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Silvercorp Reports Operational Results and Financial Results Release Date for Fiscal 2024, and Issues Fiscal 2025 Production, Cash Costs, and Capital Expenditure Guidance

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Silvercorp Reports Operational Results and Financial Results Release Date for Fiscal 2024, and Issues Fiscal 2025 Production, Cash Costs, and Capital Expenditure Guidance

 

 

 

 

 

Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) reports production and sales figures for the fourth quarter and fiscal year ended March 31, 2024 and the production and cost guidance for the 2025 fiscal year ending March 31, 2025. The Company expects to release its Fiscal 2024 audited financial results on Thursday, May 23, 2024 after market close.

 

Q4 Fiscal 2024 Operational Results  

  • Gold production of 1,916 ounces, up 92% over the same quarter last year (“Q4 Fiscal 2023”);
  • Silver equivalent (only silver and gold)1 production of approximately 1.3 million ounces, up 11% over Q4 Fiscal 2023;
  • Lead production of approximately 12.5 million pounds, up 15% over Q4 Fiscal 2023; and
  • Zinc production of approximately 4.56 million pounds, up 27% over Q4 Fiscal 2023.

 

 Fourth Quarter Fiscal 2024 Fourth Quarter Fiscal 2023
Ying Mining
District
GC  Consolidated ‘Ying Mining
District
GC  Consolidated
 Production Data
 Ore Mined (tonnes) 147,122 48,038 195,160 132,205 49,643 181,848
 Ore Milled (tonnes)
 Gold ore 21,843 21,843
 Silver ore 158,424 57,226 215,650 130,910 48,483 179,393
180,267 57,226 237,493 130,910 48,483 179,393
 Head Grades
      Silver (gram/tonne) 197 57 255 88
      Lead  (%) 3.1 1.1 3.6 1.3
      Zinc (%) 0.6 2.5 0.6 2.5
 Recovery Rates
      Silver (%) 94.4 83.2 95.2 78.9
      Lead  (%) 95.0 89.8 95.3 90.9
      Zinc (%) 70.2 89.3 68.3 89.3
 Metal production
 Gold (ounces) 1,916 1,916 1,000 1,000
 Silver (in thousands of ounces) 1,063 87 1,150 997 109 1,106
 Silver equivalent (in thousands of ounces) 1,237 87 1,324 1,086 109 1,195
 Lead (in thousands of pounds) 11,317 1,210 12,527 9,688 1,250 10,938
 Zinc (in thousands of pounds) 1,750 2,809 4,559 1,164 2,413 3,577
 Metals sold
 Gold  (ounces) 1,916 1,916 1,000 1,000
 Silver (in thousands of ounces) 1,052 87 1,139 966 107 1,073
 Lead (in thousands of pounds) 10,821 1,051 11,872 8,924 1,097 10,021
 Zinc  (in thousands of pounds) 1,730 2,702 4,432 1,115 2,336 3,451

 

In Q4 Fiscal 2024, a total of 147,122 tonnes of ore were mined at the Ying Mining District, up 11% over Q4 Fiscal 2023, and 180,267 tonnes of ore were milled, up 38% over Q4 Fiscal 2023. Approximately 1.1 million ounces of silver, 1,916 ounces of gold (or 1.2 million ounces of silver equivalent), 11.3 million pounds of lead, and 1.8 million pounds of zinc were produced, representing production increases of 92%,7%, 14%, 17%, and 50%, respectively, in silver, gold, silver equivalent, lead and zinc over Q4 Fiscal 2023.

 

At the GC Mine, 48,038 tonnes of ore were mined, down 3% over Q4 Fiscal 2023, and 57,226 tonnes of ore were milled, up 18% over Q4 Fiscal 2023. Approximately 87 thousand ounces of silver, 1.2 million pounds of lead, and 2.8 million pounds of zinc were produced, representing an increase of 16% in zinc, and decreases of 20% and 3%, respectively, in silver and lead over Q4 Fiscal 2023.

 

Fiscal 2024 Operational Results  

  • Gold production of 7,268 ounces, an increase of 65% over Fiscal 2023;
  • Silver equivalent (only silver and gold) production of approximately 6.8 million ounces, a decrease of 2% over Fiscal 2023;
  • Lead production of approximately 63.2 million pounds, a decrease of 7% over Fiscal 2023; and
  • Zinc production of approximately 23.4 million pounds, a decrease of 1% over Fiscal 2023; and

 

 Year ended March 31, 2024  Year ended March 31, 2023
Ying Mining
District
GC  Consolidated Ying Mining
District
GC  Consolidated
 Production Data
 Ore Mined (tonnes) 827,112 290,006 1,117,118 769,024 299,959 1,068,983
 Ore Milled (tonnes)
 Gold ore 58,262 58,262
 Silver ore 757,883 290,050 1,047,933 773,057 299,597 1,072,654
816,145 290,050 1,106,195 773,057 299,597 1,072,654
 Head Grades
      Silver (gram/tonne) 231 69 261 75
      Lead  (%) 3.4 1.2 3.8 1.3
      Zinc (%) 0.7 2.6 0.7 2.8
 Recovery Rates
      Silver (%) 94.9 82.0 95.6 81.9
      Lead  (%) 95.1 90.5 95.0 89.8
      Zinc (%) 70.6 90.0 63.2 89.9
 Metal production
 Gold (ounces) 7,268 7,268 4,400 4,400
 Silver (in thousands of ounces) 5,677 527 6,204 6,024 593 6,617
 Silver equivalent (in thousands of ounces) 6,317 527 6,844 6,404 593 6,997
 Lead (in thousands of pounds) 56,269 6,902 63,171 60,254 7,814 68,068
 Zinc (in thousands of pounds) 8,213 15,172 23,385 7,150 16,313 23,463
 Metals sold
 Gold  (ounces) 7,268 7,268 4,400 4,400
 Silver (in thousands of ounces) 5,717 518 6,235 6,049 588 6,637
 Lead (in thousands of pounds) 54,292 6,333 60,625 58,240 7,447 65,687
 Zinc  (in thousands of pounds) 8,240 15,010 23,250 7,175 16,263 23,438

 

At the Ying Mining District, 827,112 tonnes of ore were mined, up 8% over Fiscal 2023, and 816,145 tonnes of ore were milled, up 6% over Fiscal 2023. Approximately 5.7 million ounces of silver, 7,268 ounces of gold (or 6.3 million ounces of silver equivalent), 56.3 million pounds of lead, and 8.2 million pounds of zinc were produced, representing increases of 65% and 15%, respectively, in gold and zinc, and decreases of 6%, 1% and 7%, respectively, in silver, silver equivalent and lead over Fiscal 2023.

 

The decrease in silver and lead production was mainly due to i) lower head grades achieved due to mining sequences; and ii) 58,262 tonnes of gold ores were mined and processed with grades of 1.8 grams per tonne (“g/t”) gold, 77 g/t silver, 1.1% lead, and 0.2% zinc to produce gravity gold concentrates, silver-gold-lead (copper) concentrate, and zinc concentrate in Fiscal 2024. The gold recovery rate for gold ores processed was 92.0%.

 

At the GC Mine, 290,006 tonnes of ore were mined, down 3% over Fiscal 2023, and 290,050 tonnes of ore were milled, down 3% over Fiscal 2023. Approximately 527 thousand ounces of silver, 6.9 million pounds of lead, and 15.2 million pounds of zinc were produced, representing decreases of 11%, 12% and 7%, respectively, in silver, lead and zinc over Fiscal 2023. The decrease in metal production was mainly due to lower head grades achieved due to mining sequences.

 

Fiscal 2025 Production, Cash Costs, and Capital Expenditure Guidance  

i) Fiscal 2025 production and cash cost guidance

 

In Fiscal 2025, the Company expects to mine and process 1,151,000 to 1,256,000 tonnes of ore, yielding approximately 7,900 to 9,000 ounces of gold, 6.8 to 7.2 million ounces of silver, 64.2 to 69.3 million pounds of lead, and 27.1 to 30.1 million pounds of zinc. Fiscal 2025 production guidance represents production increases of approximately 4% to 14% in ores, 8% to 23% in gold, 9% to 17% in silver, 2% to 10% in lead, and 16% to 29% in zinc compared to the production results in Fiscal 2024.

 

 

 Head Grade  Metal Productions  Production Costs
 Ore processed  Gold  Silver  Lead  Zinc  Gold  Silver  Lead  Zinc  Cash Cost  AISC
 Fiscal 2025 Guidance  (tonne)  (g/t)  (g/t) ( %) ( %)  (Koz)  (Koz)  (Klb)  (Klb)  ($/t)  (S/t)
 Gold ore 63,000 70,000 2.4 78 2.1 4.3 5.0 140 160 2,680 2,980
 Silver ore 797,000 885,000 249 3.3 0.8 3.6 4.0 6,070 6,520 54,480 58,910 8,877 10,986
 Ying Mining District 860,000 955,000 0.3 235 3.1 0.8 7.9 9.0 6,210 6,680 57,160 61,890 8,877 10,986 $   83.7 $ 88.1 $ 142.3 $  153.2
 GC Mine 291,000 301,000 68 1.1 3.0 540 550 7,070 7,450 18,240 19,110 $   54.4 $ 55.5 $   99.3 $    99.7
 Consolidated 1,151,000 1,256,000 7.9 9.0 6,750 7,230 64,230 69,340 27,117 30,096 $   77.0 $ 79.6 $ 143.6 $  152.3

 

The Ying Mining District plans to mine and process 860,000 to 955,000 tonnes of ore, including 63,000 to 70,000 tonnes of gold ore with an expected head grade of 2.4 g/t gold, to produce approximately 7,900 to 9,000 ounces of gold, 6.2 to 6.7 million ounces of silver, 57.2 to 61.9 million pounds of lead, and 8.9 to 11.0 million pounds of zinc for Fiscal 2025. This production guidance represents production increases of approximately 5% to 17% in ore, 8% to 23% in gold, 9% to 18% in silver, 2% to 10% in lead, and 8% to 34% in zinc compared to the actual production in Fiscal 2024.

 

The cash production cost is expected to be $83.7 to $88.1 per tonne of ore, and the all-in sustaining production cost is estimated at $142.4 to $153.3 per tonne of ore processed, comparable to the actual costs in Fiscal 2024.

 

The GC Mine plans to mine and process 291,000 to 301,000 tonnes of ore to produce 540 to 550 thousand ounces of silver, 7.1 to 7.5 million pounds of lead, and 18.2 to 19.1 million pounds of zinc. Fiscal 2025 production guidance at the GC Mine represents production increases of approximately 0% to 4% in ore, 2% to 4% in silver, 2% to 8% in lead, and 20% to 26% in zinc production compared to the production results in Fiscal 2024.

 

The cash production cost is expected to be $54.4 to $55.5 per tonne of ore, and the all-in sustaining production cost is estimated at $99.3 to $99.7 per tonne of ore processed.

ii)  Fiscal 2025 capital expenditure guidance

 

In Fiscal 2025, the Company expects to incur a total $90.8 million of capital expenditures as summarized in the table below.

 

 Capitalized Development Work and Expenditures  Expensed
 Ramp and development
tunneling
 Exploration tunneling  Diamond Drilling  Facilities and
Equipment
 Total  Mining Preparation
Tunnneling
 Diamond
Drilling
 (Metres)  ($ Million)  (Metres)  ($ Million)  (Metres)  ($ Million)  ($ Million)  ($ Million)  (Metres)  (Metres)
Fiscal 2025 Capitalized Work Plan and Capita Expenditure Estimates
Ying Mining District 45,100 27.3 45,800 17.4 137,700 3.4 30.6 78.7 37,800 117,300
GC Mine 8,000 4.5 9,700 5.0 51,500 1.3 0.3 11.1 7,100 18,700
Corporate and others 1.0 1.0
Consolidated 53,100 31.8 55,500 22.4 189,200 4.7 31.9 90.8 44,900 136,000

 

The total capital expenditures for mine optimization and facilities improvement at the Ying Mining District are estimated at $78.7 million. For mine optimization, the Company plans to spend a total $48.1 million comprised of the following capital expenditures:

 

(i) Develop 45,100 metres of ramps and tunnels for transportation and access at estimated capitalized expenditures of $27.3 million (average $605/m). The main goal of these mine optimization programs is to have ramps and a trackless system replace current shafts, and to have more mechanized mining, such as using the shrinkage mining method to gradually replace the more labor intensive “Re-Suing” mining;
(ii) Develop 45,800 metres of exploration tunnels at estimated capitalized costs of $17.4 million ($380/m); and
(iii) Drill 137,700 metres of exploration diamond drill holes for future production at an estimated capitalized cost of $3.4 million;

 

For the tailing storage facilities and mill expansion and equipment, the Company plans to spend $30.6 million:

 

(i) Complete the TSF by the 3rd quarter of 2024 with remaining expenditures of $15.9 million; and
(ii) Add a 1,500 tonne per day flotation production line to the No. 2 Mill by the 4th Quarter of 2024 at a cost of $7.2 million per    signed EPCM contract, and add two XRT Ore Sorting systems for $1.7 million. The XRT Ore Sorting system will help to sort out waste rock resulting from the increased dilution rate as the Company shifts to more shrinkage mining method from the “Re-Suing” mining method.

 

In addition to the capitalized tunneling and drilling work, the Ying Mining District also plans to complete and expense 37,800 metres of mining preparation tunnels and 117,300 metres of diamond drilling.

 

For the GC Mine, the Company  plans to: i) complete and capitalize 8,000 metres of transportation ramps and mining development tunnels at estimated costs of $4.5 million ($562/m); ii) complete and capitalize 9,700 metres of exploration tunnels at estimated costs of $5.0 million ($515/m);  iii) complete and capitalize 51,500 metres of diamond drilling at an estimated cost of $1.3 million; and iv) spend $0.3 million on equipment and facilities. The total capital expenditures at the GC Mine are budgeted at $11.1 million in Fiscal 2025.

 

In addition to the capitalized tunneling and drilling work, the Company also plans to complete and expense 7,100 metres of mining preparation tunnels and 18,700 metres of diamond drilling at the GC Mine.

 

The Kuanping Project is expected to receive all permits and licenses in the third quarter of 2024, and $1.0 million of capital expenditures are budgeted for the startup of mine construction.

 

About Silvercorp

 

Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company’s strategy is to create shareholder value by 1) focusing on generating free cashflow from long life mines; 2) organic growth through extensive drilling for discovery; 3) ongoing merger and acquisition efforts to unlock value; and 4) long term commitment to responsible mining and ESG.

 

Posted April 23, 2024

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