Aug 16, 2010
Scorpio Mining Announces Second Quarter 2010 Financial Results
Vancouver, August 16, 2010 - Scorpio Mining Corporation (TSX:SPM) ("Scorpio Mining" or the "Corporation") is pleased to announce its unaudited interim financial and operating results for the second quarter ended June 30, 2010.
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Peter J. Hawley, CEO reports, "The unexpected failure of one of the two ball mills at Nuestra Señora early in the quarter affected throughput and metal production targets for this quarter. The ball mill was repaired on July 8th, 2010 and the plant came back on line, with the July throughput target of 30,000 tonnes being exceeded, as 34,978 tonnes were processed. The Company expects the third quarter throughput target of 90,000 tonnes will be achieved, and the 2010 annual throughput and produced metals targets to be within reach. The Company congratulates the Mexico operations team on their hard work and the Company will continue to strive to make up the lost time on metal production".
This earnings release should be read in conjunction with the Corporation's MD&A, Financial Statements and Notes to Financial Statements for the period ended June 30, 2010, which are available on the Corporation's website at www.scorpiomining.com and have been posted on SEDAR at www.sedar.com.
Highlights for the Second Quarter and Six Months Ended June 30, 2010
(1) This is a non-GAAP performance measure. The following table provides a reconciliation of operation cash costs per tonne:
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(2) This is a non-GAAP performance measure. The following table provides a reconciliation of adjusted and standardized EBITDA to the second quarter of 2010 and the second quarter of 2009 financial statements:
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(3) Cash operating cost per ton for prior periods has been restated from what was previously disclosed by the Corporation. Management found errors in the calculation of this information due to the miscalculated impact of depreciation included in inventory as well as reversal of concentrate inventory write-down within periods.
Further information is available on the Company's web site at: www.scorpiomining.com.
President, Mr. D. Roger Scammell, PGeo, is the Company's Qualified Person for the Nuestra Señora project and has reviewed the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
CEO & Director
For further information contact:
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
Email: [email protected]
This news release includes certain statements that may be deemed "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to production and throughput targets, enhancing mine operations, completing acquisitions and Scorpio Mining Corporation's commitment to, and plans for developing the Nuestra Señora Project. Generally, these forward-looking statements can be identified by the forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "projects", "intends", "anticipates", or "does not anticipate", or "believes", or "variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might", or "will" be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Scorpio Mining Corporation to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and development and operation of the Nuestra Señora Project, risks related to international operations, construction delays and cost overruns, equipment breakdowns, the actual results of current exploration, development and construction activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of silver, zinc, copper, lead and gold, risks relating to completing acquisition transactions as well as those factors discussed in the sections relating to risk factors of our business filed in Scorpio Mining Corporation's required securities filings on SEDAR, including its Annual Information Form dated March 29, 2010. Although Scorpio Mining Corporation has attempted to identify important factors that could cause results to differ materially from those contained in forward-looking statements, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended.
There can be no assurance that any forward-looking statements will prove accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Scorpio Mining Corporation does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.