Vancouver, British Columbia, February 9, 2012 - Jay Taylor, Editor of J. Taylor's Gold, Energy & Tech Stocks Report, and Publisher at www.jaytaylormedia.com (http://www.jaytaylormedia.com/), interviews Robert Eadie, President & CEO of
Starcore International Mines (TSX:SAM).
This video is one of Jay Taylor's "Face the Analyst" series of interviews, and is available for viewing on InvestmentPitch.com. If this link (http://www.investmentpitch.com/media/1176/Starcore_International_Mines_Ltd._TSX:_SAM_Face_the_Analyst/) is not enabled, please visit www.InvestmentPitch.com (http://www.investmentpitch.com/) and enter "Starcore" in the search box.
Currently Starcore operates the San Martin gold and silver mine, which is located 50 kilometres east of the City of Querétaro in Querétaro State, and about 250 kilometres northwest of Mexico City. High grade mineralization was discovered at San Martin in the 18th Century, and is reported to have been mined over a period of 40 years; however, no production records exist. Between 1900 and 1924, an estimated 250,000 tonnes grading 15 grams per tonne gold and 100 grams per tonne silver was reportedly mined.
On January 31, management announced that it had paid off all their bank debt used to acquire the company's San Martin Mine. The company is still obligated to sell another 14,513 ounces of gold to its banker at $731 per ounce until January 31, 2013.That amounts to a little more than half of the company's current production rate of about 20,000 to 22,000 ounces per year. With the company's cash costs of $621, Starcore was generating a cash margin of just a little over $100 per ounce on the production it was required to pay back to its banker.
Once the last of the gold hedge is paid, management plans to initiate a dividend equal to approximately half of its operating cash flow.
Subsequent to the interview, Jay Taylor issued a buy recommendation for Starcore, stating, "To give you a sense of how much the dividend might be worth, consider that during the first quarter of this fiscal year, Starcore generated $7.3 million in mine operating cash flow as measured by earnings before interest, taxes, depreciation, and amortization (EBITDA). Annualizing that number would result in an annual cash flow from mine operations of $29.2 million. If management paid out half of that, it would amount to $14.6 million, or nearly $0.115 per share, on a stock that is currently selling at $0.33. That's not a bad return on the current stock price!"
For more information, please visit the company's website at www.starcore.com (http://www.starcore.com/) or phone 604-602-4935.
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