U.S. Silver Corporation (TSX-V: USA, OTCQX: USSIF, Frankfurt: QE2) ("U.S. Silver" or "the Company") is pleased to announce financial results for the year ended December 31, 2009 in U.S. dollars. ("2009FS")
2009 highlights include:
Net sales increased 60% to $45.9 million in 2009 from $28.7 million in 2008. |
Net income increased $5.5 million to net income of $4.1 million in 2009 from a net loss of $1.4 million in 2008. |
Silver production increased 41% to 2,427,156 ounces in 2009 from 1,722,274 ounces in 2008. |
Cash provided by operations increased $6.3 million to $2.4 million in 2009 from $3.9 million cash used by operations in 2008. |
Significant gains were achieved by U.S. Silver in 2009. New management took the necessary steps to reduce costs, increase production and invest for the future.
U.S. Silver's 2009 performance highlights are a result of disciplined execution of the Company's Mine Plan and a new management and operating philosophy. The Mine Plan included smart mining techniques and leveraging existing equipment. These measures led to profitability and cash flow gains in 2009 and set the course for further growth in 2010.
Mining operations focused on producing more ounces at lower costs, while maintaining necessary infrastructure and future development capacity in the mine. New smelter contracts were negotiated and new work areas were opened for both silver-copper and silver-lead ores. Key equipment was installed while raise and track development footage increased 37% and 12%, respectively, 2009 versus 2008. In the third quarter of 2009, work resumed on the Galena Shaft rehabilitation project and was substantially completed by the end of the first quarter 2010.
In early 2009 the Company reduced exploration drilling to conserve cash and 13,669 feet of exploration drilling was completed in 2009, compared to 68,365 feet of exploration drilling in 2008. This year, two exploratory drills have again been deployed with 50,000 feet of exploration drilling forecast for 2010.
Company CEO, Tom Parker stated, "2009 was a year of achievements in mine operations, productivity and profitability. With renewed infrastructure and equipment, a highly skilled work force and the rebuilt Galena shaft we are now positioned for the future."
In the course of the preparing the Company's consolidated financial statements for the year ended December 31, 2009, management identified a number of errors in accounting for its long-term retirement plans and in its accounting for income taxes. Management conducted a review of the errors in order to record correcting adjustments and, as part of this review, identified a number of other errors in the 2008 consolidated financial statements. As a result, the Company has restated its consolidated balance sheet as at December 31, 2008, as well as its consolidated statements of operations and comprehensive income (loss) and cash flows for the year then ended. The restatement is more fully described in Note 24 to the 2009FS. The Company believes the net effect of all the 2008 restatements is not material to the Company's financial position .
The complete 2009 Audited Financial Statements and Management Discussion & Analysis are available at www.sedar.com as well as at www.us-silver.com.
ABOUT U.S. SILVER CORPORATION
U.S. Silver, through its wholly owned subsidiaries, owns and operates the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver mine in US history. Total silver production from U.S. Silver's mining complex has exceeded 210 million ounces of silver production since 1953. U.S. Silver controls a land package now totaling approximately 14,000 acres in the heart of the Coeur d'Alene Mining District. U.S. Silver is focused on expanding the production from existing operations as well as exploring and developing its extensive Silver Valley holdings in the Coeur d'Alene Mining District.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.
Contacts:
U.S. Silver Corporation
Tom Parker, CEO, 208-752-0400