SilverCrest Reports Q2, 2013 Financial Results

SilverCrest Reports Q2, 2013 Financial Results 
Cash Flow from Operations of $5.58 million ($0.05 per share) 
Net Earnings $2.87 million ($0.03 per share) 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/15/13 --
SilverCrest Mines Inc. (the "Company") (TSX VENTURE:SVL)(NYSE
MKT:SVLC) is pleased to announce its financial results for the second
quarter ended June 30, 2013. All financial information is prepared in
accordance with IFRS, and all dollar amounts are expressed in U.S.
dollars unless otherwise specified. The information in this news
release should be read in conjunction with the Company's unaudited
condensed consolidated interim financial statements for the three and
six months ended June 30, 2013 and associated management discussion
and analysis ("MD&A") which are available from the Company's website
at www.silvercrestmines.com and under the Company's profile on SEDAR
at www.sedar.com. 
J. Scott Drever, Chairman and CEO stated; "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 (2). Our operating team continues to
optimize production to ensure we meet our market production guidance
of 675,000 ounces of silver and 33,000 ounces of gold for 2013." 
FINANCIAL HIGHLIGHTS OF Q2, 2013 COMPARED TO Q2, 2012:  


 
--  Cash flow from operations (1)decreased 22% to $5.58 million ($0.05 per
    share) 
--  Cash operating cost per silver equivalent ounce sold (2) increased 12%
    to $7.80 
--  All-in sustaining cash costs per silver equivalent ounce sold
    (3)increased by 16% to $13.26 
--  Revenues reported - IFRS (4) decreased 18% to $13.0 million 
--  Sales of 181,398 ounces of silver, a quarterly record, were up 45% 
--  Sales of 7,375 ounces of gold were down 15% 
--  Sales of 647,504 ounces of silver equivalent (2) were up 14% 
--  Average realized metal prices for ounces sold - silver price fell 24% to
    $22/oz and gold price fell 17% to $1,365/oz 
--  Bullion inventory at June 30, 2013, included 53,634 ounces of silver and
    2,156 ounces of gold  
--  Net earnings amounted to $2.87 million ($0.03 per share), compared to
    $9.53 million ($0.11 per share) 
--  Cash and cash equivalents totalled $29.6 million (at June 30, 2013)
    after capital investments of $12.4 million 
--  Working capital was $41.6 million at June 30, 2013

 
THREE MONTHS ENDED JUNE 30, 2013 COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 2012; 
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. 
Silver and gold revenues totalled $13,028,258 (2012 - $15,982,031) in
the second quarter, which includes $12,474,785 (2012 - $12,600,912)
received on a cash basis. Silver sales were a quarterly record of
181,398 ounces (2012 - 124,739), 45% higher than the same period in
2012. The average realized price was 24% lower at $22 (2012 - $29)
per ounce.  
Total gold sales were 7,375 ounces (2012 - 8,679) or 15% below 2012.
The Company sold 5,900 (2012 - 2,733) ounces of gold at an average
realized price of $1,365 (2012 -$1,650) per ounce, a 17% decline in
realized price. The Company delivered 1,475 gold ounces (2012 -
1,736) under the Sandstorm Gold Ltd. Purchase Agreement at $350 per
ounce.  
Cost of sales amounted to $5,047,895 (2012 - $4,420,287). Cash cost
per silver equivalent ounce sold amounted to $7.80, Ag:Au 63.2:1
(2012 - $6.94, (Ag:Au 59.0:1). Corporate market guidance estimate for
2013 continues at $8.50 per silver equivalent ounce, (Ag:Au 55:1).
The increase in cash cost per silver equivalent ounce sold is driven
generally by higher operating costs, with increases in mining
contractor costs, higher crusher operating costs from increases in
operating time, and salary increases for mine site personnel. The
overall cash cost per silver equivalent ounce increased, despite a
decrease of approximately $0.25 per silver equivalent ounce
attributed to a higher gold to silver price ratio during the second
quarter compared with the same quarter in 2012.  
General and administrative expenses increased by 31% to $1,599,892
(2012 - $1,219,878) primarily due to an increase in remuneration,
regulatory and Mexico corporate expenses. Remuneration increased to
$503,137 (2012 - $386,844) with the addition of new Corporate
personnel and increased compensation for management and other
employees effective January, 2013. Regulatory fees and expenses
increased to $77,819 (2012 - $21,996) with additional fees relating
to Ontario Securities Commission, TSX-V and NYSE MKT. SilverCrest
commenced trading on the NYSE MKT in August 2012. Mexico corporate
expenses increased to $231,890 (2012 - $177,128), and were related to
an increase in professional activities. 
Deferred tax expense amounted to $1,443,000 (2012 - $291,000)
primarily from recognizing an income tax deduction on Santa Elena
exploration drilling and related costs and a reduction in the Mexican
tax basis compared with the carrying book value from the
strengthening of the US Dollar at the quarter end. The Company's
Mexican tax basis was converted at US$1.00 = 12.344 at March 31, 2013
and US$1.00 = 13.193 at June 30, 2013. 
Exchange loss on translation to US Dollars amounted to $1,126,190
(2012 - $360,236) due to the weakening in the second quarter of the
Canadian dollar against the US dollar. The financial results of the
Company's Canadian operations were translated at US$1.00 = CAD$1.0156
at March 31, 2013 and US$1.00 = CAD$1.0512 at June 30, 2013. 


 
                                          ----------------------------------
FINANCIAL AND OPERATING HIGHLIGHTS:                 Q2 2013          Q2 2012
----------------------------------------------------------------------------
Cash flow from operations (1)              $      5,587,251 $      7,177,713
Cash flow from operations (1) per share    $           0.05 $           0.08
Cash operating cost per silver equivalent                                   
 ounce sold (2)                            $           7.80 $           6.94
All-in sustaining cash costs per silver                                     
 equivalent ounce sold (3)                 $          13.26 $          11.48
Revenues                                                                    
 Silver revenue                            $      3,905,836 $      3,588,568
 Gold revenue - cash basis                 $      8,568,949 $      9,012,344
----------------------------------------------------------------------------
                                           $     12,474,785 $     12,600,912
Gold revenue - non cash                                                     
  - adjustment to market spot price (4)    $              - $      2,729,657
  - amortization of deferred revenue       $        553,473 $        651,462
----------------------------------------------------------------------------
Revenues reported                          $     13,028,258 $     15,982,031
Cost of sales                              $   ( 5,047,895) $   ( 4,420,287)
Depletion, depreciation and accretion      $   ( 1,704,025) $   ( 1,496,297)
----------------------------------------------------------------------------
Mine operating earnings                    $      6,276,338 $     10,065,447
Gain on derivative instruments (4)         $              - $      2,360,561
Other net expenses                         $   ( 1,350,258) $   ( 1,657,126)
Tax expense                                $   ( 2,060,000) $   ( 1,243,000)
----------------------------------------------------------------------------
Net earnings                               $      2,866,080 $      9,525,882
Exchange loss on translation to US Dollars $   ( 1,126,190) $     ( 360,236)
----------------------------------------------------------------------------
Comprehensive earnings                     $      1,739,890 $      9,165,646
Weighted average number of common shares                                    
 outstanding                                    108,865,828       89,736,379
Earnings per common share - basic          $           0.03 $           0.11
Earnings per common share - diluted        $           0.03 $           0.10
----------------------------------------------------------------------------
Silver ounces sold                                  181,398          124,739
Gold ounces sold                                      7,375            8,679
Silver equivalent ounces sold (2)                   647,504          568,380
----------------------------------------------------------------------------
(1) Cash flow from operations before changes in working capital items. This 
is a Non-IFRS performance measure.                                          
(2) Silver equivalent ounces consist of the number of ounces of silver sold 
plus the number of ounces of gold sold multiplied by the ratio of the spot  
gold price to the spot silver price at the quarter end dates (Q2 2013;      
63.2:1, Q2 2012; 59.0:1).                                                   
(3) "All-in sustaining cash costs" includes cost of sales, general and      
administrative expenses, sustaining capital and exploration expenditures at 
the Santa Elena Mine. This is a Non-IFRS performance measure.               
(4) The MBL Hedging Facility was fully repaid in fiscal 2012, so this non-  
cash adjustment has now been eliminated.                                    

 
NON-IFRS PERFORMANCE MEASURES 
The discussion of financial results in this press release includes
reference to "cash flows from operations before changes in working
capital items", "cash operating cost per silver equivalent ounce
sold" and "all-in cash cost per silver equivalent ounce sold", which
are non-IFRS performance measures. The Company presents these
measures to provide additional information regarding the Company's
financial results and performance. Please refer to the Company's MD&A
for the three and six months ended June 30, 2013, for a
reconciliation of these measures to reported IFRS results. 
OUTLOOK 
SilverCrest's immediate focus is to continue to efficiently operate
its flagship Santa Elena low cost open pit silver and gold mine and
complete the construction of the new 3,000 tpd mill facility on
schedule and on budget. The Company will also advance the large
silver, copper, gold deposit at the La Joya Property by completing a
Preliminary Economic Assessment ("PEA"). Depending on the results of
the PEA, further evaluation and infill drilling of the resource area
may be completed in late 2013. Other exploration targets in its
vicinity of La Joya are under review. 
Santa Elena Open Pit Production Targets 


 
--  Meet estimated 2013 production guidance of 675,000 (increased from
    625,000) ounces of silver and 33,000 ounces of gold (2.49 million ounces
    of silver equivalent, Ag:Au 55:1) (6 months; 347,503 silver ounces,
    14,688 gold ounces and 1.22 million ounces of silver equivalent, Ag:Au
    59.5:1). 
--  Maintain estimated cash operating cost of $8.50 per ounce silver
    equivalent sold (Ag:Au 55:1). (6 months; $7.74 per ounce silver
    equivalent, Ag:Au 59.5:1).

 
Santa Elena Expansion Project Targets 


 
--  Complete construction of new conventional 3,000 tpd CCD processing
    facility on schedule and on budget - Capital assigned for 2013 is $53.2
    million. (6 months; $34.2 million committed, of which $18.6 million
    incurred). 
--  Complete underground decline development of main ramp to 1,500 metres to
    enable physical access to ore underground for direct mill feed in 2014 -
    Capital assigned for 2013 is $7.8 million. (6 months; $1.9 million
    incurred).

 
La Joya Project Targets 


 
--  Complete and File a PEA NI43-101 Technical Report evaluating the high
    grade portion of the deposit as a potential "Starter" Pit. (Commenced
    January 2013 with anticipated completion in Q3 2013). 
--  Continue to Explore the Coloradito, La Esperanza and Santo Nino targets,
    which are adjacent to the Main Mineralized Trend ("MMT"). (Ongoing
    additional detailed mapping and sampling for H2 2013). 
--  Explore newly defined geophysical targets, La Paloma and El Pino, within
    the current land position (Subsequent to Q2, 4 RVC drill holes were
    completed at La Paloma with results pending).

 
The Qualified Person under National Instrument (NI 43-101) Standards
of Disclosure for Mineral Projects for this News Release is N. Eric
Fier, CPG, P.Eng, President and Chief Operating Officer for
SilverCrest Mines Inc., who has reviewed and approved its contents.  
SilverCrest Mines Inc. (TSX VENTURE:SVL)(NYSE MKT: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) for the open pit heap leach.
SilverCrest anticipates that the 2,500 tonnes per day open pit heap
leach facility at the Santa Elena mine should recover approximately
675,000 ounces of silver and 33,000 ounces of gold in 2013. Major
expansion and construction of a 3000 tonnes per day conventional mill
facility is underway to significantly increase metals production at
the Santa Elena Mine (open pit and underground) by 2014. Exploration
programs continue to make new discoveries at Santa Elena and also
have rapidly advanced the definition of a large polymetallic deposit
at the La Joya property in Durango State with stated resources
nearing 200 million ounces of Ag equivalent.  
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. Should 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, Chairman & CEO 
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