U.S. Silver Corporation Announces 1st Quarter Financial Results for 2007
Thursday May 31, 1:33 pm ET
biz.yahoo.com
TORONTO, ONTARIO--(MARKET WIRE)--May 31, 2007 -- U.S. Silver Corporation (CDNX:USA.V - News) ("U.S. Silver" or the "Company" ) announces its unaudited consolidated financial results for the quarter ended March 31, 2007. The unaudited consolidated financial statements and Management's Discussion and Analysis ("MD&A") have been filed on SEDAR and can be viewed at www.sedar.com.
For the period from January 1st, 2007 to March 31, 2007 U.S. Silver generated consolidated revenue of approximately U.S. $4.2 Million and recorded an operating loss of U.S. $1.2 Million. Net loss for the period was $1.2 million, equaling a loss per share of U.S. $0.01. As the Company was formed in the 2nd Qtr in 2006, there are no comparables to the first quarter.
"These financial results are in line with our expectation, given all of the work and effort that has taken place to bring the mine back to profitability," said Bruce Reid, CEO. "We anticipate returning to profitability for the second quarter of 2007. We expect further improvements of this trend to continue through 2007 as production levels at the mine are increased."
The Company produced 328,984 ounces of silver during the 1st Qrt of 2007 at an average cash cost of U.S. $10.16 per ounce. This compared with 200,044 ounces in the 4th Qrt, 2006 at cash costs of U.S. $13 per ounce. By way of further comparison, the company produced 149,646 ounces of silver during the 3rd Qrt, 2006 at a cash cost of over U.S. $19 per oz. The headgrades averaged 17.0 oz./sdt up from 12.7 oz./sdt during the 3rd Qrt 2006. The company expects the headgrade to continue to improve through 2007.
U.S. Silver's balance sheet at March 31, 2007 showed over U.S. $6.4 million in working capital and approximately $29 million in total assets. At March 31, 2007 the Company had no long-term debt and over U.S. $19.4 million in shareholders equity. Subsequent to the end of the first quarter, U.S. Silver successfully completed an Early Exercise Warrant Incentive Program (see press release dated May 11, 2007). In total the company raised CDN$15.4 million. As of today, the Company has over C $20 million in working capital.
The Company continues to implement a turnaround at the mine which includes an extensive redevelopment of new reserves (see press release dated April 18, 2007), a redesign of the mining method in some areas and numerous challenging repairs of facilities and equipment. "The company is well on its way to make 2007 the production turnaround year at the Galena Mine, and with continued strong metal prices we should be profitable through the remainder of 2007," stated Mark Hartmann, President of U.S. Silver.
ABOUT U.S. SILVER CORPORATION
U.S. Silver owns and operates the producing Galena silver mine in Shoshone County, Idaho, which is the second most prolific silver mine in US history. Total silver production from U.S. Silver's Galena and Coeur mining complex has exceeded 210 million ounces of silver production since 1953. The mine is currently anticipated to produce 3.2 million ounces of silver in 2007. In June 2006, U.S. Silver acquired the Galena mine, Coeur mine, and Caladay property along with a land package of 11,000 acres in the heart of the Coeur d'Alene Mining District. U.S. Silver is focused on the production and exploration of its extensive Silver Valley holdings.
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 regulators, which filings are available at www.sedar.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Contacts:
U.S. Silver Corporation
Bruce Reid
Chief Executive Officer
(647) 500-4495
U.S. Silver Corporation
Vance Loeber
Investor Relations
(604) 805-3530
Source: U.S. Silver Corporation |
