Silvermet Reports Solid Performance in 2011
25 April 2012 - 12:00PM
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 solid financial and operating results for 2011.
Highlights (in US$)
-- All corporate debt has been retired. Silvermet is debt free and with
cash and credit facility receivables of $4.1 million at December 31,
2011, or $0.026 per share.
-- Production in 2011 increased by 33% to 15,328 Dry Metric Tonnes ("DMT")
zinc concentrate containing 69% zinc compared to 2010 production of
11,548 DMT.
-- Sales volume in 2011 increased by 15% to 14,421 DMT from 12,581 DMT in
2010.
-- Revenues in 2011 increased by 10% to $17.6 million (at 100%)
(Silvermet's share - $8.6 million) from $15.9 million in 2010.
-- In 2011 57,000 DMT of EAFD was processed, an increase of 10% from 2010.
-- In Q1, 2012, Silvermet's Turkish joint venture company, Befesa Silvermet
Turkey ("BST"), signed two purchase agreements to acquire plant sites in
the Adana and Izmir Tire organized industrial zones. At the new sites,
the BST joint venture intends to build two "state of the art" plants to
process 220,000 tonnes of EAFD per year, which will quintuple BST's
production capacity in Turkey.
The following table summarizes comparative annual results and reconciles net
income, an IFRS measure, to EBITDA. The 2010 figures reflect operational results
at 100% for the first ten months and at 49% for the remaining two months,
whereas the operating results are presented at 49% for the full year ending
December 31, 2011.
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For the year ended December 31,
2011 2011 2010 2010
(all amounts in
US$) 100% 49% 100% proportional(1)
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Revenue $17,576,278 $ 8,612,376 $ 15,936,718 $ 14,276,672
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EBITDA(2) $ 3,359,682 $ 1,553,949 $ 1,274,897 $ 903,914
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Net income $ 1,489,027 $ 1,276,644
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Basic income per
share $ 0.009 $ 0.010
Diluted income per
share $ 0.009 $ 0.010
Basic weighted-
average number of
shares outstanding 158,909,668 131,591,447
Diluted weighted-
average number of
shares outstanding 159,463,968 133,206,460
(1) The 2010 figures reflect operational results for the first ten months at
100% and the remaining two months at a proportionally consolidated level
of 49%.
(2) EBITDA is a non-IFRS measure, does not have a standardized meaning
prescribed by IFRS 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.
Silvermet has been generating positive cash flows since Q3, 2010 and 2011 was a
record year of production and sales. The working capital position of the Company
continues to strengthen with no debt, established operations, relatively stable
zinc prices and lower treatment charges. The Turkish joint venture has recently
signed two purchase agreements for new plant sites.
The Adana plant site is 50,000 square meters located in the Adana organized
industrial zone near Iskenderun. The Company intends to build a modern plant to
process 110,000 tonnes of EAFD per year in Adana. BST has also signed a purchase
agreement to acquire an additional 68,000 square meter property in Izmir Tire
organized industrial zone, on which a second 110,000 tonne plant will be built.
"After the planned addition of the two new plants in Turkey, annual EAFD
processing capacity will increase to 280,000 tonnes. EAFD processed in Turkey
contains an average of 25% zinc. The double washed Waelz oxide output of the
Turkish plants will therefore increase to approximately 90,000 DMT per annum,
containing approximately 135 million pounds of zinc." said Stephen G. Roman,
Silvermet's Chairman, President and CEO. "2012 is shaping up to be an exciting
year with very positive results at the existing plant while two major expansion
initiatives will be launched simultaneously."
Stock Option Grant
Silvermet announced that it has granted 3,900,000 options to officers and
management to acquire common shares. Of these options 500,000 vest immediately
and 3,400,000 vest contingent upon realization of certain operational and
strategic targets. The stock options are exercisable at $0.15 per common share
and expire on April 11, 2017. The Company has also granted 2,000,000 options to
its directors, to be issued at the Company's annual general meeting at the
greater of $0.15 or market price at the time.
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 BST, which operates a Waelz kiln facility located in
Iskenderun, Turkey.
Additional Information:
Additional information can be accessed at the Company's website www.silvermet.ca
or through the Company's public filings at www.sedar.com.
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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