Trading
Symbol:
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TSX:
SVM
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NYSE MKT:
SVM
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VANCOUVER, May 25, 2017 /CNW/ - Silvercorp Metals
Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE: SVM)
reported its financial and operating results for the fourth quarter
and twelve months ended March 31,
2017. All amounts are expressed in US Dollars.
FISCAL YEAR 2017 HIGHLIGHTS
- Net income attributable to equity shareholders of $43.7 million, or $0.26 per share1, up 589% compared to
net income attributable to equity shareholders of $6.3 million, or $0.04 per share in the prior year. Adjusted net
income2 attributable to equity shareholders of
$38.6 million or $0.23 per share, up 509% from the prior year
after adjustment to one-time net impairment reversal of
$5.1 million;
- Silver, lead, and zinc metals sold up 29%, 34%, and 5%,
respectively from the prior year, to approximately 6.5 million
ounces silver, 70.5 million pounds lead, and 18.3 million pounds
zinc;
- Silver production of approximately 6.4 million ounces,
surpassing the Fiscal 2017 annual production guidance by 25%;
- Sales of $163.5 million, up 51%
compared to $107.9 million in the
prior year;
- A 12%, 16%, and 15% increase in the head grades of silver,
lead, and zinc compared to the prior year;
- Gross margin of 54% compared with 33% in the prior year;
- Cash flow from operations of $80.4
million, an increase of $48.5
million compared to $31.9
million in the prior year;
- Cash production costs per tonne ore2 decreased by
11% to $59.84 from $67.39 in the prior year;
- Cash costs per ounce of silver2, net of by-product
credits, of negative $3.03, compared
to $1.44 in the prior year;
- All-in sustaining costs per ounce of silver2, net of
by-product credits, of $3.82,
compared to $10.20 in the prior year;
and
- Ended the fiscal year with $96.5
million in cash and cash equivalents and short-term
investments, an increase of $34.5
million or 56% compared to $62.0
million as at March 31,
2016.
HIGHLIGHTS FOR THE FOURTH QUARTER FISCAL 2017 ("Q4 FISCAL
2017")
- Net income attributable to equity shareholders was $13.5 million, or $0.08 per share in Q4 Fiscal 2017, compared to
the loss of $1.5 million, or
$0.01 per share in Q4 Fiscal 2016.
Adjusted net income attributable to equity shareholders of
$8.2 million, or $0.05 per share after adjustment to one-time
impairment reversal of $5.3
million;
- Silver and lead metals sold up 34% and 53%, respectively from
the prior year quarter, to approximately 1.3 million ounces silver
and 14.3 million pounds lead;
- Sales of $34.1 million, up 75%
compared to $19.4 million in Q4
Fiscal 2016;
- Gross margin of 60% compared with 32% in the prior year;
- Cash costs per ounce of silver, net of by-product credits, of
negative $3.65, compared to
$2.22 in the prior year;
- All-in sustaining costs per ounce of silver, net of by-product
credits, of $3.26, compared to
$9.91 in the prior year.
_____________________________________
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1
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Earnings per share
refers to basic earnings per share
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2
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Non IFRS measure,
please see reconciliation on section 11 of MD&A for the
corresponding period
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FINANCIALS
1. Fiscal 2017 vs. Fiscal
2016
Net income attributable to the shareholders of the
Company in Fiscal 2017 was $43.7
million, or $0.26 per share,
up 589% compared to $6.3 million, or
$0.04 per share in Fiscal 2016. The
adjusted net income attributable to the shareholders of the Company
was $38.6 million, or $0.23 per share, up 509% compared to $6.3 million, or $0.04 per share in the prior year.
In the current fiscal year, the Company's financial results were
mainly impacted by the following: i) improved head grades yielded
higher silver, lead, and zinc metals sold, up 29%, 34%, and 5%
respectively; ii) a 9% decrease in per tonne ore production costs;
and iii) the increase of metals prices, as the realized selling
price for silver, lead, and zinc increased by 15%, 21%, and 33%
compared to the prior year, respectively.
Sales in Fiscal 2017 were $163.5
million, up 51% compared to $107.9
million in Fiscal 2016. Silver and gold sales
represented $89.6 million and
$3.3 million, respectively, while
base metals represented $70.6 million
of total sales compared to silver, gold and base metals of
$60.6 million, $1.9 million, and $45.4
million, respectively, in Fiscal 2016.
Cost of sales in Fiscal 2017 was $75.3 million compared to $71.9 million in Fiscal 2016. The cost of
sales included $57.6 million (Fiscal
2016 - $54.5 million) cash costs,
$17.7 million (Fiscal 2016 -
$17.3 million) depreciation,
amortization and depletion charges, and a $nil write down of
inventories (Fiscal 2016 - $0.2
million).
Gross profit in Fiscal 2017 was 54% compared to 33% in
Fiscal 2016. The improvement of gross profit margin was mainly due
to: i) a 12%, 16%, and 15% increase in the head grades of silver,
lead, and zinc; ii) a 9% decrease in per tonne ore production
costs; and iii) the increase of metal prices. Ying Mining
District's gross margin was 57% compared to a 38% gross profit
margin in the prior year, while GC Mine's profit margin was 31%
compared to a 10% gross profit margin in the prior year.
Cash flows provided by operating activities in Fiscal
2017 were $80.4 million, an increase
of $48.5 million or 152%, compared to
$31.9 million in the prior
year. Before changes in non-cash operating working capital,
cash flows provided by operating activities in Fiscal 2017 were
$76.0 million, an increase of
$42.8 million or 129%, compared to
$33.1 million in the prior year
mainly due to the improvement of operating earnings.
The Company ended the fiscal year with $96.5 million in cash and short term investments,
an increase of $34.5 million or 56%
compared to $62.0 million as at
March 31, 2016.
Working capital as at March 31,
2017 was $70.7 million, an
increase of $35.5 million or 101%,
compared to $35.2 million working
capital as at March 31, 2016.
2. Q4 Fiscal 2017 vs. Q4 Fiscal
2016
Net income attributable to equity shareholders of the
Company in Q4 Fiscal 2017 was $13.5
million, or $0.08 per share
compared to a loss of $1.5 million,
or $0.01 per share in Q4 Fiscal 2016
while the adjusted net income attributable to the equity
shareholders of the Company in Q4 Fiscal 2017 was $8.2 million, or $0.05 per share.
The Company's financial results in Q4 Fiscal 2017 were mainly
impacted by the following: i) more lead concentrate sold at the
Ying Mining District, resulted in higher quantities of silver and
lead metals being sold, up 34% and 53%, respectively; ii) a 19%
decrease in per tonne ore production costs; iii) due to the annual
Chinese New Year holiday the mine is
only in operation for two months in Q4, resulting in reduced
tonnage of ore mined compared to previous quarters of Fiscal 2017;
and iv) the increase of metals prices, as the realized selling
price for silver, lead, and zinc increased by 22%, 49%, and 107%
compared to the prior year quarter, respectively.
Sales in Q4 Fiscal 2017 were $34.1
million, up 75% compared to $19.4
million in the same quarter last year. Silver and gold sales
represented $18.3 million and
$0.7 million, respectively, while
base metals represented $15.1 million
of total sales compared to silver, gold and base metals of
$11.1 million, $0.3 million, and $8.0
million, respectively, in the prior year quarter.
Cost of sales in Q4 Fiscal 2017 was $13.8 million compared to $13.2 million in Q4 Fiscal 2016. The cost
of sales included $12.0 million (Q4
Fiscal 2016 - $10.2 million) cash
costs, $1.8 million (Q4 Fiscal 2016 -
$2.8 million) depreciation,
amortization and depletion charges, and $nil write down of
inventories (Q4 Fiscal 2016 - $0.2
million).
Gross profit in Q4 Fiscal 2017 improved to 60%, compared
to 32% in Q4 Fiscal 2016.
Cash flows provided by operating activities in Q4 Fiscal
2017 were $4.9 million in Q4 Fiscal
2017 compared to $4.3 million in Q4
Fiscal 2016. Before changes in non-cash operating working capital,
cash flows provided by operating activities in the current quarter
were $9.1 million, an increase of
$7.0 million, compared to
$2.1 million in the prior year
quarter.
OPERATIONS AND DEVELOPMENT
In Fiscal 2017, the Company sold 6.5 million ounces of silver,
3,300 ounces of gold, 70.5 million pounds of lead, and 18.3 million
pounds of zinc, compared to 5.0 million ounces of silver, 2,400
ounces of gold, 52.5 million pounds of lead, and 17.5 million
pounds of zinc, respectively, in Fiscal 2016. The increase of
metals sold was mainly due to: i) a 6% increase in ore milled, and
ii) a 12%, 16% and 15% increase in the head grades of silver, lead
and zinc head grades, resulting largely from the ongoing dilution
control measures and operation management improvements.
1. Ying Mining District, Henan
Province, China
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Operational
results - Ying Mining District
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Q4
2017
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Q3
2017
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Q2
2017
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Q1
2017
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Q4
2016
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Fiscal year ended
March 31,
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March 31,
2017
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December 31,
2016
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September
30, 2016
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June 30,
2016
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March 31,
2016
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|
2017
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2016
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Ore Mined
(tonne)
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112,755
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171,303
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179,194
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173,508
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99,415
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636,760
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589,766
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Ore Milled
(tonne)
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108,051
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182,259
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180,154
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167,747
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99,203
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638,211
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587,450
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Head
Grades
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Silver
(gram/tonne)
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298
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303
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302
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308
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310
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303
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268
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Lead
(%)
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4.8
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4.8
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4.9
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4.4
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4.0
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4.7
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3.9
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Zinc
(%)
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0.8
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0.8
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1.1
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1.1
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0.9
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1.0
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0.8
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Recoveries
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Silver
(%)
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96.6
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95.1
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95.5
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95.7
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95.0
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95.5
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95.0
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Lead
(%)
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95.6
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96.7
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96.3
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96.4
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96.3
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96.5
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95.6
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Zinc
(%)
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46.2
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47.5
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42.9
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48.4
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57.6
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46.0
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54.1
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Metal
Sales
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Silver (in
thousands of ounce)
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1,255
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1,555
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1,630
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1,490
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857
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5,930
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4,395
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Gold (in thousands
of ounce)
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0.7
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0.7
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1.0
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0.9
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0.3
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3.3
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2.3
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Lead (in thousands
of pound)
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13,520
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17,269
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17,768
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14,861
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7,379
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63,418
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43,469
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Zinc (in thousands
of pound)
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1,033
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1,210
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1,785
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1,820
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999
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5,848
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5,155
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Cash mining costs
($ per tonne)
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49.99
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55.21
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49.13
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52.33
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54.63
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51.79
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56.90
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Total mining costs
($ per tonne)
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53.50
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80.53
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76.30
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78.64
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83.24
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74.04
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79.93
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Cash milling costs
($ per tonne)
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10.43
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9.09
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8.85
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10.07
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13.70
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9.50
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12.34
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Total milling
costs ($ per tonne)
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13.60
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11.03
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10.86
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12.25
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17.38
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11.73
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14.91
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Cash production
costs ($ per tonne)
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64.34
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68.22
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61.79
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66.27
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71.90
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65.17
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73.25
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Cash costs per
ounce of silver ($)
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(3.73)
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(4.60)
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(2.68)
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0.12
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2.83
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(2.70)
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1.38
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All-in sustaining
costs per ounce of silver ($)
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0.74
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1.34
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2.33
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5.80
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8.92
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2.61
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8.60
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* Figures may not add
due to rounding
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In Fiscal 2017, total ore mined at the Ying Mining District was
636,760 tonnes, an 8% increase compared to 589,766 tonnes mined in
the prior year. Correspondently, ore milled increased by 9%
to 638,211 tonnes from 587,450 tonnes in the prior year. Silver,
lead and zinc head grades improved by 13%, 20% and 19%,
respectively, to 303 grams per tonne ("g/t") for silver, 4.7% for
lead and 1.0% for zinc from 268 g/t for silver, 3.9% for lead and
0.8% for zinc in the prior year, resulting largely from the ongoing
dilution control and operation management improvements.
Silver, gold, lead, and zinc metals sold in Fiscal 2017 at the
Ying Mining District was up by 35%, 43%, 46% and 13%, respectively,
to approximately 5.9 million ounces silver, 3,300 ounces gold, 63.4
million pounds lead, and 5.8 million pounds zinc from 4.4 million
ounces silver, 2,300 ounces gold, 43.5 million pounds lead, and 5.2
million pounds of zinc.
Total and cash mining costs per tonne at the Ying Mining
District in Fiscal 2017 were $74.04
and $51.79 per tonne, respectively,
compared to $79.93 and $56.90 per tonne in the prior year. The decrease
in cash mining costs was mainly due to: i) a 4% decrease in per
tonne labour costs, and ii) a 28% decrease in per tonne mining
preparation costs.
Total and cash milling costs per tonne at the Ying Mining
District in Fiscal 2017 were $11.73
and $9.50, a decrease of 21% and 23%,
respectively, compared to $14.91 and
$12.34 in Fiscal 2016. The decrease
in cash milling costs was mainly due to i) an 8% decrease in per
tonne labor costs, ii) a 20% reduction in raw material costs, iii)
a 10% decrease in per tonne utility costs, and iv) the exclusion of
mineral resources tax from milling costs. Prior to June 30, 2016, mineral resource tax was levied at
RMB¥13.0 per tonne of ore milled and included as part of milling
costs. Effective July 1, 2016, the
mineral resource tax has been changed to a levy based on a certain
percentage of sales, and therefore such tax is excluded from
milling costs but expensed and included directly as part of cost of
sales.
Correspondingly, cash production costs per tonne of ore
processed in Fiscal 2017 at the Ying Mining District was
$65.17, an 11% decrease compared to
$73.25 in the prior year due to the
decrease in both per tonne cash mining and milling costs.
Cash costs per ounce of silver, net of by-product credits, in
Fiscal 2017 at the Ying Mining District, was negative $2.70 compared to $1.38 in the prior year. The decrease was mainly
due to i) lower per tonne cash production costs as discussed above,
and ii) a 73% increase in by-product credits mainly arising from
46% and 13% increase in lead and zinc metals sold and 19% and 37%
increase in net realized lead and zinc selling prices. Sales from
lead and zinc accounted for 39% of the total sales at the Ying
Mining District in Fiscal 2017, and amounted to $55.8 million, an increase of $23.5 million, compared to $32.3 million in the prior year.
All in sustaining costs per ounce of silver, net of by-product
credits, in Fiscal 2017 at the Ying Mining District was
$2.61 compared to $8.60 in the prior year. The decrease was mainly
due to lower cash costs per ounce of silver as discussed above.
In Fiscal 2017, approximately 93,755 meters ("m") of underground
diamond drilling (Fiscal 2016 – 63,398 m) and 17,787 m of
preparation tunnelling (Fiscal 2016 – 19,113 m) were completed and
expensed as mining preparation costs at the Ying Mining District.
In addition, approximately 60,241 m of horizontal tunnel, raises
and declines (58,268 m) were completed and capitalized. Total
exploration and development expenditures capitalized at the Ying
Mining District in Fiscal 2017 were $18.1
million compared to $18.9
million in Fiscal 2016.
In Q4 Fiscal 2017, the Company mined 112,755 tonnes of ore at
the Ying Mining District, a 13% increase compared to 99,415 tonnes
in Q4 Fiscal 2016. Correspondently, ore milled increased by 9% to
108,051 tonnes from 99,203 tonnes in the prior year quarter. Head
grades were 298 gram per tonne ("g/t") for silver, 4.8% for lead,
and 0.8% for zinc in Q4 Fiscal 2017, compared to 310 g/t for
silver, 4.0% for lead, and 0.9% for zinc in Q4 Fiscal
2016.
Silver, lead, and zinc metals sold in Q4 Fiscal 2017 at the Ying
Mining District was up by 46%, 83%, and 3%, respectively, to
approximately 1.3 million ounces silver, 13.5 million pounds lead,
and 1.0 million pounds zinc from 0.9 million ounces silver, 7.4
million pounds lead, and 1.0 million pounds of zinc.
In Q4 Fiscal 2017, the total and cash mining costs per tonne, at
the Ying Mining District, were $53.50
and $49.99, compared to $83.24 and $54.63
in Q4 Fiscal 2016. The decrease in per tonne cash mining costs was
mainly due to higher output resulting in lower per tonne labor
costs and mine administration costs.
The total milling and cash milling cost per tonne in Q4 Fiscal
2017 at the Ying Mining District was $13.60 and $10.43,
a decrease of 22% and 24%, respectively, compared to $17.38 and $13.70
in the prior year period. The decrease in cash milling costs was
mainly due to i) a 16% decrease in per tonne labor costs, ii) a 25%
reduction in raw material costs, and iii) the exclusion of mineral
resources tax from milling costs as discussed above.
Correspondingly, cash production costs per tonne of ore
processed in Q4 Fiscal 2017 at the Ying Mining District was
$64.34, an 11% decrease compared to
$71.90 in the prior year quarter due
to the decrease in both per tonne cash mining and milling
costs.
Cash costs per ounce of silver, net of by-product credits, at
the Ying Mining District, was negative $3.73 in Q4 Fiscal 2017 compared to $2.83 in Q4 Fiscal 2016. The decrease was mainly
due to: i) lower per tonne cash production costs as discussed
above, and ii) a 90% increase in by-product credits arising from
83% and 3% increase in lead and zinc metals sold and 36% and 115%
increase in net realized lead and zinc selling prices. Sales from
lead and zinc accounted for 43% of the total sales at the Ying
Mining District in the current quarter, and amounted to
$13.8 million, an increase of
$8.2 million, compared to
$5.6 million in the prior year
quarter.
All in sustaining costs per ounce of silver, net of by-product
credits, at the Ying Mining District in Q4 Fiscal 2017 was
$0.74 per ounce of silver compared to
$8.92 in Q4 Fiscal 2016. The decrease
was mainly due to the lower per tonne cash production costs and the
increase in by-product credits as discussed above.
2. GC Mine, Guangdong
Province, China
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Operational
results - GC Mine
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Q4
2017
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Q3
2017
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Q2
2017
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Q1
2017
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Q4
2016
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Fiscal year ended
March 31,
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March 31,
2017
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December 31,
2016
|
September 30,
2016
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June 30,
2016
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March 31,
2016
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2017
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2016
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Ore Mined
(tonne)
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40,224
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81,481
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74,692
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64,349
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50,014
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260,746
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257,575
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Ore Milled
(tonne)
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39,929
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81,080
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76,100
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63,587
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50,124
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260,696
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256,862
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Head
Grades
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Silver
(gram/tonne)
|
91
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89
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96
|
99
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92
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94
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94
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Lead
(%)
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1.3
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1.4
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1.6
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1.5
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2.0
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1.4
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1.8
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Zinc
(%)
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2.6
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2.8
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2.8
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2.9
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2.7
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2.8
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2.5
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Recovery
Rates
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Silver
(%)
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72.8
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75.4
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76.2
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76.8
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79.1
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75.7
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78.9
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Lead
(%)
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82.4
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85.5
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86.6
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86.9
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84.9
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85.7
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88.2
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Zinc
(%)
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74.8
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86.5
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86.4
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85.8
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82.6
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84.7
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82.9
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Metal
Sales
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Silver (in
thousands of ounce)
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53
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179
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183
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149
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118
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|
564
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637
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Lead (in thousands
of pound)
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818
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2,214
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2,163
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1,860
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1,970
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7,055
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9,042
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Zinc (in thousands
of pound)
|
455
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4,478
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4,106
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3,407
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2,576
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|
12,446
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12,302
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Cash mining costs
($ per tonne)
|
37.91
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31.34
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28.61
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33.50
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26.24
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|
32.10
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38.23
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Total mining costs
($ per tonne)
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45.37
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38.90
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36.78
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41.91
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34.76
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|
40.03
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46.49
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Cash milling costs
($ per tonne)
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20.06
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13.09
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12.94
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15.60
|
16.99
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|
14.73
|
15.79
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Total milling
costs ($ per tonne)
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24.99
|
15.50
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15.57
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18.81
|
20.67
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|
17.78
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18.30
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Cash production
costs ($ per tonne)
|
57.97
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44.43
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41.55
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49.10
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43.23
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46.83
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54.02
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Cash costs per
ounce of silver ($)
|
(1.72)
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(13.11)
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(6.39)
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(0.28)
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(2.24)
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(6.47)
|
1.85
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All-in sustaining
costs per ounce of silver ($)
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14.55
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(6.12)
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(1.49)
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4.76
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1.19
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0.20
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8.81
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* Figures may not add
due to rounding
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In Fiscal 2017, total ore mined at the GC Mine was 260,746
tonnes, a 1% increase compared to 257,575 tonnes of mined in Fiscal
2016. Correspondingly, ore milled increased by 1% to 260,696
tonnes from 256,862 tonnes in the prior year. Head grades were 94
g/t for silver, 1.4% for lead, and 2.8% for zinc compared to 94 g/t
for silver, 1.8% for lead, and 2.5% for zinc in the prior
year.
In Fiscal 2017, GC Mine sold 564 thousand ounces of silver, 7.1
million pounds of lead, 12.4 million pounds of zinc compared to 637
thousand ounces of silver, 9.0 million pounds of lead, and 12.3
million pounds of zinc sold in the prior year.
Total and cash mining costs per tonne at the GC Mine in Fiscal
2017 were $40.03 and $32.1 per tonne, compared to $46.49 and $38.23
per tonne in Fiscal 2016. The decrease in cash mining costs was
mainly because approximately 35% of ore was by-product ore from
exploration tunnelling or extracted from previously mined stopes
for which direct mining costs were paid in prior years and the only
cost involved was to ship the ore to the mill.
Total and cash milling costs per tonne at the GC Mine in Fiscal
2017 were $17.78 and $14.73, compared to $18.30 and $15.79,
respectively, in Fiscal 2016. The decrease in milling costs was
mainly due to the exclusion of mineral resources from milling costs
as discussed above.
Correspondingly, cash production costs per tonne of ore
processed in Fiscal 2017 at the GC Mine decreased by 13% to
$46.83 from $54.02 in the prior year due to the decrease in
both per tonne cash mining and milling costs.
Cash costs per ounce of silver, net of by-product credits, at
the GC Mine, was negative $6.47
compared to $1.85 in the prior year.
The decrease was mainly due to: i) lower per tonne cash production
costs as discussed above, and ii) a 12% increase in by-product
credits, mainly arising from more zinc sold and a 19% and 33%
increase in net realized lead and zinc selling prices. Sales from
lead and zinc accounted for 69% of the total sales at the GC Mine
in Fiscal 2017, and amounted to $14.3
million, an increase of $1.8
million, compared to $12.5
million in the prior year.
All in sustaining costs per ounce of silver, net of by-product
credits, in Fiscal 2017 at the GC Mine was $0.20 compared to $8.81 in the prior year. The decrease was mainly
due to lower cash costs per ounce of silver and less corporate
expenditures and sustaining capital expenditures incurred.
In Fiscal 2017, approximately 12,484 m of underground diamond
drilling (Fiscal 2016 – 20,556 m) and 14,690 m of tunnelling
(Fiscal 2016 – 13,570 m) were completed and expensed as mining
preparation costs at the GC Mine. In addition, approximately 1,721
m of horizontal tunnel, raises and declines (Fiscal 2016 – 1,409 m)
were completed and capitalized. Total exploration and
development expenditures capitalized at the GC Mine in Fiscal 2017
were $0.7 million compared to
$0.9 million in Fiscal 2016.
In Q4 Fiscal 2017, the Company mined 40,224 tonnes of ore at the
GC Mine, a 20% decrease compared to 50,014 tonnes in the prior year
quarter. Correspondingly, ore milled decreased by 20% to 39,929
tonnes from 50,124 tonnes in Q4 Fiscal 2016. Head grades were 91
g/t for silver, 1.3% for lead, and 2.6% for zinc in Q4 Fiscal 2017,
compared to 92 g/t for silver, 2.0% for lead, and 2.7% for zinc in
the prior year quarter.
Silver, lead, and zinc metals sold in Q4 Fiscal 2017 at the GC
Mine was down by 55%, 58%, and 82%, respectively, to approximately
53 thousand ounces silver, 818 thousand pounds lead, and 455
thousand pounds zinc from 118 thousand ounces silver, 2.0 million
pounds lead, and 2.6 million pounds of zinc. The decrease was
mainly due to: i) lower production in Q4 Fiscal 2017, and ii)
increase in concentrate inventory. As at March 31, 2017, GC mine was holding 198 tonnes of
lead concentrate inventory and 1,503 tonnes of zinc concentrate
inventory, an increase of 127 tonnes and 1,469 tonnes,
respectively, compared to 71 tonnes of lead concentrate and 34
tonnes of zinc concentrates held as at March
31, 2016, and an increase of 188 tonnes and 1,494 tonnes,
respectively, compared to 10 tonnes of lead concentrate and 29
tonnes of zinc concentrate held as at December 31, 2016.
In Q4 Fiscal 2017, the total and cash mining costs per tonne, at
the GC Mine, were $45.37 and
$37.91, compared to $34.76 and $26.24
in the prior year period. The increase in per tonne cash mining
costs was mainly due to lower output resulting in higher per tonne
labor costs and mine administration costs. The lower output
was due to the annual Chinese New
Year, which reduced mine operations to only two months
during the quarter.
The total milling and cash milling costs per tonne in Q4 Fiscal
2017 at the GC Mine was $24.99 and
$20.06, compared to $20.67 and $16.99
in the prior year quarter. The increase in per tonne milling costs
was mainly due to lower output resulting in higher per tonne fixed
overhead costs allocated.
Correspondingly, cash production costs per tonne of ore
processed in Q4 Fiscal 2017 at the GC Mine increased to
$57.97 from $43.23 in the prior year quarter due to the
increase in both per tonne cash mining and milling costs.
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, 2017 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.
|
|
|
|
|
Consolidated
Statements of Financial Position
|
|
|
|
|
(Unaudited -
Expressed in thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
As at March
31,
|
|
As at March
31,
|
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
73,003
|
|
$
|
41,963
|
|
Short-term
investments
|
|
23,466
|
|
19,999
|
|
Trade and other
receivables
|
|
1,311
|
|
2,041
|
|
Inventories
|
|
8,710
|
|
8,857
|
|
Due from related
parties
|
|
92
|
|
103
|
|
Income tax
receivable
|
|
-
|
|
394
|
|
Prepaids and
deposits
|
|
4,250
|
|
3,960
|
|
|
110,832
|
|
77,317
|
Non-current
Assets
|
|
|
|
|
|
Long-term prepaids
and deposits
|
|
959
|
|
1,856
|
|
Reclamation
deposits
|
|
5,054
|
|
2,301
|
|
Investment in an
associate
|
|
8,517
|
|
3,133
|
|
Other
investments
|
|
1,207
|
|
287
|
|
Plant and
equipment
|
|
65,201
|
|
71,045
|
|
Mineral rights and
properties
|
|
206,200
|
|
216,080
|
TOTAL
ASSETS
|
|
$
|
397,970
|
|
$
|
372,019
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
30,374
|
|
$
|
27,457
|
|
Bank loan
|
|
-
|
|
4,657
|
|
Mine right fee
payable
|
|
-
|
|
3,970
|
|
Deposits
received
|
|
6,798
|
|
5,849
|
|
Income tax
payable
|
|
2,985
|
|
-
|
|
Due to related
parties
|
|
-
|
|
179
|
|
|
40,157
|
|
42,112
|
Non-current
Liabilities
|
|
|
|
|
|
Mine right fee
payable
|
|
-
|
|
5,796
|
|
Deferred income tax
liabilities
|
|
27,692
|
|
23,224
|
|
Environmental
rehabilitation
|
|
12,186
|
|
14,328
|
Total
Liabilities
|
|
80,035
|
|
85,460
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Share
capital
|
|
232,155
|
|
230,933
|
|
Share option
reserve
|
|
13,325
|
|
12,628
|
|
Reserves
|
|
25,409
|
|
25,409
|
|
Accumulated other
comprehensive loss
|
|
(50,419)
|
|
(35,994)
|
|
Retained
earnings
|
|
42,651
|
|
562
|
Total equity
attributable to the equity holders of the Company
|
263,121
|
|
233,538
|
|
|
|
|
|
Non-controlling
interests
|
|
54,814
|
|
53,021
|
Total
Equity
|
|
317,935
|
|
286,559
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
397,970
|
|
$
|
372,019
|
SILVERCORP METALS
INC.
|
Consolidated
Statements of Income
|
(Unaudited -
Expressed in thousands of U.S. dollars, except for per share
figures)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Years Ended March
31,
|
|
|
2017
|
2016
|
|
2017
|
2016
|
|
|
|
|
|
|
|
Sales
|
|
$
|
34,064
|
$
|
19,426
|
|
$
|
163,471
|
$
|
107,940
|
Cost of
sales
|
|
13,760
|
13,233
|
|
75,285
|
71,925
|
Gross
profit
|
|
20,304
|
6,193
|
|
88,186
|
36,015
|
|
|
|
|
|
|
|
General and
administrative
|
|
4,356
|
4,003
|
|
16,818
|
17,394
|
Government fees and
other taxes
|
|
530
|
1,027
|
|
4,007
|
5,780
|
Foreign exchange
(gain) loss
|
|
197
|
2,159
|
|
(339)
|
46
|
Loss on disposal of
plant and equipment
|
|
81
|
20
|
|
538
|
100
|
Loss on disposal of a
subsidiary
|
|
-
|
-
|
|
-
|
460
|
Share of (income)
loss in associate
|
|
(122)
|
216
|
|
(282)
|
50
|
Impairment reversal
of investment in associate
|
|
(5,278)
|
-
|
|
(5,278)
|
-
|
Impairment of plant
and equipment and mineral rights and properties
|
|
-
|
-
|
|
181
|
-
|
Other
income
|
|
(424)
|
(26)
|
|
(748)
|
(205)
|
Income from
operations
|
|
20,964
|
(1,206)
|
|
73,289
|
12,390
|
|
|
|
|
|
|
|
Finance
income
|
|
591
|
324
|
|
2,206
|
1,382
|
Finance
costs
|
|
(75)
|
(333)
|
|
(760)
|
(1,084)
|
Income before
income taxes
|
|
21,480
|
(1,215)
|
|
74,735
|
12,688
|
|
|
|
|
|
|
|
Income tax
expense
|
|
5,146
|
(488)
|
|
19,237
|
2,749
|
Net
income
|
|
$
|
16,334
|
$
|
(727)
|
|
$
|
55,498
|
$
|
9,939
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
$
|
13,507
|
$
|
(1,520)
|
|
$
|
43,674
|
$
|
6,336
|
|
Non-controlling
interests
|
|
2,827
|
793
|
|
11,824
|
3,603
|
|
|
$
|
16,334
|
$
|
(727)
|
|
$
|
55,498
|
$
|
9,939
|
|
|
|
|
|
|
|
Earnings per share
attributable to the equity holders of the Company
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.08
|
$
|
(0.01)
|
|
$
|
0.26
|
$
|
0.04
|
Diluted earnings
per share
|
|
$
|
0.08
|
$
|
(0.01)
|
|
$
|
0.25
|
$
|
0.04
|
Weighted Average
Number of Shares Outstanding - Basic
|
|
167,602,781
|
168,020,946
|
|
167,185,234
|
169,377,066
|
Weighted Average
Number of Shares Outstanding - Diluted
|
|
171,984,629
|
168,020,946
|
|
171,350,024
|
169,763,096
|
SILVERCORP METALS
INC.
|
Consolidated
Statements of Cash Flow
|
(Unaudited -
Expressed in thousands of U.S. dollars)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Years Ended March
31,
|
|
2017
|
2016
|
|
2017
|
2016
|
Cash provided
by
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
|
Net income
|
$
|
16,334
|
$
|
(727)
|
|
$
|
55,498
|
$
|
9,939
|
|
Add (deduct) items
not affecting cash:
|
|
|
|
|
|
|
|
Finance
costs
|
75
|
333
|
|
760
|
1,084
|
|
|
Depreciation,
amortization and depletion
|
2,101
|
3,193
|
|
18,913
|
18,926
|
|
|
Share of (income)
loss in associate
|
(122)
|
216
|
|
(282)
|
50
|
|
|
Loss on disposal of a
subsidiary
|
-
|
-
|
|
-
|
460
|
|
|
Impairment reversal
of investment in associate
|
(5,278)
|
-
|
|
(5,278)
|
-
|
|
|
Impairment of plant
and equipment and mineral rights and properties
|
-
|
-
|
|
181
|
-
|
|
|
Write down of
inventories
|
-
|
159
|
|
-
|
159
|
|
|
Income tax
expense
|
5,146
|
(488)
|
|
19,237
|
2,749
|
|
|
Finance
income
|
(591)
|
(324)
|
|
(2,206)
|
(1,382)
|
|
|
Loss on disposal of
plant and equipment
|
81
|
20
|
|
538
|
100
|
|
|
Share-based
compensation
|
361
|
145
|
|
1,015
|
887
|
|
Income taxes
paid
|
(9,637)
|
(681)
|
|
(13,667)
|
(1,208)
|
|
Interest
received
|
591
|
324
|
|
2,206
|
1,382
|
|
Interest
paid
|
(9)
|
(41)
|
|
(963)
|
(41)
|
|
Changes in non-cash
operating working capital
|
(4,171)
|
2,215
|
|
4,485
|
(1,224)
|
Net cash provided
by operating activities
|
4,881
|
4,344
|
|
80,437
|
31,881
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
Mineral rights and
properties
|
|
|
|
|
|
|
|
Capital
expenditures
|
(2,209)
|
(11,690)
|
|
(27,814)
|
(25,847)
|
|
Plant and
equipment
|
|
|
|
|
|
|
|
Additions
|
(3,431)
|
(5,359)
|
|
(7,987)
|
(10,953)
|
|
|
Proceeds on
disposals
|
-
|
55
|
|
51
|
287
|
|
Other
investments
|
|
|
|
|
|
|
|
Acquisition
|
-
|
-
|
|
(782)
|
-
|
|
|
Proceeds on
disposals
|
-
|
-
|
|
33
|
422
|
|
Reclamation deposit
paid
|
(807)
|
(267)
|
|
(2,967)
|
(276)
|
|
Net purchases of
short-term investments
|
7,424
|
(16,257)
|
|
(4,094)
|
(10,753)
|
|
Proceeds for sale of
a subsidiary
|
-
|
-
|
|
-
|
11
|
Net cash used in
investing activities
|
977
|
(33,518)
|
|
(43,560)
|
(47,109)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
Bank loan
|
|
|
|
|
|
|
|
Proceeds
|
-
|
4,619
|
|
-
|
4,619
|
|
|
Repayment
|
(4,325)
|
-
|
|
(4,325)
|
-
|
|
Non-controlling
interests
|
|
|
|
|
|
|
|
Loan
advanced
|
-
|
-
|
|
-
|
(1,587)
|
|
|
Repayments
received
|
-
|
1,589
|
|
-
|
1,589
|
|
|
Distribution
|
(762)
|
-
|
|
(2,222)
|
(1,661)
|
|
Cash dividends
distributed
|
-
|
-
|
|
(1,585)
|
(1,323)
|
|
Proceeds from
issuance of common shares
|
415
|
-
|
|
904
|
-
|
|
Common shares
repurchased as part of normal course issuer bid
|
-
|
(894)
|
|
-
|
(2,580)
|
Net cash used in
financing activities
|
(4,672)
|
5,314
|
|
(7,228)
|
(943)
|
Effect of exchange
rate changes on cash and cash equivalents
|
4,843
|
2,447
|
|
1,391
|
(2,045)
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
6,029
|
(21,413)
|
|
31,040
|
(18,216)
|
Cash and cash
equivalents, beginning of the year
|
66,974
|
63,376
|
|
41,963
|
60,179
|
Cash and cash
equivalents, end of the year
|
$
|
73,003
|
$
|
41,963
|
|
$
|
73,003
|
$
|
41,963
|
SILVERCORP METALS
INC.
|
Mining
Data
|
(Expressed in
thousands of U.S. dollars, except for mining data
figures)
|
|
|
|
|
|
|
|
Year ended
March 31, 2017
|
|
|
|
Ying Mining
District1
|
GC2
|
Consolidated
|
|
|
|
|
|
|
Production
Data
|
|
|
|
|
Mine
Data
|
|
|
|
|
|
Ore Mined
(tonne)
|
636,760
|
260,746
|
897,506
|
|
|
Ore Milled
(tonne)
|
638,211
|
260,696
|
898,907
|
|
|
|
|
|
|
|
+
|
Mining cost
per tonne of ore mined ($)
|
74.04
|
40.03
|
64.16
|
|
|
|
Cash mining cost
per tonne of ore mined ($)
|
51.79
|
32.10
|
46.07
|
|
|
|
Non cash mining
cost per tonne of ore mined ($)
|
22.25
|
7.93
|
18.09
|
|
|
|
|
|
|
|
|
+
|
Unit shipping
costs($)
|
3.88
|
-
|
2.75
|
|
|
|
|
|
|
|
|
+
|
Milling costs per
tonne of ore milled ($)
|
11.73
|
17.78
|
13.49
|
|
|
|
Cash milling costs
per tonne of ore milled ($)
|
9.50
|
14.73
|
11.02
|
|
|
|
Non cash milling
costs per tonne of ore milled ($)
|
2.23
|
3.05
|
2.47
|
|
|
|
|
|
|
|
|
+
|
Average Production
Costs
|
|
|
|
|
|
|
Silver ($ per
ounce)
|
5.74
|
7.03
|
6.07
|
|
|
|
Gold ($ per
ounce)
|
412
|
-
|
446
|
|
|
|
Lead ($ per
pound)
|
0.33
|
0.51
|
0.35
|
|
|
|
Zinc ($ per
pound)
|
0.30
|
0.48
|
0.32
|
|
|
|
Other ($ per
pound)
|
-
|
0.03
|
0.02
|
|
|
|
|
|
|
|
+
|
Total
production costs per ounce of Silver, net of by-product credits
($)
|
(0.18)
|
(1.69)
|
(0.31)
|
|
+
|
Total cash
costs per ounce of Silver, net of by-product credits
($)
|
(2.70)
|
(6.47)
|
(3.03)
|
|
|
|
|
|
|
|
+
|
All-in
sustaining costs per ounce of Silver, net of by-product credits
($)
|
2.61
|
0.20
|
3.82
|
|
+
|
All-in costs
per ounce of Silver, net of by-product credits
($)
|
3.18
|
0.80
|
4.40
|
|
|
|
|
|
|
|
|
Recovery
Rates
|
|
|
|
|
|
|
Silver
(%)
|
95.5
|
75.7
|
93.2
|
|
|
|
Lead
(%)
|
96.5
|
85.7
|
95.3
|
|
|
|
Zinc
(%)
|
46.0
|
84.7
|
67.2
|
|
|
|
|
|
|
|
|
Head
Grades
|
|
|
|
|
|
|
Silver
(gram/tonne)
|
303
|
94
|
242
|
|
|
|
Lead
(%)
|
4.7
|
1.4
|
3.7
|
|
|
|
Zinc
(%)
|
1.0
|
2.8
|
1.5
|
|
|
|
|
|
|
|
Concentrate
in stock
|
|
|
|
|
|
Lead
concentrate (tonne)
|
2,293
|
198
|
2,491
|
|
|
Zinc
concentate (tonne)
|
480
|
1,503
|
1,983
|
|
|
|
|
|
|
Sales
Data
|
|
|
|
|
Metal
Sales
|
|
|
|
|
|
Silver (in
thousands of ounces)
|
5,930
|
564
|
6,494
|
|
|
Gold (in
thousands of ounces)
|
3.3
|
-
|
3.3
|
|
|
Lead (in
thousands of pounds)
|
63,418
|
7,055
|
70,473
|
|
|
Zinc (in
thousands of pounds)
|
5,848
|
12,446
|
18,294
|
|
|
Other (in
thousands of pounds)
|
-
|
12,025
|
12,025
|
|
|
|
|
|
|
|
Metal
Sales
|
|
|
|
|
|
Silver (in
thousands of $)
|
83,606
|
5,950
|
89,556
|
|
|
Gold (in
thousands of $)
|
3,344
|
-
|
3,344
|
|
|
Lead (in
thousands of $)
|
51,479
|
5,373
|
56,852
|
|
|
Zinc (in
thousands of $)
|
4,332
|
8,909
|
13,241
|
|
|
Other (in
thousands of $)
|
-
|
478
|
478
|
|
|
|
142,761
|
20,710
|
163,471
|
|
Average Selling
Price, Net of Value Added Tax and Smelter
Charges
|
|
|
|
|
|
Silver ($
per ounce)
|
14.10
|
10.55
|
13.79
|
|
|
Gold ($ per
ounce)
|
1,013
|
-
|
1,013
|
|
|
Lead ($ per
pound)
|
0.81
|
0.76
|
0.81
|
|
|
Zinc ($ per
pound)
|
0.74
|
0.72
|
0.72
|
|
|
|
|
|
|
1 Ying
Mining District includes mines: SGX, TLP, HPG,LM, BCG and
HZG.
|
2 GC
Silver recovery rate consists of 53.7% from lead concentrates and
21.9% 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.
|
SILVERCORP METALS
INC.
|
Mining
Data
|
(Expressed in
thousands of U.S. dollars, except for mining data
figures)
|
|
|
|
|
|
|
|
Year ended March
31, 2016
|
|
|
|
Ying Mining
District1
|
GC2
|
Consolidated
|
|
|
|
|
|
|
Production
Data
|
|
|
|
|
Mine
Data
|
|
|
|
|
|
Ore Mined
(tonne)
|
589,766
|
257,575
|
847,341
|
|
|
Ore Milled
(tonne)
|
587,450
|
256,862
|
844,312
|
|
|
|
|
|
|
|
+
|
Mining costs per
tonne of ore mined ($)
|
79.93
|
46.49
|
69.76
|
|
|
|
Cash mining costs
per tonne of ore mined ($)
|
56.90
|
38.23
|
51.22
|
|
|
|
Non cash mining
costs per tonne of ore mined ($)
|
23.03
|
8.26
|
18.54
|
|
|
|
|
|
|
|
+
|
Unit shipping
costs ($)
|
4.01
|
-
|
2.79
|
|
|
|
|
|
|
|
+
|
Milling costs per
tonne of ore milled ($)
|
14.91
|
18.30
|
15.93
|
|
|
|
Cash milling costs
per tonne of ore milled ($)
|
12.34
|
15.79
|
13.38
|
|
|
|
Non cash milling
costs per tonne of ore milled ($)
|
2.57
|
2.51
|
2.55
|
|
|
|
|
|
|
|
+
|
Average Production
Costs
|
|
|
|
|
|
|
Silver ($
per ounce)
|
7.61
|
8.80
|
8.02
|
|
|
|
Gold ($ per
ounce)
|
492
|
699
|
532
|
|
|
|
Lead ($ per
pound)
|
0.42
|
0.58
|
0.45
|
|
|
|
Zinc ($ per
pound)
|
0.34
|
0.49
|
0.36
|
|
|
|
Other ($
per pound)
|
-
|
0.01
|
0.01
|
|
|
|
|
|
|
|
+
|
Total production
costs per ounce of Silver, net of by-product credits
($)
|
4.62
|
6.66
|
4.88
|
|
+
|
Total cash costs
per ounce of Silver, net of by-product credits ($)
|
1.38
|
1.85
|
1.44
|
|
|
|
|
|
|
|
+
|
All-in sustaining
costs per ounce of Silver, net of by-product credits
($)
|
8.60
|
8.81
|
10.20
|
|
+
|
All-in costs per
ounce of Silver, net of by-product credits ($)
|
10.10
|
18.54
|
12.74
|
|
|
|
|
|
|
|
|
Recovery
Rates
|
|
|
|
|
|
|
Silver
(%)
|
95.0
|
78.9
|
90.1
|
|
|
|
Lead
(%)
|
95.6
|
88.2
|
93.4
|
|
|
|
Zinc
(%)
|
54.1
|
82.9
|
62.7
|
|
|
|
|
|
|
|
|
Head
Grades
|
|
|
|
|
|
|
Silver
(gram/tonne)
|
268
|
94
|
216
|
|
|
|
Lead
(%)
|
3.9
|
1.8
|
3.2
|
|
|
|
Zinc
(%)
|
0.8
|
2.5
|
1.3
|
|
|
|
|
|
|
|
Concentrate in
stock
|
|
|
|
|
|
Lead
concentrate (tonne)
|
3,205
|
71
|
3,276
|
|
|
Zinc
concentate (tonne)
|
280
|
34
|
314
|
|
|
|
|
|
|
Sales
Data
|
|
|
|
|
Metal
Sales
|
|
|
|
|
|
Silver (in
thousands of ounces)
|
4,395
|
637
|
5,032
|
|
|
Gold (in
thousands of ounces)
|
2.3
|
0.1
|
2.4
|
|
|
Lead (in
thousands of pounds)
|
43,469
|
9,042
|
52,511
|
|
|
Zinc (in
thousands of pounds)
|
5,155
|
12,302
|
17,457
|
|
|
Other (in
thousands of pounds)
|
-
|
46,932
|
46,932
|
|
|
|
|
|
|
|
Metal
Sales
|
|
|
|
|
|
Silver (in
thousands of $)
|
54,314
|
6,265
|
60,579
|
|
|
Gold (in
thousands of $)
|
1,871
|
42
|
1,913
|
|
|
Lead (in
thousands of $)
|
29,520
|
5,799
|
35,319
|
|
|
Zinc (in
thousands of $)
|
2,806
|
6,674
|
9,480
|
|
|
Other (in
thousands of $)
|
-
|
649
|
649
|
|
|
|
88,511
|
19,429
|
107,940
|
|
Average Selling
Price, Net of Value Added Tax and Smelter Charges
|
|
|
|
|
|
Silver ($
per ounce)
|
12.36
|
9.83
|
12.04
|
|
|
Gold ($ per
ounce)
|
799
|
781
|
798
|
|
|
Lead ($ per
pound)
|
0.68
|
0.64
|
0.67
|
|
|
Zinc ($ per
pound)
|
0.54
|
0.54
|
0.54
|
|
|
|
|
|
|
1 Ying
Mining District includes mines: SGX, TLP, HPG,LM, BCG and
HZG.
|
2 GC
Silver recovery rate consists of 59.17% from lead concentrates and
19.71% from zinc concentrates.
|
2 GC
Silver sold in zinc concentrates is subjected to higher smelter and
refining charges which lower the net silver selling
price.
|
SILVERCORP METALS
INC.
|
|
Mining
Data
|
|
(Expressed in
thousands of U.S. dollars, except for mining data
figures)
|
|
|
|
|
|
|
|
|
Three months
ended March 31, 2017
|
|
|
|
Ying Mining
District1
|
GC2
|
Consolidated
|
|
|
|
|
|
|
Production
Data
|
|
|
|
|
Mine
Data
|
|
|
|
|
|
Ore Mined
(tonne)
|
112,755
|
40,224
|
152,979
|
|
|
Ore Milled
(tonne)
|
108,051
|
39,929
|
147,980
|
|
|
|
|
|
|
|
+
|
Mining costs per
tonne of ore mined ($)
|
53.50
|
45.37
|
51.37
|
|
|
|
Cash mining costs
per tonne of ore mined ($)
|
49.99
|
37.91
|
46.82
|
|
|
|
Non cash mining
costs per tonne of ore mined ($)
|
3.51
|
7.46
|
4.55
|
|
|
|
|
|
|
|
+
|
Unit shipping
costs($)
|
3.92
|
-
|
2.88
|
|
|
|
|
|
|
|
+
|
Milling costs per
tonne of ore milled ($)
|
13.60
|
24.99
|
16.68
|
|
|
|
Cash milling costs
per tonne of ore milled ($)
|
10.43
|
20.06
|
13.03
|
|
|
|
Non cash milling
costs per tonne of ore milled ($)
|
3.17
|
4.93
|
3.65
|
|
|
|
|
|
|
|
+
|
Average Production
Costs
|
|
|
|
|
|
|
Silver ($ per
ounce)
|
4.93
|
9.97
|
5.26
|
|
|
|
Gold ($ per
ounce)
|
332
|
-
|
355
|
|
|
|
Lead ($ per
pound)
|
0.33
|
0.68
|
0.35
|
|
|
|
Zinc ($ per
pound)
|
0.35
|
0.67
|
0.36
|
|
|
|
Other ($ per
pound)
|
-
|
0.04
|
0.02
|
|
|
|
|
|
|
|
+
|
Total production
costs per ounce of Silver, net of by-product credits
($)
|
(2.54)
|
4.49
|
(2.25)
|
|
+
|
Total cash
costs per ounce of Silver, net of by-product credits
($)
|
(3.73)
|
(1.72)
|
(3.65)
|
|
|
|
|
|
|
|
+
|
All-in sustaining
costs per ounce of Silver, net of by-product credits
($)
|
0.74
|
14.55
|
3.26
|
|
+
|
All-in costs per
ounce of Silver, net of by-product credits ($)
|
0.86
|
14.55
|
3.37
|
|
|
|
|
|
|
|
|
Recovery
Rates
|
|
|
|
|
|
|
Silver
(%)
|
96.6
|
72.8
|
94.2
|
|
|
|
Lead
(%)
|
95.6
|
82.4
|
94.4
|
|
|
|
Zinc
(%)
|
46.2
|
74.8
|
61.8
|
|
|
|
|
|
|
|
|
Head
Grades
|
|
|
|
|
|
|
Silver
(gram/tonne)
|
298
|
91
|
242
|
|
|
|
Lead
(%)
|
4.8
|
1.3
|
3.8
|
|
|
|
Zinc
(%)
|
0.8
|
2.6
|
1.3
|
|
|
|
|
|
|
|
Concentrate
in stock
|
|
|
|
|
|
Lead
concentrate (tonne)
|
2,293
|
198
|
2,491
|
|
|
Zinc
concentate (tonne)
|
480
|
1,503
|
1,983
|
|
|
|
|
|
|
Sales
Data
|
|
|
|
|
Metal
Sales
|
|
|
|
|
|
Silver (in
thousands of ounces)
|
1,255
|
53
|
1,308
|
|
|
Gold (in
thousands of ounces)
|
0.7
|
-
|
0.7
|
|
|
Lead (in
thousands of pounds)
|
13,520
|
818
|
14,338
|
|
|
Zinc (in
thousands of pounds)
|
1,033
|
455
|
1,488
|
|
|
Other (in
thousands of pounds)
|
-
|
3,446
|
3,446
|
|
|
|
|
|
|
|
Metal
Sales
|
|
|
|
|
|
Silver (in
thousands of $)
|
17,653
|
682
|
18,335
|
|
|
Gold (in
thousands of $)
|
662
|
-
|
662
|
|
|
Lead (in
thousands of $)
|
12,756
|
717
|
13,473
|
|
|
Zinc (in
thousands of $)
|
1,024
|
395
|
1,419
|
|
|
Other (in
thousands of $)
|
-
|
175
|
175
|
|
|
|
32,095
|
1,969
|
34,064
|
|
Average Selling
Price, Net of Value Added Tax and Smelter
Charges
|
|
|
|
|
|
Silver ($
per ounce)
|
14.07
|
12.87
|
14.02
|
|
|
Gold ($ per
ounce)
|
946
|
-
|
946
|
|
|
Lead ($ per
pound)
|
0.94
|
0.88
|
0.94
|
|
|
Zinc ($ per
pound)
|
0.99
|
0.87
|
0.95
|
|
|
|
|
|
|
1 Ying
Mining District includes mines: SGX, TLP, HPG,LM, BCG and
HZG.
|
2 GC
Silver recovery rate consists of 51.2% from lead concentrates and
21.7% from zinc concentrates.
|
2 GC
Silver sold in zinc concentrates is subjected to higher smelter and
refining charges which lower the net silver selling
price.
|
SILVERCORP METALS
INC.
|
|
Mining
Data
|
|
(Expressed in
thousands of U.S. dollars, except for mining data
figures)
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2016
|
|
|
|
Ying Mining
District1
|
GC2
|
Consolidated
|
|
|
|
|
|
|
Production
Data
|
|
|
|
|
Mine
Data
|
|
|
|
|
|
Ore Mined
(tonne)
|
99,415
|
50,014
|
149,429
|
|
|
Ore Milled
(tonne)
|
99,203
|
50,124
|
149,327
|
|
|
|
|
|
|
|
+
|
Mining costs per
tonne of ore mined ($)
|
83.24
|
34.76
|
67.01
|
|
|
|
Cash mining costs
per tonne of ore mined ($)
|
54.63
|
26.24
|
45.12
|
|
|
|
Non cash mining
costs per tonne of ore mined ($)
|
28.61
|
8.52
|
21.89
|
|
|
|
|
|
|
|
+
|
Unit shipping
costs ($)
|
3.57
|
-
|
2.37
|
|
|
|
|
|
|
|
+
|
Milling costs per
tonne of ore milled ($)
|
17.38
|
20.67
|
18.49
|
|
|
|
Cash milling costs
per tonne of ore milled ($)
|
13.70
|
16.99
|
14.81
|
|
|
|
Non cash milling
costs per tonne of ore milled ($)
|
3.68
|
3.68
|
3.68
|
|
|
|
|
|
|
|
+
|
Average Production
Costs
|
|
|
|
|
|
|
Silver ($
per ounce)
|
7.55
|
8.03
|
7.80
|
|
|
|
Gold ($ per
ounce)
|
517
|
-
|
545
|
|
|
|
Lead ($ per
pound)
|
0.45
|
0.51
|
0.43
|
|
|
|
Zinc ($ per
pound)
|
0.31
|
0.38
|
0.31
|
|
|
|
Other ($
per pound)
|
|
0.01
|
0.01
|
|
|
|
|
|
|
|
+
|
Total production
costs per ounce of Silver, net of by-product credits
($)
|
5.15
|
4.71
|
5.10
|
|
+
|
Total cash costs
per ounce of Silver, net of by-product credits ($)
|
2.83
|
(2.24)
|
2.21
|
|
|
|
|
|
|
|
+
|
All-in sustaining
costs per ounce of Silver, net of by-product credits
($)
|
8.92
|
1.19
|
9.91
|
|
+
|
All-in costs per
ounce of Silver, net of by-product credits ($)
|
10.16
|
51.45
|
17.09
|
|
|
|
|
|
|
|
|
Recovery
Rates
|
|
|
|
|
|
|
Silver
(%)
|
95.0
|
79.1
|
90.0
|
|
|
|
Lead
(%)
|
96.3
|
84.9
|
92.7
|
|
|
|
Zinc
(%)
|
57.6
|
82.6
|
65.4
|
|
|
|
|
|
|
|
|
Head
Grades
|
|
|
|
|
|
|
Silver
(gram/tonne)
|
310
|
92
|
242
|
|
|
|
Lead
(%)
|
4.0
|
2.0
|
3.4
|
|
|
|
Zinc
(%)
|
0.9
|
2.7
|
1.4
|
|
|
|
|
|
|
|
Concentrate in
stock
|
|
|
|
|
|
Lead
concentrate (tonne)
|
3,205
|
71
|
3,276
|
|
|
Zinc
concentate (tonne)
|
280
|
34
|
314
|
|
|
|
|
|
|
Sales
Data
|
|
|
|
|
Metal
Sales
|
|
|
|
|
|
Silver (in
thousands of ounces)
|
857
|
118
|
975
|
|
|
Gold (in
thousands of ounces)
|
0.3
|
-
|
0.3
|
|
|
Lead (in
thousands of pounds)
|
7,379
|
1,970
|
9,349
|
|
|
Zinc (in
thousands of pounds)
|
999
|
2,576
|
3,575
|
|
|
Other (in
thousands of pounds)
|
-
|
8,027
|
8,027
|
|
|
|
|
|
|
|
Metal
Sales
|
|
|
|
|
|
Silver (in
thousands of $)
|
10,021
|
1,144
|
11,165
|
|
|
Gold (in
thousands of $)
|
262
|
-
|
262
|
|
|
Lead (in
thousands of $)
|
5,091
|
1,169
|
6,260
|
|
|
Zinc (in
thousands of $)
|
459
|
1,175
|
1,634
|
|
|
Other (in
thousands of $)
|
-
|
105
|
105
|
|
|
|
15,833
|
3,593
|
19,426
|
|
Average Selling
Price, Net of Value Added Tax and Smelter Charges
|
|
|
|
|
|
Silver ($
per ounce)
|
11.69
|
9.69
|
11.45
|
|
|
Gold ($ per
ounce)
|
800
|
-
|
800
|
|
|
Lead ($ per
pound)
|
0.69
|
0.61
|
0.63
|
|
|
Zinc ($ per
pound)
|
0.46
|
0.46
|
0.46
|
|
|
|
|
|
|
1 Ying
Mining District includes mines: SGX, TLP, HPG,LM, BCG and
HZG.
|
2 GC
Silver recovery rate consists of 63.1% from lead concentrates and
16.0% from zinc concentrates.
|
2 GC
Silver sold in zinc concentrates is subjected to higher smelter and
refining charges which lower the net silver selling
price.
|
SOURCE Silvercorp Metals Inc