VANCOUVER, May 14 /CNW/ - Scorpio Mining Corporation (TSX: SPM)
("Scorpio" or the "Company") today reported unaudited financial and operating
results for the first quarter ended March 31, 2009 and provided an update on
This earnings release should be read in conjunction with the Company's
MD&A, Financial Statements and Notes to Financial Statements for the
corresponding period, which are available on the Company's website at
www.scorpiomining.com and have been posted on SEDAR at www.sedar.com.
First Quarter Highlights:
- Nuestra Senora mine operating earnings were $895,596.
- Net loss was $385,854 or $0.00 per share.
- The Company's Mexican operations generated positive cash flows.
- Nuestra Senora cash operating costs were below budget at US$35.78 per
tonne compared with the forecast cost of US$37.11 per tonne(1).
- Mill throughput increased to more than 12,000 tonnes per month in
January and February and 15,260 tonnes in March as a result of
operating three additional days that month to compensate for the
scheduled one-week Easter holiday shutdown in April.
- During the first quarter of 2009, the mill processed 39,596 tonnes in
55 days at an average grade of 1.44% lead, 0.44% copper, 2.66% zinc
and 109 g/t silver at a blending ratio of two high-grade ore
components to three development ore components (ratio 2:3).
- During the first quarter, the contained metal in the concentrates
produced was 1.02 million pounds of lead, 259,000 pounds of copper,
1.63 million pounds of zinc and 117,125 ounces of silver.
- On April 21, 2009, the Company, through its marketing agent Ocean
Partners USA Inc., secured a six-month (May to October, 2009)
contract for all of its copper and zinc concentrate.
- The strike at the Penoles refinery ended on April 15, 2009 and a
written notice was subsequently received from Penoles for the Company
to resume lead concentrate shipments on May 1, 2009.
Peter J. Hawley, Chairman, CEO reports, "Scorpio's Mexican operations
generated positive cash flows during its first quarter of commercial
production, a period that coincided with very difficult economic conditions on
a global scale. Since the first quarter, metal prices have strengthened, more
favourable off-take smelter contracts have been finalized, mill blending has
changed to a 2:1 (high-grade to development ore) ratio and long-term mining
extraction plans were finalized. These positive factors should begin to be
recognized in the second quarter resulting in increased revenues per tonne of
concentrate sold. The Company has set strict mandates for 2009 to show
profitability, and to date has exceeded all goals set. The Company continues
to aggressively seek acquisitions of near-term, high-grade development
projects and/or operating assets in Mexico."
Further information is available on the Company's web site at:
President, Mr. D. Roger Scammell, PGeo, is the Company's Qualified Person
for the Nuestra Senora project and has reviewed the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
Chairman & CEO
(1) This is a non-GAAP performance measure; please see Non-GAAP
Performance Measures on page 11 of the MD&A.
This news release includes certain statements that may be deemed
"forward-looking statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian securities
legislation. Forward-looking statements include, but are not limited to,
statements with respect to enhancing mine operations and Scorpio Mining
Corporation's commitment to, and plans for developing the Nuestra Senora
Project. Generally, these forward-looking statements can be identified by the
forward-looking terminology such as "plans", "expects" or "does not expect",
"is expected", "budget", "scheduled", "estimates", "projects", "intends",
"anticipates", or "does not anticipate", or "believes", or "variations of such
words and phrases or state that certain actions, events or results "may",
"can", "could", "would", "might", or "will" be taken", "occur" or "be
achieved". Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of Scorpio Mining Corporation to be
materially different from those expressed or implied by such forward-looking
statements, including but not limited to: risks related to the exploration and
development and operation of the Nuestra Senora Project, risks related to
international operations, construction delays and cost overruns, the actual
results of current exploration, development and construction activities,
conclusions of economic evaluations, changes in project parameters as plans
continue to be refined, future prices of silver, zinc, copper, lead and gold,
as well as those factors discussed in the sections relating to risk factors of
our business filed in Scorpio Mining Corporation's required securities filings
on SEDAR, including its Annual Information Form dated March 27, 2009. Although
Scorpio Mining Corporation has attempted to identify important factors that
could cause results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results to
be materially different from those anticipated, described, estimated, assessed
There can be no assurance that any forward-looking statements will prove
accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Scorpio Mining Corporation does
not undertake to update any forward-looking statements that are incorporated
by reference herein, except in accordance with applicable securities laws.
For further information:
For further information: Rich Kaiser, YES International: 1-800-631-8127,
001-757-306-6090 (outside North America), Email: email@example.com