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Jan 20, 2014 - NR
U.S. Silver & Gold Inc. is releasing its fourth quarter and 2013 full-year production figures for its Galena mine complex and guidance for 2014.
Highlights:
- Production of approximately 450,000 silver ounces and 543,000 silver equivalent ounces for the fourth quarter of 2013, at a silver cash cost of $16.25 per ounce and an all-in sustaining cost per ounce of $21.002 despite a 10-day shaft shutdown at the Galena complex in mid-December;
- Full-year Galena complex production of 2.12 million silver ounces at a silver cash cost of $17.75 and all-in sustaining costs of $24.25;
- Year-over-year silver production down 6 per cent, cash costs per silver ounce reduced 7 per cent and all-in sustaining costs decreased 20 per cent;
- The small-mine plan implemented early in the third quarter of 2013 delivered significant cost reductions and increased silver cut-off grade by 33 per cent to over 15 ounces per ton silver equivalent;
- Silver head grade for the quarter rose 34 per cent to 14.38 ounces per ton and increased 12 per cent for the year to 11.31 ounces per ton;
- 2014 Galena complex silver production forecast to be 2.2 million to 2.4 million ounces with projected silver cash costs of $14.50 to $15.50 per ounce and all-in sustaining cash costs of $18 to $19 per ounce, representing an 8-per-cent increase in production, a 15-per-cent reduction in cash costs and a 24-per-cent decrease in all-in sustaining cash costs over full year 2013;
- As in the previous year, the company expects to see continued cost improvement throughout fiscal 2014;
- Year-end cash balance of approximately $7.2-million as at Dec. 31, 2013.
Year-end financial statements for U.S. Silver & Gold are scheduled to be released by March 27, 2014. References to cash, cash costs and all-in sustaining cash costs for both the quarter and full year are unaudited and may change based on final audited results.
"We made significant progress in 2013, reducing costs, increasing grade and achieving our production guidance for the year," said Darren Blasutti, president and chief executive officer of U.S. Silver & Gold. "Given the current silver price environment, we made a strategic decision midyear to focus on delivering higher-grade silver at lower-tonnage levels by introducing the small-mine plan, which considerably reduced our operating costs, capital expenses and exploration budget. In 2014, we expect to increase silver production slightly while further reducing silver cash costs to approximately $15 per ounce, and all-in cash costs to between $18 and $19 per ounce. Management took over the Galena complex in late August, 2012, and is on pace to reduce all-in cash costs by 45 per cent since the third quarter of 2012."
Galena complex production update
The Galena mine delivered strong production of 449,652 silver ounces during the fourth quarter of 2013, and 2.12 million ounces for the full year, despite receiving an order from the Mine Safety and Health Administration requiring the company to shut down Shaft No. 3 for 10 days pending resolution of previously existing citations that did not allege any imminent danger. Had this production loss not occurred, the mine would have surpassed its production goal for the quarter and the midpoint of its guidance for the year. Prior to the shutdown, the company was on track to produce roughly 500,000 silver ounces at a cash cost of $15 per ounce and an all-in sustaining cost below $20 per ounce. Ore grade for the fourth quarter was 14.38 ounces per ton and 11.31 ounces per ton for the year, compared with 10.70 ounces per ton in the fourth quarter of 2012 and 10.09 ounces per ton for the year. This represents an increase of 34 per cent for the quarter and 12 per cent year over year.
2014 guidance:
- Silver production of between 2.2 million and 2.4 million ounces is expected for 2014, representing an 8-per-cent increase over silver production in 2013;
- Cash costs projected to be between $14.50 and $15.50 per ounce, representing a 15-per-cent reduction over 2013;
- All-in sustaining cash costs projected to be between $18 and $19 per ounce, a 24-per-cent decrease over 2013.
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