SCORPIO MINING PROVIDES FIRST QUARTER PRODUCTION UPDATE
Scorpio Mining Corp. has released a production update for the first quarter of 2015 for its Cosala operations and Galena complex. (All figures are in U.S. dollars unless otherwise indicated.)
Highlights:
Consolidated silver production for the quarter was approximately 708,000 silver ounces and 1.25 million silver equivalent ounces, representing increases of 4 per cent and 25 per cent, respectively, compared with the first quarter 2014. Cash costs for the quarter were approximately $12.45 per silver ounce, a reduction of 13 per cent over the previous quarter and 25 per cent over the first quarter of 2014 while all-in sustaining costs were approximately $17.15, down 26 per cent compared with the previous quarter and 24 per cent year over year. Quarterly production at the Cosala operations was approximately 316,600 silver ounces and 650,000 silver equivalent ounces, representing increases of 8 per cent and 22 per cent compared with first quarter 2014. Cash costs were approximately $9.85, and all-in sustaining costs were $14.15, down 28 per cent and 32 per cent, respectively, year over year. Galena complex silver production for the quarter was approximately 391,600 ounces and 596,000 silver equivalent ounces, increases of 2 per cent and 29 per cent, respectively, compared with first quarter 2014. Cash costs were approximately $14.60, and all-in sustaining costs were $19.60, down 22 per cent and 18 per cent year over year. Guidance for 2015 remains unchanged at 2.6 million to 3.0 million ounces in silver production and 4.6 million to 5.2 million ounces in silver equivalent production, with projected cash costs of $11.50 to $12.50 per ounce and all-in sustaining cash costs of $16.50 to $17.50 per ounce. "Despite the integration and some difficult restructuring in Mexico, we had a very solid operational quarter as both mines performed at or above budget," said Scorpio Mining president and chief executive officer Darren Blasutti. "For the remainder of the year, we will stay focused on further reducing costs and improving productivity across the organization while continuing to ramp up silver-lead production at the Galena complex."
The company expects to release its first quarter financial results on or before May 13, 2015.
Consolidated first quarter production details
Consolidated silver production was 708,241 ounces for the first quarter of 2015, which represents an increase of 9 per cent over the previous quarter and 4 per cent year over year. Silver equivalent production was approximately 1.25 million ounces, up 13 per cent over the previous quarter and 25 per cent year over year, while grade rose 14 per cent and 9 per cent, respectively. Consolidated cash costs fell 13 per cent to $12.46 compared with the fourth quarter of 2014 and 25 per cent year over year while all-in sustaining costs dropped 26 per cent to $17.15 compared with the prior quarter and 24 per cent year over year. In addition, lead production increased 110 per cent year over year, as the Galena complex continued its focus on increasing silver-lead ore production.
First quarter cash costs were within the company's projected annual guidance of $11.50 to $12.50 per silver ounce and $16.50 to $17.50 per all-in silver equivalent ounce. As silver-lead production from the Galena complex continues to ramp up over the course of the year, the company expects costs to be lower than the first quarter. Further productivity enhancements and cost control initiatives are under way to protect the company's cash balance given low silver prices.
CONSOLIDATED PRODUCTION HIGHLIGHTS
Q1 2015 Q4 2014 Q1 2014
Processed ore (tonnes milled) 163,942 173,023 172,376 Silver production (ounces) 708,241 647,043 679,452 Silver equivalent production (ounces) 1,246,099 1,106,074 994,876 Grade (grams per tonne) 149 130 137 Cash costs ($ per ounce silver) $12.46 $14.32 $16.51 All-in sustaining costs ($ per ounce silver) $17.15 $ 23.05 $22.65 Zinc (pounds) 3,253,739 3,329,584 2,986,626 Lead (pounds) 4,646,945 5,185,966 2,217,949 Copper (pounds) 644,923 419,108 504,489 Cosala operations production details
The Cosala operations produced 316,616 ounces of silver during the first quarter of 2015 and 650,010 ounces of silver equivalent during the same period at cash costs of $9.83 per ounce and all-in sustaining costs of $14.16 per ounce. Silver production increased 9 per cent compared with the previous quarter, while silver equivalent production rose 15 per cent during the same period and 22 per cent compared with the first quarter of 2014. Cash costs decreased by 9 per cent to $9.83 compared with the previous quarter and fell 28 per cent year over year while all-in sustaining costs dropped 43 per cent to $14.16 compared with the prior quarter and 32 per cent year over year. These reductions were achieved as a result of an expedient decision by the company's new management to put the El Cajon mine on care and maintenance and reduce the staff at the Cosala operations by 25 per cent in January, 2015.
COSALA OPERATIONS HIGHLIGHTS
Q1 2015 Q4 2014 Q1 2014
Processed ore (tonnes milled) 126,425 135,047 137,317 Silver production (ounces) 316,616 289,173 293,949 Silver equivalent production (ounces) 650,010 563,960 534,386 Grade (grams per tonne) 92 80 81 Cash costs ($ per ounce silver) $9.83 $10.84 $13.71 All-in sustaining costs ($ per ounce silver) $14.16 $24.85 $20.94 Zinc (pounds) 3,253,739 3,329,584 2,986,626 Lead (pounds) 1,200,286 1,581,737 1,197,664 Copper (pounds) 515,994 332,157 327,664 Galena complex production details
The Galena complex produced 391,625 ounces of silver during the first quarter of 2015 and 596,089 ounces of silver equivalent during the same period at a cash cost of $14.59 per ounce and an all-in sustaining cost of $19.57 per ounce. Silver production was up 9 per cent compared with the previous quarter, while silver equivalent production rose 10 per cent over the same period and 29 per cent compared with the first quarter of 2014. Cash costs were down 15 per cent compared with the previous quarter and 22 per cent year over year, and all-in sustaining costs fell 9 per cent and 18 per cent, respectively. Increased silver and lead production will continue throughout 2015, as more developed working faces will facilitate a ramp-up of throughput after planned capital expenditures last year and in the first half of 2015.
GALENA COMPLEX HIGHLIGHTS Q1 2015 Q4 2014 Q1 2014
Processed ore (tonnes milled) 37,517 37,976 35,059 Silver production (ounces) 391,625 357,870 385,503 Silver equivalent production (ounces) 596,089 542,114 460,490 Grade (grams per tonne) 340 307 358 Cash costs ($ per ounce silver) $14.59 $17.14 $18.64 All-in sustaining costs ($ per ounce silver) $19.57 $21.60 $23.95 Lead (pounds) 3,446,659 3,604,229 1,020,285 Copper (pounds) 128,929 86,951 176,825 We seek Safe Harbor.
News 
Market Data 
Discover 
