Click here to close now.

Welcome!

.NET Authors: Carmen Gonzalez, Elizabeth White, Liz McMillan, Greg O'Connor, Jason Bloomberg

News Feed Item

U.S. Silver & Gold Reports Adjusted net income of $3.7 million or $0.06 per share

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 production quarter.

  • 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."

Key Statistics

  Q3 2012 Adjusted
Q3 2012
Q3 2011 Adjusted
YTD 2012
YTD 2011
Revenue (millions) $ 34.4 $ 35.5 $ 28.3 $ 91.8 $ 78.2
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
           
           

Financial Results

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
  Tons Milled 56,488 170,899 180,922
  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 Adjusted
Q3 2012
Adjusted
YTD 2012
Tons Milled   8,734 19,434 73,741
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.

Exploration Update

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:

Galena Complex

  • 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.

2012 Outlook

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)
 
1-888-231-8191 (Toll-free)

A live audio webcast of the conference call will be available at www.us-silver.com and www.newswire.ca.

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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provides a high level technical overview of many cloud services available to mobile app developers, includi...
SYS-CON Events announced today that Ciqada will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will meet your customers' needs of tomorrow - today! Ciqada. Let your products take flight. For more inform...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable older adults to live independent lives while staying connected to loved ones. M2M will continue to gr...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) application providers dating back to 2004. Cybozu's kintone.com is a leading global BYOA (Build Your O...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...
SYS-CON Events announced today that GENBAND, a leading developer of real time communications software solutions, has been named “Silver Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. The GENBAND team will be on hand to demonstrate their newest product, Kandy. Kandy is a communications Platform-as-a-Service (PaaS) that enables companies to seamlessly integrate more human communications into their Web and mobile applications - creating more engaging experiences for their customers and boosting collaboration and productiv...
SYS-CON Events announced today that BroadSoft, the leading global provider of Unified Communications and Collaboration (UCC) services to operators worldwide, has been named “Gold Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company’s core communications platform enables the delivery of a range of enterprise and consumer calling...
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to offer disruptive APIs to developers.
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
So I guess we’ve officially entered a new era of lean and mean. I say this with the announcement of Ubuntu Snappy Core, “designed for lightweight cloud container hosts running Docker and for smart devices,” according to Canonical. “Snappy Ubuntu Core is the smallest Ubuntu available, designed for security and efficiency in devices or on the cloud.” This first version of Snappy Ubuntu Core features secure app containment and Docker 1.6 (1.5 in main release), is available on public clouds, and for ARM and x86 devices on several IoT boards. It’s a Trend! This announcement comes just as...
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable cloud platform.
In 2015, 4.9 billion connected "things" will be in use. By 2020, Gartner forecasts this amount to be 25 billion, a 410 percent increase in just five years. How will businesses handle this rapid growth of data? Hadoop will continue to improve its technology to meet business demands, by enabling businesses to access/analyze data in real time, when and where they need it. Cloudera's Chief Technologist, Eli Collins, will discuss how Big Data is keeping up with today's data demands and how in the future, data and analytics will be pervasive, embedded into every workflow, application and infra...