operational results at a proportionally
consolidated level of 49%.
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For the three months ended June 30,
2011 2011 2010
100% proportional 100%
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Gross sales revenues $ 3,833,901 $ 1,878,611 $ 2,109,494
Direct operating
costs 1,774,829 832,802 1,977,026
Treatment &
transportation 970,546 383,609 723,779
Corporate costs 153,412 153,412 127,447
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EBITDA(1) $ 935,114 $ 508,788 $ (718,758)
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Interest and
financing 30,560 87,500
Amortization -
Turkey 70,806 110,250
Amortization -
Canada 990 1,388
Investment & other
gain (60,876) (1,776)
Foreign exchange
loss (gain) 4,886 (101,474)
Stock option expense 24,682 11,873
Income tax 68,045 -
Non-controlling interest in net income
of consolidated affiliates - (488,228)
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Net income (loss) available to common
shareholders $ 369,695 $ (338,291)
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For the six months ended June 30,
2011 2011 2010
100% proportional 100%
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Gross sales revenues $ 8,797,305 $ 4,310,679 $ 6,454,704
Direct operating
costs 4,086,583 1,917,189 4,489,699
Treatment &
transportation 2,337,016 1,053,179 2,246,141
Corporate costs 291,083 291,083 339,750
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EBITDA(1) $ 2,082,622 $ 1,049,228 $ (620,886)
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Interest and
financing 204,678 168,969
Amortization -
Turkey 135,869 220,537
Amortization -
Canada 1,981 3,758
Investment & other
gain (132,957) (5,017)
Foreign exchange
loss (gain) 16,745 (50,492)
Stock option expense 52,039 26,560
Income tax 157,477 -
Non-controlling
interest in net income
of consolidated
affiliates - (396,174)
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Net income (loss)
available to common
shareholders $ 613,396 $ (589,027)
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(1) EBITDA is a non-GAAP measure, does not have a standardized meaning
prescribed by GAAP and may not be comparable to similar terms and measures
presented by other issuers. EBITDA comprises net income (loss) before income
taxes, interest and financing expense (including accretion of liabilities),
amortization expense, gain on dilution, non-controlling interest and stock
option expense. The Company believes it is appropriate to exclude stock option
expense, gain on dilution and non-controlling interest from EBITDA as a measure
of operating performance that excludes non-recurring items.
About Silvermet:
Silvermet's principal business activity is the recycling of electric arc furnace
dust ("EAFD") obtained from steel companies through a Waelz kiln to recover zinc
concentrates that are then sold to zinc smelters throughout the world. The
Company owns 49% of a joint venture, Befesa Silvermet Turkey S.L. ("BST"), which
operates a Waelz kiln facility located in Iskenderun, Turkey.
Caution concerning forward-looking statements: The information in this release
may contain forward-looking information under applicable securities laws. This
forward-looking information is subject to known and unknown risks, uncertainties
and other factors that may cause actual results to differ materially from those
implied by the forward-looking information. Factors that may cause actual
results to vary include, but are not limited to, inaccurate assumptions
concerning the exploration for and development of mineral deposits, political
instability, currency fluctuations, unanticipated operational or technical
difficulties, changes in laws or regulations, the risks of obtaining necessary
licenses and permits, changes in general economic conditions or conditions in
the financial markets and the inability to raised additional financing. Readers
are cautioned not to place undue reliance on this forward-looking information.
The Company does not assume the obligation to revise or update this forward-
looking information after the date of this release or to revise such information
to reflect the occurrence of future unanticipated events except as may be
required under applicable securities laws. The TSX Venture Exchange does not
accept responsibility for the adequacy or accuracy of this release.
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