Silver Bear Resources Plc (“Silver Bear” or the “Company”) (TSX:
SBR), announces the filing of its financial results for the year
ended December 31, 2018, including development highlights from its
Mangazeisky silver project in Far East Russia.
For complete details of the audited Consolidated
Financial Statements and associated Management’s Discussion and
Analysis please refer to the Company’s filings on SEDAR
(www.sedar.com) or the Company’s website
(www.silverbearresources.com).
2018 Highlights
- Received the license for usage and
storage of hazardous chemical materials for its Mangazeisky Silver
Project, allowing it to begin hot commissioning activities;
- Achieved first silver
pre-commercial production as a result of its commissioning
activities in April 2018;
- Produced a total of 594,921 ounces
of silver for the nine-month period ending in December 31,
2018;
- Sold a total of 433,095 ounces of
silver totalling pre-commercial production revenue of US$6.4
million for the twelve-month period ended December 31, 2018;
- Mined a total of 80,831 tonnes of
ore at an average grade of 780 g/t of silver for the twelve-month
period ended December 31, 2018;
- The Company has reported a total
comprehensive loss for the year of $33,154,722 and an accumulated
deficit of $172,464,363. The net assets have turned to a deficit of
$30,022,985;
- Secured additional tranche for a
new US$8 million loan under its existing Facilities Agreement which
included a reduction in interest rate to 10% per annum from 15% per
annum; Subsequently the major shareholders have agreed to reduce
the Facilities Agreement interest rate further to 9% per
annum;
- Appointed Mr. Vadim Ilchuk
President and Chief Executive Officer (“CEO”) of the Group in
November 2018, to lead the Group through its next phase as a silver
producer and appointed Mr. Alexey Sotskov, as Deputy CEO in July
2018; and
- Implemented major cost reductions
in the Company’s corporate structure and services, reagent
consumption and fuel and energy costs reductions at its Mangazeisky
Silver Project.
Vadim Ilchuk, President and Chief Executive
Officer, commented: “We are pleased that we met our objective of
achieving first silver production through our commissioning
activities in April 2018. The progress we have made over the year
is testament to the extraordinary hard work and professionalism of
the entire team at Silver Bear Resources and our wholly owned
Russian company AO Prognoz. Over the coming year our primary
objectives are to ramp up to full commercial production at
Vertikalny, further optimize operating costs and improve
operational efficiencies and to identifying additional resources
and development opportunities.”
Operational Results 2018
The Company achieved first pre-commercial silver
production in April 2018 through its commissioning activities at
the Mangazeisky Silver Project as construction of the processing
plant and associated infrastructure was completed. Ramp-up of the
pre-commercial production continued during the third and fourth
quarters with increasing productivity in the mining and processing
being realized month over month. The Company expects to reach
commercial production in 2019, once its mining and extracting rates
along with processing plant silver recoveries reach the feasibility
study assumptions consistently over a sustained period of time.
Construction of the Mangazeisky project is
effectively completed during the fourth quarter of 2018, with only
the completion of the leisure centre in the mine camp postponed
until the Company has sustained full commercial production.
During the three-month period ended December 31,
2018, the Group mined 25,266 tonnes of ore from its Vertikalny open
pit and milled 18,127 tonnes of ore producing approximately 259,691
ounces of silver contained in dry powder (before smelting losses
and refinery adjustment). As at December 31, 2018, as a result of
pre-commercial production activities, the Company mined a total of
80,831 tonnes and milled 51,147 tonnes of ore at an average silver
grade of 705 g/t Ag/t, for a total of approximately 594,921 ounces
silver contained in the dry powder (before smelting losses and
refinery adjustment). As of December 31, 2018, the Company sold
approximately 433,095 ounces of silver at a realized price of
US$14.78 Ag/oz.
|
|
Pre-Commercial Production |
|
Three-months
endedMar 31, 2018 |
Three-months
endedJun 30, 2018 |
Three-months
endedSep 30, 2018 |
Three-months
endedDec 31, 2018 |
TOTAL Twelve-months endedDec 31, 2018 |
Operating Data |
Ore
mined (tonnes) |
2,791 |
18,646 |
34,128 |
25,266 |
80,831 |
Ore
processed (tonnes) |
2,236 |
11,848 |
18,936 |
18,127 |
51,147 |
Head
grade (g/t Ag) |
1,023 |
622 |
732 |
691 |
705 |
Recovery
(%) |
0.0% |
48.8% |
55.7% |
59.3% |
54.6% |
Silver
ounces produced |
- |
72,307 |
262,923 |
259,691 |
594,921 |
|
|
|
|
|
|
Financial Data |
Silver
ounces sold |
- |
10,471 |
177,321 |
245,302 |
433,095 |
Average
realized silver price (US$/oz) |
- |
16.31 |
14.96 |
14.58 |
14.78 |
Pre-commercial production revenues |
- |
170,786 |
2,652,729 |
3,576,298 |
6,399,813 |
Financial Results 2018
The Group’s net loss for the year after tax
amounted to $36,671,744 as compared to $8,824,740 the same period
in 2017. The Group’s net loss for the year includes foreign
exchange loss amounted to $26,617,667, mainly resulted on Prognoz
level from appreciation of Russian Ruble, and one-off inventory
write-off expenses amounted to $1,050,146. The total assets of the
Group at December 31, 2018 amounted to $139,654,043 as compared to
$135,711,414 in the same period in 2017 and net assets $30,107,463,
compared to $358,311 in 2017. Considering pre-commercial stage of
the project the financial position of the Group presented in the
consolidated financial statements are considered satisfactory.
Outlook 2019
In order to fund development operations and
maintain rights under licenses and agreements, the Group has
secured funding in the form of long-term loans of which the
principal totals $132,732,390 and the Group may be dependent on
securing additional financing until such time that it generates
sufficient operating cash flow to meet its liabilities.
Following the initiation of silver production in
the second quarter of 2018, as a result of pre-commercial
production commissioning activities, the Company’s priorities for
2019 are as follows:
- Successful completion of remaining commissioning activities
paving the way for full commercial silver production;
- Continue to monitor all operations to further optimize
operating costs and improve operational efficiencies;
- Continue to build up operational capabilities and staffing and
introduce new systems for production monitoring and management
accounting; and
- Compile 2018 exploration program results that target extension
of existing deposits and new areas of significance with the intent
to grow the Projects resources and establish future drilling
programs.
Jacques du Toit, Pr.Eng., MSc.Eng., PMP of Tetra
Tech are Qualified Person under National Instrument 43-101 and have
reviewed the scientific and technical information in this
release.
About Silver Bear
Silver Bear (TSX: SBR) is focused on the
development of its wholly-owned Mangazeisky Silver Project,
covering a licence area of approximately 570 km2 that includes
the high-grade Vertikalny deposit (amongst the highest- grade
silver deposits in the world), located 400 km north of Yakutsk in
the Republic of Sakha within the Russian Federation. The Company
was granted a 20-year mining licence for the Vertikalny deposit in
September 2013 and filed an updated Feasibility Study in August
2017. Project construction and permitting is advancing with first
silver production targeted for 2018. Other information relating to
Silver Bear are available on SEDAR at www.sedar.com as well as on
the Company's website at www.silverbearresources.com.
Cautionary Notes
This release and subsequent oral statements made
by and on behalf of the Company may contain forward-looking
statements, which reflect management's expectations. Wherever
possible, words such as "intends", "expects", "scheduled",
"estimates", "anticipates", "believes" and similar expressions or
statements that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved, have
been used to identify these forward-looking statements. Although
the forward-looking statements contained in this release reflect
management's current beliefs based upon information currently
available to management and based upon what management believes to
be reasonable assumptions, the Company cannot be certain that
actual results will be consistent with these forward-looking
statements. A number of factors could cause events and achievements
to differ materially from the results expressed or implied in the
forward-looking statements. Such risk factors include, but are not
limited, to the risk factors identified by the Company in its
continuous disclosure filings filed from time to time on SEDAR.
These factors should be considered carefully and prospective
investors should not place undue reliance on the forward-looking
statements. Forward-looking statements necessarily involve
significant known and unknown risks, assumptions and uncertainties
that may cause the Company's actual results, events, prospects and
opportunities to differ materially from those expressed or implied
by such forward-looking statements. Although the Company has
attempted to identify important risks and factors that could cause
actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
and risks that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, prospective investors
should not place undue reliance on forward-looking statements.
These forward-looking statements are made as of the date of this
release, and the Company assumes no obligation to update or revise
them to reflect new events or circumstances, unless otherwise
required by law.
CONTACT
INFORMATION:
Vadim IlchukPresident
and Chief Executive OfficerT: +7 985 866
8877info@silverbearresources.com |
Judith WebsterInvestor
Relations Manager & Corporate SecretaryT: +416 453
8818jwebster@silverbearresources.com |
Silver Bear Resources (TSX:SBR)
Historical Stock Chart
From Apr 2024 to May 2024
Silver Bear Resources (TSX:SBR)
Historical Stock Chart
From May 2023 to May 2024