SilverCrest Mines Inc. (TSXV:SVL,NYSE:SVLC) announced their second quarter results, including a major drop in net earnings, to$2.87 million from $9.53 million during the same period a year earlier.
As quoted in the press release:
Net earnings were $2,866,080 ($0.03 per share basic) for the second quarter compared with $9,525,882 ($0.11 per share basic) in 2012. The decrease in net earnings was primarily driven by a decrease in revenue resulting from lower gold sales, lower average realized prices and absence of marked-to-market derivative impact from Hedge Facility deliveries.
SilverCrest’s Chairman and CEO, J. Scott Drever, said:
As with most of the industry, second quarter financial results for SilverCrest were less robust when compared to previous quarters. However we were able to sell a record amount of silver, and in spite of persistent metal price declines and volatility, we were able to generate both positive cash flow and net earnings. Our operating team continues to focus on controlling operating costs which resulted in an average cash operating cost of $7.80 per silver equivalent ounce for the quarter, which was substantially better than our corporate guidance of $8.50 per silver equivalent ounce.