SilverCrest Reports Q3, 2012 Financial Results; Cash Flow

SilverCrest Reports Q3, 2012 Financial Results; Cash Flow From
Operations Increases 103% Over Q3, 2011 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/14/12 --
SilverCrest Mines Inc. (TSX VENTURE:SVL)(NYSE MKT:SVLC)(NYSE
Amex:SVLC) (the "Company") is pleased to announce its financial
results for the third quarter ended September 30, 2012 (all figures
in U.S. dollars unless otherwise specified). 
HIGHLIGHTS OF Q3, 2012 (Compared to Q3, 2011):  


 
--  Cash flow from operations (1) increased 103% to $10.2 million.  
--  Cash operating cost per silver equivalent ounce sold (2) increased 5% to
    $7.60.  
--  Revenues reported per IFRS (3) rose 11% to $16.7 million on sales of
    152,088 silver ounces (up 57%) and 7,923 gold ounces (up 4%). 
--  Comprehensive earnings amounted to $2.2 million ($0.03 per share),
    compared to $0.01 million ($0.00 per share). 
--  Working capital increased 22% from $21.4 million to $26.1 million. 
--  Cash and cash equivalents were $37.9 million (at September 30, 2012). 

 
J. Scott Drever, President stated; "We had another strong quarter
with 558,185 silver equivalent ounces sold (2), for reported revenues
of $16.7 million. The average cash operating cost was $7.60 per
silver equivalent ounce, which is below our budget of $8.20. Our
Santa Elena low cost, open pit heap leach mine operations continue to
perform well, and generated cash flows of $10.2 million which will
contribute to the financing of the Santa Elena Expansion plan and the
development of our major polymetallic La Joya Project. Record silver
production in the third quarter has enabled us to increase annual
silver production guidance from 435,000 ounces to 535,000 ounces. We
are on track to meet our annual production guidance of 33,500 gold
ounces."  


 
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Financial and Operating Highlights:                Q3 2012          Q3 2011 
----------------------------------------------------------------------------
Cash flow from operations (1)               $   10,224,354   $    5,034,988 
Cash flow from operations (1) per share     $         0.11   $         0.06 
Cash operating cost per silver equivalent                                   
 ounce sold (2)                 
            $         7.60   $         7.27 
Revenues (3)                                                                
  Silver revenue                            $    4,811,342   $    3,618,235 
  Gold revenue - cash basis                 $   10,658,039   $    6,183,505 
----------------------------------------------------------------------------
                                            $   15,469,381   $    9,801,740 
Gold revenue - non cash                                                     
  - adjustment to market spot price         $      630,666   $    4,681,312 
  - amortization of deferred revenue        $      594,705   $      572,462 
----------------------------------------------------------------------------
Revenues reported                           $   16,694,752   $   15,055,514 
Cost of sales                               $   (4,239,773)  $   (3,652,887)
Depletion, depreciation and accretion       $   (1,466,356)  $   (1,116,431)
----------------------------------------------------------------------------
Mine operating earnings                     $   10,988,623   $   10,286,196 
Loss on derivative instruments              $   (5,126,321)  $   (6,501,599)
Other net expenses                          $   (1,436,986)  $   (1,564,073)
Tax expense                                 $   (3,162,000)               - 
Exchange gain (loss) on translation to US                                   
 Dollars                                    $      949,838   $   (2,138,668)
----------------------------------------------------------------------------
Comprehensive earnings                      $    2,213,154   $       81,856 
Weighted average number of common shares                                    
 outstanding                                    89,737,466       85,931,326 
Comprehensive earnings per share - basic    $         0.03   $         0.00 
----------------------------------------------------------------------------
Silver ounces sold                                 152,088           96,631 
Gold ounces sold                                     7,923            7,627 
Silver equivalent ounces sold (2)                  558,185          502,402 
Ag : Au Ratio (2)                                   51.2:1           53.2:1 
----------------------------------------------------------------------------
(1) Cash flow from operations before changes in working capital items and   
 income taxes.                                                              
(2) This is a Non-IFRS performance measure. Silver equivalent ounces        
 consist of the number of ounces of silver production plus the number of    
 ounces of gold production multiplied by the ratio of the spot gold price   
 to the spot silver price at the quarter end dates.                         
(3) Per "IFRS 18 - Revenue", revenue should be recorded at its fair value,  
 which for gold and silver is the market spot price on the date revenue is  
 recognized.                                                                

 
Comparison of Q3, 2012, to Q3, 2011 
Comprehensive earnings were $2,213,154 ($0.03 per share basic)
compared with $81,856 ($0.00 per share basic) for the same period in
2011. The increase in comprehensive earnings was largely driven by
greater volumes of silver sales and an exchange gain on translation
to US Dollars and partially offset by a negative marked-to-market
derivative impact and recognizing income and deferred tax expense.  
In the third quarter 2012, silver and gold revenues totalled
$16,694,752 (2011 - $15,055,514), an 11% increase compared with the
same quarter in 2011. Silver and gold revenues on a cash basis
increased by 58% to $15,469,381 (2011 - $9,801,740). Gold revenues
include non-cash amounts of $630,666 (2011 - $4,681,312) from
adjustments to gold spot market prices related to hedge facility
deliveries and $594,705 (2011 - $572,462) related to amortization of
deferred revenues associated with the Sandstorm Agreement.  
Silver sales were a quarterly record of 152,088 ounces (2011 -
96,631), or 57% higher than the same quarter in 2011. The average
realized price received was $32 (2011 - $37). All silver production
is unencumbered by hedging arrangements and sold at spot prices.  
Gold sales were 7,923 ounces (2011 - 7,627) or 4% above the same
quarter in 2011. The Company sold 5,422 gold ounces (2011 - Nil) at
market spot realized prices of $1,707 (2011 - $Nil) per ounce. Gold
delivered into the Hedging Facility was 916 ounces (2011 - 6,102) at
an average realized price of $925 (2011 - $926). The non cash amount
reported of $630,666 (2011 - $4,681,312) represents the difference
between the market spot price at the date of delivery for gold (at an
average realized price of $1,613 (2011 - $1,693) per ounce) and the
hedge price of $926.50 per ounce settled. This non-cash revenue
reported is required by IFRS accounting policies. Gold delivered to
Sandstorm was 1,585 ounces (2011 - 1,525) at an average realized gold
price of $725 (2011 - $725) for which the Company recorded revenues
of $1,149,337 (2011 - $1,106,351) consisting of $554,632 (2011 -
$533,889) in cash received and $594,705 (2011 - $572,462) from
amortization of deferred revenue.  
Cost of sales amounted to $4,239,773
 (2011 - $3,652,887). Cash cost
per silver equivalent ounce sold amounted to $7.60, Au:Ag 51.2:1
(2011 - $7.27, Au:Ag 53.2:1). This is a NON-IFRS Performance Measure.
The main drivers in the change of cash cost per silver equivalent
ounce sold are increases/decreases to operating costs, changes in
volumes of metals produced and fluctuations in the silver to gold
ratio.  
Under IFRS the Company's derivative instruments are fair valued at
the financial position date, with the resulting gain or losses
included in the operating results for the period. The derivative gain
(loss) relates to the incremental fair value of the MBL Hedging
Facility, which represents the difference between the market spot
price of gold at the quarter end and strike price of $926.50 per
ounce. Loss on derivative instruments during the period amounted to
$5,126,321 (2011 - $6,501,599) resulting from an 11% increase in the
gold forward price at September 30, 2012, to $1,783 (2011 - $1,631)
from $1,606 (2011 - $1,518) at June 30, 2012.  
Exchange gain (loss) on translation to US Dollars amounted to
$949,838 (2011 - ($2,138,668)) due to a significant strengthening of
the Canadian dollar against the US dollar since June 30, 2012. The
Company's Canadian assets were translated at US$1.00 = CAD$1.0191 at
June 30, 2012 and US$1.00 = CAD$0.9837 at September 30, 2012  
Comparison of Q3, 2012, to Q2, 2012  
Mine operating earnings were up 9% to $11 million, as a result of
increases in realized prices. Comprehensive earnings however, were
down 76% to $2.2 million ($0.03 per share), from $9.2 million ($0.10
per share) primarily from a non-cash loss on derivatives, an increase
in current and deferred tax expense, which was partially offset by an
exchange gain on translation to US Dollars.  
Operating cash flows (1) were up 42% to $10.2 million ($0.11 per
share), from $7.2 million ($0.08 per share) primarily due to better
realized silver and gold prices and more gold ounces sold at market
prices rather than delivering into the Hedging Facility. SilverCrest
chose to deliver 916 ounces into the Hedging Facility during Q3
compared with 4,209 ounces in the previous quarter. The realized
prices of silver and gold spot sales were up 10% and 4%,
respectively.  
The financial information in this news release should be read in
conjunction with the Company's unaudited condensed consolidated
interim financial statements for the three and nine months ended
September 30, 2012 and associated MD&A which are available on the
Company's website at www.silvercrestmines.com and under the Company's
profile on SEDAR at www.sedar.com. 
NON-IFRS PERFORMANCE MEASURES  
The discussion of financial results in this press release includes
reference to cash operating cost per silver equivalent ounce sold,
which is a non-IFRS performance measure. The Company uses this
measure to provide additional information regarding the Company's
financial results and performance. Please refer to the Company's MD&A
for the three and nine months ended September 30, 2012, for a
reconciliation of this measure to reported IFRS results.  
N. Eric Fier, CPG, P.Eng. and Chief Operating Officer for SilverCrest
Mines Inc. and Qualified Person for this news release has reviewed
and approved its contents. 
SilverCrest Mines Inc. (TSX VENTURE:SVL)(NYSE MKT:SVLC)(NYSE
Amex:SVLC) is a Canadian precious metals producer headquartered in
Vancouver, BC. SilverCrest's flagship property is the 100%-owned
Santa Elena Mine, located 150 km northeast of Hermosillo, near
Banamichi in the State of Sonora, Mexico. The mine is a high-grade,
epithermal gold and silver producer, with an estimated life of mine
cash cost of US$8 per ounce of silver equivalent (55:1 Ag:Au).
SilverCrest anticipates that the 2,500 tonnes per day facility should
recover approximately 4,805,000 ounces of silver and 179,000 ounces
of gold over the 6.5 year life of the open pit phase of the Santa
Elena Mine. A three year expansion plan is underway to double metals
production at the Santa Elena Mine and exploration programs are
rapidly advancing the definition of a large polymetallic deposit at
the La Joya property in Durango State. 
FORWARD-LOOKING STATEMENTS  
This news release contains "forward-looking statements" within the
meaning of Canadian securities legislation and the United States
Securities Litigation Reform Act of 1995. Such forward-looking
statements concern the Company's anticipated results and developments
in the Company's operations in future periods, planned exploration
and development of its properties, plans related to its business and
other matters that may occur in the future. These statements relate
to analyses and other information that are based on expectations of
future performance, including silver and gold production and planned
work programs. Statements concerning reserves and mineral resource
estimates may also constitute forward-looking statements to the
extent that they involve estimates of the mineralization that will be
encountered if the property is developed and, in the case of mineral
reserves, such statements reflect the conclusion based on certain
assumptions that the mineral deposit can be economically exploited.  
Forward-looking statements are subject to a variety of known and
unknown risks, uncertainties and other factors which could cause
actual events or results to differ from those expressed or implied by
the forward-looking statements, including, without limitation: risks
related to precious and base metal price fluctuations; risks related
to fluctuations in the currency markets (particularly the Mexican
peso, Canadian dollar and United States dollar); risks related to the
inherently dangerous activity of mining, including conditions or
events beyond our control, and operating or technical difficulties in
mineral exploration, development and mining activities; uncertainty
in the Company's ability to raise financing and fund the exploration
and development of its mineral properties; uncertainty as to actual
capital costs, operating costs, production and economic returns, and
uncertainty that development activities will result in profitable
mining operations; risks related to reserves and mineral resource
figures being estimates based on interpretations and assumptions
which may result in less mineral production under actual conditions
than is currently estimated and to diminishing quantities or grades
of mineral reserves as properties are mined; risks related to
governmental regulations and obtaining necessary licenses and
permits; risks related to the business being subject to environmental
laws and regulations which may increase costs of doing business and
restrict our operations; risks related to mineral properties being
subject to prior unregistered agreements, transfers, or claims and
other defects in title; risks relating to inadequate insurance or
inability to obtain insurance; risks related to potential litigation;
risks related to the global economy; risks related to the Company's
status as a foreign private issuer in the United States; risks
related to all of the Company's properties being located in Mexico
and El Salvador, including political, economic, social and regulatory
instability; and risks related to officers and directors becoming
associated with other natural resource companies which may give rise
to conflicts of interests. Shoul
d one or more of these risks and
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described in
the forward-looking statements. The Company's forward-looking
statements are based on beliefs, expectations and opinions of
management on the date the statements are made. For the reasons set
forth above, investors should not place undue reliance on
forward-looking statements.  
The information provided in this news release is not intended to be a
comprehensive review of all matters and developments concerning the
Company. It should be read in conjunction with all other disclosure
documents of the Company. The information contained herein is not a
substitute for detailed investigation or analysis. No securities
commission or regulatory authority has reviewed the accuracy or
adequacy of the information presented. 
J. Scott Drever, President       
SILVERCREST MINES INC. 
Neither TSX Venture Exchange nor its Regulation Services Provider (as
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. 
Contacts:
SilverCrest Mines Inc.
Fred Cooper
(604) 694-1730 ext. 108 or Toll Free: 1-866-691-1730
(604) 694-1761 (FAX)
info@silvercrestmines.com
www.silvercrestmines.com