Scorpio Mining Announces First Quarter 2010 Financial Results 05/18 10:58 AM
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S./
TSX:SPM
VANCOUVER, May 18 /CNW/ - Scorpio Mining Corporation (SMNPF:$0.7720,$-0.0038,-0.49%) ("Scorpio Mining" or the "Corporation") is pleased to announce the unaudited interim financial and operating results for the first quarter ended March 31, 2010.
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2010 2009
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Revenue $6.0 million $2.3 million
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Mine operating earnings $1.3 million $0.9 million
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Gain on dilution and deconsolidation of
Scorpio Gold Corporation $19.8 million -
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Net earnings (loss) $18.6 million ($0.4 million)
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Earnings per share (loss) $0.17 ($0.00)
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Adjusted EBITDA(1) $1.9 million $1.1 million
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Cash operating cost per tonne (1) US$33.01 US$35.78
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Peter J. Hawley, Chairman, CEO reports, "On behalf of Management and the Board of Directors of the Corporation, I am extremely pleased to report another successful quarter for Scorpio Mining (SMNPF:$0.7720,$-0.0038,-0.49%) as its production continues to increase, bringing adjusted EBITDA of $1.9 million for the quarter. The continued hard work of the Scorpio team in keeping operating costs low, while increasing mine production and mill throughput has contributed to this solid performance. Net earnings were $18.6 million, which included a non-recurring gain on the deconsolidating of Scorpio Gold of $19.8 million."
This earnings release should be read in conjunction with the Corporation's MD&A, Financial Statements and Notes to Financial Statements for the period ended March 31, 2010, which are available on the Corporation's website at www.scorpiomining.com and have been posted on SEDAR at www.sedar.com.
Highlights For The First Quarter Ended March 31, 2010 and Subsequent Events:
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- Nuestra Senora mine continued to increase production and, for the
first quarter of 2010, processed 92,658 tonnes, which is equivalent to
44% of the total production for 2009.
- Nuestra Senora mine operating earnings were $1,309,084 for the
three-month period ended March 31, 2010 compared to $895,596 for the
same period of 2009.
- Adjusted EBITDA(1) were $1,862,218 for the three-month period ended
March 31, 2010 compared to $1,061,102 for the same period of 2009.
- Due to the gain on dilution and deconsolidation of Scorpio Gold
Corporation of $19,786,287, net earnings were $18,617,827 for the
three-month period ended March 31, 2010 compared to net loss of
$397,119 for the same period of 2009.
- Nuestra Senora unit cash operating costs(1) were 7.7% lower than 2009,
at US$33.01 per tonne for the three-month period ended March 31, 2010
compared with US$35.78 per tonne for the same period of 2009.
- The average monthly mill throughput increased from 13,199 tonnes in Q1
2009 to 30,886 tonnes in Q1 2010, an increase of 134%. During Q1 2010,
the Nuestra Senora mill processed 92,658 tonnes in 79 days of
production at an average grade of 1.12% lead, 0.23% copper, 2.18% zinc
and 81 g/t silver.
- For the first quarter ending March 31, 2010, contained metals produced
in concentrates consisted of 1.758 million pounds of lead, 235,000
pounds of copper, 3.434 million pounds of zinc and 213,435 ounces of
silver.
- On April 1, 2010, the Corporation acquired 100% of Platte River Gold
Inc. through the issuance of 74,832,020 common shares.
(1) This is a non-GAAP performance measure; please see Non-GAAP
Performance Measures section in the Corporation's MD&A.
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