Trading Symbol: TSX: SVM
VANCOUVER, Aug. 11, 2016 /CNW/ - Silvercorp Metals Inc.
("Silvercorp" or the "Company") (TSX: SVM) reported its financial
and operating results for the first quarter ended June 30, 2016 ("Q1 Fiscal 2017"). All
amounts are expressed in US Dollars.
FIRST QUARTER HIGHLIGHTS
- Net income attributable to equity shareholders of $4.7 million, or $0.03 per share compared with net earnings
attributable to equity shareholders of $2.3
million or $0.01 per share in
the prior year period;
- Silver, lead and zinc sales up 20%, 12% and 15%, respectively,
from the prior year period to 1.6 million ounces silver, 16.7
million pounds lead and 5.2 million pounds zinc;
- Sales of $35.3 million, up 9%
from the prior year period despite a 3%, 13%, and 17% decline in
the average selling price of silver, lead and zinc from prior year
period;
- A 23%, 21% and 22% increase in the head grades of silver, lead
and zinc;
- Gross margin improved to 45% from 36% in the prior year
period;
- Cash flows from operations of $20.2
million, up 52% from the prior year period;
- Cash production cost per tonne1 of $61.65 compared with $71.01 in the prior year period;
- Cash cost per ounce of silver1, net of by-product
credits, of $0.08, compared to
$1.39 in the prior year period;
- All-in sustaining cost per ounce of silver1, net of
by-product credits, of $7.06,
compared to $10.94 in the prior year
quarter; and
- Ended the period with $73.4
million in cash and short term investments, an increase of
$11.4 million compared to
$62.0 million as at March 31, 2016.
_________________________
1 Non-IFRS measure, see section 9 of the corresponding
management's discussion and analysis for
reconciliation
|
FINANCIALS
Net income attributable to the shareholders of the Company in Q1
Fiscal 2017 was $4.7 million, or
$0.03 per share compared to
$2.3 million, or $0.01 per share in Q1 Fiscal 2016.
In the current quarter, the Company's financial results were
mainly impacted by the following: (i) improved head grades yielded
higher silver, lead, zinc sales of 20%, 12% and 15%, respectively;
(ii) a 4% decrease in total production costs per tonne of ore
processed; offset by (iii) the decline of metals prices, as the
realized selling price for silver, lead, and zinc decreased by 3%,
13% and 17%, respectively, compared to the same prior year
quarter.
Sales in Q1 Fiscal 2017 were $35.3
million compared to $32.2
million in Q1 Fiscal 2016. Silver and gold sales
represented $20.8 million and
$0.9 million, respectively, while
base metals represented $13.6 million
of total sales in this quarter compared to silver, gold and base
metals of $17.9 million, $0.7 million, and $13.6
million, respectively, in Q1 Fiscal 2016.
Cost of sales in Q1 Fiscal 2017 was $19.5
million compared to $20.8
million in Q1 Fiscal 2016. The cost of sales included
$14.6 million (Q1 Fiscal 2016 -
$16.2 million) cash costs and
$5.0 million (Q1 Fiscal 2016 -
$4.6 million) depreciation,
amortization and depletion charges. The decrease of cash cost of
sales was mainly due to a 13% decrease in cash production costs per
tonne of ore processed. The total per tonne ore production
cost in Fiscal Q1 2017 was $85.58, a
decrease of 4%, from $88.82 in Q1
Fiscal 2016.
Gross profit margin in Q1 Fiscal 2017 was 45% compared to 36% in
Q1 Fiscal 2016. The improvement of gross profit margin was
mainly due to the decrease of per tonne ore production costs. Ying
Mining District's gross profit margin was 49% compared to a 41%
gross profit margin in the same prior year quarter, while GC Mine's
profit margin was 17% compared to a 9% gross profit margin in Q1
Fiscal 2016.
Cash flows provided by operating activities were $20.2 million or $0.12 per share in Q1 Fiscal 2017 compared to
$13.3 million or $0.08 per share in Q1 Fiscal 2016. Before
changes in non-cash operating working capital, cash flows provided
by operating activities were $15.5
million, an increase of $6.5
million, compared to $9.0
million in Q1 Fiscal 2016 as a result of the improvement of
operating earnings.
OPERATIONS AND DEVELOPMENT
In Q1 Fiscal 2017, the Company sold 1.6 million ounces of
silver, 16.7 million pounds of lead, and 5.2 million pounds of
zinc, compared to 1.4 million ounces of silver, 14.9 million pounds
of lead, and 4.6 million pounds of zinc, respectively, in Q1 Fiscal
2016. The increase of metals sold was mainly due to, on a
consolidated average basis, i) a 23%, 21%, and 22% increase in the
head grades of silver, lead and zinc as mining dilution reduced;
ii) a 4%, 2% and 8% increase in silver, lead, and zinc recovery
rates; and iii) a 2% increase of ore production output.
The significant improvement in the head grades of silver, lead
and zinc since the December quarter of 2015 can be attributed in
part to an internal "Enterprise Blog" system in the management of
Mine Production and Safety Information which the Company
implemented from August 2015. The "Enterprise Blog" is an
internet social media system that makes the distribution and flow
of the work related knowledge and information easy and transparent
for parties at different locations. In the system, for
example, each of the mining stopes, development faces, or equipment
is assigned a "blog" name. Daily results of onsite
inspection for these stopes or faces by responsible engineers are
required to be "published" on their "blogs". The results are
listed in a structured data formatted in a "check list table",
containing information and supporting photos as required by the
Company. Related parties at different levels of the
management team can access directly to the daily "blog" for each
work place, for the first hand information. Meanwhile the
"Enterprise Blog" system will also record if a management person
has accessed the "blog" to read or comment on the daily results
under his responsibility.
With the Enterprise Blog, information collection, distribution,
retrieval, and monitoring has become transparent and
immediate. The information and knowledge collected by the
frontline technicians or engineers freely flows throughout layers
of the management structure. The responsible management
person has the pressure, incentive, and tools to make prompt and
more accurate decisions that can be instantly delivered to
responsible parties. The benefits of the system are that team
member collaboration becomes easy, KPI assessments are fair and
timely, and each person is accountable for his work.
1. Ying Mining District, Henan
Province, China
Operational results -
Ying Mining
District
|
|
|
|
|
|
|
Q1
2017
|
Q4
2016
|
Q3
2016
|
Q2
2016
|
Q1
2016
|
|
June 30,
2016
|
March 31,
2016
|
December 31,
2015
|
September 30,
2015
|
June 30,
2015
|
Ore Mined
(tonne)
|
173,508
|
99,415
|
152,230
|
171,014
|
167,107
|
Ore Milled
(tonne)
|
167,747
|
99,203
|
151,035
|
176,936
|
160,277
|
Head
Grades
|
|
|
|
|
|
|
Silver
(gram/tonne)
|
308
|
310
|
287
|
246
|
250
|
|
Lead
(%)
|
4.4
|
4.0
|
4.1
|
3.8
|
3.6
|
|
Zinc
(%)
|
1.1
|
0.9
|
0.8
|
0.7
|
0.8
|
Recoveries
|
|
|
|
|
|
|
Silver
(%)
|
95.7
|
95.0
|
95.4
|
94.8
|
94.7
|
|
Lead
(%)
|
96.4
|
96.3
|
96.6
|
95.0
|
94.9
|
|
Zinc
(%)
|
48.4
|
57.6
|
50.2
|
55.1
|
53.5
|
Metal
Sales
|
|
|
|
|
|
|
Silver (in thousands of
ounce)
|
1,490
|
857
|
1,216
|
1,132
|
1,190
|
|
Gold (in thousands of
ounce)
|
0.9
|
0.3
|
0.5
|
0.7
|
0.9
|
|
Lead (in thousands of
pound)
|
14,861
|
7,379
|
12,107
|
11,529
|
12,454
|
|
Zinc (in thousands of
pound)
|
1,820
|
999
|
1,168
|
1,459
|
1,529
|
Cash mining cost ($
per
tonne)
|
52.33
|
54.63
|
55.63
|
62.15
|
56.65
|
Total mining cost ($
per
tonne)
|
78.64
|
83.24
|
78.91
|
86.29
|
75.00
|
Cash milling cost ($
per
tonne)
|
10.07
|
13.70
|
11.67
|
11.55
|
12.98
|
Total milling cost ($
per
tonne)
|
12.25
|
17.38
|
14.15
|
13.70
|
15.40
|
Cash production cost
($ per
tonne)
|
66.27
|
71.90
|
71.29
|
77.95
|
73.68
|
|
|
|
|
|
|
Cash Cost per Ounce
of Silver
($)
|
0.12
|
2.83
|
0.25
|
1.88
|
1.03
|
All-in sustaining
cost per ounce of silver
($)
|
5.80
|
8.92
|
6.62
|
9.88
|
9.18
|
In Q1 Fiscal 2017, the total ore mined at the Ying Mining
District ("Ying") was 173,508 tonnes, an increase of 4% compared to
total ore production of 167,107 tonnes in Q1 Fiscal 2016.
Silver, lead and zinc head grades improved by 23%, 23%, and 33%,
respectively, to 308 grams per tonne ("g/t") for silver, 4.4% for
lead, and 1.1% for zinc from 250 g/t for silver, 3.6% for lead, and
0.8% for zinc, respectively, in Q1 Fiscal 2016, benefiting from
ongoing dilution and operation improvements.
In Q1 Fiscal 2017, Ying sold 1.5 million ounces of silver, 900
ounces of gold, 14.9 million pounds of lead, and 1.8 million pounds
of zinc, compared to 1.2 million ounces of silver, 900 ounces of
gold, 12.5 million pounds of lead, and 1.5 million pounds of zinc
in Q1 Fiscal 2016. The increase in metals sold is mainly due
to the improved head grades achieved and higher ore production in
the quarter. As at June 30, 2016,
Ying held 3,669 tonnes of silver-lead concentrate inventories, an
increase of 464 tonnes, compared to the 3,205 tonnes of silver-lead
concentrate inventories held as at March 31,
2016. The estimated metals contained in ending silver-lead
concentrate were approximately 0.4 million ounces of silver and 3.8
million pounds of lead.
Total and cash mining costs per tonne were $78.64 and $52.33,
respectively, compared to $75.00 and
$56.65, respectively, in Q1 Fiscal
2016. The decrease in cash mining costs was mainly due to i) a 4%
saving on labour costs; ii) a 7% decrease in mining preparation
tunnelling and drilling expenditures; and iii) an increase in ore
mined resulting in lower per tonne costs.
In Q1 Fiscal 2017, total ore milled at Ying was 167,747 tonnes,
an increase of 5% compared to 160,277 tonnes in Q1 Fiscal
2016. Cash milling costs were $10.07 compared to $12.98 in Q1 Fiscal 2016, and the decrease was
mainly due to i) a 6% saving on labor costs; ii) a 6% reduction on
utility costs; and iii) a 37% decrease in raw material and
maintenance costs.
Cash production cost per tonne of ore processed at Ying was
$66.27, a decrease of 10% compared to
$73.68 in Q1 Fiscal 2016 as a result
of the decrease in both per tonne cash mining and milling cost.
Cash cost per ounce of silver, net of by-product credits, at
Ying, was $0.12 compared to
$1.03 in Q1 Fiscal 2016. The decrease
was mainly due to 10% increase in by-production credits and a 25%
increase in silver sold.
All in sustaining costs, net of by-product credits, at Ying in
Q1 2017 was $5.80 per ounce of silver
compared to $9.18 in Q1 Fiscal 2016,
and the decrease was mainly due to a lower cash production cost per
ounce of silver, net of by-product credits as discussed above and
approximately a $1.1 million decrease
in sustaining capital expenditures.
In Q1 Fiscal 2017, approximately 16,498 meters ("m") of
underground diamond drilling (Q1 Fiscal 2016 – 16,366 m) and 4,836
m of preparation tunnelling (Q1 Fiscal 2016 – 5,996 m) were
completed and expensed as mining preparation costs at Ying. In
addition, approximately 16,685 m of horizontal tunnel, raise, and
declines (Q1 Fiscal 2016 – 17,455 m) were completed and
capitalized.
Total capitalized exploration and development expenditures in Q1
Fiscal 2017 for Ying were $4.9
million compared to $6.1
million in Q1 Fiscal 2016. The Company also paid
$1.3 million to renew the mining
permit for the TLP and LM mine and incurred approximately
$0.5 million in capital expenditures
to construct a transportation tunnel and road in the current
quarter. Total expenditures incurred to date to construct the
transportation tunnel and road are approximately $6.6 million and the tunnel and road have been
substantially completed.
2. GC Mine, Guangdong
Province, China
Operational results
- GC
Mine
|
Q1
2017
|
Q4
2016
|
Q3
2016
|
Q2
2016
|
Q1
2016
|
|
30-June-16
|
31-Mar-16
|
31-Dec-15
|
30-Sep-15
|
30-Jun-15
|
Ore Mined
(tonne)
|
64,349
|
50,014
|
71,288
|
69,546
|
66,727
|
Ore Milled
(tonne)
|
63,587
|
50,124
|
71,593
|
68,465
|
66,679
|
Head
Grades
|
|
|
|
|
|
|
Silver
(gram/tonne)
|
99
|
92
|
97
|
94
|
93
|
|
Lead
(%)
|
1.5
|
2.0
|
1.9
|
1.6
|
1.7
|
|
Zinc
(%)
|
2.9
|
2.7
|
2.6
|
2.4
|
2.5
|
Recovery
Rates
|
|
|
|
|
|
|
Silver
(%)
|
76.8
|
79.1
|
80.2
|
77.0
|
79.3
|
|
Lead
(%)
|
86.9
|
84.9
|
88.3
|
89.5
|
89.7
|
|
Zinc
(%)
|
85.8
|
82.6
|
81.2
|
82.7
|
85.1
|
Metal
Sales
|
|
|
|
|
|
|
Silver (in thousands of
ounce)
|
149
|
118
|
210
|
128
|
181
|
|
Lead (in thousands of
pound)
|
1,860
|
1,970
|
3,021
|
1,632
|
2,420
|
|
Zinc (in thousands of
pound)
|
3,407
|
2,576
|
3,525
|
3,172
|
3,029
|
Cash mining cost ($ per
tonne)
|
33.50
|
26.24
|
38.22
|
36.49
|
48.74
|
Total mining cost ($ per
tonne)
|
41.91
|
34.76
|
46.52
|
44.68
|
56.83
|
Cash milling cost ($ per
tonne)
|
15.60
|
16.99
|
15.16
|
15.81
|
15.52
|
Total milling cost ($ per
tonne)
|
18.81
|
20.67
|
17.30
|
18.05
|
17.83
|
Cash production cost ($ per
tonne)
|
49.10
|
43.23
|
53.38
|
52.30
|
64.26
|
|
|
|
|
|
|
Cash Cost per Ounce of
Silver
($)
|
(0.28)
|
(2.24)
|
4.62
|
(1.69)
|
3.80
|
All-in sustaining cost per
ounce of silver
($)
|
4.76
|
1.19
|
9.80
|
13.73
|
9.13
|
In Q1 Fiscal 2017, the Company mined 64,349 tonnes of ore at the
GC Mine compared to 66,727 tonnes in Q1 Fiscal 2016. Head grades
were 99 g/t for silver, 1.5% for lead and 2.9% for zinc, compared
to 93 g/t for silver, 1.7% for lead and 2.5% for zinc in Q1 Fiscal
2016. The total mining cost and cash mining cost were $41.91 and $33.50,
respectively, compared to $56.83 and
$48.74 in Q1 Fiscal 2016. The
decrease of cash mining costs was mainly because approximately 33%
of ore was by-product ore from exploration tunnelling or extracted
from previously mined stopes for which direct mining costs were
paid in prior periods and the only cost involved was to ship the
ore to the mill.
Total ore milled at the GC Mine in Q1 Fiscal 2017 was 63,587
tonnes compared to 66,679 tonnes in Q1 Fiscal 2016. The cash
milling cost per tonne was $15.60,
which is comparable to $15.52 in Q1
Fiscal 2016.
In Q1 Fiscal 2017, the GC Mine sold 0.1 million ounces of
silver, 1.9 million pounds of lead, and 3.4 million pounds of zinc,
compared to 0.2 million ounces of silver, 2.4 million pounds of
lead, and 3.0 million pounds of zinc. Less silver and metal sold
was mainly due to less ore milled and lower silver and lead
recovery rates in the current quarter.
In Q1 Fiscal 2017, approximately 3,309 m of underground diamond
drilling (Q1 Fiscal 2016 – 7,416 m) and 3,486 m of preparation
tunnelling (Q1 Fiscal 2016 – 4,645 m) were completed and expensed
as mining preparation costs at the GC Mine. In addition,
approximately 582 m of horizontal tunnel, raise, and declines (Q1
Fiscal 2016 – 155 m) were completed and capitalized.
Total capitalized exploration and development expenditures in Q1
Fiscal 2017 for the GC Mine were $0.2
million compared to $0.2
million in Q1 Fiscal 2016.
Alex Zhang, P.Geo., Vice
President, Exploration, is the Qualified Person for Silvercorp
under 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, Financial
Statements and Notes to Financial Statements for the corresponding
period, which have been posted on SEDAR at www.sedar.com and
are also available on the Company's website
at www.silvercorp.ca. All figures are in
United States dollars unless
otherwise stated.
About Silvercorp
Silvercorp is a low-cost silver-producing Canadian mining
company with multiple mines in China. The Company's vision is to deliver
shareholder value by focusing on the acquisition of under developed
projects with resource potential and the ability to grow
organically. For more information, please visit our website at
www.silvercorp.ca.
CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
Certain of the statements and information in this press 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. 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
or information. Forward-looking statements or information
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; 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 or information 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 or information,
including, without limitation, risks relating to: 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 as per the
requirements of the Sarbanes-Oxley Act; 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 or information.
Forward-looking statements or information 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 or
information due to a variety of risks, uncertainties and other
factors, including, without limitation, those referred to in the
Company's Annual Information Form for the year ended March 31, 2016 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 or information.
The Company's forward-looking statements and information are
based on the assumptions, beliefs, expectations and opinions of
management as of the date of this press release, and other than as
required by applicable securities laws, the Company does not assume
any obligation to update forward-looking statements and information
if circumstances or management's assumptions, beliefs, expectations
or opinions should change, or changes in any other events affecting
such statements or information. For the reasons set forth above,
investors should not place undue reliance on forward-looking
statements and information.
SILVERCORP METALS
INC.
|
Condensed Consolidated
Interim Statements of Financial
Position
|
(Unaudited - Expressed
in thousands of U.S.
dollars)
|
|
|
|
|
|
As at June
30,
|
|
As at March
31,
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
49,602
|
|
$
|
41,963
|
|
Short-term
investments
|
23,793
|
|
19,999
|
|
Trade and other
receivables
|
2,091
|
|
2,041
|
|
Inventories
|
9,390
|
|
8,857
|
|
Due from related
parties
|
5
|
|
103
|
|
Income tax
receivable
|
-
|
|
394
|
|
Prepaids and
deposits
|
4,509
|
|
3,960
|
|
89,390
|
|
77,317
|
|
|
|
|
Non-current
Assets
|
|
|
|
|
Long-term prepaids and
deposits
|
1,594
|
|
1,856
|
|
Reclamation
deposits
|
2,612
|
|
2,301
|
|
Investment in an
associate
|
3,117
|
|
3,133
|
|
Other
investments
|
466
|
|
287
|
|
Plant and
equipment
|
68,666
|
|
71,045
|
|
Mineral rights and
properties
|
211,384
|
|
216,080
|
TOTAL
ASSETS
|
$
|
377,229
|
|
$
|
372,019
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts payable and accrued
liabilities
|
$
|
30,539
|
|
$
|
27,457
|
|
Bank
loan
|
4,518
|
|
4,657
|
|
Mine right fee
payable
|
3,895
|
|
3,970
|
|
Deposits
received
|
7,539
|
|
5,849
|
|
Income tax
payable
|
406
|
|
-
|
|
Due to related
parties
|
-
|
|
179
|
|
46,897
|
|
42,112
|
|
|
|
|
Non-current
Liabilities
|
|
|
|
|
Mine right fee
payable
|
5,687
|
|
5,796
|
|
Deferred income tax
liabilities
|
24,588
|
|
23,224
|
|
Environmental
rehabilitation
|
14,005
|
|
14,328
|
Total
Liabilities
|
91,177
|
|
85,460
|
|
|
|
|
Equity
|
|
|
|
|
Share
capital
|
231,220
|
|
230,933
|
|
Share option
reserve
|
12,799
|
|
12,628
|
|
Reserves
|
25,409
|
|
25,409
|
|
Accumulated other comprehensive
loss
|
(42,117)
|
|
(35,994)
|
|
Retained
earnings
|
5,236
|
|
562
|
Total equity attributable to the equity holders of
the
Company
|
232,547
|
|
233,538
|
|
|
|
|
Non-controlling
interests
|
53,505
|
|
53,021
|
Total
Equity
|
286,052
|
|
286,559
|
|
|
|
|
TOTAL LIABILITIES AND
EQUITY
|
$
|
377,229
|
|
$
|
372,019
|
SILVERCORP METALS
INC.
|
Condensed Consolidated
Interim Statements of
Income
|
(Unaudited - Expressed
in thousands of U.S. dollars, except numbers for share and per
share
figures)
|
|
|
|
Three Months Ended June
30,
|
|
2016
|
2015
|
|
|
|
Sales
|
$
|
35,271
|
$
|
32,220
|
Cost of
sales
|
19,527
|
20,764
|
Gross
profit
|
15,744
|
11,456
|
|
|
|
General and
administrative
|
4,385
|
5,344
|
Government fees and other
taxes
|
1,695
|
1,349
|
Foreign exchange
loss
|
123
|
587
|
Loss on disposal of plant and
equipment
|
264
|
7
|
Share of (gain) loss in
associate
|
(17)
|
78
|
Impairment of plant and equipment and mineral rights
and
properties
|
181
|
-
|
Other (income)
expense
|
(40)
|
10
|
Income from
operations
|
9,153
|
4,081
|
|
|
|
Finance
income
|
431
|
277
|
Finance
costs
|
(264)
|
(332)
|
Income before income
taxes
|
9,320
|
4,026
|
|
|
|
Income tax
expense
|
2,800
|
255
|
Net
income
|
$
|
6,520
|
$
|
3,771
|
|
|
|
Attributable
to:
|
|
|
|
Equity holders of the
Company
|
$
|
4,674
|
$
|
2,296
|
|
Non-controlling
interests
|
1,846
|
1,475
|
|
$
|
6,520
|
$
|
3,771
|
|
|
|
Earnings per share attributable to the equity
holders of the
Company
|
|
|
Basic earnings per
share
|
$
|
0.03
|
$
|
0.01
|
Diluted earnings per
share
|
$
|
0.03
|
$
|
0.01
|
Weighted Average Number of Shares Outstanding -
Basic
|
166,939,465
|
170,883,808
|
Weighted Average Number of Shares Outstanding -
Diluted
|
169,819,527
|
170,883,808
|
SILVERCORP METALS
INC.
|
|
|
|
Condensed Consolidated
Interim Statements of Cash
Flow
|
|
|
|
(Unaudited - Expressed
in thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June
30,
|
|
|
2016
|
2015
|
Cash provided
by
|
|
|
|
Operating
activities
|
|
|
|
|
Net
income
|
|
$
|
6,520
|
$
|
3,771
|
|
Add (deduct) items not
affecting
cash:
|
|
|
|
|
|
Unwinding of discount of
environmental
rehabilitation
|
|
105
|
124
|
|
|
Depreciation, amortization
and
depletion
|
|
5,320
|
4,977
|
|
|
Share of (gain) loss in
associate
|
|
(17)
|
78
|
|
|
Impairment of plant and
equipment and mineral rights and
properties
|
|
181
|
-
|
|
|
Income tax
expense
|
|
2,800
|
255
|
|
|
Finance
income
|
|
(431)
|
(277)
|
|
|
Loss on disposal of plant
and
equipment
|
|
264
|
7
|
|
|
Share-based
compensation
|
|
243
|
165
|
|
Income taxes recovered
(paid)
|
|
91
|
(359)
|
|
Interest
received
|
|
431
|
277
|
|
Interest
paid
|
|
(51)
|
-
|
|
Changes in non-cash
operating working
capital
|
|
4,726
|
4,302
|
Net cash provided by
operating
activities
|
|
20,182
|
13,320
|
|
|
|
|
Investing
activities
|
|
|
|
|
Mineral rights and
properties
|
|
|
|
|
|
Capital
expenditures
|
|
(5,020)
|
(7,366)
|
|
Plant and
equipment
|
|
|
|
|
|
Additions
|
|
(2,384)
|
(718)
|
|
|
Proceeds on
disposals
|
|
17
|
5
|
|
Reclamation deposit
paid
|
|
(385)
|
(9)
|
|
Net (purchases) redemptions
of short-term
investments
|
|
(3,981)
|
49
|
Net cash used in
investing
activities
|
|
(11,753)
|
(8,039)
|
|
|
|
|
Financing
activities
|
|
|
|
|
Cash dividends
distributed
|
|
-
|
(685)
|
|
Proceeds from issuance of
common
shares
|
|
215
|
-
|
Net cash provided by
(used in) financing
activities
|
|
215
|
(685)
|
Effect of exchange rate
changes on cash and cash
equivalents
|
|
(1,005)
|
658
|
|
|
|
|
Increase in cash and
cash
equivalents
|
|
7,639
|
5,254
|
Cash and cash
equivalents, beginning of the
period
|
|
41,963
|
60,179
|
Cash and cash
equivalents, end of the
period
|
|
$
|
49,602
|
$
|
65,433
|
SILVERCORP METALS
INC.
|
Mining
Data
|
(Expressed in thousands of U.S. dollars, except
for mining data
figures)
|
|
|
|
|
|
|
|
Three months ended
June 30,
2016
|
|
|
|
Ying Mining
District1
|
GC2
|
Consolidated
|
|
|
|
|
|
|
Production
Data
|
|
|
|
|
Mine
Data
|
|
|
|
|
|
Ore Mined
(tonne)
|
173,508
|
64,349
|
237,857
|
|
|
Ore Milled
(tonne)
|
167,747
|
63,587
|
231,334
|
|
|
|
|
|
|
|
+
|
Mining cost per tonne of
ore mined
($)
|
78.64
|
41.91
|
68.70
|
|
|
|
Cash mining cost per
tonne of ore mined
($)
|
52.33
|
33.50
|
47.24
|
|
|
|
Non cash mining cost per
tonne of ore mined
($)
|
26.30
|
8.41
|
21.46
|
|
|
|
|
|
|
|
+
|
Unit shipping
costs($)
|
3.87
|
-
|
2.82
|
|
|
|
|
|
|
|
+
|
Milling cost per tonne
of ore milled
($)
|
12.25
|
18.81
|
14.05
|
|
|
|
Cash milling cost per
tonne of ore milled
($)
|
10.07
|
15.60
|
11.59
|
|
|
|
Non cash milling cost
per tonne of ore milled
($)
|
2.18
|
3.21
|
2.46
|
|
|
|
|
|
|
|
+
|
Average Production
Cost
|
|
|
|
|
|
|
Silver ($ per
ounce)
|
6.66
|
8.19
|
7.04
|
|
|
|
Gold ($ per
ounce)
|
496
|
-
|
536
|
|
|
|
Lead ($ per
pound)
|
0.32
|
0.50
|
0.35
|
|
|
|
Zinc ($ per
pound)
|
0.30
|
0.46
|
0.31
|
|
|
|
Other ($ per
pound)
|
-
|
0.01
|
0.01
|
|
|
|
|
|
|
|
+
|
Total production cost
per ounce of Silver
($)
|
2.96
|
4.60
|
3.11
|
|
+
|
Total cash cost per
ounce of Silver
($)
|
0.12
|
(0.28)
|
0.08
|
|
|
|
|
|
|
|
+
|
All-in sustaining cost
per ounce of Silver
($)
|
5.80
|
4.76
|
7.06
|
|
+
|
All-in cost per ounce of
Silver
($)
|
7.34
|
5.10
|
8.48
|
|
|
|
|
|
|
|
|
Recovery
Rates
|
|
|
|
|
|
|
Silver
(%)
|
95.7
|
76.8
|
93.6
|
|
|
|
Lead
(%)
|
96.4
|
86.9
|
95.3
|
|
|
|
Zinc
(%)
|
48.4
|
85.8
|
67.5
|
|
|
|
|
|
|
|
|
Head
Grades
|
|
|
|
|
|
|
Silver
(gram/tonne)
|
308
|
99
|
251
|
|
|
|
Lead
(%)
|
4.4
|
1.5
|
3.6
|
|
|
|
Zinc
(%)
|
1.1
|
2.9
|
1.6
|
|
|
|
|
|
|
Sales
Data
|
|
|
|
|
Metal
Sales
|
|
|
|
|
|
Silver (in thousands of
ounces)
|
1,490
|
149
|
1,639
|
|
|
Gold (in thousands of
ounces)
|
0.9
|
-
|
0.9
|
|
|
Lead (in thousands of
pounds)
|
14,861
|
1,860
|
16,721
|
|
|
Zinc (in thousands of
pounds)
|
1,820
|
3,407
|
5,227
|
|
|
|
|
|
|
|
Metal
Sales
|
|
|
|
|
|
Silver (in thousands of
$)
|
19,366
|
1,471
|
20,837
|
|
|
Gold (in thousands of
$)
|
872
|
-
|
872
|
|
|
Lead (in thousands of
$)
|
9,381
|
1,112
|
10,493
|
|
|
Zinc (in thousands of
$)
|
1,053
|
1,906
|
2,959
|
|
|
Other (in thousands of
$)
|
-
|
110
|
110
|
|
|
|
30,672
|
4,599
|
35,271
|
|
Average Selling
Price, Net of Value Added Tax and Smelter
Charges
|
|
|
|
|
|
Silver ($ per
ounce)
|
13.00
|
9.87
|
12.71
|
|
|
Gold ($ per
ounce)
|
968.89
|
-
|
968.89
|
|
|
Lead ($ per
pound)
|
0.63
|
0.60
|
0.63
|
|
|
Zinc ($ per
pound)
|
0.58
|
0.56
|
0.57
|
|
|
|
|
|
|
1 Ying
Mining District includes mines: SGX, TLP, HPG, LM, BCG and
HZG.
|
2 GC
Silver recovery rate consists of 55.7% from lead concentrates and
21.1% from zinc
concentrates.
|
2 GC
Silver sold in zinc concentrates is subjected to higher smelter and
refining charges which lowers the net silver selling
price.
|
+ Non-IFRS
measures.
|
+ Figures
may not add due to
rounding
|
SILVERCORP METALS
INC.
|
Mining
Data
|
(Expressed in thousands of U.S. dollars, except
for mining data
figures)
|
|
|
|
|
|
Three months ended June
30,
2015
|
|
|
|
Ying Mining
District1
|
GC2
|
Consolidated
|
|
|
|
|
|
|
Production
Data
|
|
|
|
|
Mine
Data
|
|
|
|
|
Ore Mined
(tonne)
|
167,107
|
66,727
|
233,834
|
|
|
Ore Milled
(tonne)
|
160,277
|
66,679
|
226,956
|
|
|
|
|
|
|
|
+
|
Mining cost per tonne of
ore mined
($)
|
75.00
|
56.83
|
69.81
|
|
|
|
Cash mining cost per
tonne of ore mined
($)
|
56.65
|
48.74
|
54.39
|
|
|
|
Non cash mining cost per
tonne of ore mined
($)
|
18.35
|
8.09
|
15.42
|
|
|
|
|
|
|
|
+
|
Unit shipping costs
($)
|
4.05
|
-
|
2.89
|
|
|
|
|
|
|
|
+
|
Milling cost per tonne
of ore milled
($)
|
15.40
|
17.83
|
16.12
|
|
|
|
Cash milling cost per
tonne of ore milled
($)
|
12.98
|
15.52
|
13.73
|
|
|
|
Non cash milling cost
per tonne of ore milled
($)
|
2.42
|
2.31
|
2.39
|
|
|
|
|
|
|
|
+
|
Average Production
Cost
|
|
|
|
|
|
|
Silver($ per
ounce)
|
7.83
|
9.86
|
8.42
|
|
|
|
Gold ($ per
ounce)
|
492
|
751
|
526
|
|
|
|
Lead ($ per
pound)
|
0.42
|
0.65
|
0.45
|
|
|
|
Zinc ($ per
pound)
|
0.40
|
0.63
|
0.43
|
|
|
|
Other ($ per
pound)
|
-
|
0.01
|
0.01
|
|
|
|
|
|
|
|
+
|
Total production cost
per ounce of Silver
($)
|
4.22
|
7.97
|
4.71
|
|
+
|
Total cash cost per
ounce of
Silver($)
|
1.03
|
3.80
|
1.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
+
|
All-in sustaining cost
per ounce of
Silver($)
|
9.18
|
9.13
|
10.94
|
|
+
|
All-in cost per ounce of
Silver($)
|
9.71
|
9.24
|
11.42
|
|
|
|
|
|
|
|
|
Recovery
Rates
|
|
|
|
|
|
|
Silver
(%)
|
94.7
|
79.3
|
90.2
|
|
|
|
Lead
(%)
|
94.9
|
89.7
|
93.4
|
|
|
|
Zinc
(%)
|
53.5
|
85.1
|
62.8
|
|
|
|
|
|
|
|
|
Head
Grades
|
|
|
|
|
|
|
Silver
(gram/tonne)
|
250
|
93
|
204
|
|
|
|
Lead
(%)
|
3.6
|
1.7
|
3.0
|
|
|
|
Zinc
(%)
|
0.8
|
2.5
|
1.3
|
|
|
|
|
|
|
Sales
Data
|
|
|
|
|
Metal
Sales
|
|
|
|
|
|
Silver (in thousands
of
ounces)
|
1,190
|
181
|
1,371
|
|
|
Gold (in thousands of
ounces)
|
0.9
|
-
|
0.9
|
|
|
Lead (in thousands of
pounds)
|
12,454
|
2,420
|
14,874
|
|
|
Zinc (in thousands of
pounds)
|
1,529
|
3,029
|
4,558
|
|
|
|
|
|
|
|
Metal
Sales
|
|
|
|
|
|
Silver (in thousands
of
$)
|
15,962
|
1,956
|
17,918
|
|
|
Gold (in thousands of
$)
|
724
|
10
|
734
|
|
|
Lead (in thousands of
$)
|
8,652
|
1,729
|
10,381
|
|
|
Zinc (in thousands of
$)
|
937
|
2,076
|
3,013
|
|
|
Other (in thousands
of
$)
|
-
|
174
|
174
|
|
|
|
26,275
|
5,945
|
32,220
|
|
Average Selling Price,
Net of Value Added Tax and Smelter
Charges
|
|
|
|
|
|
Silver ($ per
ounce)
|
13.42
|
10.80
|
13.07
|
|
|
Gold ($ per
ounce)
|
843
|
822
|
843
|
|
|
Lead ($ per
pound)
|
0.73
|
0.71
|
0.72
|
|
|
Zinc ($ per
pound)
|
0.68
|
0.69
|
0.68
|
|
|
|
|
|
|
1 Ying Mining
District includes mines: SGX, TLP, HPG,LM, BCG and
HZG.
|
2GC Silver
recovery rate consists of 57.7% from lead concentrates and 21.6%
from zinc
concentrates.
|
2GC Silver sold
in zinc concentrates is subjected higher smelter and refining
charges, resulted in lower net silver selling
price.
|
+Non-IFRS
measures.
|
SOURCE Silvercorp Metals Inc