U.S. Silver Corporation (TSX:USA, OTCQX:USSIF, Frankfurt:QE2) (“U.S.
Silver” or the “Company”) today reported a second quarter
loss of $2.3 million, first-half earnings of $0.5 million and cash from
operating activities of $2.4 million for the six months ended June 30,
2012.
“Silver production was 527,899 ounces in Q2-2012 compared to 551,228 in
Q1-2012 with the primary reduction being related to the planned
shut-down of the Number 3 Hoist and mill upgrades. In spite of this
interruption the Galena mine produced within 6% of the average
production in the last eight quarters,” said U.S. Silver’s Executive
Chairman Gordon Pridham. “We are pleased to report the reduction of cash
costs with Q2-2012 being lower than the previous two quarters as efforts
remain focused on cost reduction. U.S. Silver reconfirms its annual
production guidance of 2.4 million ounces for 2012.”
Second Quarter 2012 Summary
(All figures in U.S. dollars
unless otherwise noted)
-
Silver production was 527,899 ounces in the quarter compared to
551,228 ounces in Q1-2012 for a total of 1,079,127 ounces for the six
months ended June 30, 2012.
-
Realized silver price was $28.05 in Q2-2012 compared to $33.29 in
Q1-2012 and $41.05 in Q2-2011.
-
Cash costs decreased to $19.31 in Q2-2012 from $21.06 in Q1-2012 in
spite of lower volumes.
-
Cash on hand at the end of the quarter totaled $18.2 million, compared
to $26.9 million at December 31, 2011. Coeur expenditures, deferred
development, the hoist upgrade, the share buyback and the delay of
shipments associated with the hoist upgrade contributed to the use of
cash since year-end.
Selected Financial Data (in thousands of U.S. dollars, except
per share data)
|
|
|
Three Months Ended
June 30, 2012
|
|
Six Months Ended
June 30, 2012
|
|
|
Revenue
|
|
$
|
14,714
|
|
|
$
|
37,706
|
|
|
|
Cost of sales
|
|
|
(13,585
|
)
|
|
|
(29,951
|
)
|
|
|
General and administration
|
|
|
(2,850
|
)
|
|
|
(4,328
|
)
|
|
|
Exploration costs
|
|
|
(1,386
|
)
|
|
|
(2,593
|
)
|
|
|
Net income (loss) for the period
|
|
|
(2,320
|
)
|
|
|
533
|
|
|
|
Basic earnings (loss) per share
|
|
$
|
(0.04
|
)
|
|
$
|
0.01
|
|
|
|
Financial Position
|
as at
|
|
June 30, 2012
|
|
|
|
December 31, 2011
|
|
|
|
|
Cash
|
|
|
$ 18,201
|
|
|
|
$ 26,985
|
|
|
|
|
Current assets - total
|
|
|
35,849
|
|
|
|
40,880
|
|
|
|
|
Current liabilities - total
|
|
|
6,531
|
|
|
|
5,144
|
|
|
|
|
Working capital
|
|
|
29,318
|
|
|
|
35,736
|
|
|
|
|
Total assets
|
|
|
$ 101,024
|
|
|
|
$ 99,353
|
|
|
|
Management’s Discussion & Analysis and Conference Call
Senior management will host a conference call on Monday, August 13, 2012
at 4:00 pm ET to discuss the future direction of U.S. Silver and Gold,
including operating and strategic objectives. All interested parties are
invited to participate by dialing 647-427-7450 or 1-888-231-8191. Please
call 15 minutes prior to the call to secure a line. You will be put on
hold until the conference call begins.
A question and answer session will follow the conference call, at which
time the operator will provide instructions for submitting questions. A
taped replay of the conference call will be available until August 27,
2012 by calling 416-849-0833 or 1-855-859-2056, reference number
16744817.
A live audio webcast of the conference call will be available at www.us-silver.com
and www.newswire.ca.
Please connect at least 15 minutes prior to the conference call to
ensure adequate time for any software download that may be required to
join the webcast. An archived replay of the webcast will be available
for 90 days.
This news release should be read in conjunction with U.S. Silver’s
second quarter 2012 Unaudited Condensed Interim Consolidated Financial
Statements and Management’s Discussion and Analysis filed with Canadian
securities regulators available at www.sedar.com
or on the Company’s website at www.us-silver.com.
ABOUT U.S. SILVER CORPORATION
U.S. Silver, through its wholly owned subsidiaries, owns and/or operates
the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in
Shoshone County, Idaho, with the Galena mine being the second most
prolific silver mine in US history. Total silver production from U.S.
Silver's mining complex has exceeded 220 million ounces of silver
production since 1953. U.S. Silver controls a land package now totaling
approximately 14,000 acres in the heart of the Coeur d'Alene Mining
District. U.S. Silver is focused on expanding the production from
existing operations as well as exploring and developing its extensive
Silver Valley holdings in the District.
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
Corporation 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 Corporation. Additional
information identifying risks and uncertainties is contained in filings
by the Corporation with the Canadian securities regulators, which
filings are available at www.sedar.com.
