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Silvercorp Reports Net Income of $15.5 Million, $0.09 Per Share, and Cash Flow From Operations of $29.6 Million for Q2 Fiscal 2021

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Silvercorp Metals Inc
·37 min read
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VANCOUVER, British Columbia, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Silvercorp Metals Inc. (Silvercorp or the Company) (TSX/NYSE American: SVM) reported its financial and operating results for the second quarter ended September 30, 2020 (Q2 Fiscal 2021).   All amounts are expressed in US Dollars.

Q 2 FISCAL YEAR 20 2 1 HIGHLIGHTS

  • Mined 267,853 tonnes of ore, up 3% compared to the prior year quarter;

  • Sold approximately 1.7 million ounces of silver, 2,200 ounces of gold, 18.6 million pounds of lead, and 7.4 million pounds of zinc, representing an increase of 100% and 11% in gold and zinc sold, and a decrease of 8% and 3% in silver and lead sold, compared to the prior year quarter;

  • Revenue of $56.4 million, up 13% or $6.5 million compared to $49.9 million in the prior year quarter;

  • Net income attributable to equity shareholders of the Company of $15.5 million, or $0.09 per share, up 27% compared to $12.2 million or $0.07 per share in the prior year quarter;

  • Cash cost per ounce of silver 1 , net of by-product credits, of negative $2.09, compared to negative $2.72 in the prior year quarter;

  • All-in sustaining cost per ounce of silver 1 , net of by-product credits, of $6.99, compared to $4.15 in the prior year quarter;

  • Cash flow from operations of $29.6 million, up 13% compared to $26.2 million in the prior year quarter;

  • Gain of $2.8 million on equity investments;

  • Invested $5.6 million in two Canadian junior exploration companies;

  • Investment in New Pacific Metals Corp. (NUAG) with market value of $212.0 million and other investments of $16.4 million; and

  • Strong balance sheet with $200.1 million in cash and cash equivalents and short-term investments, an increase of $21.7 million or 12% compared to $178.4 million as at June 30, 2020.

FINANCIAL S

Net income attributable to equity shareholders of the Company in Q2 Fiscal 2021 was $15.5 million, or $0.09 per share, compared to $12.2 million, or $0.07 per share in the three months ended September 30, 2019 (Q2 Fiscal 2020).

Compared to Q2 Fiscal 2020, the Companys financial results in Q2 Fiscal 2021 were mainly impacted by the following: i) an increase of 31%, 15% and 16% in the net realized selling prices for silver, gold and zinc, offset by a decrease of 8% in the net realized selling price for lead; ii) an increase of 100% and 11% in the amount of gold and zinc sold, offset by a decrease of 8% and 3% in the amount of silver and lead sold; iii) a gain of $2.8 million on equity investments reported in profit; and offset by iv) $1.3 million in foreign exchange loss.

Revenue in Q2 Fiscal 2021 was $56.4 million, up 13% or $6.5 million compared to $49.9 million in Q2 Fiscal 2020. The increase was mainly due to i) an increase of $9.4 million in revenue arising from the increase in the net realized selling prices for silver, gold and lead; and ii) an increase of $2.0 million in revenue arising from the increase in the amount of gold and zinc sold; offset by iii) a decrease of $1.4 million arising from the decrease in the net realized selling price for lead; iv) a decrease of $3.3 million arsing from the decrease in the amount of silver and lead sold; and v) a decrease of $0.2 million in revenue from other metals. Silver, gold and base metal sales represented $33.0 million, $3.0 million, and $20.3 million, respectively, compared to silver, gold and base metals sales of $27.4 million, $1.3 million, and $21.1 million, respectively, in Q2 Fiscal 2020. Revenue from the Ying Mining District in Q2 Fiscal 2021 was $45.7 million, up 8% compared to $42.3 million in Q2 Fiscal 2020. Revenue from the GC Mine in Q2 Fiscal 2021 was $9.2 million, up 21% compared to $7.6 million in Q2 Fiscal 2020. Revenue from the BYP Mine was $1.5 million, compared to $nil in Q2 Fiscal 2020 as the Company sold all remaining gold concentrate inventories produced by the mine before it was placed on care and maintenance in 2014.

Production costs expensed in Q2 Fiscal 2021 were $19.7 million, an increase of $2.4 million, compared to $17.3 million in Q2 Fiscal 2020. The production costs expensed represent approximately 281,980 tonnes of ore processed and expensed at a cost of $69.82 per tonne, compared to approximately 263,050 tonnes at $65.73 per tonne in Q2 Fiscal 2020.

Income from mine operations in Q2 Fiscal 2021 was $26.7 million or 47% of revenue, compared to $22.7 million or 45% of revenue in Q2 Fiscal 2020. Income from mine operations at the Ying Mining District was $23.1 million or 51% of revenue, compared to $20.5 million or 49% of revenue in Q2 Fiscal 2020. Income from mine operations at the GC Mine was $2.9 million or 32% of revenue, compared to $2.2 million or 29% of revenue in Q2 Fiscal 2020.

General and administrative expenses in Q2 Fiscal 2021 were $5.1 million, an increase of $0.3 million compared to $4.8 million in Q2 Fiscal 2020. The increase was mainly due to an increase of $0.3 million in share-based compensation. General and administrative expenses included corporate administrative expenses of $2.8 million (Q2 Fiscal 2020 - $2.6 million) and mine administrative expenses of $2.3 million (Q2 Fiscal 2020 - $2.2 million).

Foreign exchange loss in Q2 Fiscal 2021 was $1.3 million compared to a gain of $0.8 million in Q2 Fiscal 2020. The foreign exchange loss is mainly driven by the appreciation of the Canadian dollar against the US dollar.

Share of loss in an associate in Q2 Fiscal 2021 was $0.3 million (Q2 Fiscal 2020 $0.2 million), representing the Companys equity share of the loss in NUAG.

Gain on equity investments recorded in profit in Q2 Fiscal 2021 was $2.8 million, compared to $nil in Q2 Fiscal 2020. A total gain of $4.8 million on equity investments was reported in Q2 Fiscal 2021, of which $2.0 million was recorded in other comprehensive income as the Company made elections to account for equity investments on an instrument-by-instrument basis.

Income tax expenses in Q2 Fiscal 2021 were $5.9 million, compared to $5.1 million in Q2 Fiscal 2020. The income tax expenses comprised of current income tax expenses of $5.2 million (Q2 Fiscal 2020 - $1.0 million) and deferred income tax expenses of $0.7 million (Q2 Fiscal 2020 - $4.2 million).

Cash flow provided by operating activities in Q2 Fiscal 2021 was $29.6 million, an increase of $3.4 million, compared to $26.2 million in Q2 Fiscal 2020.

For the six months ended September 30, 2020, net income attributable to equity shareholders of the Company was $31.0 million or $0.18 per share, an increase of $6.2 million, compared to $24.8 million or $0.14 per share in the same prior year period; revenue was $103.1 million, up 8% or $7.6 million, compared to $95.5 million in the same prior year period; income from mine operations was $46.0 million or 45% of revenue, compared to $40.4 million or 42% of revenue in the same prior year period; gain on equity recorded in profit was $8.2 million compared to $nil in the same prior year period; foreign exchange loss was $4.0 million compared to $0.1 million in the same prior year period; and cash flow from operating activities was $59.7 million, up 30% from $46.1 million in the same prior year period.

The Company ended the period with $200.1 million in cash and short-term investments, an increase of $21.7 million or 12% compared to $178.4 million as at June 30, 2020; and an increase of $57.6 million or 40% compared to $142.5 million as at March 31, 2020.

Working capital as at September 30, 2020 was $169.3 million, an increase of $15.6 million or 10% compared to $153.7 million as at June 30, 2020; and an increase of $39.0 million or 30%, compared to $130.4 million as at March 31, 2020.

1 Alternative performance (non-IFRS) measure. Please refer to section 1 0 of the corresponding MD&A for reconciliation.

OPERATIONS AND DEVELOPMENT

(i)      Q2 Fiscal 2021 vs. Q2 Fiscal 2020

In Q2 Fiscal 2021, on a consolidated basis, the Company mined 267,853 tonnes of ore, up 3% or 8,596 tonnes compared to 259,257 tonnes in Q2 Fiscal 2020. Ore milled was 263,933 tonnes, a slight decrease of 1% or 1,348 tonnes, compared to 265,281 tonnes in Q2 Fiscal 2020.

In Q2 Fiscal 2021, the Company sold approximately 1.7 million ounces of silver, 2,200 ounces of gold, 18.6 million pounds of lead, and 7.4 million pounds of zinc, an increase of 100% and 11% in gold and zinc sold, and a decrease of 8% and 3% in silver and lead sold, compared to 1.9 million ounces of silver, 1,100 ounces of gold, 19.1 million pounds of lead, and 6.7 million pounds of zinc in Q2 Fiscal 2020.

In Q2 Fiscal 2021, the consolidated total mining and cash mining costs were $76.95 and $57.61 per tonne, up 6% and 10% compared to $72.85 and $52.37 per tonne, respectively, in Q2 Fiscal 2020. The increase in per tonne cash mining costs was mainly due to an increase of $1.4 million in drilling and related expenses arising from an increase of 38,326 metres of diamond drilling.

The consolidated total milling and cash milling costs were $11.11 and $9.64 per tonne, down 11% and 10% compared to $12.46 and $10.76 per tonne, respectively, in Q2 Fiscal 2020. The decrease in per tonne cash milling costs was mainly due to a decrease of $0.2 million in raw material costs.

Correspondingly, the consolidated cash production cost per tonne of ore processed in Q2 Fiscal 2021 was $69.82, up 6% compared to $65.73 in Q2 Fiscal 2020. The consolidated all-in sustaining production cost per tonne of ore processed was $124.24, up 13% compared to $109.51 in Q2 Fiscal 2020, but within the Companys annual cost guidance. The increase was mainly due to the increase in cash mining costs and a $2.3 million increase in sustaining capital expenditures.

In Q2 Fiscal 2021, the consolidated cash cost per ounce of silver, net of by-product credits, was negative $2.09, compared to negative $2.72, in Q2 Fiscal 2020. The consolidated all-in sustaining cost per ounce of silver, net of by-product credits, was $6.99 compared to $4.15 in Q2 Fiscal 2020.   The increase was mainly due to i) an increase of 6% in per tonne production costs; ii) a decrease of $0.9 million in by-product sales; iii) a decrease of 8% in silver sold, and iv) an increase of $2.3 million in sustaining capital expenditures.

In Q2 Fiscal 2021, on a consolidated basis, approximately 71,274 metres or $2.5 million worth of diamond drilling (Q2 Fiscal 2020 32,948 metres or $1.1 million) and 7,693 metres or $1.9 million worth of preparation tunnelling (Q2 Fiscal 2020 11,656 metres or $3.1 million) were completed and expensed as mining preparation costs. In addition, approximately 25,678 metres or $8.5 million worth of horizontal tunnels, raises, ramps and declines (Q2 Fiscal 2020 20,107 metres or $7.1 million) were completed and capitalized.

(ii)      Six months ended September 30, 2020 vs. six months ended September 30, 2019

For the six months ended September 30, 2020, on a consolidated basis, the Company mined 522,408 tonnes of ore, up 1% or 5,759 tonnes, compared to 516,649 tonnes mined in the same prior year period. Ore milled was 526,259 tonnes, a slight increase of 1,435 tonnes, compared to 524,824 tonnes in the same prior year period.

The Company sold approximately 3.6 million ounces of silver, 3,300 ounces of gold, 39.4 million pounds of lead, and 14.4 million pounds of zinc, an increase of 57%, 7%, and 3% in gold, lead, and zinc sold, and a decrease of 4% in silver sold, compared to 3.7 million ounces of silver, 2,100 ounces of gold, 36.9 million pounds of lead, and 14.0 million pounds of zinc sold in the same prior year period.

For the six months ended September 30, 2020, the consolidated total mining cost and cash mining cost were $75.46 and $56.32 per tonne, respectively, compared to $75.12 and $53.91 per tonne in the same prior year period. The increase in per tonne cash mining cost was mainly due to an increase of $2.5 million in drilling and related expenses arising from an increase of 43,405 metres of diamond drilling.

The consolidated total milling cost and cash milling cost were $11.08 and $9.61, respectively, compared to $12.47 and $10.69 per tonne in the same prior year period.

Correspondingly, the consolidated cash production cost per tonne of ore processed was $68.47, up 2% compared to $67.29 in the same prior year period. The all-in sustaining production cost per tonne of ore processed was $118.46, up 3% compared to $114.80 in the same prior year period. The increase was mainly due to the increase in per tonne cash mining costs and an increase of $0.7 million in sustaining capital expenditures.

For the six months ended September 30, 2020, the consolidated cash cost per ounce of silver, net of by-product credits, was negative $1.77, compared to negative $2.45 in the same prior year period. The consolidated all-in sustaining cost per ounce of silver, net of by-product credits was $6.28 compared to $4.91 in the same prior year period. The increase was mainly due to i) an increase of 2% in per tonne production costs; ii) a decrease of $0.6 million in by-product sales; iii) an increase of $0.7 million in sustaining capital expenditures; and iv) a decrease of 4% in silver sold.

For the six months ended September 30, 2020, on a consolidated basis, approximately 107,971 metres or $4.5 million worth of diamond drilling (same prior year period 64,566 metres or $2.0 million) and 17,358 metres or $3.6 million worth of preparation tunnelling (same prior year period 24,312 metres or $6.2 million) were completed and expensed as mining preparation costs. In addition, approximately 52,053 metres or $17.5 million worth of horizontal tunnels, raises, ramps and declines (same prior year period 41,499 metres or $14.5 million) were completed and capitalized.

1.   Ying Mining District , Henan Province, China

Ying Mining District

Q2 2021

Q1 2021

Q4 2020

Q3 2020

Q2 2020

 

Six months ended September 30,

 

September 30, 2020

June 30, 2020

March 31, 2020

December 31, 2019

September 30, 2019

 

2020

 

2019

 

Ore Mined ( tonne )

181,020

 

174,176

 

69,379

176,149

 

176,085

 

 

355,196

 

352,669

 

Ore Milled ( tonne )

179,083

 

177,689

 

69,188

175,488

 

179,147

 

 

356,772

 

356,828

 

Head Grades

 

 

 

 

 

 

 

 

Silver (gram/ tonne )

288

 

293

 

297

296

 

306

 

 

290

 

318

 

Lead (%)

4.4

 

4.6

 

4.6

4.6

 

4.5

 

 

4.5

 

4.5

 

Zinc (%)

0.7

 

0.8

 

1.0

0.9

 

0.8

 

 

0.8

 

0.9

 

Recoveries

 

 

 

 

 

 

 

 

Silver (%)

94.4

 

94.7

 

95.3

96.1

 

96.2

 

 

94.6

 

96.0

 

Lead (%)

96.1

 

96.2

 

95.7

96.3

 

95.7

 

 

96.1

 

95.7

 

Zinc (%)

57.9

 

63.8

 

67.7

70.3

 

58.6

 

 

60.9

 

                    58.5

 

Metal Sales

 

 

 

 

 

 

 

 

Silver (in thousands of ounce)

1,556

 

1,672

 

711

1,475

 

1,711

 

 

3,228

 

3,373

 

Gold (in thousands of ounce)

1.0

 

1.1

 

0.5

0.7

 

1.1

 

 

2.1

 

2.1

 

Lead (in thousands of pound)

15,585

 

17,779

 

8,322

14,912

 

16,389

 

 

33,364

 

31,225

 

Zinc (in thousands of pound)

1,384

 

2,037

 

865

2,882

 

1,428

 

 

3,421

 

3,518

 

Cash mining cost ($/ tonne )

67.77

 

64.12

 

68.10

64.69

 

59.26

 

 

65.98

 

61.16

 

Shipping costs ($/ tonne )

3.79

 

3.64

 

3.96

3.89

 

3.82

 

 

3.72

 

3.93

 

Cash milling costs ($/ tonne )

8.50

 

8.45

 

11.53

10.99

 

9.81

 

 

8.48

 

9.48

 

Cash production costs ($/ tonne )

80.06

 

76.21

 

83.59

79.57

 

72.89

 

 

78.18

 

74.57

 

All-in sustaining production costs ($/ tonne )

132.36

 

116.99

 

195.78

126.43

 

117.37

 

 

124.74

 

123.24

 

 

 

 

 

 

 

 

 

 

Cash costs per ounce of silver ($)

(0.14

)

(0.87

)

0.30

(0.72

)

(1.95

)

 

(0.52

)

(1.70

)

All-in sustaining costs per ounce of silver ($)

6.63

 

4.14

 

11.86

5.57

 

3.40

 

 

5.34

 

4.10

 

i)       Q2 Fiscal 2021 vs. Q2 Fiscal 2020

In Q2 Fiscal 2021, the total ore mined at the Ying Mining District was 181,020 tonnes, up 3% or 4,935 tonnes compared to 176,085 tonnes mined in Q2 Fiscal 2020. Ore milled was 179,083 tonnes, a slight decrease compared to 179,147 tonnes in Q2 Fiscal 2020.

Head grades were 288 grams per tonne (g/t) for silver, 4.4% for lead, and 0.7% for zinc, compared to 306 g/t for silver, 4.5% for lead, and 0.8% for zinc in Q2 Fiscal 2020.   

In Q2 Fiscal 2021, the Ying Mining District sold approximately 1.6 million ounces of silver, 1,000 ounces of gold, 15.6 million pounds of lead, and 1.4 million pounds of zinc, compared to 1.7 million ounces of silver, 1,100 ounces of gold, 16.4 million pounds of lead, and 1.4 million pounds of zinc in Q2 Fiscal 2020.

Total and cash mining costs per tonne at the Ying Mining District in Q2 Fiscal 2021 were $92.30 and $67.77 per tonne, respectively, compared to $85.63 and $59.26 per tonne in Q2 Fiscal 2020. The increase in the per tonne cash mining cost was mainly due to an increase of $1.2 million in drilling and related expenses arising from an increase of 32,533 metres of diamond drilling.

Total and cash milling costs per tonne at the Ying Mining District in Q2 Fiscal 2021 were $10.09 and $8.50, respectively, compared to $11.53 and $9.81 in Q2 Fiscal 2020. The decrease in per tonne milling costs was mainly due to a decrease of $0.2 million in raw material costs.

Correspondingly, the cash production cost per tonne of ore processed in Q2 Fiscal 2021 at the Ying Mining District was $80.06, compared to $72.89 in Q2 Fiscal 2020. The all-in sustaining production cost per tonne of ore processed was $132.36, up 13% compared to $117.37 in Q2 Fiscal 2020, but below the Companys annual cost guidance. The increase was mainly due to the increase in per tonne cash mining costs and a $1.9 million increase in sustaining capital expenditures.

In Q2 Fiscal 2021, cash cost per ounce of silver, net of by-product credits, at the Ying Mining District was negative $0.14 compared to negative $1.95 in Q2 Fiscal 2020. All-in sustaining cost per ounce of silver, net of by-product credits, was $6.63 compared to $3.40 in Q2 Fiscal 2020. The increase was mainly due to i) the increase in per tonne production costs as discussed above; ii) a decrease of $1.7 million in by-product sales; iii) an increase of $1.9 million in sustaining capital expenditures; and iv) a decrease of 9% in silver sold.

In Q2 Fiscal 2021, approximately 59,540 metres or $2.0 million worth of diamond drilling (Q2 Fiscal 2020 27,007 metres or $0.8 million) and 5,316 metres or $1.6 million worth of preparation tunnelling (Q2 Fiscal 2020 5,554 metres or $1.6 million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition, approximately 21,278 metres or $7.5 million worth of horizontal tunnels, raises, ramps and declines (Q2 Fiscal 2020 19,661 metres or $6.7 million) were completed and capitalized.  

ii)       Six months ended September 30, 2020 vs. six months ended September 30, 2019

For the six months ended September 30, 2020, a total of 355,196 tonnes of ore were mined at the Ying Mining District, up 1% or 2,527 tonnes compared to 352,669 tonnes in the same prior year period. Ore milled was 356,772 tonnes, comparable to 356,828 tonnes in the same prior year period. Average head grades of ore processed were 290 g/t for silver, 4.5% for lead, and 0.8% for zinc compared to 318 g/t for silver, 4.5% for lead, and 0.9% for zinc, in the same prior year period.

During the same time period, the Ying Mining District sold approximately 3.2 million ounces of silver, 2,100 ounces of gold, 33.4 million pounds of lead, and 3.4 million pounds of zinc, compared to 3.4 million ounces of silver, 2,100 ounces of gold, 31.2 million pounds of lead, and 3.5 million pounds of zinc in the same prior year period.

For the six months ended September 30, 2020, the cash mining cost at the Ying Mining District was $65.98 per tonne, up 8% compared to $61.16 in the same prior year period. The increase was mainly due to an increase of $2.0 million in drilling and related expenses arising from an increase of 37,370 metres of diamond drilling. The cash milling cost was $8.48 per tonne, down 11% compared to $9.48 in the same prior year period.

Correspondingly, the cash production cost per tonne of ore processed was $78.18, up 5% compared to $74.57 in the prior year period. The all-in sustaining cash production costs per tonne of ore processed were $124.74, up 1%, compared to $123.24 in the same prior year period, but below the Companys annual cost guidance.

For the six months ended September 30, 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 $0.52 and $5.34 respectively, compared to negative $1.70 and $4.10 in the same prior year period. The increase was mainly due to i) the increase in per tonne production costs; ii) a decrease of $2.1 million in by-product credits; and iii) a decrease of 4% in silver sold.

For the six months ended September 30, 2020, approximately 88,025 metres or $3.4 million worth of underground diamond drilling (same prior year period 50,655 metres or $1.4 million) and 11,523 metres or $2.8 million worth of preparation tunnelling (same prior year period 11,949 metres or $3.3 million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition, approximately 44,386 metres or $15.3 million worth of horizontal tunnels, raises, and declines (same prior year period 40,556 metres or $13.8 million) were completed and capitalized.

2 . GC Mine, Guangdong Province, China

GC Mine

Q2 2021

Q1 2021

Q4 2020

Q3 2020

Q2 2020

 

Six months ended September 30,

 

September 30, 2020

June 30, 2020

March 31, 2020

December 31, 2019

September 30, 2019

 

2020

 

2019

 

Ore Mined ( tonne )

                      86,833

 

80,379

 

37,216

 

86,437

 

83,172

 

 

167,212

 

163,980

 

Ore Milled ( tonne )

84,850

 

84,637

 

33,243

 

89,372

 

86,134

 

 

169,487

 

167,996

 

Head Grades

 

 

 

 

 

 

 

 

Silver (gram/ tonne )

81

 

93

 

94

 

96

 

100

 

 

87

 

97

 

Lead (%)

1.8

 

1.9

 

1.8

 

2.0

 

2.0

 

 

1.8

 

1.9

 

Zinc (%)

3.4

 

3.4

 

3.5

 

3.3

 

3.2

 

 

3.4

 

3.3

 

Recovery Rates

 

 

 

 

 

 

 

 

Silver (%) *

82.5

 

82.8

 

80.7

 

78.0

 

75.9

 

 

82.7

 

76.4

 

Lead (%)

89.2

 

89.8

 

90.4

 

90.4

 

88.3

 

 

89.5

 

88.5

 

Zinc (%)

87.3

 

87.3

 

87.7

 

85.5

 

86.1

 

 

87.3

 

85.9

 

Metal Sales

 

 

 

 

 

 

 

 

Silver (in thousands of ounce)

184

 

200

 

89

 

234

 

183

 

 

384

 

376

 

Lead (in thousands of pound)

2,966

 

3,106

 

1,332

 

3,867

 

2,680

 

 

6,072

 

5,686

 

Zinc (in thousands of pound)

6,027

 

4,921

 

2,194

 

5,471

 

5,227

 

 

10,948

 

10,471

 

Cash mining cost ($/ tonne )

36.43

 

35.13

 

25.58

 

42.96

 

37.80

 

 

35.80

 

38.31

 

Cash milling cost ($/ tonne )

12.04

 

11.95

 

16.36

 

14.01

 

12.72

 

 

12.00

 

13.27

 

Cash production cost ($/ tonne )

48.47

 

47.08

 

41.94

 

56.97

 

50.52

 

 

47.80

 

51.58

 

All-in sustaining production costs ($/ tonne )

69.07

 

65.84

 

88.18

 

71.03

 

62.94

 

 

67.49

 

65.09

 

 

 

 

 

 

 

 

 

 

Cash cost per ounce of silver ($)

(12.70

)

(6.59

)

(10.03

)

(4.33

)

(9.98

)

 

(9.52

)

(9.16

)

All-in sustaining cost per ounce of silver ($)

(1.78

)

2.41

 

8.31

 

2.18

 

(2.89

)

 

0.40

 

(1.90

)

* Silver recovery includes silver recovered in lead concentrate and silver recovered in zinc concentrate.

 

 

 

 

 

 

i)       Q2 Fiscal 2021 vs. Q2 Fiscal 2020

In Q2 Fiscal 2021, the total ore mined at the GC Mine was 86,833 tonnes, up 4% or 3,661 tonnes, compared to 83,172 tonnes in Q2 Fiscal 2020. Ore milled was 84,850 tonnes, a slight decrease of 1% or 1,284 tonnes, compared to 86,134 tonnes in Q2 Fiscal 2020.

Average head grades of ore processed at the GC Mine were 81 g/t for silver, 1.8% for lead, and 3.4% for zinc, compared to 100 g/t for silver, 2.0% for lead, and 3.2% for zinc in Q2 Fiscal 2020. Recovery rates of ore processed were 82.5% for silver, 89.2% for lead, and 87.3% for zinc, compared to 75.9% for silver, 88.3% for lead, and 86.1% for zinc in Q2 Fiscal 2020.

In Q2 Fiscal 2021, GC Mine sold approximately 184 thousand ounces of silver, 3.0 million pounds of lead, and 6.0 million pounds of zinc, compared to 183 thousand ounces of silver, 2.7 million pounds of lead, and 5.2 million pounds of zinc in Q2 Fiscal 2020.

Total and cash mining costs per tonne at the GC Mine in Q2 Fiscal 2021 were $44.93 and $36.43 per tonne, a decrease of 2% and 4%, respectively, compared to $45.81 and $37.80 per tonne in Q2 Fiscal 2020. The decrease in the cash mining cost was mainly due to a $0.3 million decrease in mining preparation costs. Total and cash milling costs per tonne at the GC Mine in Q2 Fiscal 2021 were $13.27 and $12.04, a decrease of 8% and 5%, respectively, compared to $14.38 and $12.72 in Q2 Fiscal 2020.

Correspondingly, the cash production cost per tonne of ore processed at the GC Mine was $48.47, down 4% compared to $50.52 in Q2 Fiscal 2020. The all-in sustaining production cost per tonne of ore processed was $69.07, up 10% compared to $62.94 in Q2 Fiscal 2020. The increase was mainly due to an increase of $0.5 million in sustaining capital expenditures.

In Q2 Fiscal 2021, the cash cost per ounce of silver, net of by-product credits, at the GC Mine, was negative $12.70 compared to negative $9.98 in Q2 Fiscal 2020. The decrease was mainly due to the decrease in per tonne production costs and an increase of $1.0 million in by-product sales.

All-in sustaining cost per ounce of silver, net of by-product credits, at the GC Mine was negative $1.78 compared to negative $2.89 in Q2 Fiscal 2020. The increase was mainly due to an increase of $0.5 million in sustaining capital expenditures offset by the decrease in cash cost per ounce of silver as discussed above.

In Q2 Fiscal 2021, approximately 11,734 metres or $0.5 million worth of underground diamond drilling (Q2 Fiscal 2020 5,941 metres or $0.3 million) and 2,377 metres or $0.3 million worth of tunnelling (Q2 Fiscal 2020 6,102 metres or $1.5 million) were completed and expensed as mining preparation costs at the GC Mine. In addition, approximately 4,400 metres or $1.0 million worth of horizontal tunnels, raises, ramps and declines (Q2 Fiscal 2020 446 metres or $0.4 million) were completed and capitalized.   

ii)       Six months ended September 30, 2020 vs. six months ended September 30, 2019

For the six months ended September 30, 2020, a total of 167,212 tonnes of ore were mined and 169,487 tonnes were milled at the GC Mine, an increase of 2% and 1%, respectively, compared to 163,980 tonnes mined and 167,996 tonnes milled in the same prior year period. Average head grades of ore milled were 87 g/t for silver, 1.8% 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 384 thousand ounces of silver, 6.1 million pounds of lead, and 10.9 million pounds of zinc, compared to 376 thousand ounces of silver, 5.7 million pounds of lead, and 10.5 million pounds of zinc in the same prior year period.  

For the six months ended September 30, 2020, the cash mining costs at the GC Mine was $35.80 per tonne, a decrease of 7% compared to $38.31 per tonne in the same prior year period. The cash milling costs was $12.00 per tonne, a decrease of 10% compared to $13.27 in the same prior year period.   Correspondingly, the cash production costs per tonne of ore processed at the GC Mine was $47.80, a decrease of 7% compared to $51.58 in the same prior year period. The all-in sustaining cash production costs per tonne of ore processed was $67.49, an increase of 4% compared to $65.09 in the same prior year period.

For the six months ended September 30, 2020, the cash cost per ounce of silver and all-in sustaining cost per ounce of silver, net of byproduct credits, at the GC Mine, were negative $9.52 and $0.40 respectively, compared to negative $9.16 and negative $1.90 in the same prior year period. 

For the six months ended September 30, 2020, approximately 19,946 metres or $1.1 million worth of underground diamond drilling (same prior year period 13,911 metres or $0.6 million) and 5,835 metres or $0.8 million of tunnelling (same prior year period 12,363 metres or $2.9 million) were completed and expensed as mining preparation costs at the GC Mine. In addition, approximately 7,667 metres or $2.2 million of horizontal tunnels, raise, and declines (same prior year period 943 metres or $0.7 million) were completed and capitalized.

O UTLOOK

Based on the year-to-date production levels, production costs, capital expenditures, and the expected production and costs for the remainder of the year, the Company is on track to meet its annual production and cost guidance.

Based on the year-to-date drilling completed, the Company expects its Fiscal 2021 drilling program to exceed its annual guidance. The Company is currently undertaking extensive drill programs at the Ying Mining District and GC Mine with two main objectives: i) areas with existing development and access are being re-examined to potentially define additional resources and reserves, which may lead to a substantial reduction in mining and sustaining capital costs associated with the tonnes identified, and ii) areas which may have been overlooked for potential gold mineralization are being tested for different alteration styles from the typical silver-lead zones.

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 Companys 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 Companys 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.

For further information
Silvercorp Metals Inc.
Lon Shaver
Vice President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: investor@silvercorp.ca
Website: 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 forward-looking statements 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 Companys material properties; the sufficiency of the Companys capital to finance the Companys operations; estimates of the Companys revenues and capital expenditures; estimated production from the Companys mines in the Ying Mining District and the GC Mine; projected cash operating costs and all-in sustaining costs, and budgets, on a consolidated and mine-by-mine basis; projections included in the Companys annual cost guidance; timing of receipt of permits and regulatory approvals; availability of funds from production to finance the Companys operations; and access to and availability of funding for future construction, use of proceeds from any financing and development of the Companys 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 Companys 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 , as well as those risks and uncertainties discussed in the Companys corresponding MD&A and other public filings of the Company . This list is not exhaustive of the factors that may affect any of the Companys 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 expressed or implied in the forward-looking statements.

The Companys forward-looking statements are necessarily based on a number of estimates, assumptions, beliefs, expectations and opinions of management as of the date of this news release that while considered reasonable by management of the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates, assumptions, beliefs, expectations and opinions include, but are not limited to, those related to the Companys ability to carry on current and future operations, including: the duration and effects of COVID-19 on our operations and workforce; development and exploration activities; the timing, extent, duration and economic viability of such operations; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the Companys ability to meet or achieve estimates, projections and forecasts; the availability and cost of inputs; the price and market for outputs; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or permits; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions; and other assumptions and factors generally associated with the mining industry. O ther than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements if circumstances or managements assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements. 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. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.


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

 

 

As at September 30,

 

As at March 31,

 

 

 

 

2020

 

 

2020

 

ASSETS

 

 

 

 

Current Assets

 

 

 

 

Cash and cash equivalents

 

$

95,320

 

$

65,777

 

Short-term investments

 

 

104,763

 

 

76,742

 

Trade and other receivables

 

 

1,365

 

 

1,178

 

Current portion of lease receivable

 

 

200

 

 

186

 

Inventories

 

 

6,705

 

 

8,430

 

Due from related parties

 

 

52

 

 

1,519

 

Income tax receivable

 

 

-

 

 

1,093

 

Prepaids and deposits

 

 

4,954

 

 

3,254

 

 

 

 

213,359

 

 

158,179

 

 

 

 

 

 

Non-current Assets

 

 

 

 

Long-term prepaids and deposits

 

 

647

 

 

390

 

Long-term portion lease receivable

 

 

273

 

 

348

 

Reclamation deposits

 

 

8,000

 

 

9,230

 

Investment in an associate

 

 

51,587

 

 

44,555

 

Other investments

 

 

16,425

 

 

8,750

 

Plant and equipment

 

 

70,124

 

 

66,722

 

Mineral rights and properties

 

 

243,470

 

 

224,586

 

TOTAL ASSETS

 

$

603,885

 

$

512,760

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Current Liabilities

 

 

 

 

Accounts payable and accrued liabilities

 

$

34,983

 

$

23,129

 

Current portion of lease obligation

 

 

611

 

 

567

 

Deposits received

 

 

4,568

 

 

3,195

 

Income tax payable

 

 

3,861

 

 

937

 

 

 

 

44,023

 

 

27,828

 

 

 

 

 

 

Non-current Liabilities

 

 

 

 

Long-term portion of lease obligation

 

 

1,313

 

 

1,502

 

Deferred income tax liabilities

 

 

38,872

 

 

35,758

 

Environmental rehabilitation

 

 

9,098

 

 

8,700

 

Total Liabilities

 

 

93,306

 

 

73,788

 

 

 

 

 

 

Equity

 

 

 

 

Share capital

 

 

248,171

 

 

243,926

 

Equity reserves

 

 

10,793

 

 

(21,142

)

Retained earnings

 

 

174,683

 

 

145,898

 

Total equity attributable to the equity holders of the Company

 

433,647

 

 

368,682

 

 

 

 

 

 

Non-controlling interests

 

 

76,932

 

 

70,290

 

Total Equity

 

 

510,579

 

 

438,972

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

603,885

 

$

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 September 30,

 

 

Six Months Ended September 30,

 

 

 

 

2020

 

 

2019

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

Revenue

 

$

56,372

 

$

49,886

 

 

$

103,077

 

$

95,462

 

Cost of mine operations

 

 

 

 

 

 

Production costs

 

 

19,688

 

 

17,290

 

 

 

37,435

 

 

35,290

 

Depreciation and amortization

 

 

5,592

 

 

5,814

 

 

 

11,332

 

 

11,683

 

Mineral resource taxes

 

 

1,433

 

 

1,408

 

 

 

2,769

 

 

2,659

 

Government fees and other taxes

 

 

648

 

 

496

 

 

 

1,188

 

 

1,090

 

General and administrative

 

 

2,339

 

 

2,211

 

 

 

4,396

 

 

4,340

 

 

 

 

29,700

 

 

27,219

 

 

 

57,120

 

 

55,062

 

Income from mine operations

 

 

26,672

 

 

22,667

 

 

 

45,957

 

 

40,400

 

 

 

 

 

 

 

 

Corporate general and administrative

 

 

2,784

 

 

2,583

 

 

 

5,471

 

 

4,936

 

Property evaluation and business development

 

 

126

 

 

107

 

 

 

(3,659

)

 

173

 

Foreign exchange loss (gain)

 

 

1,349

 

 

(797

)

 

 

4,019

 

 

57

 

Loss on disposal of plant and equipment

 

 

19

 

 

121

 

 

 

211

 

 

263

 

Gain on disposal of mineral rights and properties

 

 

-

 

 

-

 

 

 

-

 

 

(1,477

)

Share of loss in associate

 

 

319

 

 

244

 

 

 

480

 

 

525

 

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

 

 

(2,771

)

 

-

 

 

 

(8,237

)

 

-

 

Other expense (income)

 

 

69

 

 

291

 

 

 

(179

)

 

490

 

Income from operations

 

 

24,777

 

 

20,118

 

 

 

47,851

 

 

36,177

 

 

 

 

 

 

 

 

Finance income

 

 

741

 

 

818

 

 

 

1,688

 

 

1,747

 

Finance costs

 

 

(84

)

 

(136

)

 

 

(231

)

 

(311

)

Income before income taxes

 

 

25,434

 

 

20,800

 

 

 

49,308

 

 

37,613

 

 

 

 

 

 

 

 

Income tax expense

 

 

5,877

 

 

5,139

 

 

 

11,259

 

 

4,651

 

Net income

 

$

19,557

 

$

15,661

 

 

$

38,049

 

$

32,962

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

Equity holders of the Company

 

$

15,472

 

$

12,221

 

 

$

30,963

 

$

24,828

 

Non-controlling interests

 

 

4,085

 

 

3,440

 

 

 

7,086

 

 

8,134

 

 

 

$

19,557

 

$

15,661

 

 

$

38,049

 

$

32,962

 

 

 

 

 

 

 

 

Earnings per share attributable to the equity holders of the Company

 

 

 

 

Basic earnings per share

 

$

0.09

 

$

0.07

 

 

$

0.18

 

$

0.15

 

Diluted earnings per share

 

$

0.09

 

$

0.07

 

 

$

0.18

 

$

0.14

 

Weighted Average Number of Shares Outstanding - Basic

 

174,688,227

 

 

170,842,478

 

 

 

174,344,733

 

 

170,419,199

 

Weighted Average Number of Shares Outstanding - Diluted

 

177,112,569

 

 

171,904,531

 

 

 

176,697,376

 

 

171,261,945

 


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

 

Three Months Ended September 30,

 

 

Six Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

 

2020

 

 

2019

 

Cash provided by

 

 

 

 

 

Operating activities

 

 

 

 

 

Net income

$

19,557

 

$

15,661

 

 

$

38,049

 

$

32,962

 

Add (deduct) items not affecting cash:

 

 

 

 

 

Finance costs

 

84

 

 

136

 

 

 

231

 

 

311

 

Depreciation, amortization and depletion

 

6,029

 

 

6,203

 

 

 

12,177

 

 

12,423

 

Share of loss in associate

 

319

 

 

244

 

 

 

480

 

 

525

 

Dilution gain on investment in associate

 

-

 

 

-

 

 

 

-

 

 

(723

)

Reclassification of other comprehensive loss upon ownership dilution of investment in associate

 

-

 

 

-

 

 

 

-

 

 

(21

)

Income tax expense (recovery)

 

5,877

 

 

5,139

 

 

 

11,259

 

 

4,651

 

Gain on equity investments designated as FVTPL

 

(2,771

)

 

-

 

 

 

(8,237

)

 

-

 

Loss on disposal of plant and equipment

 

19

 

 

121

 

 

 

211

 

 

263

 

Gain on disposal of mineral rights and properties

 

-

 

 

-

 

 

 

-

 

 

(1,477

)

Share-based compensation

 

1,032

 

 

701

 

 

 

1,755

 

 

1,026

 

Reclamation expenditures

 

-

 

 

(63

)

 

 

(68

)

 

(74

)

Income taxes paid

 

(3,074

)

 

(1,011

)

 

 

(5,823

)

 

(2,930

)

Interest paid

 

(25

)

 

(32

)

 

 

(50

)

 

(105

)

Changes in non-cash operating working capital

 

2,544

 

 

(870

)

 

 

9,759

 

 

(715

)

Net cash provided by operating activities

 

29,591

 

 

26,229

 

 

 

59,743

 

 

46,116

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

Mineral rights and properties

 

 

 

 

 

Capital expenditures

 

(8,853

)

 

(7,239

)

 

 

(16,714

)

 

(14,009

)

Proceeds on disposals

 

-

 

 

1,455

 

 

 

-

 

 

6,146

 

Plant and equipment

 

 

 

 

 

Additions

 

(2,189

)

 

(2,158

)

 

 

(2,995

)

 

(4,329

)

Proceeds on disposals

 

-

 

 

2

 

 

 

1

 

 

3

 

Reclamation deposits

 

 

 

 

 

Paid

 

(11

)

 

(1,543

)

 

 

(261

)

 

(1,549

)

Refund

 

30

 

 

-

 

 

 

1,805

 

 

-

 

Other investments Acquisition (5,865) (1,726) (11,403) (1,726)Proceeds on disposals 1,232 1,266 17,806 1,266 Investment in associate - (187) (5,805) (3,210)Net redemptions (purchases) of short-term investments (16,341) (9,543) (15,451) (33,618)Principal received on lease receivable 49 9 94 36 Net cash used in investing activities (31,948) (19,664) (32,923) (50,990) Financing activities Related parties Repayments received - - 1,423 - Bank loan Repayment - - - (4,369)Principal payments on lease obligation (138) (187) (270) (288)Non-controlling interests Distribution - (3,259) (3,239) (3,259)Cash dividends distributed - - (2,178) (2,125)Proceeds from issuance of common shares 1,854 4,857 2,686 5,077 Net cash provided by (used in) financing activities 1,716 1,411 (1,578) (4,964) Effect of exchange rate changes on cash and cash equivalents 1,937 (1,207) 4,301 (1,511) Increase (decrease) in cash and cash equivalents 1,296 6,769 29,543 (11,349) Cash and cash equivalents, beginning of the period 94,024 49,323 65,777 67,441 Cash and cash equivalents, end of the period$ 95,320 $56,092 $ 95,320 $56,092


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

Consolidated

Three months ended September 30,

Six months ended September 30,

2020

2019

Changes

2020

2019

Changes

Production Data

Mine Data

Ore Mined (tonne)

267,853

259,257

3

%

522,408

516,649

1

%

Ore Milled (tonne)

263,933

265,281

-1

%

526,259

524,824

0

%

Head Grades

Silver (gram/tonne)

221

238

-7

%

225

246

-9

%

Lead (%)

3.5

3.6

-2

%

3.6

3.7

-2

%

Zinc (%)

1.6

1.6

0

%

1.6

1.6

1

%

Recovery Rates

Silver (%)

93.0

93.4

0

%

93.1

93.5

0

%

Lead (%)

94.9

94.4

1

%

95.1

94.5

1

%

Zinc (%)

78.0

76.9

1

%

78.9

76.3

3

%

Cost Data

+

Mining cost per tonne of ore mined ($)

76.95

72.85

6

%

75.46

75.12

0

%

Cash mining cost per tonne of ore mined ($)

57.61

52.37

10

%

56.32

53.91

4

%

Depreciation and amortization charges per tonne of ore mined ($)

19.34

20.48

-6

%

19.14

21.21

-10

%

+

Unit shipping costs ($)

2.57

2.60

-1

%

2.54

2.69

-6

%

+

Milling costs per tonne of ore milled ($)

11.11

12.46

-11

%

11.08

12.47

-11

%

Cash milling costs per tonne of ore milled ($)

9.64

10.76

-10

%

9.61

10.69

-10

%

Depreciation and amortization charges per tonne of ore milled ($)

1.47

1.70

-14

%

1.47

1.78

-17

%

+

Cash production cost per tonne of ore processed ($)

69.82

65.73

6

%

68.47

67.29

2

%

+

All-in sustaining cost per tonne of ore processed ($)

124.24

109.51

13

%

118.46

114.80

3

%

+

Cash cost per ounce of Silver, net of by-product credits ($)

(2.09

)

(2.72

)

23

%

(1.77

)

(2.45

)

28

%

+

All-in sustaining cost per ounce of silver, net of by-product credits ($)

6.99

4.15

68

%

6.28

4.91

28

%

Concentrate inventory

Lead concentrate (tonne)

1,327

4,176

-68

%

1,327

4,176

-68

%

Zinc concentrate (tonne)

635

586

8

%

635

586

8

%

Sales Data

Metal Sales

Silver (in thousands of ounces)

1,740

1,894

-8

%

3,612

3,749

-4

%

Gold (in thousands of ounces)

2.2

1.1

100

%

3.3

2.1

57

%

Lead (in thousands of pounds)

18,551

19,069

-3

%

39,436

36,911

7

%

Zinc (in thousands of pounds)

7,411

6,655

11

%

14,369

13,989

3

%

Revenue

Silver (in thousands of $)

33,047

27,439

20

%

59,233

50,997

16

%

Gold (in thousands of $)

3,016

1,314

130

%

4,493

2,396

88

%

Lead (in thousands of $)

14,387

16,202

-11

%

28,761

31,380

-8

%

Zinc (in thousands of $)

5,236

4,045

29

%

9,391

9,197

2

%

Other (in thousands of $)

685

886

-23

%

1,199

1,492

-20

%

56,371

49,886

13

%

103,077

95,462

8

%

Average Selling Price, Net of Value Added Tax and Smelter Charges

Silver ($ per ounce)

18.99

14.49

31

%

16.40

13.60

21

%

Gold ($ per ounce)

1,371

1,195

15

%

1,362

1,141

19

%

Lead ($ per pound)

0.78

0.85

-8

%

0.73

0.85

-14

%

Zinc ($ per pound)

0.71

0.61

16

%

0.65

0.66

-2

%


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

Ying Mining District

Three months ended September 30,

Six months ended September 30,

2020

2019

Changes

2020

2019

Changes

Production Data

Mine Data

Ore Mined (tonne)

181,020

176,085

3

%

355,196

352,669

1

%

Ore Milled (tonne)

179,083

179,147

0

%

356,772

356,828

0

%

Head Grades

Silver (gram/tonne)

288

306

-6

%

290

318

-9

%

Lead (%)

4.4

4.5

-3

%

4.5

4.5

0

%

Zinc (%)

0.7

0.8

-8

%

0.8

0.9

-16

%

Recovery Rates

Silver (%)

94.4

96.2

-2

%

94.6

96.0

-1

%

Lead (%)

96.1

95.7

0

%

96.1

95.7

0

%

Zinc (%)

57.9

58.6

-1

%

60.9

58.5

4

%

Cost Data

+

Mining cost per tonne of ore mined ($)

92.30

85.63

8

%

90.16

88.55

2

%

Cash mining cost per tonne of ore mined ($)

67.77

59.26

14

%

65.98

61.16

8

%

Depreciation and amortization charges per tonne of ore mined ($)

24.53

26.37

-7

%

24.18

27.39

-12

%

+

Unit shipping costs ($)

3.79

3.82

-1

%

3.72

3.93

-5

%

+

Milling costs per tonne of ore milled ($)

10.09

11.53

-12

%

10.07

11.23

-10

%

Cash milling cost per tonne of ore milled ($)

8.50

9.81

-13

%

8.48

9.48

-11

%

Depreciation and amortization charges per tonne of ore milled ($)

1.59

1.72

-8

%

1.59

1.75

-9

%

+

Cash production cost per tonne of ore processed ($)

80.06

72.89

10

%

78.18

74.57

5

%

+

All-in sustaining cost per tonne of ore processed ($)

132.36

117.37

13

%

124.74

123.24

1

%

+

Cash cost per ounce of Silver, net of by-product credits ($)

(0.14

)

(1.95

)

93

%

(0.52

)

(1.70

)

69

%

+

All-in sustaining cost per ounce of Silver, net of by-product credits ($)

6.63

3.40

95

%

5.34

4.10

30

%

Concentrate inventory

Lead concentrate (tonne)

1,206

3,580

-66

%

1,206

3,580

-66

%

Zinc concentrate (tonne)

378

550

-31

%

378

550

-31

%

Sales Data

Metal Sales

Silver (in thousands of ounces)

1,556

1,711

-9

%

3,228

3,373

-4

%

Gold (in thousands of ounces)

1.0

1.1

-9

%

2.1

2.1

0

%

Lead (in thousands of pounds)

15,585

16,389

-5

%

33,364

31,225

7

%

Zinc (in thousands of pounds)

1,384

1,428

-3

%

3,421

3,518

-3

%

Revenue

Silver (in thousands of $)

30,506

25,481

20

%

54,613

47,211

16

%

Gold (in thousands of $)

1,492

1,314

14

%

2,969

2,396

24

%

Lead (in thousands of $)

12,148

13,945

-13

%

24,494

26,638

-8

%

Zinc (in thousands of $)

1,071

960

12

%

2,442

2,624

-7

%

Other (in thousands of $)

454

598

-24

%

839

1,203

-30

%

45,671

42,298

8

%

85,357

80,072

7

%

Average Selling Price, Net of Value Added Tax and Smelter Charges

Silver ($ per ounce)

19.61

14.89

32

%

16.92

14.00

21

%

Gold ($ per ounce)

1,492

1,195

25

%

1,414

1,141

24

%

Lead ($ per pound)

0.78

0.85

-8

%

0.73

0.85

-14

%

Zinc ($ per pound)

0.77

0.67

15

%

0.71

0.75

-5

%


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

GC Mine

Three months ended September 30,

Six months ended September 30,

2020

2019

Changes

2020

2019

Changes

Production Data

Mine Data

Ore Mined (tonne)

86,833

83,172

4

%

167,212

163,980

2

%

Ore Milled (tonne)

84,850

86,134

-1

%

169,487

167,996

1

%

Head Grades

Silver (gram/tonne)

81

100

-19

%

87

97

-10

%

Lead (%)

1.8

2.0

-10

%

1.8

1.9

-5

%

Zinc (%)

3.4

3.2

6

%

3.4

3.3

3

%

Recovery Rates

Silver (%) *

82.5

75.9

9

%

82.7

76.4

8

%

Lead (%)

89.2

88.3

1

%

89.5

88.5

1

%

Zinc (%)

87.3

86.1

1

%

87.3

85.9

2

%

Cost Data

+

Mining cost per tonne of ore mined ($)

44.93

45.81

-2

%

44.24

46.22

-4

%

Cash mining cost per tonne of ore mined ($)

36.43

37.80

-4

%

35.80

38.31

-7

%

Depreciation and amortization charges per tonne of ore mined ($)

8.50

8.01

6

%

8.44

7.91

7

%

+

Milling cost per tonne of ore milled ($)

13.27

14.38

-8

%

13.21

15.12

-13

%

Cash milling cost per tonne of ore milled ($)

12.04

12.72

-5

%

12.00

13.27

-10

%

Depreciation and amortization charges per tonne of ore milled ($)

1.23

1.66

-26

%

1.21

1.85

-35

%

+

Cash production cost per tonne of ore processed ($)

48.47

50.52

-4

%

47.80

51.58

-7

%

+

All-in sustaining cost per tonne of ore processed ($)

69.07

62.94

10

%

67.49

65.09

4

%

+

Cash cost per ounce of Silver, net of by-product credits ($)

(12.70

)

(9.98

)

-27

%

(9.52

)

(9.16

)

-4

%

+

All-in sustaining cost per ounce of Silver, net of by-product credits ($)

(1.78

)

(2.89

)

38

%

0.40

(1.90

)

121

%

Concentrate inventory

Lead concentrate (tonne)

121

596

-80

%

121

596

-80

%

Zinc concentrate (tonne)

257

36

615

%

257

36

615

%

Sales Data

Metal Sales

Silver (in thousands of ounces)

184

183

1

%

384

376

2

%

Lead (in thousands of pounds)

2,966

2,680

11

%

6,072

5,686

7

%

Zinc (in thousands of pounds)

6,027

5,227

15

%

10,948

10,471

5

%

Revenue

Silver (in thousands of $)

2,541

1,958

30

%

4,620

3,786

22

%

Lead (in thousands of $)

2,239

2,257

-1

%

4,267

4,742

-10

%

Zinc (in thousands of $)

4,165

3,085

35

%

6,949

6,573

6

%

Other (in thousands of $)

231

288

-20

%

360

289

25

%

9,176

7,588

21

%

16,196

15,390

5

%

Average Selling Price, Net of Value Added Tax and Smelter Charges

Silver ($ per ounce) **

13.81

10.70

29

%

12.03

10.07

19

%

Lead ($ per pound)

0.75

0.84

-11

%

0.70

0.83

-16

%

Zinc ($ per pound)

0.69

0.59

17

%

0.63

0.63

0

%

* 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.