Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) reports production and sales figures for the first quarter of fiscal year 2022 ended June 30, 2021. The Company expects to release its Q1 Fiscal 2022 unaudited financial results on Thursday, August 5, 2021 after market close.
In Q1 Fiscal 2022, the Company produced approximately 1.5 million ounces of silver, 1,000 ounces of gold, 15.9 million pounds of lead, and 7.2 million pounds of zinc, and sold approximately 1.6 million ounces of silver, 1,000 ounces of gold, 16.8 million pounds of lead, and 7.3 million pounds of zinc, representing decreases of 12%, 9%, and 20%, respectively, in silver, gold and lead sold, and an increase of 4% in zinc sold over the first quarter of fiscal 2021.
The production decline in the current quarter resulted mainly from the Company’s mining contracts renewal negotiations at the Ying Mining District. As reported in the Company’s news release dated April 28, 2021, the Company’s two-year mining contracts with the eight mining contractors at the Ying Mining District expired on March 31, 2021 and the parties reached a temporary two-month extension. During negotiations, some contract workers took breaks or left due to the uncertainty which caused some disruption to mining activities. When the contracts were renewed for an additional two year term in mid May 2021, it took some time for the contractors to bring back all their workers and ramp the operations back up to full capacity. Notwithstanding the production decline in Q1 Fiscal 2022, the Company expects to increase production in the remaining three quarters and meet its annual guidance to produce between 6.3 – 6.6 million ounces of silver, 65.7 – 68.9 million pounds of lead, and 26.9 – 28.5 million pounds of zinc in Fiscal 2022.
Q1 FISCAL 2022 OPERATING HIGHLIGHTS
The operational results for Q1 Fiscal 2022 are summarized as follows:
Three months ended June 30, 2021 | Three months ended June 30, 2020 | ||||||||
Ying Mining District |
GC | Consolidated | Ying Mining District |
GC | Consolidated | ||||
Production Data | |||||||||
Ore Mined (tonne) | 142,907 | 88,328 | 231,235 | 174,176 | 80,379 | 254,555 | |||
Ore Milled (tonne) | 155,407 | 87,670 | 243,077 | 177,689 | 84,637 | 262,326 | |||
Head Grades | |||||||||
Silver (gram/tonne) | 279 | 80 | 207 | 293 | 93 | 228 | |||
Lead (%) | 4.2 | 1.5 | 3.2 | 4.6 | 1.9 | 3.7 | |||
Zinc (%) | 0.8 | 3.3 | 1.7 | 0.8 | 3.4 | 1.6 | |||
Recovery Rates | |||||||||
Silver (%) | 94.7 | 84.1 | 93.2 | 94.7 | 82.8 | 93.1 | |||
Lead (%) | 95.7 | 89.3 | 94.6 | 96.2 | 89.8 | 95.1 | |||
Zinc (%) | 59.7 | 89.3 | 80.7 | 63.8 | 87.3 | 79.5 | |||
Metal production | |||||||||
Silver (in thousands of ounces) | 1,283 | 190 | 1,474 | 1,543 | 209 | 1,752 | |||
Gold (in thousands of ounces) | 1.0 | – | 1.0 | 1.1 | – | 1.1 | |||
Lead (in thousands of pounds) | 13,278 | 2,600 | 15,878 | 16,941 | 3,136 | 20,077 | |||
Zinc (in thousands of pounds) | 1,519 | 5,679 | 7,198 | 1,920 | 5,613 | 7,533 | |||
Metal sold | |||||||||
Silver (in thousands of ounces) | 1,447 | 195 | 1,642 | 1,672 | 200 | 1,872 | |||
Gold (in thousands of ounces) | 1.0 | – | 1.0 | 1.1 | – | 1.1 | |||
Lead (in thousands of pounds) | 14,175 | 2,635 | 16,810 | 17,779 | 3,106 | 20,885 | |||
Zinc (in thousands of pounds) | 1,521 | 5,734 | 7,255 | 2,037 | 4,921 | 6,958 |
Ying Mining District
In Q1 Fiscal 2022, ore mined at the Ying Mining District was 142,907 tonnes, a decrease of 18%, compared to 174,176 tonnes in Q1 Fiscal 2021. Ore milled was 155,407 tonnes, with average head grades of 279 grams per tonne for silver, 4.2% for lead, and 0.8% for zinc, compared to 177,689 tonnes of ore milled with average head grades of 293 g/t for silver, 4.6% for lead, and 0.8% for zinc in Q1 Fiscal 2021. Metals production was approximately 1.3 million ounces of silver, 1,000 ounces of gold, 13.3 million pounds of lead, and 1.5 million pounds of zinc, compared to approximately 1.5 million ounces of silver, 1,100 ounces of gold, 16.9 million pounds of lead, and 1.9 million pounds of zinc in Q1 Fiscal 2021. The decrease was mainly due to the mining disruptions arising from the mining contracts renewal negotiations as discussed above.
GC Mine
In Q1 Fiscal 2022, ore mined at the GC Mine was 88,328 tonnes, an increase of 10% compared to 80,379 tonnes in Q1 Fiscal 2021. Ore milled was 87,670 tonnes, with average head grades of 80 g/t for silver, 1.5% for lead, and 3.3% for zinc, compared to 84,637 tonnes of ore milled with average head grades of 93 g/t for silver, 1.9% for lead and 3.4% for zinc in Q1 Fiscal 2021. Metals production was approximately 190 thousand ounces of silver, 2.6 million pounds of lead, and 5.7 million pounds of zinc, compared to approximately 209 thousand ounces of silver, 3.1 million pounds of lead, and 5.6 million pounds of zinc in Q1 Fiscal 2021.
About Silvercorp
Silvercorp is a profitable Canadian mining company producing silver, lead and zinc metals in concentrates from mines in China. The Company’s goal is to continuously create healthy returns to shareholders through efficient management, organic growth and the acquisition of profitable projects. Silvercorp balances profitability, social and environmental relationships, employees’ wellbeing, and sustainable development.
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