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Silvercorp Reports Net Income of $8.4 Million, $0.05 Per Share, and Cash Flow from Operations of $23.9 Million for Q3 Fiscal 2021

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Silvercorp Reports Net Income of $8.4 Million, $0.05 Per Share, and Cash Flow from Operations of $23.9 Million for Q3 Fiscal 2021

 

 

 

 

 

Silvercorp Metals Inc. (TSX:SVM) (NYSE American: SVM) reported its financial and operating results for the third quarter ended December 31, 2020.   All amounts are expressed in US Dollars.

 

Q3 FISCAL YEAR 2021 HIGHLIGHTS

 

  • Mined 279,445 tonnes of ore, up 6% compared to the prior year quarter, with ore milled of 260,648 tonnes, a decrease of 2% compared to the prior year quarter;
  • Sold approximately 1.6 million ounces of silver, 800 ounces of gold, 16.8 million pounds of lead, and 9.0 million pounds of zinc, representing increases of 14% and 7% in gold and zinc sold and decreases of 4% and 11% in silver and lead sold compared to the prior year quarter;
  • Revenue of $53.3 million, up 20% or $8.8 million compared to $44.5 million in the prior year quarter;
  • Net income attributable to equity shareholders of $8.4 million or $0.05 per share, up 33% compared to $6.3 million or $0.04 per share in the prior year quarter;
  • Cash cost per ounce of silver, net of by-product credits, of negative $2.76, compared to negative $1.21 in the prior year quarter;
  • All-in sustaining cost per ounce of silver, net of by-product credits, of $6.92, compared to $7.21 in the prior year quarter;
  • Gain on equity investments of $0.6 million;
  • Cash flow from operations of $23.9 million compared to $24.9 million in the prior year quarter;
  • Paid dividends of $2.2 million, or $0.0125 per share, to equity shareholders;
  • Acquired a 26.99% interest in Whitehorse Gold Corp. (“WHG”) at total cost of $1.3 million, having a fair market value of $35.5 million as at December 31, 2020, as result of (a) receiving 5,740,286 WHG common shares under a spin-out transaction completed by New Pacific Metals Corp. (“NUAG”), and (b) subscribing for 5,774,000 WHG common shares under a private placement;
  • Won an online auction to acquire the exploration rights to the Zhonghe Silver Project from the Henan provincial government of China, with the mineral rights transfer contract pending the clearance of the project area as not being in a military area by the related authorities;
  • Acquired a 45% interest in the La Yesca Silver Project in Mexico for approximately $7.6 million as announced on February 2, 2021;
  • Investment in NUAG with a carrying value of $50.8 million and market value of $277.0 million and other investments of $18.8 million as at December 31,2020; and
  • Strong balance sheet with $204.1 million in cash and cash equivalents and short-term investments, an increase of $4.0 million or 2% compared to $200.1 million as at September 30, 2020. This does not include the investments in associates and equity investments in other companies having a total market value of $331.3 million as at December 31, 2020.

 

FINANCIALS

 

Net income attributable to equity shareholders of the Company in Q3 Fiscal 2021 was $8.4 million, or $0.05 per share, up 33% compared to $6.3 million, or $0.04 per share in Q3 Fiscal 2020.

 

Compared to Q3 Fiscal 2020, the Company’s financial results in Q3 Fiscal 2021 were mainly impacted by the following: i) an increase of 33%, 20%, 1% and 47% in the net realized selling prices for silver, gold, lead and zinc; ii) an increase of 14% and 7% in the amount of gold and zinc sold, offset by i) a decrease of 4% and 11% in the amount of silver and lead sold; ii) a $3.0 million in foreign exchange loss, and iii) a $1.4 million finance costs.

 

Revenue in Q3 Fiscal 2021 was $53.3 million, up 20% or $8.8 million compared to $44.5 million in Q3 Fiscal 2020. The increase was mainly due to i) an increase of $10.5 million arising from the increase in the net realized selling prices for silver, gold, lead and zinc; ii) an increase of $0.7 million arising from the increase in the amount of gold and zinc sold; offset by iii) a decrease of $2.6 million arising from the decrease in the amount of silver and lead sold. Silver, gold and base metal sales represented $30.7 million, $1.2 million, and $21.4 million, respectively, compared to silver, gold and base metals sales of $24.0 million, $0.9 million, and $19.6 million, respectively, in Q3 Fiscal 2020. Revenue from the Ying Mining District in Q3 Fiscal 2021 was $42.5 million, up 19% compared to $35.7 million in Q3 Fiscal 2020. Revenue from the GC Mine in Q3 Fiscal 2021 was $10.8 million, up 22% compared to $8.8 million in Q3 Fiscal 2020.

 

Production costs expensed in Q3 Fiscal 2021 were $18.0 million, a decrease of $0.4 million, compared to $18.4 million in Q3 Fiscal 2020. The production costs expensed represent approximately 247,000 tonnes of ore processed and expensed at a cost of $73.04 per tonne, compared to approximately 255,000 tonnes at $72.16 per tonne in Q3 Fiscal 2020.

 

Income from mine operations in Q3 Fiscal 2021 was $24.8 million or 47% of revenue, compared to $15.8 million or 35% of revenue in Q3 Fiscal 2020. Income from mine operations at the Ying Mining District was $21.7 million or 51% of revenue, compared to $14.5 million or 41% of revenue in Q3 Fiscal 2020. Income from mine operations at the GC Mine was $3.3 million or 31% of revenue, compared to $1.4 million or 16% of revenue in Q3 Fiscal 2020.

 

General and administrative expenses in Q3 Fiscal 2021 were $6.3 million, an increase of $1.4 million compared to $4.9 million in Q3 Fiscal 2020. General and administrative expenses included corporate administrative expenses of $3.5 million (Q3 Fiscal 2020 – $2.6 million) and mine administrative expenses of $2.8 million (Q2 Fiscal 2020 – $2.3 million). The increase was mainly due to an increase of $0.7 million in salaries and benefits and $0.3 million in share-based compensation.

 

Foreign exchange loss in Q3 Fiscal 2021 was $3.0 million, an increase of $1.7 million compared to $1.3 million in Q3 Fiscal 2020. The foreign exchange loss is mainly driven by the appreciation of the Canadian dollar against the US dollar.

 

Share of loss in associates in Q3 Fiscal 2021 was $0.6 million (Q3 Fiscal 2020 – $0.3 million), representing the Company’s equity share of the loss in NUAG and WHG.

 

Gain on equity investments recorded in profit in Q3 Fiscal 2021 was $0.6 million, compared to $nil in Q3 Fiscal 2020.

 

Income tax expenses in Q3 Fiscal 2021 was $6.0 million, compared to $3.7 million in Q3 Fiscal 2020. The income tax expenses comprised of current income tax expenses of $4.5 million (Q3 Fiscal 2020 – $2.8 million) and deferred income tax expenses of $1.5 million (Q3 Fiscal 2020 – $0.9 million). The increase was mainly due to an increase of $9.0 million in income from mine operations.

 

Cash flow provided by operating activities in Q3 Fiscal 2021 was $23.9 million, a decrease of $1.0 million, compared to $24.9 million in Q3 Fiscal 2020. The decrease was mainly due to i) higher income taxes paid; ii) a negative impact from the change in non-cash working capital, offset by iii) higher operating income.

 

For the nine months ended December 31, 2020, net income attributable to equity shareholders of the Company was $39.4 million or $0.23 per share, an increase of $8.2 million, compared to $31.1 million or $0.18 per share in the same prior year period; revenue was $156.4 million, up 12% or $16.4 million, compared to $140.0 million in the same prior year period; income from mine operations was $70.8 million or 45% of revenue, compared to $56.2 million or 40% of revenue in the same prior year period; gain on equity investments recorded in profit was $8.8 million compared to $nil in the same prior year period; foreign exchange loss was $7.0 million compared to $1.3 million in the same prior year period; and cash flow from operating activities was $83.7 million, up 18% from $71.0 million in the same prior year period.

 

The Company ended the period with $204.1 million in cash and short-term investments, an increase of $4.0 million or 2% compared to $200.1 million as at September 30, 2020; and an increase of $61.6 million or 43% compared to $142.5 million as at March 31, 2020.

 

Working capital as at December 31, 2020 was $168.7 million, an increase of $38.4 million or 29%, compared to $130.4 million as at March 31, 2020.

 

OPERATIONS AND DEVELOPMENT

 

(i)      Q3 Fiscal 2021 vs. Q3 Fiscal 2020

 

In Q3 Fiscal 2021, on a consolidated basis, the Company mined 279,445 tonnes of ore, up 6% or 16,859 tonnes compared to 262,586 tonnes in the three months ended December 31, 2019 (“Q3 Fiscal 2020”). Ore milled was 260,648 tonnes, a decrease of 2% or 4,212 tonnes, compared to 264,860 tonnes in Q3 Fiscal 2020. The decrease was mainly due to a 7% decrease in the ore milled at the Ying Mining District caused by power rationing in December 2020, as the local government is subject to an annual environmental emissions KPI assessment.

 

In Q3 Fiscal 2021, the Company sold approximately 1.6 million ounces of silver, 800 ounces of gold, 16.8 million pounds of lead, and 9.0 million pounds of zinc, an increase of 14% and 7% in gold and zinc sold, and a decrease of 4% and 11% in silver and lead sold, compared to 1.7 million ounces of silver, 700 ounces of gold, 18.8 million pounds of lead, and 8.4 million pounds of zinc in Q3 Fiscal 2020.

 

In Q3 Fiscal 2021, the consolidated total mining and cash mining costs were $78.90 and $58.79 per tonne, up 0% and 2% compared to $78.65 and $57.54 per tonne, respectively, in Q3 Fiscal 2020. The increase in per tonne cash mining cost was mainly due to an increase of $0.4 million in labour costs and $0.9 million in mining contractor costs.

 

The consolidated total milling and cash milling costs in Q3 Fiscal 2021 were $13.23 and $11.66 per tonne, down 3% and 3% compared to $13.58 and $12.01 per tonne, respectively, in Q3 Fiscal 2020. The decrease in per tonne cash milling cost was mainly due to a decrease of $0.2 million in mill administration costs.

 

Correspondingly, the consolidated cash production cost per tonne of ore processed in Q3 Fiscal 2021 was $73.04, up 1% compared to $72.16 in Q3 Fiscal 2020. The consolidated all-in sustaining production cost per tonne of ore processed was $129.09, up 6% compared to $121.49 in Q3 Fiscal 2020, but within the Company’s annual cost guidance. The increase in all-in sustaining production cost per tonne was mainly due to an increase of $1.4 million in mine and corporate general and administrative expenses and a $0.3 million increase in sustaining capital expenditures.

 

In Q3 Fiscal 2021, the consolidated cash cost per ounce of silver, net of by-product credits, was negative $2.76, compared to negative $1.21, in Q3 Fiscal 2020. The decrease in cash cost per ounce of silver, net of by-product credits, was mainly due to an increase of $2.1 million in by-product sales, offset by an increase of 1% in per tonne production costs.

 

In Q3 Fiscal 2021, the consolidated all-in sustaining cost per ounce of silver, net of by-product credits, was $6.92 compared to $7.21 in Q3 Fiscal 2020. The decrease was mainly due to the decrease in cash cost per ounce of silver, net of by-product credits as discussed above offset by an increase of $0.3 million in sustaining capital expenditures.

 

In Q3 Fiscal 2021, on a consolidated basis, approximately 74,070 metres or $1.8 million worth of diamond drilling (Q3 Fiscal 2020 – 32,948 metres or $1.1 million) and 10,624 metres or $3.8 million worth of preparation tunnelling (Q3 Fiscal 2020 – 11,656 metres or $3.1 million) were completed and expensed as mining preparation costs. In addition, approximately 24,916 metres or $1.0 million of surface diamond drilling (Q3 Fiscal 2020 – nil) and 21,829 metres or $9.4 million worth of horizontal tunnels, raises, ramps and declines (Q3 Fiscal 2020 – 20,107 metres or $7.1 million) were completed and capitalized.

 

(ii)      Nine months ended December 31, 2020 vs. nine months ended December 31, 2019

 

For the nine months ended December 31, 2020, on a consolidated basis, the Company mined 801,853 tonnes of ore, up 3% or 22,618 tonnes, compared to 779,235 tonnes mined in the same prior year period. Ore milled was 786,907 tonnes, a slight decrease of 2,777 tonnes, compared to 789,684 tonnes in the same prior year period.

 

The Company sold approximately 5.3 million ounces of silver, 4,100 ounces of gold, 56.2 million pounds of lead, and 23.3 million pounds of zinc, an increase of 46%, 1%, and 4% in gold, lead, and zinc sold, and a decrease of 4% in silver sold, compared to 5.5 million ounces of silver, 2,800 ounces of gold, 55.7 million pounds of lead, and 22.3 million pounds of zinc sold in the same prior year period.

 

For the nine months ended December 31, 2020, the consolidated total mining costs and cash mining costs were $76.66 and $57.18 per tonne, respectively, compared to $76.31 and $55.13 per tonne in the same prior year period. The increase in per tonne cash mining cost was mainly due to i) an increase of $0.4 million in labour costs, ii) an increase of $0.6 million in raw material costs and iii) an increase of $1.3 million in mining contractor costs.

 

For the nine months ended December 31, 2020, the consolidated total milling cost and cash milling cost were $11.79 and $10.29, respectively, compared to $12.85 and $11.14 per tonne in the same prior year period.

 

Correspondingly, the consolidated cash production cost per tonne of ore processed for the nine months ended December 31, 2020 was $70.02, up 2% compared to $68.93 in the same prior year period. The all-in sustaining production cost per tonne of ore processed was $122.02, up 4% compared to $117.12 in the same prior year period. The increase was mainly due to the increase in per tonne cash mining costs as discussed above and an increase of $1.0 million in sustaining capital expenditures.

 

For the nine months ended December 31, 2020, the consolidated cash cost per ounce of silver, net of by-product credits, was negative $2.08, compared to negative $2.06 in the same prior year period. The consolidated all-in sustaining cost per ounce of silver, net of by-product credits was $6.48 compared to $5.64 in the same prior year period. The increase was mainly due to i) an increase of 2% in per tonne production costs; ii) an increase of $1.0 million in sustaining capital expenditures; and iii) a decrease of 4% in silver sold.

 

For the nine months ended December 31, 2020, on a consolidated basis, approximately 154,748 metres or $4.2 million worth of diamond drilling (same prior year period – 93,544 metres or $3.0 million) and 27,622 metres or $7.4 million worth of preparation tunnelling (same prior year period – 37,224 metres or $9.6 million) were completed and expensed as mining preparation costs. In addition, approximately 63,400 metres or $2.9 million worth of surface diamond drilling (same prior year period – nil) and 74,418 metres or $26.7 million worth of horizontal tunnels, raises, ramps and declines (same prior year period – 63,736 metres or $22.0 million) were completed and capitalized.

 

 

  1. Ying Mining District, Henan Province, China

 

Ying Mining District Q3 2021   Q2 2021   Q1 2021   Q4 2020 Q3 2020     Nine months ended December 31,
  December 31, 2020   September 30, 2020   June 30, 2020   March 31, 2020 December 31, 2019     2020   2019  
Ore Mined (tonne) 182,268   181,020   174,176   69,379 176,149     537,464   528,818  
Ore Milled (tonne) 162,905   179,083   177,689   69,188 175,488     519,677   532,317  
Head Grades                
Silver (gram/tonne) 297   288   293   297 296     293   311  
Lead (%) 4.3   4.4   4.6   4.6 4.6     4.4   4.6  
Zinc (%) 0.8   0.7   0.8   1.0 0.9     0.8   0.9  
Recoveries                
Silver (%) 93.9   94.4   94.7   95.3 96.1     94.4   96.1  
Lead (%) 96.4   96.1   96.2   95.7 96.3     96.2   95.9  
Zinc (%) 63.3   57.9   63.8   67.7 70.3     61.7   62.6  
Metal Sales                
Silver (in thousands of ounce) 1,446   1,556   1,672   711 1,475     4,674   4,848  
Gold (in thousands of ounce) 0.8   1.1   1.1   0.5 0.7     2.9   2.8  
Lead (in thousands of pound) 14,207   15,585   17,779   8,322 14,912     47,571   46,137  
Zinc (in thousands of pound) 2,241   1,384   2,037   865 2,882     5,662   6,400  
Cash mining cost ($/tonne) 68.02   67.70   64.12   68.10 64.69     66.67   62.33  
Shipping costs ($/tonne) 3.98   3.79   3.64   3.96 3.89     3.80   3.92  
Cash milling costs ($/tonne) 11.09   8.50   8.45   11.53 10.99     9.30   9.98  
Cash production costs ($/tonne) 83.09   80.06   76.21   83.59 79.57     79.77   76.23  
All-in sustaining production costs ($/tonne) 133.07   132.36   116.99   195.78 126.43     127.40   124.31  
                 
Cash costs per ounce of silver ($) (1.12 ) (0.14 ) (0.87 ) 0.30 (0.72 )   (0.71 ) (1.40 )
All-in sustaining costs per ounce of silver ($) 5.24   6.63   4.14   11.86 5.57     5.31   4.55  
                 
  1. i)      Q3 Fiscal 2021 vs. Q3 Fiscal 2020

 

In Q3 Fiscal 2021, the total ore mined at the Ying Mining District was 182,268 tonnes, up 3% or 6,119 tonnes compared to 176,149 tonnes in Q3 Fiscal 2020. Ore milled was 162,905 tonnes, a decrease of 7% compared to 175,488 tonnes in Q3 Fiscal 2020. The decrease in ore milled was mainly a result of the milling operations being temporarily suspended for seven days due to power rationing in December 2020 as the local government is subject to an annual environmental emissions KPI assessment.

 

Head grades were 297 grams per tonne for silver, 4.3% for lead, and 0.8% for zinc, compared to 296 g/t for silver, 4.6% for lead, and 0.9% for zinc in Q3 Fiscal 2020.

 

In Q3 Fiscal 2021, the Ying Mining District sold approximately 1.4 million ounces of silver, 800 ounces of gold, 14.2 million pounds of lead, and 2.2 million pounds of zinc, compared to 1.5 million ounces of silver, 700 ounces of gold, 14.9 million pounds of lead, and 2.9 million pounds of zinc in Q3 Fiscal 2020.

 

Total and cash mining costs per tonne at the Ying Mining District in Q3 Fiscal 2021 were $94.03 and $68.02 per tonne, respectively, compared to $91.91 and $64.69 per tonne in Q3 Fiscal 2020. The increase in the per tonne cash mining cost was mainly due to an increase of $0.2 million in labour costs and $0.6 million in mining contractor costs.

 

Total and cash milling costs per tonne at the Ying Mining District in Q3 Fiscal 2021 were $12.94 and $11.09, respectively, compared to $12.76 and $10.99 in Q3 Fiscal 2020. The slight increase in per tonne milling costs was mainly due to less ore milled resulting in higher fixed costs allocation.

 

Correspondingly, the cash production cost per tonne of ore processed in Q3 Fiscal 2021 at the Ying Mining District was $83.09, compared to $79.57 in Q3 Fiscal 2020. The all-in sustaining production cost per tonne of ore processed was $133.07, up 5% compared to $126.43 in Q3 Fiscal 2020, but below the Company’s annual cost guidance. The increase was mainly due to the increase in per tonne cash production costs as discussed above.

 

In Q3 Fiscal 2021, the cash cost per ounce of silver, net of by-product credits, at the Ying Mining District was negative $1.12 compared to negative $0.72 in Q3 Fiscal 2020. All-in sustaining cost per ounce of silver, net of by-product credits, was $5.24 compared to $5.57 in Q3 Fiscal 2020. The decrease was mainly due to an increase of $0.2 million in by-product sales, offset by a decrease of 2% in silver sold.

 

In Q3 Fiscal 2021, approximately 57,401 metres or $1.2 million worth of diamond drilling (Q3 Fiscal 2020 – 22,576 metres or $0.7 million) and 6,623 metres or $2.8 million worth of preparation tunnelling (Q3 Fiscal 2020 – 5,329 metres or $1.8 million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition, approximately 24,916 metres or $1.0 million worth of surface diamond drilling (Q3 Fiscal 2020 – nil) and 19,014 metres or $8.3 million worth of horizontal tunnels, raises, ramps and declines (Q3 Fiscal 2020 – 22,105 metres or $10.5 million) were completed and capitalized.

 

  1. ii)      Nine months ended December 31, 2020 vs. nine months ended December 31, 2019

 

For the nine months ended December 31, 2020, a total of 537,464 tonnes of ore were mined at the Ying Mining District, up 2% or 8,646 tonnes compared to 528,818 tonnes in the same prior year period. Ore milled was 519,677 tonnes, down 2% compared to 532,317 tonnes in the same prior year period. Average head grades of ore processed were 293 g/t for silver, 4.4% for lead, and 0.8% for zinc compared to 311 g/t for silver, 4.6% for lead, and 0.9% for zinc, in the same prior year period.

 

During the same time period, the Ying Mining District sold approximately 4.7 million ounces of silver, 2,900 ounces of gold, 47.6 million pounds of lead, and 5.7 million pounds of zinc, compared to 4.8 million ounces of silver, 2,800 ounces of gold, 46.1 million pounds of lead, and 6.4 million pounds of zinc in the same prior year period.

 

For the nine months ended December 31, 2020, the cash mining cost at the Ying Mining District was $66.67 per tonne, up 7% compared to $62.33 in the same prior year period. The increase in the per tonne cash mining cost was mainly due to an increase of $1.3 million in mining contractor’s costs. The cash milling cost was $9.30 per tonne, a decrease of 7% compared to $9.98 in the same prior year period.

 

Correspondingly, the cash production cost per tonne of ore processed was $79.77, up 5% compared to $76.23 in the same prior year period. The all-in sustaining cash production cost per tonne of ore processed was $127.40, up 2%, compared to $124.31 in the same prior year period, but below the Company’s annual cost guidance.

 

For the nine months ended December 31, 2020, the cash cost per ounce of silver and all-in sustaining cost per ounce of silver, net of by-product credits, at the Ying Mining District, were negative $0.71 and $5.31 respectively, compared to negative $1.40 and $4.55 in the same prior year period. The increase was mainly due to i) the increase in per tonne production costs as discussed above; ii) a decrease of $1.8 million in by-product credits; and iii) a decrease of 4% in silver sold.

 

For the nine months ended December 31, 2020, approximately 117,773 metres or $2.5 million worth of underground diamond drilling (same prior year period – 73,231 metres or $2.1 million) and 17,786 metres or $5.6 million worth of preparation tunnelling (same prior year period – 17,278 metres or $5.1 million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition, approximately 63,400 metres or $2.9 million worth of surface diamond drilling (same prior year period – nil) and 63,936 metres or $23.4 million worth of horizontal tunnels, raises, and declines (same prior year period – 62,661 metres or $24.3 million) were completed and capitalized.

 

 

  1. GC Mine, Guangdong Province, China

 

GC Mine Q3 2021   Q2 2021   Q1 2021   Q4 2020   Q3 2020     Nine months ended December 31,
  December 31, 2020   September 30, 2020   June 30, 2020   March 31, 2020   December 31, 2019     2020   2019  
Ore Mined (tonne) 97,177   86,833   80,379   37,216   86,437     264,389   250,417  
Ore Milled (tonne) 97,743   84,850   84,637   33,243   89,372     267,230   257,367  
Head Grades                
     Silver (gram/tonne) 82   81   93   94   96     85   97  
     Lead (%) 1.4   1.8   1.9   1.8   2.0     1.7   1.9  
     Zinc (%) 3.5   3.4   3.4   3.5   3.3     3.4   3.3  
Recovery Rates                
     Silver (%) * 82.6   82.5   82.8   80.7   78.0     82.6   76.9  
     Lead (%) 89.6   89.2   89.8   90.4   90.4     89.5   89.2  
     Zinc (%) 89.7   87.3   87.3   87.7   85.5     88.2   85.8  
Metal Sales                
Silver (in thousands of ounce) 201   184   200   89   234     585   610  
Lead (in thousands of pound) 2,599   2,966   3,106   1,332   3,867     8,671   9,553  
Zinc (in thousands of pound) 6,724   6,027   4,921   2,194   5,471     17,672   15,942  
Cash mining cost ($/tonne) 41.47   36.43   35.13   25.58   42.96     37.89   39.91  
Cash milling cost ($/tonne) 12.60   12.04   11.95   16.36   14.01     12.22   13.53  
Cash production cost ($/tonne) 54.07   48.47   47.08   41.94   56.97     50.11   53.44  
All-in sustaining production costs ($/tonne) 78.63   69.07   65.84   88.18   71.03     71.58   67.14  
                 
Cash cost per ounce of silver ($) (14.43 ) (12.70 ) (6.59 ) (10.03 ) (4.33 )   (11.21 ) (7.30 )
All-in sustaining cost per ounce of silver ($) (1.05 ) (1.78 ) 2.41   8.31   2.18     (0.10 ) (0.33 )
* Silver recovery includes silver recovered in lead concentrate and silver recovered in zinc concentrate.
                 
  1. i)      Q3 Fiscal 2021 vs. Q3 Fiscal 2020

 

In Q3 Fiscal 2021, the total ore mined at the GC Mine was 97,177 tonnes, up 12% or 10,740 tonnes, compared to 86,437 tonnes in Q3 Fiscal 2020. Ore milled was 97,743 tonnes, up 9% or 8,371 tonnes, compared to 89,372 tonnes in Q3 Fiscal 2020.

 

Average head grades of ore processed at the GC Mine were 82 g/t for silver, 1.4% for lead, and 3.5% for zinc, compared to 96 g/t for silver, 2.0% for lead, and 3.3% for zinc in Q3 Fiscal 2020. Recovery rates of ore processed were 82.6% for silver, 89.6% for lead, and 89.7% for zinc, compared to 78.0% for silver, 90.4% for lead, and 85.5% for zinc in Q3 Fiscal 2020.

 

In Q3 Fiscal 2021, GC Mine sold approximately 201 thousand ounces of silver, 2.6 million pounds of lead, and 6.7 million pounds of zinc, compared to 234 thousand ounces of silver, 3.9 million pounds of lead, and 5.5 million pounds of zinc in Q3 Fiscal 2020.

 

Total and cash mining costs per tonne at the GC Mine in Q3 Fiscal 2021 were $50.53 and $41.47 per tonne, a decrease of 2% and 3%, respectively, compared to $51.60 and $42.96 per tonne in Q3 Fiscal 2020. The decrease in the cash mining cost was mainly due to a $0.2 million decrease in mining preparation costs. Total and cash milling costs per tonne at the GC Mine in Q3 Fiscal 2021 were $13.72 and $12.60, a decrease of 10% and 10%, respectively, compared to $15.20 and $14.01 in Q3 Fiscal 2020.

 

Correspondingly, the cash production cost per tonne of ore processed in Q3 Fiscal 2021 at the GC Mine was $54.07, down 5% compared to $56.97 in Q3 Fiscal 2020. The all-in sustaining production cost per tonne of ore processed was $78.63, up 11% compared to $71.03 in Q3 Fiscal 2020. The increase was mainly due to an increase of $1.1 million in sustaining capital expenditures.

 

In Q3 Fiscal 2021, the cash cost per ounce of silver, net of by-product credits, at the GC Mine was negative $14.43 compared to negative $4.33 in Q3 Fiscal 2020. The decrease was mainly due to the decrease in per tonne production costs as discussed above and an increase of $1.9 million in by-product sales.

 

In Q3 Fiscal 2021, all-in sustaining cost per ounce of silver, net of by-product credits, at the GC Mine was negative $1.05 compared to $2.18 in Q3 Fiscal 2020. The decrease was mainly due to the decrease in cash cost per ounces of silver offset by an increase of $1.0 million in sustaining capital expenditures.

 

In Q3 Fiscal 2021, approximately 17,029 metres or $0.6 million worth of underground diamond drilling (Q3 Fiscal 2020 – 6,402 metres or $0.3 million) and 4,001 metres or $1.0 million worth of tunnelling (Q3 Fiscal 2020 – 6,599 metres or $1.5 million) were completed and expensed as mining preparation costs at the GC Mine. In addition, approximately 2,815 metres or $1.1 million worth of horizontal tunnels, raises, ramps and declines (Q3 Fiscal 2020 – 532 metres or $0.3 million) were completed and capitalized.

 

  1. ii)      Nine months ended December 31, 2020 vs. nine months ended December 31, 2019

 

For the nine months ended December 31, 2020, a total of 264,389 tonnes of ore were mined and 267,230 tonnes were milled at the GC Mine, up 6% and 4%, respectively, compared to 250,417 tonnes mined and 257,367 tonnes milled in the same prior year period. Average head grades of ore milled were 85 g/t for silver, 1.7% for lead, and 3.4% for zinc compared to 97 g/t for silver, 1.9% for lead, and 3.3% for zinc, in the same

prior year period.

During the same time period, the GC Mine sold approximately 585 thousand ounces of silver, 8.7 million pounds of lead, and 17.7 million pounds of zinc, compared to 610 thousand ounces of silver, 9.6 million pounds of lead, and 15.9 million pounds of zinc in the same prior year period.

 

For the nine months ended December 31, 2020, the cash mining cost at the GC Mine was $37.89 per tonne, a decrease of 5% compared to $39.91 per tonne in the same prior year period. The cash milling cost was $12.22 per tonne, a decrease of 10% compared to $13.53 in the same prior year period. Correspondingly, the cash production cost per tonne of ore processed at the GC Mine was $50.11, a decrease of 6% compared to $53.44 in the same prior year period. The all-in sustaining production cost per tonne of ore processed was $71.58, an increase of 7% compared to $67.14 in the same prior year period.

 

For the nine months ended December 31, 2020, the cash cost per ounce of silver and all-in sustaining cost per ounce of silver, net of by‐product credits, at the GC Mine were negative $11.21 and negative $0.10 respectively, compared to negative $7.30 and negative $0.33 in the same prior year period.

 

For the nine months ended December 31, 2020, approximately 36,975 metres or $1.7 million worth of underground diamond drilling (same prior year period – 20,313 metres or $0.9 million) and 9,836 metres or $1.8 million of tunnelling (same prior year period – 18,962 metres or $4.5 million) were completed and expensed as mining preparation costs at the GC Mine. In addition, approximately 10,482 metres or $3.3 million of horizontal tunnels, raise, and declines (same prior year period – 1,476 metres or $1.0 million) were completed and capitalized.

 

FISCAL 2022 PRODUCTION, CASH COST, AND CAPITAL EXPENDITURE GUIDANCE

 

In Fiscal 2022, the Company expects to process approximately 960,000 – 1,010,000 tonnes of ore, yielding 6.4 million to 6.7 million ounces of silver, 65.7 million to 68.9 million pounds of lead, and 26.9 million to 28.5 million pounds of zinc. Fiscal 2022 production guidance represents an anticipated increase of approximately 3% in silver production, and 7% to 10% in zinc production compared to the current Fiscal 2021 guidance. In Fiscal 2022, lead production is expected to be similar to the current Fiscal 2021 guidance.

 

 

    Head grades Metal production Production costs
  Ore processed Silver Lead Zinc Silver Lead Zinc Cash cost* AISC*
  (tonnes) (g/t) (%) (%) (Moz) (Mlbs) (Mlbs) ($/t) ($/t)
Fiscal 2022 production and cash costs guidance              
Ying Mining District 670,000-700,000 290 4.2 0.9 5.8 – 6.0 57.2 – 59.8 7.8 – 8.1 87.1 – 91.7 134.2 – 141.2
GC Mine 290,000-310,000 86 1.5 3.6 0.6 – 0.7 8.5 – 9.1 19.1 – 20.4 55.7 – 59.6 81.3 – 85.6
Consolidated 960,000-1,010,000 223 3.3 1.7 6.4 – 6.7 65.7 – 68.9 26.9 – 28.5 77.7 – 82.6 130.7 – 141.7
                   

 

*Both AISC and cash costs are non-IFRS measures. AISC refers to all-in sustaining costs per tonne of ore processed. Cash costs refer to cash production costs per tonne of ore processed. Foreign exchange rates assumptions used are: US$1 = CAD$1.30, US$1 = RMB¥6.50.

 

The Company has been consistently active in exploring its existing mining permit areas through drilling and tunneling, with the objective of replacing the depleted ore. In recent years, the Company has embarked on a capital investment program at both of its mining operations with the objective of adding facilities and infrastructure that will enhance the environmental friendliness, safety, efficiency and future profitability of the mines. This program includes the excavation of additional access ramps and tunnels which are expected to facilitate the efficient movement of ore, equipment and personnel within the mines, as well as provide access to new areas of mineralization that may be suitable for mining in current and future periods. Depending on the extent of each project and the rate of development progress, the spending associated with these projects may be spread across several reporting periods until they are complete.

 

For Fiscal 2022, the Company plans to i) complete 6,600 metres of ramp development tunneling at estimated capitalized expenditures of $5.6 million, representing a 20% decrease in meterage and a 19% decrease in total cost compared to Fiscal 2021 guidance; ii) complete 62,500 metres of exploration and other development tunneling at estimated capitalized expenditures of $21.8 million, representing a 32% decrease in meterage and a 28% decrease in total cost compared to Fiscal 2021 guidance, and iii) spend $7.3 million on equipment and facilities, an increase of 35% compared to Fiscal 2021 guidance. In addition, the Company plans to complete 50,000 metres of surface diamond drilling at estimated capitalized expenditures of $3.5 million. The total capital expenditures are budgeted at $38.2 million, representing a decrease of 10% compared to Fiscal 2021 annual guidance. The Company also plans to complete and expense 33,600 metres of mining preparation tunneling and 206,900 metres of underground diamond drilling. The table below summarizes the work plan and estimated capital expenditures in Fiscal 2022.

 

 

  Capitalized Development Work and Expenditures Expensed
  Ramp Development Exploration and Development Tunnels Surface Diamond Drilling Equipment & Facilities Total Mining Preparation Tunnels Underground drilling
  (Metres) ($ Million) (Metres) ($ Million) (Metres) ($ Million) ($ Million) ($ Million) (Metres) (Metres)
Ying Mining District 6,100 5.2 52,200 18.8 50,000 3.5 6.3 33.8 23,400 148,400
GC Mine 500 0.4 10,300 3.0 1.0 4.4 10,200 58,500
Consolidated 6,600 5.6 62,500 21.8 50,000 3.5 7.3 38.2 33,600 206,900

(a)   Ying Mining District

 

In Fiscal 2022, the Company plans to mine and process 670,000 to 700,000 tonnes of ore at the Ying Mining District averaging 290 g/t silver, 4.2% lead, and 0.9% zinc with expected metal production of 5.8 million to 6.0 million ounces of silver, 57.2 million to 59.8 million pounds of lead, and 7.8 million to 8.1 million pounds of zinc. Fiscal 2022 production guidance at the Ying Mining District represents increases of approximately 4% to 6% in ore production, 3% to 4% in silver production, 1% to 3% in lead production, and 1% to 11% in zinc production compared to its Fiscal 2021 guidance.

 

The cash production costs are expected to be $87.1 to $91.7 per tonne of ore, and the all-in sustaining costs are estimated at $134.2 to $141.2 per tonne of ore processed.

 

In Fiscal 2022, the Ying Mining District plans to i) complete 6,100 metres of ramp development tunneling at estimated capital expenditures of $5.2 million, representing a 9% decrease in meterage and 5% decrease in total cost compared to its Fiscal 2021 guidance; ii) complete 52,200 metres of exploration and other development tunneling at estimated capital expenditures of $18.8 million, representing a 36% decrease in meterage and 30% decrease in total cost compared to its Fiscal 2021 guidance; and iii) spend $6.3 million on equipment and facilities, an increase of 37% compared to its Fiscal 2021 guidance. In addition, the Company plans to complete 50,000 metres of surface diamond drilling at estimated capitalized expenditures of $3.5 million. The total capital expenditures at the Ying Mining District are budgeted at $33.8 million, a decrease of 9% compared to its Fiscal 2021 guidance. The Ying Mining District also plans to complete and expense 23,400 metres of mining preparation tunneling and 148,400 metres of diamond drilling, representing an increase of 11% and 87%, respectively, compared to Fiscal 2021 guidance.

 

(b)   GC Mine

 

In Fiscal 2022, the Company plans to mine and process 290,000 to 310,000 tonnes of ore at the GC Mine averaging 86 g/t silver, 1.5% lead, and 3.6% zinc with expected metal production of 0.6 million to 0.7 million ounces of silver, 8.5 million to 9.1 million pounds of lead and 19.1 million to 20.4 million pounds of zinc. Fiscal 2022 production guidance at the GC Mine represents similar ore production and silver production, an increase of approximately 9% in zinc production, but a 10% to 13% decrease in lead production due to lower head grade compared to its Fiscal 2021 annual guidance.

 

The cash production costs are expected to be $55.7 to $59.6 per tonne of ore, and the all-in sustaining costs are estimated at $81.3 to $85.6 per tonne of ore processed.

 

In Fiscal 2022, the GC Mine plans to i) complete 500 metres of ramp development tunneling at estimated capital expenditures of $0.4 million, representing a 69% decrease in meterage and a decrease of 71% in total cost compared to its Fiscal 2021 guidance; ii) complete 10,300 metres of exploration and development tunneling at estimated capital expenditures of $3.0 million, a 6% decrease in meterage and total cost; and iii) spend $1.0 million on equipment and facilities, an increase of 70% compared to its Fiscal 2021 guidance. The total capital expenditures at the GC Mine are budgeted at $4.4 million, a decrease of 19% compared to its Fiscal 2021 guidance. The GC Mine also plans to complete and expense 10,200 metres of mining preparation tunneling and 58,500 metres of underground diamond drilling.

 

(c)   Other Development Plans

 

In Fiscal 2022, the Company plans to commence a Phase I 10,000 metre drilling program at the La Yesca Silver Project in Mexico, which drill program is pending receipt of the necessary drilling permits from the respective Mexican government agencies. As a result, the budget for the drill program has not yet been finalized.

 

The Company plans to initiate an extensive drilling campaign at the Zhonghe Silver Project, located approximately 75 km northeast of the Ying Mining District. The Company will formalize the plan and provide an update on the cost estimates with respect to the Zhonghe Silver Project once the mineral rights transfer contract is executed.

 

The Company is in the process of applying for permits to build a third tailings facility near the existing tailings facilities at the Ying Mining District. The Company is also considering plans to expand the current milling capacity or build a new mill for future production expansion at the Ying Mining District. There is potential to consolidate mineral properties near the Ying Mining District, or to process ore from the Zhonghe Silver Project during its development stage. The Company will provide further updates when plans and cost estimates are formalized.

 

Scientific and technical information contained in this news release has been reviewed and approved by Mr. Guoliang Ma, P.Geo., Manager of Exploration and Resources of the Company and a Qualified Person as such the term is defined in National Instrument 43-101 – Standards of Disclosure of Mineral Projects.

 

This earnings release should be read in conjunction with the Company’s MD&A, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted on SEDAR under the Company’s profile at www.sedar.com and are also available on the Company’s website at www.silvercorp.ca.

 

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.

 

 

SILVERCORP METALS INC.
Consolidated Statements of Financial Position
(Unaudited – Expressed in thousands of U.S. dollars)

 

 

    As at December 31,   As at March 31,  
      2020     2020  
ASSETS        
Current Assets        
Cash and cash equivalents   $ 103,347   $ 65,777  
Short-term investments     100,774     76,742  
Trade and other receivables     1,196     1,178  
Current portion of lease receivable     210     186  
Inventories     9,751     8,430  
Due from related parties     102     1,519  
Income tax receivable         1,093  
Prepaids and deposits     4,770     3,254  
      220,150     158,179  
         
Non-current Assets        
Long-term prepaids and deposits     406     390  
Long-term portion lease receivable     234     348  
Reclamation deposits     8,447     9,230  
Investment in associates     53,988     44,555  
Other investments     18,763     8,750  
Plant and equipment     76,217     66,722  
Mineral rights and properties     277,688     224,586  
TOTAL ASSETS   $ 655,893   $ 512,760  
         
LIABILITIES AND EQUITY        
Current Liabilities        
Accounts payable and accrued liabilities   $ 45,446   $ 23,129  
Current portion of lease obligation     644     567  
Deposits received     2,819     3,195  
Income tax payable     2,493     937  
      51,402     27,828  
         
Non-current Liabilities        
Long-term portion of lease obligation     1,225     1,502  
Deferred income tax liabilities     41,976     35,758  
Environmental rehabilitation     9,457     8,700  
Total Liabilities     104,060     73,788  
         
Equity        
Share capital     248,762     243,926  
Equity reserves     29,397     (21,142 )
Retained earnings     180,885     145,898  
Total equity attributable to the equity holders of the Company     459,044     368,682  
         
Non-controlling interests     92,789     70,290  
Total Equity     551,833     438,972  
         
TOTAL LIABILITIES AND EQUITY   $ 655,893   $ 512,760  
         

 

 

 

SILVERCORP METALS INC.
Consolidated Statements of Income
(Unaudited – Expressed in thousands of U.S. dollars, except for per share figures)

 

    Three Months Ended December 31,     Nine Months Ended December 31,  
      2020     2019       2020     2019  
             
Revenue   $ 53,296   $ 44,508     $ 156,373   $ 139,970  
Cost of mine operations            
Production costs     18,025     18,395       55,460     53,685  
Depreciation and amortization     5,596     5,886       16,928     17,569  
Mineral resource taxes     1,337     1,322       4,106     3,981  
Government fees and other taxes     777     787       1,965     1,877  
General and administrative     2,760     2,348       7,156     6,688  
      28,495     28,738       85,615     83,800  
Income from mine operations     24,801     15,770       70,758     56,170  
             
Corporate general and administrative     3,525     2,568       8,996     7,504  
Property evaluation and business development     209     232       (3,450 )   405  
Foreign exchange loss     2,954     1,277       6,973     1,334  
Loss on disposal of plant and equipment     36     110       247     373  
Gain on disposal of mineral rights and properties                   (1,477 )
Share of loss in associates     550     322       1,030     847  
Dilution gain on investment in associate                   (723 )
Reclassification of other comprehensive income upon ownership dilution of investment in associate                   (21 )
Gain on equity investments designated as FVTPL     (600 )         (8,837 )    
Other (income) expense     (503 )   (182 )     (682 )   308  
Income from operations     18,630     11,443       66,481     47,620  
             
Finance income     1,108     1,122       2,796     2,869  
Finance costs     (1,403 )   (134 )     (1,634 )   (445 )
Income before income taxes     18,335     12,431       67,643     50,044  
             
Income tax expense     6,046     3,715       17,305     8,366  
Net income   $ 12,289   $ 8,716     $ 50,338   $ 41,678  
             
Attributable to:            
Equity holders of the Company   $ 8,392   $ 6,283     $ 39,355   $ 31,111  
Non-controlling interests     3,897     2,433       10,983     10,567  
    $ 12,289   $ 8,716     $ 50,338   $ 41,678  
             
Earnings per share attributable to the equity holders of the Company        
Basic earnings per share   $ 0.05   $ 0.04     $ 0.23   $ 0.18  
Diluted earnings per share   $ 0.05   $ 0.04     $ 0.22   $ 0.18  
Weighted Average Number of Shares Outstanding – Basic     175,261,808     172,691,444       174,651,536     171,179,368  
Weighted Average Number of Shares Outstanding – Diluted     177,515,646     174,760,433       177,134,575     172,963,914  

 

SILVERCORP METALS INC.
Consolidated Statements of Cash Flow
(Unaudited – Expressed in thousands of U.S. dollars)

 

 

  Three Months Ended December 31,     Nine Months Ended December 31,  
    2020     2019       2020     2019  
Cash provided by          
Operating activities          
Net income $ 12,289   $ 8,716     $ 50,338   $ 41,678  
Add (deduct) items not affecting cash:          
Finance costs   1,403     134       1,634     445  
Depreciation, amortization and depletion   6,063     6,268       18,240     18,691  
Share of loss in associates   550     322       1,030     847  
Dilution gain on investment in associate                 (723 )
Reclassification of other comprehensive loss upon ownership dilution of investment in associate                 (21 )
Income tax expense   6,046     3,715       17,305     8,366  
Gain on equity investments designated as FVTPL   (600 )         (8,837 )    
Loss on disposal of plant and equipment   36     110       247     373  
Gain on disposal of mineral rights and properties                 (1,477 )
Share-based compensation   1,263     947       3,018     1,973  
Reclamation expenditures   (50 )   (222 )     (118 )   (296 )
Income taxes paid   (6,041 )   (485 )     (11,864 )   (3,415 )
Interest paid   (23 )   (30 )     (73 )   (135 )
Changes in non-cash operating working capital   3,002     5,377       12,761     4,662  
Net cash provided by operating activities   23,938     24,852       83,681     70,968  
           
Investing activities          
Mineral rights and properties          
Capital expenditures   (12,432 )   (7,912 )     (29,146 )   (21,921 )
Acquisition   (6,566 )         (6,566 )    
Proceeds on disposals                 6,146  
Plant and equipment          
Additions   (3,049 )   (1,909 )     (6,044 )   (6,238 )
Proceeds on disposals   46     5       47     8  
Reclamation deposits          
Paid   (125 )   (11 )     (386 )   (1,560 )
Refund   34           1,839      
Other investments          
Acquisition   (1,305 )   (2,133 )     (12,708 )   (3,859 )
Proceeds on disposals   64     4,875       17,870     6,141  
Investment in associate   (1,326 )   (3,820 )     (7,131 )   (7,030 )
Net redemptions (purchases) of short-term investments   6,130     (11,866 )     (9,321 )   (45,484 )
Principal received on lease receivable   49     35       143     71  
Net cash used in investing activities   (18,480 )   (22,736 )     (51,403 )   (73,726 )
           
Financing activities          
Related parties          
Repayments received       2,922       1,423     2,922  
Bank loan          
Repayment                 (4,369 )
Principal payments on lease obligation   (144 )   (81 )     (414 )   (369 )
Non-controlling interests          
Distribution             (3,239 )   (3,259 )
Cash dividends distributed   (2,190 )   (2,162 )     (4,368 )   (4,287 )
Proceeds from issuance of common shares   198     1,917       2,884     6,994  
Net cash (used in) provided by financing activities   (2,136 )   2,596       (3,714 )   (2,368 )
           
Effect of exchange rate changes on cash and cash equivalents   4,705     1,090       9,006     (421 )
           
Increase (decrease) in cash and cash equivalents   8,027     5,802       37,570     (5,547 )
           
Cash and cash equivalents, beginning of the period   95,320     56,092       65,777     67,441  
           
Cash and cash equivalents, end of the period $ 103,347   $ 61,894     $ 103,347   $ 61,894  

 

 

SILVERCORP METALS INC.
Mining Data
(Expressed in thousands of U.S. dollars, except for mining data figures)

 

Consolidated Three months ended December 31,   Nine months ended December 31,
      2020   2019   Changes   2020   2019   Changes
                   
Production Data              
  Mine Data              
    Ore Mined (tonne) 279,445   262,586   6 %   801,853   779,235   3 %
    Ore Milled (tonne) 260,648   264,860   -2 %   786,907   789,684   -0 %
                   
    Head Grades              
         Silver (gram/tonne) 216   228   -5 %   222   241   -8 %
         Lead (%) 3.2   3.7   -13 %   3.5   3.7   -6 %
         Zinc (%) 1.8   1.7   7 %   1.7   1.7   -1 %
                   
    Recovery Rates              
         Silver (%) 92.3   93.5   -1 %   92.9   93.6   -1 %
         Lead (%) 95.3   95.2   0 %   95.1   94.8   0 %
         Zinc (%) 82.4   80.2   3 %   79.9   77.4   3 %
                   
Cost Data              
  + Mining cost per tonne of ore mined ($) 78.90   78.65   0 %   76.66   76.31   0 %
    Cash mining cost per tonne of ore mined ($) 58.79   57.54   2 %   57.18   55.13   4 %
    Depreciation and amortization charges per tonne of ore mined ($) 20.11   21.11   -5 %   19.48   21.18   -8 %
                   
  + Unit shipping costs ($) 2.59   2.61   -1 %   2.55   2.66   -4 %
                   
  + Milling costs per tonne of ore milled ($) 13.23   13.58   -3 %   11.79   12.85   -8 %
    Cash milling costs per tonne of ore milled ($) 11.66   12.01   -3 %   10.29   11.14   -8 %
    Depreciation and amortization charges per tonne of ore milled ($) 1.57   1.57   0 %   1.50   1.71   -12 %
                   
  + Cash production cost per tonne of ore processed ($) 73.04   72.16   1 %   70.02   68.93   2 %
  + All-in sustaining cost per tonne of ore processed ($) 129.09   121.49   6 %   122.02   117.12   4 %
                   
  + Cash cost per ounce of Silver, net of by-product credits ($) (2.76 ) (1.21 ) -128 %   (2.08 ) (2.06 ) -1 %
  + All-in sustaining cost per ounce of silver, net of by-product credits ($) 6.92   7.21   -4 %   6.48   5.64   15 %
                   
Concentrate inventory              
    Lead concentrate (tonne) 1,153   3,815   -70 %   1,153   3,815   -70 %
    Zinc concentrate (tonne) 611   270   126 %   611   270   126 %
                   
Sales Data              
  Metal Sales              
    Silver (in thousands of ounces) 1,647   1,709   -4 %   5,259   5,458   -4 %
    Gold (in thousands of ounces) 0.8   0.7   14 %   4.1   2.8   46 %
    Lead (in thousands of pounds) 16,806   18,779   -11 %   56,242   55,690   1 %
    Zinc (in thousands of pounds) 8,965   8,353   7 %   23,334   22,342   4 %
                   
  Revenue              
    Silver (in thousands of $) 30,720   24,040   28 %   89,951   75,037   20 %
    Gold (in thousands of $) 1,222   890   37 %   5,717   3,286   74 %
    Lead (in thousands of $) 12,853   14,133   -9 %   41,614   45,513   -9 %
    Zinc (in thousands of $) 7,923   5,039   57 %   17,314   14,236   22 %
    Other (in thousands of $) 578   406   42 %   1,777   1,898   -6 %
      53,296   44,508   20 %   156,373   139,970   12 %
  Average Selling Price, Net of Value Added Tax and Smelter Charges              
    Silver ($ per ounce) 18.65   14.07   33 %   17.10   13.75   24 %
    Gold ($ per ounce) 1,528   1,271   20 %   1,394   1,174   19 %
    Lead ($ per pound) 0.76   0.75   1 %   0.74   0.82   -10 %
    Zinc ($ per pound) 0.88   0.60   47 %   0.74   0.64   16 %
                   

 

 

SILVERCORP METALS INC.
Mining Data
(Expressed in thousands of U.S. dollars, except for mining data figures)

 

Ying Mining District Three months ended December 31,   Nine months ended December 31,
      2020   2019   Changes   2020   2019   Changes
                   
Production Data              
  Mine Data              
    Ore Mined (tonne) 182,268   176,149   3 %   537,464   528,818   2 %
    Ore Milled (tonne) 162,905   175,488   -7 %   519,677   532,317   -2 %
                   
    Head Grades              
         Silver (gram/tonne) 297   296   0 %   293   311   -6 %
         Lead (%) 4.3   4.6   -7 %   4.4   4.6   -4 %
         Zinc (%) 0.8   0.9   -11 %   0.8   0.9   -11 %
                   
    Recovery Rates              
         Silver (%) 93.9   96.1   -2 %   94.4   96.1   -2 %
         Lead (%) 96.4   96.3   0 %   96.2   95.9   0 %
         Zinc (%) 63.3   70.3   -10 %   61.7   62.6   -1 %
                   
Cost Data              
  + Mining cost per tonne of ore mined ($) 94.03   91.91   2 %   91.47   89.67   2 %
    Cash mining cost per tonne of ore mined ($) 68.02   64.69   5 %   66.67   62.33   7 %
    Depreciation and amortization charges per tonne of ore mined ($) 26.01   27.22   -4 %   24.80   27.34   -9 %
                   
  + Unit shipping costs ($) 3.98   3.89   2 %   3.80   3.92   -3 %
                   
  + Milling costs per tonne of ore milled ($) 12.94   12.76   1 %   10.97   11.74   -7 %
    Cash milling cost per tonne of ore milled ($) 11.09   10.99   1 %   9.30   9.98   -7 %
    Depreciation and amortization charges per tonne of ore milled ($) 1.85   1.77   5 %   1.67   1.76   -5 %
                   
  + Cash production cost per tonne of ore processed ($) 83.09   79.57   4 %   79.77   76.23   5 %
  + All-in sustaining cost per tonne of ore processed ($) 133.07   126.43   5 %   127.40   124.31   2 %
                   
  + Cash cost per ounce of Silver, net of by-product credits ($) (1.12 ) (0.72 ) -56 %   (0.71 ) (1.40 ) 49 %
  + All-in sustaining cost per ounce of Silver, net of by-product credits ($) 5.24   5.57   -6 %   5.31   4.55   17 %
                   
Concentrate inventory              
    Lead concentrate (tonne) 871   3,625   -76 %   871   3,625   -76 %
    Zinc concentrate (tonne) 62   190   -67 %   62   190   -67 %
                   
Sales Data              
  Metal Sales              
    Silver (in thousands of ounces) 1,446   1,475   -2 %   4,674   4,848   -4 %
    Gold (in thousands of ounces) 0.8   0.7   14 %   2.9   2.8   4 %
    Lead (in thousands of pounds) 14,207   14,912   -5 %   47,571   46,137   3 %
    Zinc (in thousands of pounds) 2,241   2,882   -22 %   5,662   6,400   -12 %
                   
  Revenue              
    Silver (in thousands of $) 28,013   21,437   31 %   82,625   68,648   20 %
    Gold (in thousands of $) 1,194   890   34 %   4,164   3,286   27 %
    Lead (in thousands of $) 10,892   11,112   -2 %   35,386   37,750   -6 %
    Zinc (in thousands of $) 2,114   1,836   15 %   4,556   4,460   2 %
    Other (in thousands of $) 273   406   -33 %   1,112   1,609   -31 %
      42,486   35,681   19 %   127,843   115,753   10 %
  Average Selling Price, Net of Value Added Tax and Smelter Charges              
    Silver ($ per ounce) 19.37   14.53   33 %   17.68   14.16   25 %
    Gold ($ per ounce) 1,493   1,271   17 %   1,436   1,174   22 %
    Lead ($ per pound) 0.77   0.75   3 %   0.74   0.82   -10 %
    Zinc ($ per pound) 0.94   0.64   47 %   0.80   0.70   14 %
                   

 

SILVERCORP METALS INC.
Mining Data
(Expressed in thousands of U.S. dollars, except for mining data figures)

 

 

GC Mine Three months ended December 31,   Nine months ended December 31,
      2020   2019   Changes   2020   2019   Changes
                   
Production Data              
  Mine Data              
    Ore Mined (tonne) 97,177   86,437   12 %   264,389   250,417   6 %
    Ore Milled (tonne) 97,743   89,372   9 %   267,230   257,367   4 %
                   
    Head Grades              
         Silver (gram/tonne) 82   96   -15 %   85   97   -12 %
         Lead (%) 1.4   2.0   -30 %   1.7   1.9   -11 %
         Zinc (%) 3.5   3.3   6 %   3.4   3.3   3 %
                   
    Recovery Rates              
         Silver (%) * 82.6   78.0   6 %   82.6   76.9   7 %
         Lead (%) 89.6   90.4   -1 %   89.5   89.2   0 %
         Zinc (%) 89.7   85.5   5 %   88.2   85.8   3 %
                   
Cost Data              
  + Mining cost per tonne of ore mined ($) 50.53   51.60   -2 %   46.56   48.07   -3 %
    Cash mining cost per tonne of ore mined ($) 41.47   42.96   -3 %   37.89   39.91   -5 %
    Depreciation and amortization charges per tonne of ore mined ($) 9.06   8.64   5 %   8.67   8.16   6 %
                   
  + Milling cost per tonne of ore milled ($) 13.72   15.20   -10 %   13.39   15.14   -12 %
    Cash milling cost per tonne of ore milled ($) 12.60   14.01   -10 %   12.22   13.53   -10 %
    Depreciation and amortization charges per tonne of ore milled ($) 1.12   1.19   -6 %   1.17   1.61   -27 %
                   
  + Cash production cost per tonne of ore processed ($) 54.07   56.97   -5 %   50.11   53.44   -6 %
  + All-in sustaining cost per tonne of ore processed ($) 78.63   71.03   11 %   71.58   67.14   7 %
                   
  + Cash cost per ounce of Silver, net of by-product credits ($) (14.43 ) (4.33 ) -233 %   (11.21 ) (7.30 ) -54 %
  + All-in sustaining cost per ounce of Silver, net of by-product credits ($) (1.05 ) 2.18   148 %   (0.10 ) (0.33 ) 70 %
                   
Concentrate inventory              
    Lead concentrate (tonne) 282   190   48 %   282   190   48 %
    Zinc concentrate (tonne) 549   80   586 %   549   80   586 %
                   
Sales Data              
  Metal Sales              
    Silver (in thousands of ounces) 201   234   -14 %   585   610   -4 %
    Lead (in thousands of pounds) 2,599   3,867   -33 %   8,671   9,553   -9 %
    Zinc (in thousands of pounds) 6,724   5,471   23 %   17,672   15,942   11 %
                   
  Revenue              
    Silver (in thousands of $) 2,707   2,603   4 %   7,326   6,389   15 %
    Lead (in thousands of $) 1,961   3,021   -35 %   6,228   7,763   -20 %
    Zinc (in thousands of $) 5,809   3,203   81 %   12,758   9,776   31 %
    Other (in thousands of $) 305     0 %   665   289   130 %
      10,782   8,827   22 %   26,977   24,217   11 %
  Average Selling Price, Net of Value Added Tax and Smelter Charges              
    Silver ($ per ounce) ** 13.47   11.12   21 %   12.52   10.47   20 %
    Lead ($ per pound) 0.75   0.78   -4 %   0.72   0.81   -11 %
    Zinc ($ per pound) 0.86   0.59   46 %   0.72   0.61   18 %
                   
* Silver recovery includes silver recovered in lead concentrate and silver recovered in zinc concentrate.
** Silver in zinc concentrate is subjected to higher smelter and refining charges which lowers the net silver selling price.

 

Posted February 5, 2021

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