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Silvercorp Reports Financial and Operating Results for the Third Quarter of Fiscal Year 2014

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 13, 2014) - Silvercorp Metals Inc. ("Silvercorp" or the "Company") ( SVM.TO )( SVM ) reported its financial and operating results for the third quarter ended December 31, 2013 ("Q3 Fiscal 2014").

THIRD QUARTER HIGHLIGHTS

  • Silver production of 0.9 million ounces and gold production of 1,985 ounces;
  • Lead production of 9.0 million pounds and zinc production of 1.7 million pounds;
  • Sales of $24.0 million;
  • Gross margin of 44%;
  • Cash flow from operations of $9.9 million, or $0.06 per share;
  • Net income of $2.2 million, or $0.01 per share; and
  • Cash cost per ounce of silver, net of by-product credits, of $2.00.

FINANCIALS

In Q3 Fiscal 2014, net income attributable to equity holders of the Company was $2.2 million or $0.01 per share compared to $5.2 million, or $0.03 per share for the three months ended December 31, 2012 ("Q3 Fiscal 2013").

In Q3 Fiscal 2014, the Company realized sales of $24.0 million, a decrease of 59% from $58.7 million in Q3 Fiscal 2013. The Company's financial results were mainly impacted by the following: (i) lower metal production as silver, lead and zinc production decreased 42%, 45%, and 58% respectively, compared to Q3 Fiscal 2013; and (ii) a significantly lower net realized silver price of $16.20 per ounce in this quarter, down $8.70 per ounce or 35% from $24.90 per ounce in Q3 Fiscal 2013.

Cost of sales in Q3 Fiscal 2014 was $13.5 million compared to $21.2 million in Q3 Fiscal 2013 and included cash costs of $10.9 million compared to $17.1 million in Q3 Fiscal 2013. The decrease of cost of sales was due to the reduction in ore production in this quarter.

The gross profit margin in Q3 Fiscal 2014 was 44%, compared to 64% in Q3 Fiscal 2013.

Cash flow from operations in Q3 Fiscal 2014 was $9.9 million or $0.06 per share, compared to $27.8 million, or $0.16 per share, in Q3 Fiscal 2013.

For the nine months ended December 31, 2013, net loss, attributable to the equity holders of the Company, was $36.5 million or $0.21 per share, which included impairment charges of $42.8 million, net of tax. The impairment reduced the carrying value of the BYP mine, as well as the XBG and Silvertip projects, both of which are sold. Adjusted net income was $6.5 million or $0.04 per share...