|By PR Newswire||
|November 13, 2012 04:00 PM EST||
TORONTO, Nov. 13, 2012 /PRNewswire/ - U.S. Silver & Gold Inc. (TSX: USA, OTCQX: USGIF) ("U.S. Silver & Gold" or the "Company") today reported financial and operational results for the third quarter ending September 30, 2012.
This earnings release should be read in conjunction with the Company's MD&A, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted on SEDAR at www.sedar.com and are also available on the Company's website at www.us-silver.com.
Third Quarter Highlights
(All figures in U.S. dollars unless otherwise noted)
- Adjusting for one-time charges which resulted from the business combination of U.S. Silver Corporation and RX Gold & Silver Inc., net income for the quarter was $3.7 million or $0.06 per share. With the inclusion of these one-time charges, the Company reported a third quarter net loss of $1.8 million or $0.03 per share, compared with net income of $5.2 million or $0.08 per share for the third quarter of 2011. Revenue increased from $14.7 million in the second quarter of 2012 to $34.4 million in the third quarter of 2012.
Galena Complex silver production was 544,104 ounces for the quarter and
1.62 million ounces for the first nine months of 2012. Drumlummon
production since August 13, 2012 was 2,223 ounces of gold and 23,451
ounces of silver. Adjusted Drumlummon production for the entire quarter
was 4,421 ounces of gold and 64,176 ounces of silver and, for the first
nine months of 2012 was approximately 16,600 ounces of gold and 280,000
ounces of silver.
Year-to-date combined production was 1.9 million ounces of silver and
16,600 ounces of gold. The Company remains on target to achieve its
guidance of 2.6-2.8 million ounces of silver and 20,000 - 25,000 ounces
of gold. The fourth quarter is expected to be the highest silver
The new Management team of the recently created U.S. Silver & Gold is
focused on increasing the mining grade while improving production in
order to reduce operating costs. Early in 2013 productivity at the
Galena Complex will increase by changing from a five-day work week to a
24/7 shift schedule. In addition, the Drumlummon Mine will institute labour cost reductions
and maximize processing efficiencies by moving the milling of gold and
silver ore from a leased mill to the Galena Complex.
A new team, separate from operations, has been created to focus on the
development of the Lead Zone. As announced in the Company's October 11,
2012 press release, the newly-interpreted geometry of this world class
silver / lead mineralized zone suggests that alternative, lower-cost
mining methods may be utilized in this part of the Galena Complex.
- Management has eliminated approximately 90 percent of the corporate cost duplication and expects to achieve $3 million per annum in corporate cost savings through the business combination.
"The third quarter of 2012 progressed as expected, with a profit achieved before one-time charges including severance and other merger-related costs," stated Darren Blasutti, President and Chief Executive Officer of U.S. Silver & Gold. "After assessing the existing mining plans, the new Management team has shifted the Company's focus from achieving arbitrary ounce production targets to increasing the profitability of ounces mined. We are also undertaking productivity improvements and cost reductions to allow for greater earnings and cash flow per share going forward."
|Silver Produced (ounces)||567,555||608,280||645,593||1,903,680||1,788,228|
|Gold Produced (ounces)||2,223||4,421||-||16,602||-|
|Lead Produced (pounds)||1,429,449||1,429,449||1,916,795||3,860,542||4,911,214|
|Copper Produced (pounds)||259,445||259,445||317,127||729,750||898,252|
|Cash Cost / Silver Ounce||$||20.53||$||21.57||$||17.57||$||18.61||$||16.89|
|Net Income (Loss) (millions)||$||( 1.8)||$||3.7||$||5.2||$||5.3||$||15.9|
|Earnings Per Share (diluted)||$||(0.03)||$||0.06||$||0.08||$||0.08||$||0.25|
Adjusting for one-time charges including transaction costs related to the Company's business combination, net income for the quarter was $3.7 million, or $0.06 per share. With the inclusion of these charges, the Company had a third quarter net loss of $1.8 million or $0.03 per share, compared with net income of $5.2 million or $0.08 per share for the third quarter of 2011. (Note: Due to much higher realized silver prices, 2011 was a year of record revenue.)
Adjusting for one-time charges as outlined above, net income for the first nine months of 2012 would have been $5.3 million, or $0.08 per share. With the inclusion of these charges, the Company had a net loss for the first nine months of 2012 of $1.2 million, or $0.02 per share. This compares with net income of $15.9 million or $0.25 per share during the first nine months of 2011 and net income of $1.5 million for the same period in 2010.
|Production and Operating Costs|
|Galena Complex||Q3 2012||YTD 2012||YTD 2011|
|Average Silver Head Grade (ounces per ton)||10.02||9.91||10.21|
|Silver Recoveries (percent)||96.1||95.9||96.3|
|Silver Produced (ounces)||544,104||1,623,231||1,788,228|
|Silver Sold (ounces)||602,401||1,703,761||1,898,545|
|Realized Silver Price (per ounce)||$||27.68||$||29.63||$||38.09|
|Cash costs (per ounce)||$||22.27||$||20.90||$||16.89|
Year-to-date ore production was 170,899 tons versus 180,922 tons milled during the first nine months of 2011 and cash costs increased to $20.90 per ounce. Tonnage was negatively impacted by the termination of highly-paid contract-mining crews in early 2012, which resulted in development, repair and exploration crews taking on production roles that require a different skill set. In August 2012 this situation was improved by the addition of 60 full-time employees, which will enable the Galena Complex to move from the current five-day-a-week schedule to a 24/7 schedule on January 1, 2013.
The new Management team is committed to increasing profitable production and ensuring a cash flow positive operation in fiscal 2013 and beyond. The hiring ramp-up and new-employee training raised labour costs in the quarter. However, the increase in productivity that is expected to result from an appropriate staffing complement and the switch to a seven-day-a-week schedule, should positively impact ounce production and cash costs starting in early 2013.
Realized silver prices in the quarter were $2 per ounce lower than the third quarter 2012 average spot silver price primarily due to the timing of Xstrata contracts on the copper/silver ore, which defers pricing on concentrate shipments by one month. Average head grade year-to-date was 9.91 compared to 10.21 during the first nine months of 2011.
|Drumlummon Mine||Q3 2012||
|Average Gold Head Grade (ounces per ton)||0.27||0.25||0.25|
|Average Silver Head Grade (ounces per ton)||3.11||3.91||4.50|
|Gold Recoveries (percent)||94.0||92.4||91.5|
|Silver Recoveries (percent)||86.4||84.5||84.5|
|Gold Produced (ounces)||2,223||4,421||16,602|
|Silver Produced (ounces)||23,451||64,176||280,449|
|Gold Sold (ounces)||4,450||4,585||14,772|
|Silver Sold (ounces)||82,027||85,988||240,449|
|Realized Gold Price (USD per ounce)||$||1,624.53||$||1,631.57||$||1,594.33|
|Realized Silver Price (USD per ounce)||$||28.28||$||28.30||$||28.55|
|Cash Cost Gold - By Product (USD per ounce)||$||1,164.13||$||1,216.89||$||1,123.21|
|Cash Cost Silver - By Product (USD per ounce)||$||(29.23)||$||12.14||$||4.82|
During the third quarter of 2012 mining personnel were reassigned to enable development of diamond drilling stations for exploration on the Northstar and Frankie veins. Although this meant accessing smaller high-grade vein areas and consequently decreasing production tonnage in the quarter and into the fourth quarter, it will enable development of additional mining areas for 2013 production.
Approximately 30 percent of Drumlummon's total operating costs result from milling at a leased mill in Philipsburg, Montana. Management believes cost savings of roughly $30 - 40 per ton can be achieved by milling ore at the Galena Complex beginning in the first quarter of 2013. The Company is already seeing benefits at the Galena Complex from reduced inventory, warehousing, shared services, personnel and equipment and exploration synergies.
The Company's Board of Directors has approved a $3 million exploration drill program for the remainder of the current fiscal year based on the success of our recent exploration drilling (see October 11, 2012 press release). The focus of this program will be as follows:
- Extend and better define the Lead Zone.
- Develop immediate and near term minable resources in veins close to existing infrastructure.
- Convert resources to reserves at the Coeur Mine.
- Aggressively follow a plan to increase the rate of underground and surface exploration diamond core drilling in order to define reserves, upgrade resources and identify viable new silver and lead veins.
As of December 31, 2011 the Galena Complex contained 23.2 million ounces of proven and probable silver reserves. The exploration program continues to be cost-effective in adding reserves and resources at modest expenditure levels. The Company expects the expanded exploration program to continue to increase reserves and resources.
Drumlummon and Belmont Mines
- Explore the newly-discovered Frankie Zone to immediately develop minable resources.
- Better define ore shoots discovered in 2012 and previous drilling on the Northstar zone with immediate mining potential.
- Confirm historic resources at the newly acquired Belmont Mine through surface drilling to test the more significant veins by "twinning" some of the existing holes drilled by others and confirm the presence of mineralization. Mining is anticipated by early 2014.
U.S. Silver & Gold affirms its 2012 anticipated production of 2.6 - 2.8 million ounces of silver and 20,000 - 25,000 ounces of gold. This outlook is based on a number of assumptions that the Company believes are reasonable at the time of this earnings release.
Conference Call at 4:30 pm on Tuesday, November 13, 2012
Financial and operating results will be discussed during an analyst and investor conference call with senior management today November 13th at 4:30 pm ET. A question and answer session will follow management's presentation.
|Dial-In Numbers:||647-427-7450 (Toronto)|
A replay of the call will be available until November 20, 2012 by calling 416-849-0833 or 1-855-859-2056, reference number 64243671.
About U.S Silver & Gold
U.S. Silver & Gold Inc. is a newly formed silver and gold mining company focused on growth from its existing asset base and the execution of targeted accretive acquisitions. U.S. Silver & Gold owns and operates the Galena Mine Complex in the heart of the Silver Valley/Coeur d'Alene Mining District, Shoshone County, Idaho and the Drumlummon Mine Complex in Lewis and Clark County, Montana. Within the Galena Mine Complex, the Galena mine produces high-grade silver and is the second most prolific silver mine in U.S. history, delivering over 200 million ounces to date, the Coeur mine is under late re-development and the Lead Zone is being evaluated for bulk mining development. The Drumlummon mine currently produces high-grade gold and silver with historical production of 1 million ounces of gold and 12 million ounces of silver and has never been fully exploited or explored. Visit www.us-silver.com.
Mr. Jim Atkinson , Vice President, Exploration and a Qualified Person under Canadian Securities Administrators guidelines has approved the applicable contents of this news release.
Some of the potential quantities and grades disclosed in this news release are conceptual in nature. At the current stage of exploration, there is insufficient drilling to determine the extent of continuity of the mineralization required to define a mineral resource for all mineralization at the Galena Mine Complex and Drumlummon Mine. It is uncertain if further exploration will result in certain exploration targets being delineated as a mineral resource.
Please see SEDAR or www.us-silver.com for the 43-101 compliant Technical Report and Resource Estimate on the Drumlummon Mine Project dated April 9, 2012 and the Galena Project dated March 19, 2012.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulator available at www.sedar.com.
SOURCE U.S. Silver & Gold Inc.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 3, 2015 06:45 PM EDT Reads: 561
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Aug. 2, 2015 11:15 AM EDT Reads: 375
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Aug. 1, 2015 10:00 AM EDT Reads: 352
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
Jul. 30, 2015 07:30 PM EDT Reads: 1,438
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Jul. 30, 2015 02:30 PM EDT Reads: 164
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
Jul. 30, 2015 12:00 PM EDT Reads: 2,096
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
Jul. 30, 2015 09:00 AM EDT Reads: 2,183
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Jul. 29, 2015 03:00 PM EDT Reads: 1,311
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
Jul. 29, 2015 02:00 PM EDT Reads: 1,220
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Jul. 28, 2015 04:30 PM EDT Reads: 1,783
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
Jul. 28, 2015 11:00 AM EDT Reads: 2,057
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Jul. 27, 2015 10:00 AM EDT Reads: 2,057
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Jul. 27, 2015 09:00 AM EDT Reads: 340
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
Jul. 27, 2015 08:00 AM EDT Reads: 1,918
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
Jul. 26, 2015 09:00 PM EDT Reads: 1,600
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 25, 2015 02:00 PM EDT Reads: 408
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Jul. 25, 2015 01:00 PM EDT Reads: 1,984
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
Jul. 25, 2015 12:15 PM EDT Reads: 490
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 25, 2015 12:00 PM EDT Reads: 1,569
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
Jul. 25, 2015 09:00 AM EDT Reads: 1,510