U.S. Silver Reports Q2 Loss of $2.3 Million
“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.
U.S. Silver Reports Q2 Results.
TORONTO — 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.
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.
U.S. Silver Corporation
Heather Foster, IR Manager
(208) 556-1535 ext. 1002