SilverCrest Reports Q2 Fall in Net Earnings Due to Lower Sales and Prices

SilverCrest Mines Inc. (TSX:SVL,NYSEMKT:SVLC) announced its financial results for the second quarter of 2014, commenting that its net earnings came to $1,314,350, or $0.01 per share basic, down from $2,866,080 in the year-ago quarter.

The company primarily attributes the decline to “reduced revenues from lower silver and gold sales at lower realized prices.” Those lower sales were caused by lower metals production “related to the closure of the open pit on April 4, 2014, three months ahead of schedule, with subsequent reduced production from the leach pad.”

Other Q2 financial highlights include:

• Cash flow from operations decreased 45% to $3.1 million ($0.03 per share).
• Cash operating cost per silver equivalent ounce sold decreased 2% to $7.66.
• All-in sustaining cash cost per silver equivalent ounce sold decreased 5% to $12.62.
• Revenue decreased 41% to $7.7 million.
• Metal sales of 163,026 ounces of silver and 4,743 ounces of gold decreased 10% and 36%, respectively.
• Realized spot metal prices declined from $22 to $20 (9%) for silver and from $1,365 to $1,296 (5%) for gold.
• Cash and cash equivalents were $40.9 million (at June 30, 2014), compared to $29.6 million (at June 30, 2013).
• Working capital was $44.5 million (at June 30, 2014), compared to $41.6 million (at June 30, 2013).
• Bullion inventory at June 30, 2014, included 69,000 ounces of silver and 1,330 ounces of gold.

N. Eric Fier, president and COO of SilverCrest, commented:

As expected, SilverCrest’s second quarter financial results reflect Santa Elena’s lower production numbers during the transition from an open pit, heap leach operation to an underground mine and milling circuit. With the major milestone of mill commissioning accomplished in early August, SilverCrest’s immediate focus turns to underground stope production. Expected increases in ore grades fed to the mill, combined with potential higher metal recoveries, should result in the Company achieving the lower end of our 2014 production guidance of approximately 3.3 million AgEq ounces. With all major expansion capital expenditures complete, SilverCrest is now well situated to increase its cash position of $40.9 million (June 30, 2014) with near-term free cash flow from operation.

Click here to read the full SilverCrest Mines Inc. (TSX:SVL,NYSEMKT:SVLC) press release.