Trading Symbol: TSX: SVM
NYSE
AMERICAN: SVM
VANCOUVER, BC, May 20, 2021 /PRNewswire/ - Silvercorp
Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE
American: SVM) reported its financial and operating results for the
fourth quarter and twelve months ended March
31, 2021 ("Fiscal 2021). All amounts are expressed in US
Dollars, and figures may not add due to rounding.
FISCAL YEAR 2021 HIGHLIGHTS
- Mined 964,925 tonnes of ore and milled 967,581 tonnes of ore,
up 9% and 8%, respectively, compared to the prior year, with silver
and lead production meeting the production guidance and zinc
production beating the production guidance;
- Sold approximately 6.3 million ounces of silver, 4,700 ounces
of gold, 67.1 million pounds of lead, and 27.9 million pounds of
zinc, up 1%, 42%, 3%, and 10%, respectively, compared to the prior
year;
- Revenue of $192.1 million, up 21%
or $33.3 million compared to
$158.8 million in the prior
year;
- Net income attributable to equity shareholders of $46.4 million, or $0.27 per share, up 35% compared to $34.3 million, or $0.20 per share in the prior year;
- Cash cost per ounce of silver, net of by-product credits, of
negative $1.80 compared to negative
$1.91 in the prior year;
- All-in sustaining cost per ounce of silver, net of by-product
credits, of $7.49, compared to
$6.86 in the prior year;
- Cash flow from operations of $85.9
million, up 11% or $8.7
million compared to $77.2
million in the prior year;
- Received $6.5 million
(CAD$9.0 million) break fee from
Guyana Goldfields Inc. ("Guyana Goldfields") and realized a gain of
$15.4 million on disposal of the
shares of Guyana Goldfields;
- Paid $4.4 million of dividends to
the Company's shareholders;
- Invested $5.8 million in a
private placement of New Pacific Metals Corp. ("NUAG") to maintain
the Company's ownership interest;
- Acquired a 26.99% interest in Whitehorse Gold Corp. ("WHG"),
having a fair market value of $15.1
million as at March 31, 2021,
as a result of (a) receiving 5,740,285 WHG common shares under a
spin-out transaction completed by NUAG, and (b) subscribing for
5,774,000 WHG common shares at total cost of $1.3 million 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 national security clearance by the related
authorities;
- Acquired a 43.8% interest in the La Yesca Silver Project in
Mexico through a new corporate
structure, New Infini Silver Inc. for approximately $9.1 million; and
- Strong balance sheet with $199.1
million in cash and cash equivalents and short-term
investments, an increase of $56.6
million or 40% compared to $142.5
million as at March 31, 2020.
This does not include $212.1 million
in total market value of investments in associates and equity
investments in other companies as at March
31, 2021.
HIGHLIGHTS FOR Q4 FISCAL 2021
- Mined 163,072 tonnes of ore and milled 180,674 tonnes of ore,
up 53% and 76%, respectively, compared to the prior year
quarter;
- Sold approximately 1.1 million ounces of silver, 700 ounces of
gold, 10.9 million pounds of lead, and 4.6 million pounds of zinc,
up 32%, 40%, 13%, and 50% respectively, compared to approximately
0.8 million ounces of silver, 500 ounces of gold, 9.7 million
pounds of lead, and 3.1 million pounds of zinc in the prior year
quarter;
- Revenue of $35.7 million, up 89%
or $16.8 million compared to
$18.9 million in the prior year
quarter;
- Net income attributable to equity shareholders of $7.0 million, or $0.04 per share, compared to $3.2 million or $0.02 per share, in the prior year quarter;
- Cash cost per ounce of silver, net of by-product credits, of
negative $0.39 compared to negative
$0.85 in the prior year quarter;
- All-in sustaining cost per ounce of silver, net of by-product
credits, of $12.55, compared to
$15.17 in the prior year quarter;
and
- Cash flow from operations of $2.2
million, compared to $6.3
million in the prior year quarter. The decrease was mainly
due to $9.4 million use of cash from
working capital changes. Before changes in non-cash working
capital, cash flows provided by operating activities in the current
quarter were $11.9 million, up
$2.7 million compared to $9.2 million in Q4 Fiscal 2020.
CONSOLIDATED FINANCIAL RESULTS
|
Three months ended
March 31,
|
|
Year ended March
31,
|
|
2021
|
2020
|
Changes
|
|
2021
|
2020
|
Changes
|
Financial
|
|
|
|
|
|
|
|
Revenue (in
thousands of $)
|
$
|
35,732
|
$
|
18,859
|
89%
|
|
$
|
192,105
|
$
|
158,829
|
21%
|
Mine operating
earnings (in thousands of $)
|
13,404
|
3,204
|
318%
|
|
84,162
|
59,374
|
42%
|
Net earnings
attributable to equity shareholders
|
7,021
|
3,163
|
122%
|
|
46,376
|
34,274
|
35%
|
Earning per share -
basic ($/share)
|
0.04
|
0.02
|
100%
|
|
0.27
|
0.20
|
35%
|
Net cash generated
from operating activities (in thousands of $)
|
2,231
|
6,278
|
-64%
|
|
85,912
|
77,246
|
11%
|
Capitalized
expenditures (in thousands of $)
|
10,115
|
3,917
|
158%
|
|
45,556
|
33,671
|
35%
|
Cash and cash
equivalents and short-term investments (in thousands of
$)
|
199,092
|
142,519
|
40%
|
|
199,092
|
142,519
|
40%
|
Working capital (in
thousands of $)
|
184,013
|
130,351
|
41%
|
|
184,013
|
130,351
|
41%
|
Metals
sold
|
|
|
|
|
|
|
|
Silver (in
thousands of ounces)
|
1,056
|
800
|
32%
|
|
6,315
|
6,257
|
1%
|
Gold (in thousands
of ounces)
|
0.7
|
0.5
|
40%
|
|
4.7
|
3.3
|
42%
|
Lead (in thousands
of pounds)
|
10,876
|
9,654
|
13%
|
|
67,118
|
65,344
|
3%
|
Zinc (in thousands
of pounds)
|
4,580
|
3,059
|
50%
|
|
27,914
|
25,401
|
10%
|
Average Selling
Price, Net of Value Added Tax and Smelter
Charges
|
|
|
|
|
|
|
|
Silver
($/ounce)
|
20.11
|
12.29
|
64%
|
|
17.61
|
13.56
|
30%
|
Gold
($/ounce)
|
1,437
|
1,250
|
15%
|
|
1,430
|
1,185
|
21%
|
Lead
($/pound)
|
0.81
|
0.67
|
21%
|
|
0.75
|
0.80
|
-6%
|
Zinc
($/pound)
|
0.98
|
0.51
|
92%
|
|
0.78
|
0.62
|
26%
|
1. Fiscal 2021 Financial Results
Net income attributable to equity shareholders of the
Company in Fiscal 2021 was $46.4
million or $0.27 per
share, up 35% or $12.1 million,
compared to $34.3 million or
$0.20 per share in Fiscal
2020.
In Fiscal 2021, the Company's consolidated financial results
were mainly impacted by i) an increase of 1%, 42%, 3%, and 10%,
respectively, in silver, gold, lead and zinc sold; ii) an increase
of 30%, 21%, and 26%, respectively, in the realized selling prices
for silver, gold and zinc; iii) a $7.7
million gain on equity investment; offset by iv) a decrease
of 6% in the realized selling price for lead, and v) a $7.7 million foreign exchange loss.
Revenue in Fiscal 2021 was $192.1
million, up 21% or $33.3
million compared to $158.8
million in Fiscal 2020. The increase was mainly due to i) an
increase of $5.9 million arising from
the increase in the quantities of metal sold; ii) an increase of
$30.2 million arising from the
increase in the realized selling price for silver, gold, and zinc;
offset by iii) a decrease of $2.8
million arising from the decrease in the realized selling
price for lead. Revenues from silver, gold, and base metals were
$111.2 million, 6.7 million, and
$74.2 million, respectively, up 31%,
72%, and 6%, respectively, compared to $84.9
million, $3.9 million, and
$70.0 million in Fiscal 2020. Revenue
from the Ying Mining District was $157.3
million, up 20% compared to $131.4
million in Fiscal 2020. Revenue from the GC Mine was
$33.3 million, up 21% compared to
$27.4 million in Fiscal 2020.
Income from mine operations in Fiscal 2021 was
$84.2 million, up 42% compared to
$59.4 million in Fiscal 2020. Income
from mine operations at the Ying Mining District was $74.2 million, up 37% compared to $54.1 million in Fiscal 2020. Income from mine
operations at the GC Mine was $9.8
million, up 72% compared to $5.7
million in Fiscal 2020.
Cash flow provided by operating activities in Fiscal
2021 was $85.9 million, up 11%
compared to $77.2 million in Fiscal
2020.
The Company ended the fiscal year with $199.1 million in cash, cash equivalents and
short-term investments, up 40% or $56.6
million, compared to $142.5
million as at March 31,
2020.
Working capital as at March 31,
2021 was $184.0 million, up
41% or $53.6 million, compared to
$130.4 million as at March 31, 2020.
2. Q4 Fiscal 2021 Financial Results
Net income attributable to equity shareholders of
the Company in Q4 Fiscal 2021 was $7.0
million, or $0.04 per share,
up 122% or $3.9 million, compared to
$3.2 million, or $0.02 per share in the three months ended
March 31, 2020 ("Q4 Fiscal
2020").
Compared to the prior year quarter, the Company's consolidated
financial results in Q4 Fiscal 2021 were mainly impacted by the
following: i) an increase of 32%, 40%, 13%, and 50%, respectively,
in silver, gold, lead and zinc sold; ii) an increase of 64%, 15%,
21%, and 92%, respectively, in the realized selling prices for
silver, gold, lead, and zinc; offset by iii) a $0.8 million foreign exchange loss, and iv) a
$1.1 million loss on equity
investments.
Revenue in Q4 Fiscal 2021 was $35.7 million, up 89% or $16.8 million, compared to $18.9 million in Q4 Fiscal 2020. The increase was
mainly due to i) an increase of $7.7
million arising from the increase in the quantities of metal
sold; and ii) an increase of $9.1
million arising from the increase in the realized selling
prices. Revenue from silver, gold, and base metals was $21.2 million, 1.0 million, and $13.5 million, respectively, up 116%, 61%, and
61%, respectively, compared to $9.8
million, $0.6 million, and
$8.4 million in Q4 Fiscal 2020.
Revenue from the Ying Mining District was $29.5 million, up 88% compared to $15.7 million in Q4 Fiscal 2020. Revenue from the
GC Mine was $6.3 million, up 97%
compared to $3.2 million in Fiscal
2020.
Income from mine operations in Q4 Fiscal 2021 was
$13.4 million, up
319% compared to $3.2
million in Q4 Fiscal 2020. Income from mine operations at the
Ying Mining District was $11.8
million, compared to $3.0
million in Q4 Fiscal 2020. Income from mine operations at the
GC Mine was $1.6 million, compared to
$0.2 million in Q4 Fiscal 2020.
Cash flows provided by operating activities in Q4
Fiscal 2021 were $2.2 million,
compared to $6.3 million in
Q4 Fiscal 2020. The decrease was mainly due to
$9.4 million use of cash from working
capital changes. Before changes in non-cash working capital, cash
flows provided by operating activities in the current quarter were
$11.9 million, up $2.7 million compared to $9.2 million in Q4 Fiscal 2020.
CONSOLIDATED OPERATIONAL RESULTS
|
Three months ended
March 31,
|
|
Year ended March
31,
|
|
2021
|
2020
|
Changes
|
|
2021
|
2020
|
Changes
|
Ore Production
(tonne)
|
|
|
|
|
|
|
|
Ore
mined
|
163,072
|
106,595
|
53%
|
|
964,925
|
885,830
|
9%
|
Ore
milled
|
180,674
|
102,431
|
76%
|
|
967,581
|
892,215
|
8%
|
Metal
Production
|
|
|
|
|
|
|
|
Silver (in
thousands of ounces)
|
1,195
|
696
|
72%
|
|
6,330
|
6,291
|
1%
|
Gold (in thousands
of ounces)
|
0.3
|
0.2
|
50%
|
|
3.5
|
3.3
|
6%
|
Lead (in thousands
of pounds)
|
12,156
|
7,772
|
56%
|
|
68,430
|
67,373
|
2%
|
Zinc (in thousands
of pounds)
|
4,672
|
3,276
|
43%
|
|
28,012
|
25,581
|
10%
|
Cash
Costs
|
|
|
|
|
|
|
|
Cash cost per ounce
of Silver, net of by-product credits($)
|
(0.39)
|
(0.85)
|
54%
|
|
(1.80)
|
(1.91)
|
6%
|
All-in sustaining
cost per ounce of silver, net of by-product credits
($)
|
12.55
|
15.17
|
-17%
|
|
7.49
|
6.86
|
9%
|
Cash production
cost per tonne of ore processed ($)
|
85.70
|
68.93
|
24%
|
|
72.71
|
68.91
|
6%
|
All-in sustaining
cost per tonne of ore processed ($)
|
156.36
|
188.57
|
-17%
|
|
128.20
|
125.29
|
2%
|
1. Fiscal 2021 Operational Results
In Fiscal 2021, on a consolidated basis, the Company mined
964,925 tonnes of ore, up 9% or 79,095 tonnes, compared to 885,830
tonnes in Fiscal 2020. Ore milled in Fiscal 2021 was 967,581
tonnes, up 8% or 75,367 tonnes, compared to 892,215 tonnes in
Fiscal 2020.
The Company produced approximately 6.3 million ounces of silver,
3,500 ounces of gold, 68.4 million pounds of lead, and 28.0 million
pounds of zinc, up 1%, 6%, 2%, and 10%, respectively, compared to
6.3 million ounces of silver, 3,300 ounces of gold, 67.4 million
pounds of lead, and 25.6 million pounds of zinc in Fiscal 2020.
In Fiscal 2021, the consolidated cash production cost per tonne
of ore processed in Fiscal 2021 was $72.71, up 6% compared to $68.91 in Fiscal 2020, in line with the Company's
annual guidance. The consolidated all-in sustaining production cost
per tonne of ore processed was $128.20, an increase of 2% compared to
$125.29 in Fiscal 2020, also in line
with the Company's annual guidance.
The consolidated cash cost per ounce of silver, net of
by-product credits, was negative $1.80, compared to negative $1.91 in the prior year. The increase was mainly
due to an increase of 6% in cash production cost per tonne of ore
processed, offset by an increase of $0.99 in by-product credits per ounce of silver.
Sales from lead and zinc in Fiscal 2021 amounted to $72.3 million, up 7% or $4.6 million, compared to $67.7 million in Fiscal 2020.
The consolidated all-in sustaining cost per ounce of silver, net
of by-product credits, was $7.49,
compared to $6.86 in Fiscal 2020. The
increase was mainly due to an increase of 2% in all-in sustaining
production cost per tonne of ore processed, offset by an increase
of $0.99 in by-product credits per
ounce of silver.
In Fiscal 2021, on a consolidated basis, a total of 254,900
metres or $8.7 million worth of
diamond drilling were completed (Fiscal 2020 – 108,156 metres or
$3.5 million), of which approximately
196,320 metres or $5.0 million worth
of underground drilling were expensed as part of mining costs
(Fiscal 2020 – 108,156 metres or $3.5
million) and approximately 58,580 metres or $3.7 million worth of surface drilling were
capitalized (Fiscal 2020 – nil). Mining preparation
tunnelling of 34,637 metres that costed $8.9 million was completed and expensed
as part of mining costs (Fiscal 2020 – 38,403 m or $10.3
million), and 85,221 metres or $31.5 million worth of tunnels, raises, ramps and
declines (Fiscal 2020 – 73,567 metres or $26.3 million) were completed and
capitalized.
2. Q4 Fiscal 2021 Operational Results
In Q4 Fiscal 2021, the Company mined 163,072 tonnes of ore, up
53% or 56,477 tonnes, compared to 106,595 tonnes in Q4 Fiscal 2020.
Ore milled in Q4 Fiscal 2021 was 180,674 tonnes, up 76% or 78,243
tonnes, compared to 102,431 tonnes in Q4 Fiscal 2020. The increase
was mainly due to an extra month's operational shutdown due to
COVID-19 in Q4 Fiscal 2020.
The Company produced approximately 1.2 million ounces of silver,
300 ounces of gold, 12.2 million pounds of lead, and 4.7 million
pounds of zinc, up 72%, 50%, 56%, and 43%, respectively, compared
to approximately 0.7 million ounces of silver, 200 ounces of gold,
7.8 million pounds of lead, and 3.3 million pounds of zinc in Q4
Fiscal 2020.
In Q4 Fiscal 2021, the consolidated cash production cost per
tonne of ore processed was $85.70, up
24% compared to $68.93 in Q4 Fiscal
2020. The increase was mainly due to certain fixed overhead costs
related to mining operations expensed directly as mine general and
administrative expense during the extra month operational shut-down
in Q4 Fiscal 2020. The consolidated all-in sustaining production
cost per tonne was $156.36, down 17%
compared to $188.57 in Q4 Fiscal
2020.The decrease was mainly due to higher production resulting in
lower per tonne fixed costs allocation.
In Q4 Fiscal 2021, the consolidated cash cost per ounce of
silver, net of by-product credits, was negative $0.39, compared to negative $0.85 in Q4 Fiscal 2020. The increase was mainly
due to the increase in per tonne cash production cost as discussed
above, offset by an increase of $2.44
in by-product credits per ounce of silver.
In Q4 Fiscal 2021, the consolidated all-in sustaining cost per
ounce of silver, net of by-product credits, was $12.55, compared to $15.17 in Q4 Fiscal 2020. The decrease was mainly
due to the decrease in per tonne all-in sustaining production cost
as discussed above and an increase of $0.18 in all-in sustaining costs per ounce of
silver.
In Q4 Fiscal 2021, on a consolidated basis, a total of 49,459
metres or $1.6 million worth of
diamond drilling were completed (Q4 Fiscal 2020 – 14,612 metres or
$0.5 million), of which approximately
41,572 metres or $0.8 million worth
of underground drilling were expensed as part of mining costs (Q4
Fiscal 2020 – 14,612 metres or $0.5
million), and approximately 7,887 metres or $0.8 million worth of surface drilling) were
capitalized (Q4 Fiscal 2020 – nil. Mining preparation tunnelling of
7,015 metres that costed $1.5 million
was completed and expensed as part of mining costs (Q4 Fiscal 2020
– 2,163 metres or $0.7 million), and
10,803 metres or $4.7 million worth
of tunnels, raises, ramps and declines were completed and
capitalized (Q4 Fiscal 2020 – 9,830 metres or $4.3 million).
INDIVIDUAL MINE OPERATING PERFORMANCE
Ying Mining
District
|
Q4
2021
|
Q3
2021
|
Q2
2021
|
Q1
2021
|
Q4
2020
|
|
Year ended Mar
31,
|
|
March 31,
2021
|
December 31,
2020
|
September
30, 2020
|
June 30,
2020
|
March 31,
2020
|
|
2021
|
2020
|
Ore Production
(tonne)
|
|
|
|
|
|
|
|
|
Ore
mined
|
112,561
|
182,268
|
181,020
|
174,176
|
69,379
|
|
650,025
|
598,197
|
Ore
milled
|
131,725
|
162,905
|
179,083
|
177,689
|
69,188
|
|
651,402
|
601,605
|
Head
grades
|
|
|
|
|
|
|
|
|
Silver
(gram/tonne)
|
280
|
297
|
288
|
293
|
297
|
|
290
|
309
|
Lead
(%)
|
3.9
|
4.3
|
4.4
|
4.6
|
4.6
|
|
4.3
|
4.6
|
Zinc
(%)
|
0.8
|
0.8
|
0.7
|
0.8
|
1.0
|
|
0.8
|
0.9
|
Recovery
rates
|
|
|
|
|
|
|
|
|
Silver
(%)
|
93.7
|
93.9
|
94.4
|
94.7
|
95.3
|
|
94.2
|
96.0
|
Lead
(%)
|
95.1
|
96.4
|
96.1
|
96.2
|
95.7
|
|
96.0
|
95.9
|
Zinc
(%)
|
65.0
|
63.3
|
57.9
|
63.8
|
67.7
|
|
62.4
|
63.2
|
Cash
Costs
|
|
|
|
|
|
|
|
|
Cash cost per ounce
of Silver, net of by-product credits($)
|
1.20
|
(1.12)
|
(0.14)
|
(0.87)
|
0.30
|
|
(0.39)
|
(1.18)
|
All-in sustaining
cost per ounce of silver, net of by-product credits
($)
|
10.00
|
5.24
|
6.63
|
4.14
|
11.86
|
|
6.09
|
5.49
|
Cash production
cost per tonne of ore processed ($)
|
98.13
|
83.09
|
80.06
|
76.21
|
83.59
|
|
83.01
|
77.08
|
All-in sustaining
cost per tonne of ore processed ($)
|
155.14
|
133.07
|
132.36
|
116.99
|
195.78
|
|
132.54
|
132.52
|
Metal
Production
|
|
|
|
|
|
|
|
|
Silver (in
thousands of ounces)
|
1,083
|
1,464
|
1,525
|
1,544
|
614
|
|
5,615
|
5,592
|
Gold (in thousands
of ounces)
|
0.3
|
0.9
|
1.1
|
1.2
|
0.2
|
|
3.5
|
3.3
|
Lead (in thousands
of pounds)
|
10,504
|
14,361
|
16,080
|
16,941
|
6,573
|
|
57,886
|
56,436
|
Zinc (in thousands
of pounds)
|
1,496
|
1,857
|
1,643
|
1,920
|
999
|
|
6,916
|
7,337
|
In Fiscal 2021, a total of 208,904 metres or $6.9 million worth of diamond drilling (Fiscal
2020 – 85,643 metres or $2.5 million)
were completed at the Ying Mining District, of which a total of
150,324 metres or $3.2 million worth
of underground diamond drilling (Fiscal 2020 – 85,643 or
$2.5 million) were expensed as part
of mining costs and a total of 58,580 metres or $3.7 million worth of surface drilling (Fiscal
2020 – nil) were capitalized. In addition, mining preparation
tunnelling of 22,918 metres that costed $6.7
million were completed and expensed as mining preparation
costs (Fiscal 2020 – 19,088 metres or $5.7
million), and approximately 73,350 metres or $27.4 million worth of horizontal tunnels,
raises, ramps and declines were completed and capitalized (Fiscal
2020 – 70,240 metres or $23.9
million).
GC
Mine
|
Q4
2021
|
Q3
2021
|
Q2
2021
|
Q1
2021
|
Q4
2020
|
|
Year ended Mar
31,
|
|
March 31,
2021
|
December 31,
2020
|
September
30, 2020
|
June 30,
2020
|
March 31,
2020
|
|
2021
|
2020
|
Ore Production
(tonne)
|
|
|
|
|
|
|
|
|
Ore
mined
|
50,511
|
97,177
|
86,833
|
80,379
|
37,216
|
|
314,900
|
287,633
|
Ore
milled
|
48,949
|
97,743
|
84,850
|
84,637
|
33,243
|
|
316,179
|
290,610
|
Head
grades
|
|
|
|
|
|
|
|
|
Silver
(gram/tonne)
|
87
|
82
|
81
|
93
|
94
|
|
85
|
97
|
Lead
(%)
|
1.7
|
1.4
|
1.8
|
1.9
|
1.8
|
|
1.7
|
1.9
|
Zinc
(%)
|
3.3
|
3.5
|
3.4
|
3.4
|
3.5
|
|
3.4
|
3.3
|
Recovery
rates
|
|
|
|
|
|
|
|
|
Silver
(%)
|
81.9
|
82.6
|
82.5
|
82.8
|
80.7
|
|
82.5
|
77.4
|
Lead
(%)
|
89.7
|
89.6
|
89.2
|
89.8
|
90.4
|
|
89.6
|
89.3
|
Zinc
(%)
|
88.2
|
89.7
|
87.3
|
87.3
|
87.7
|
|
88.2
|
86.0
|
Cash
Costs
|
|
|
|
|
|
|
|
|
Cash cost per ounce
of Silver, net of by-product credits($)
|
(12.80)
|
(14.43)
|
(12.70)
|
(6.59)
|
(10.03)
|
|
(11.48)
|
(7.65)
|
All-in sustaining
cost per ounce of silver, net of by-product credits
($)
|
0.52
|
(1.05)
|
(1.78)
|
2.41
|
8.31
|
|
-
|
0.77
|
Cash production
cost per tonne of ore processed ($)
|
58.56
|
54.07
|
48.47
|
47.08
|
41.94
|
|
51.44
|
51.91
|
All-in sustaining
cost per tonne of ore processed ($)
|
87.69
|
78.63
|
69.07
|
65.84
|
88.18
|
|
74.09
|
69.33
|
Metal
Production
|
|
|
|
|
|
|
|
|
Silver (in
thousands of ounces)
|
112
|
212
|
182
|
209
|
82
|
|
716
|
699
|
Lead (in thousands
of pounds)
|
1,652
|
2,750
|
3,006
|
3,136
|
1,199
|
|
10,544
|
10,937
|
Zinc (in thousands
of pounds)
|
3,176
|
6,816
|
5,490
|
5,613
|
2,277
|
|
21,096
|
18,244
|
In Fiscal 2021, approximately 45,996 metres or $1.8 million worth of underground diamond
drilling (Fiscal 2020 – 22,513 metres or $1.0 million) and 11,719 metres or $2.2 million worth of tunnelling (Fiscal 2020 –
19,315 metres or $4.6 million) were
completed and expensed as mining preparation costs at the GC Mine.
In addition, approximately 11,871 metres or $3.9 million of horizontal tunnels, raises,
ramps, and declines (Fiscal 2020 – 3,327 metres or $2.4 million) were completed and capitalized.
UPDATE ON MINING CONTRACTS RENEWAL AT THE YING MINING
DISCTRICT
The Company updates that the Company has successfully negotiated
and renewed contracts with all mining contractors at the Ying
Mining District, except one that worked at the LME mine. The
renewed contracts with terms of two to three years represent an
overall 14.5% increase compared to previous contracts, reflecting
i) increased social welfare contribution for the contractors'
workers; ii) increased insurance coverage for contractors' workers;
and iii) increases in the prices per tonne ore mined and per meter
of tunneling developed by contractors. Based on the renewed
contracts and assuming the same work done in Fiscal 2021, the total
annual increase is estimated at $5.0
million; however, this is expected to be offset by reduced
tunneling going forward as recent drilling activities in previously
mining areas has defined resources that require minimal
development.
The previous mining contractor at the LME mine was terminated as
no agreement was able to reach. The Company has hired most of the
previous workers to work at the mine as internal contractors.
CONFERENCE CALL DETAILS
A conference call to discuss these results will be held
tomorrow, Friday, May 21, at
9:00 am PDT (12:00 pm EDT). To participate in the conference
call, please dial the numbers below.
Canada/USA TF: 888-664-6383
International Toll: 416-764-8650
Conference ID: 57492576
Participants should dial-in 10 – 15 minutes prior to the start
time. A replay of the conference call and transcript will be
available on the Company's website at www.silvercorp.ca.
Mr. Guoliang Ma, P.Geo., Manager
of Exploration and Resources of the Company, is the Qualified
Person as defined by National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101") and has reviewed and
given consent to the technical information contained in this news
release.
This earnings release should be read in conjunction with the
Company's Management Discussion & Analysis ("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. This earnings release
refers to various alternative performance (non-IFRS) measures, such
as cash cost and all-in sustaining cost per ounce of silver, net of
by-product credits, cash production cost and all-in sustaining
production cost per tonne of ore processed, and working capital.
These measures are widely used in the mining industry as a
benchmark for performance, but do not have standardized meanings
under IFRS as an indicator of performance, and may differ from
methods used by other companies with similar description.
Accordingly, to facilitate a better understanding of these measures
as calculated by the Company, please refer to section 12 of the
corresponding MD&A for detailed description and
reconciliation.
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. For more information, please visit our website at
www.silvercorp.ca.
CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS
Certain of the statements and information in this news release
constitute "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable
Canadian provincial securities laws (collectively, "forward-looking
statements"). Any statements or information that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"expects", "is expected", "anticipates", "believes", "plans",
"projects", "estimates", "assumes", "intends", "strategies",
"targets", "goals", "forecasts", "objectives", "budgets",
"schedules", "potential" or variations thereof or stating that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved, or the negative of any of
these terms and similar expressions) are not statements of
historical fact and may be forward-looking statements.
Forward-looking statements relate to, among other things: the price
of silver and other metals; the accuracy of mineral resource and
mineral reserve estimates at the Company's material properties; the
sufficiency of the Company's capital to finance the Company's
operations; estimates of the Company's revenues and capital
expenditures; estimated production from the Company's mines in the
Ying Mining District and the GC Mine; timing of receipt of permits
and regulatory approvals; availability of funds from production to
finance the Company's operations; and access to and availability of
funding for future construction, use of proceeds from any financing
and development of the Company's properties.
Forward-looking statements are subject to a variety of known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ from those reflected in the
forward-looking statements, including, without limitation, risks
relating to: global economic and social impact of COVID-19;
fluctuating commodity prices; calculation of resources, reserves
and mineralization and precious and base metal recovery;
interpretations and assumptions of mineral resource and mineral
reserve estimates; exploration and development programs;
feasibility and engineering reports; permits and licences; title to
properties; property interests; joint venture partners; acquisition
of commercially mineable mineral rights; financing; recent market
events and conditions; economic factors affecting the Company;
timing, estimated amount, capital and operating expenditures and
economic returns of future production; integration of future
acquisitions into the Company's existing operations; competition;
operations and political conditions; regulatory environment in
China and Canada; environmental risks; foreign exchange
rate fluctuations; insurance; risks and hazards of mining
operations; key personnel; conflicts of interest; dependence on
management; internal control over financial reporting; and bringing
actions and enforcing judgments under U.S. securities laws.
This list is not exhaustive of the factors that may affect any
of the Company's forward-looking statements. Forward-looking
statements are statements about the future and are inherently
uncertain, and actual achievements of the Company or other future
events or conditions may differ materially from those reflected in
the forward-looking statements due to a variety of risks,
uncertainties and other factors, including, without limitation,
those referred to in the Company's Annual Information Form under
the heading "Risk Factors". Although the Company has attempted to
identify important factors that could cause actual results to
differ materially, there may be other factors that cause results
not to be as anticipated, estimated, described or intended.
Accordingly, readers should not place undue reliance on
forward-looking statements.
The Company's forward-looking statements are based on the
assumptions, beliefs, expectations and opinions of management as of
the date of this news release, and other than as required by
applicable securities laws, the Company does not assume any
obligation to update forward-looking statements if circumstances or
management's assumptions, beliefs, expectations or opinions should
change, or changes in any other events affecting such statements.
For the reasons set forth above, investors should not place undue
reliance on forward-looking statements.
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SOURCE Silvercorp Metals Inc