Silvermet Inc. Reports Significantly Improved Operating Results in 2010 Q3
November 25 2010 - 4:40PM
Marketwired Canada
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES.
Silvermet Inc. ("Silvermet" or the "Company") (TSX VENTURE:SYI) is pleased to
announce the release of its results for the third quarter of 2010.
Highlights
-- Revenues increased by 199% from $1.6 million in 2009 Q3 to $4.8 million
in 2010 Q3.
-- EBITDA increased by 403% from a loss of $0.6 million in 2009 Q3 to $1.2
million in
2010 Q3
-- Year-to-date revenue increased by 362% while EBITDA for the first three
quarters increased by 236%
-- Zinc production increased by 69% from 713 DMT (Dry Metric Tonnes) zinc
concentrate per month in the first half of 2010 to an average 1,205 DMT
per month in 2010 Q3 - production in Q3 2009 averaged 617 DMT per month
-- At an average zinc grade of 69% in the concentrate, Q3 production
approximates 5.5 million pounds contained zinc
-- As announced previously, in Q3 the Company formed a joint venture with
Befesa Medio Ambiente, S.A. ("Befesa"). In connection with joint
venture, Befesa acquired a 10% interest in Silvermet and the joint
venture began operations with $6 million cash.
-- 12,718,000 warrants (83% of outstanding number) were exercised in
September and November for proceeds of C $1,271,800
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For the three months ended For the nine months ended
September 30, September 30,
2010 2009 2010 2009
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Revenue $ 4,753,062 $ 1,589,329 $ 11,207,766 $ 2,426,330
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Income (loss)
from operations 1,704,380 (113,994) 1,831,771 (436,962)
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EBITDA(1) 1,242,475 (611,670) 677,098 (1,866,796)
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Comprehensive
income (loss) 200,675 908,670 (274,889) (692,819)
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Basic and diluted
income (loss)
per share $ 0.002 $ 0.008 ($0.002) ($0.006)
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Weighted average
number of shares
outstanding,
basic and
diluted 126,389,716 121,039,651 125,642,115 107,729,462
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(1) EBITDA is a non-GAAP measure, does not have a standardized meaning
prescribed by GAAP and may not be comparable to similar terms and measures
presented by other issuers. EBITDA comprises net income (loss) before income
taxes, interest and financing expense (including accretion of liabilities),
amortization expense, gain on dilution, non-controlling interest and stock
option expense. The Company believes it is appropriate to exclude stock
option expense, gain on dilution and non-controlling interest from EBITDA as
a measure of operating performance that excludes non-recurring items.
"Silvermet's strong performance in the 3rd quarter reflects the results of the
continual improvements to operations, personnel and the zinc market," said
Stephen G. Roman, Silvermet's Chairman, President and CEO. "In addition, with
the formation of a joint venture with the world's best EAFD processor, Befesa,
in the 4th quarter, Silvermet is positioned to build significant shareholder
value in the future."
About Silvermet:
Silvermet's Waelz kiln facility in Iskenderun, Turkey has been operating since
mid-2009 as an important Electric Arc Furnace Dust ("EAFD") recycling business
for the Turkish steel industry and producing zinc oxide concentrate that is sold
to smelters throughout the world.
Caution concerning forward-looking statements: The information in this release
may contain forward-looking information under applicable securities laws. This
forward-looking information is subject to known and unknown risks, uncertainties
and other factors that may cause actual results to differ materially from those
implied by the forward-looking information. Factors that may cause actual
results to vary include, but are not limited to, inaccurate assumptions
concerning the exploration for and development of mineral deposits, political
instability, currency fluctuations, unanticipated operational or technical
difficulties, changes in laws or regulations, the risks of obtaining necessary
licenses and permits, changes in general economic conditions or conditions in
the financial markets and the inability to raised additional financing. Readers
are cautioned not to place undue reliance on this forward-looking information.
The Company does not assume the obligation to revise or update this
forward-looking information after the date of this release or to revise such
information to reflect the occurrence of future unanticipated events except as
may be required under applicable securities laws. The TSX Venture Exchange does
not accept responsibility for the adequacy or accuracy of this release.