Trading Symbol: TSX: SVM NYSE AMERCIAN: SVM
VANCOUVER, Aug. 3, 2017 /CNW/ - Silvercorp Metals
Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American:
SVM) reported its financial and operating results for the first
quarter ended June 30, 2017.
All amounts are expressed in US Dollars.
FIRST QUARTER HIGHLIGHTS
- Net income attributable to equity shareholders of $10.9 million, or $0.07 per share1, up 134% compared to
net income attributable to equity shareholders of $4.7 million, or $0.03 per share in the prior year quarter;
- Sales of $39.7 million, up 13%
compared to $35.3 million in the
prior year quarter;
- Gross margin of 50% compared with 45% in the prior year
quarter;
- Cash flow from operations of $16.9
million, compared to $20.2
million in the prior year quarter;
- Dividend of $1.7 million, or
$0.01 per share, paid to the equity
shareholders;
- Ended the quarter with $102.1
million in cash and cash equivalents and short-term
investments, an increase of $5.6
million or 6% compared to $96.5
million as at March 31,
2017;
- Silver, lead, and zinc metals sold amounted to approximately
1.5 million ounces silver, 15.9 million pounds lead, and 5.0
million pounds zinc, down 8%, 5%, and 4%, respectively from the
prior year quarter;
- Head grades were 304 grams per ton ("g/t") for silver, 4.6% for
lead, and 0.8% for zinc at the Ying Mining District, compared to
308 g/t for silver, 4.4% for lead and 1.1% for zinc in the prior
year quarter;
- Total and cash mining costs per tonne ore2 of
$68.12 and $50.29, respectively, compared to $68.70 and $47.24
in the prior year quarter;
- Cash cost per ounce of silver2, net of by-product
credits, of negative $3.57, compared
to positive $0.08 in the prior year
quarter;
- All-in sustaining cost per ounce of silver2, net of
by-product credits, of $4.70,
compared to $7.06 in the prior year
quarter; and,
- Realized a gain of $4.3 million
on the disposal of the Company's 2.5% net smelter return ("NSR") in
the Silvertip mine.
_______________________________
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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 refer to section 10 of the corresponding MD&A for
reconciliation
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FINANCIALS
Net income attributable to equity shareholders of the
Company in Q1 Fiscal 2018 was $10.9
million, or $0.07 per share,
compared to $4.7 million, or
$0.03 per share in Q1 Fiscal
2017.
The Company's financial results in Q1 Fiscal 2018 were mainly
impacted by the following: i) the increase of metal prices, as the
realized selling price for silver, lead, and zinc increased by 5%,
35%, and 65%, compared to the prior year quarter; ii) a
$4.3 million gain on disposal of
Silvertip Mine's NSR; offset by i) a $1.6
million foreign exchange loss, ii) less metals sold, and
iii) a 3% increase in per tonne cash production costs.
Sales in Q1 Fiscal 2018 were $39.7
million, up 13% compared to $35.3
million in the same quarter last year. Silver and gold sales
represented $20.2 million and
$1.0 million, respectively, while
base metals represented $18.5 million
of total sales compared to silver, gold and base metals sales of
$20.8 million, $0.9 million, and $13.6
million, respectively, in the prior year quarter.
Cost of sales in Q1 Fiscal 2018 was $19.7 million compared to $19.5 million in Q1 Fiscal 2017. The cost
of sales included $14.1 million (Q1
Fiscal 2017 - $14.2 million)
production costs, $1.1 million
mineral resources tax (Q1 Fiscal 2017 - $0.4
million), and $4.5 million (Q1
Fiscal 2017 - $5.0 million)
depreciation and amortization charges. The increase of mineral
resources tax was mainly because the mineral resources tax was
levied based on a certain percentage of sales in the current
quarter while it was levied based on the tonnage of ore milled in
the prior year quarter. The decrease of depreciation and
amortization charges was mainly due to higher mineral reserves at
the Ying Mining District as defined in the NI43-101 technical
report released in February 2017,
resulting in lower depreciation and amortization charges per unit
of metal production.
Gross profit margin in Q1 Fiscal 2018 improved to 50%,
compared to 45% in Q1 Fiscal 2017. The improvement of gross profit
margin was mainly due to the increase of metal prices. Ying Mining
District's gross margin was 56% compared to a 49% gross profit
margin in the prior year quarter, while GC Mine's profit margin was
30% compared to a 17% gross profit margin in the prior year.
General and administrative expenses in Q1 Fiscal
2018 were $4.6 million, an increase
of 4% or $0.2 million, compared to
$4.4 million in Q1 Fiscal 2017.
Gain on disposal of mineral rights and properties in Q1
Fiscal 2018 was $4.3 million compared
to $nil in the prior year quarter, as the Company's 2.5% NSR in the
Silvertip mine was disposed in the current quarter.
Income tax expenses in Q1 Fiscal 2018 were $4.0 million compared to $2.8 million in Q1 Fiscal 2017. The income tax
expenses recorded in Q1 Fiscal 2018 included current income tax
expenses of $3.2 million (Q1 Fiscal
2017 – $0.7 million) and deferred
income taxes expenses of $0.8 million
(Q1 Fiscal 2017 – $2.1 million).
Cash flows provided by operating activities in Q1 Fiscal
2018 were $16.9 million, a decrease
of $3.2 million or 16%, compared to
$20.2 million in the prior year
quarter. Before changes in non-cash operating working
capital, cash flows provided by operating activities in Q1 Fiscal
2018 were $14.8 million, a decrease
of $0.7 million or 5%, compared to
$15.5 million in the prior year
quarter. The decrease in cash flow provided by operating activities
is mainly due to $4.1 million income
tax paid in the current quarter while net tax refunds of
$0.1 million were received in the
prior year quarter.
The Company also paid dividend of $1.7
million, or $0.01 per share to
the equity shareholders, and ended the quarter with $102.1 million in cash and short-term
investments, an increase of $5.6
million or 6%, compared to $96.5
million as at March 31,
2017.
Working capital as at June 30,
2017 was $80.7 million, an
increase of $10.0 million or 14%,
compared to $70.7 million working
capital as at March 31,
2017.
OPERATIONS AND DEVELOPMENT
In Q1 Fiscal 2018, the Company sold 1.5 million ounces of
silver, 900 ounces of gold, 15.9 million pounds of lead, and 5.0
million pounds of zinc, compared to 1.6 million ounces of silver,
900 ounces of gold, 16.7 million pounds of lead, and 5.2 million
pounds of zinc, respectively, in Q1 Fiscal 2017. The decrease
of metals sold was mainly due to not all metals produced in the
quarter being sold in the same quarter as the Company intentionally
increased its concentrate inventory at the Ying Mining District. As
at June 30, 2017, lead concentrate
inventory at the Ying Mining District was 4,050 tonnes, an increase
of 1,757 tonnes, compared to 2,293 tonnes of lead concentrate
inventory as at March 31, 2017.
In Q1 Fiscal 2018, the consolidated total mining costs and cash
mining costs were $68.12 and
$50.29 per tonne, compared to
$68.70 and $47.24 per tonne, respectively, in Q1 Fiscal
2017. The increase in cash mining costs were mainly due to a
$0.7 million increase in mining
preparation costs resulting from more underground drilling and
tunnelling expensed in the current quarter.
The consolidated total production costs and cash costs per ounce
of silver, net of by-product credits, were negative $0.62 and negative $3.57 in Q1 Fiscal 2018 compared to $3.11 and $0.08
respectively, in the prior year quarter. The overall decrease
in cash cost per ounce of silver, net of by-product credits, is
mainly due to a 35% increase in by-product credits, mainly arising
from 35% and 65% increase in lead and zinc net realized selling
prices. Sales from lead and zinc accounted for 46% of the total
sales and amounted to $18.1 million,
an increase of $4.7 million, compared
to $13.5 million in the prior year
quarter.
In Q1 Fiscal 2018, the consolidated all-in sustaining cost per
ounce of silver, net of by-product credits, is $4.70 compared to $7.06 in Q1 Fiscal 2017, and the decrease is
mainly due to the 35% increase in by-product credits.
1. Ying Mining District, Henan
Province, China
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Operational
results - Ying Mining District
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Q1
2018
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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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June 30,
2017
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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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Ore Mined
(tonne)
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160,408
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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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Ore Milled
(tonne)
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164,959
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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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Head
Grades
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Silver
(gram/tonne)
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304
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298
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303
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302
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308
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Lead
(%)
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4.6
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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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Zinc
(%)
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0.8
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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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Recoveries
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Silver
(%)
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95.8
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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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Lead
(%)
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96.3
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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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Zinc
(%)
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45.8
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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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Metal
Sales
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Silver (in
thousands of ounce)
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1,324
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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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Gold (in thousands
of ounce)
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0.9
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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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Lead (in thousands
of pound)
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13,765
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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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Zinc (in thousands
of pound)
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755
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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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Cash mining costs
($ per tonne)
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54.78
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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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Total mining costs
($ per tonne)
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76.67
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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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Cash milling costs
($ per tonne)
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8.07
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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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Total milling
costs ($ per tonne)
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10.10
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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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Cash production
costs ($ per tonne)
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66.93
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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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Cash costs per
ounce of silver ($)
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(2.97)
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(3.73)
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(4.60)
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(2.68)
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0.12
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All-in sustaining
costs per ounce of silver ($)
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3.66
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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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* Figures may not add
due to rounding
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In Q1 Fiscal 2018, the total ore mined at the Ying Mining
District was 160,408 tonnes, a decrease of 8%, compared to 173,508
tonnes mined in the prior year quarter. The decrease was
mainly due to additional downtime arising from several power down
days due to power grid upgrade by State Grid Corporation of
China impacting the TLP, LMW and
LME mines and hoist maintenance and cable steel replacement at the
SGX and HZG mines. Correspondingly, ore milled decreased by 2% to
164,959 tonnes from 167,747 tonnes in the prior year quarter. Head
grades were 304 grams per ton ("g/t") for silver, 4.6% for lead,
and 0.8% for zinc, compared to 308 g/t for silver, 4.4% for lead
and 1.1% for zinc in the prior year quarter.
In Q1 Fiscal 2018, the Ying Mining District sold approximately
1.3 million ounces silver, 13.8 million pounds lead, and 0.7
million pounds zinc, compared to 1.5 million ounces silver, 14.9
million pounds lead, and 1.8 million pounds of zinc in the prior
year quarter. The decrease of metals sold at the Ying Mining
District was mainly due to: i) a 2% decrease of ore milled; and ii)
not all metals produced were sold in the same quarter as the
Company intentionally increased its concentrate inventory at the
Ying Mining District. As at June 30,
2017, Ying Mining District had 4,050 tonnes of lead
concentrate inventory and 980 tonnes of zinc concentrate inventory,
an increase of 1,759 and 500 tonnes, respectively, compared to
2,293 tonnes of lead concentrate and 480 tonnes of zinc concentrate
held as at March 31, 2017.
Total and cash mining costs per tonne at the Ying Mining
District in Q1 Fiscal 2018 were $76.67 and $54.78
per tonne, respectively, compared to $78.64 and $52.33
per tonne in the prior year. The increase in cash mining costs was
mainly due to a $0.3 million increase
in mining preparation costs resulting from more underground
drilling and tunnelling expensed in the current quarter. Total and
cash milling costs per tonne at the Ying Mining District in Q1
Fiscal 2018 were $10.10 and
$8.07, a decrease of 18% and 20%,
respectively, compared to $12.25 and
$10.07 in Q1 Fiscal 2017. The
decrease in cash milling costs was mainly due to the exclusion of
mineral resources tax from milling costs.
Correspondingly, cash production cost per tonne of ore processed
in Q1 Fiscal 2018 at the Ying Mining District was $66.93, an 1% increase compared to $66.27 in the prior year due to the increase in
per tonne cash mining offset by the decrease in per tonne milling
costs as discussed above.
Cash cost per ounce of silver, net of by-product credits, in Q1
Fiscal 2018 at the Ying Mining District, was negative $2.97 compared to $0.12 in the prior year quarter. The improvement
was mainly due to a $2.2 million or
20% increase in by-product credits offset by the 1% increase in the
per tonne cash production costs as discussed above.
All in sustaining costs per ounce of silver, net of by-product
credits, in Q1 Fiscal 2018 at the Ying Mining District was
$3.66 compared to $5.80 in the prior year quarter. The improvement
was mainly due to lower cash cost per ounce of silver as discussed
above.
In Q1 Fiscal 2018, approximately 31,064 m or $0.7 million of underground diamond drilling
(Fiscal Q1 2017 – 16,498 m or $0.4
million) and 5,337 m or $1.4
million of preparation tunnelling (Fiscal Q1 2017 – 4,836 m
or $1.4 million) were completed and
expensed as mining preparation costs at the Ying Mining District.
In addition, approximately 18,890 m or $5.2
million of horizontal tunnel, raises and declines (Q1 Fiscal
2017 – 16,685 m or $4.9 million) were
completed and capitalized.
2. GC Mine, Guangdong
Province, China
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Operational
results - GC Mine
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Q1
2018
|
Q4
2017
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Q3
2017
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Q2
2017
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Q1
2017
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June 30,
2017
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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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Ore Mined
(tonne)
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64,865
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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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Ore Milled
(tonne)
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65,944
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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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Head
Grades
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Silver
(gram/tonne)
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98
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91
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89
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96
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99
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Lead
(%)
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1.6
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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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Zinc
(%)
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2.7
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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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Recovery
Rates
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Silver
(%)
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81.2
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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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Lead
(%)
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88.8
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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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Zinc
(%)
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80.9
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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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Metal
Sales
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Silver (in
thousands of ounce)
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189
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53
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179
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183
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149
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Lead (in thousands
of pound)
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2,147
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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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Zinc (in thousands
of pound)
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4,244
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455
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4,478
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4,106
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3,407
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Cash mining costs
($ per tonne)
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39.20
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37.91
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31.34
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28.61
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33.50
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Total mining costs
($ per tonne)
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46.99
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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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Cash milling costs
($ per tonne)
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16.73
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20.06
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13.09
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12.94
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15.60
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Total milling
costs ($ per tonne)
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19.85
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24.99
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15.50
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15.57
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18.81
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Cash production
costs ($ per tonne)
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55.93
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57.97
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44.43
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41.55
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49.10
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Cash costs per
ounce of silver ($)
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(7.80)
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(1.72)
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(13.11)
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(6.39)
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(0.28)
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All-in sustaining
costs per ounce of silver ($)
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(2.48)
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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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* Figures may not add
due to rounding
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In Q1 Fiscal 2018, the total ore mined at the GC Mine was 64,865
tonnes, comparable to 64,349 tonnes of mined in Q1 Fiscal
2017. Ore milled increased by 4% to 65,944 tonnes from 63,587
tonnes in the prior year quarter. Head grades were 98 g/t for
silver, 1.6% for lead, and 2.7% for zinc compared to 99 g/t for
silver, 1.5% for lead, and 2.9% for zinc in the prior year
quarter.
In Q1 Fiscal 2018, GC Mine sold 189 thousand ounces of silver,
2.1 million pounds of lead, 4.2 million pounds of zinc compared to
149 thousand ounces of silver, 1.9 million pounds of lead, and 3.4
million pounds of zinc sold in the prior year.
Total and cash mining costs per tonne at the GC Mine in Q1
Fiscal 2018 were $46.99 and
$39.20 per tonne, compared to
$41.91 and $33.50 per tonne in Q1 Fiscal 2017. The increase
in cash mining costs was mainly due to a 31% or $0.4 million increase in mining preparation costs
resulting from more underground drilling and tunnelling expensed in
the current quarter.
Total and cash milling costs per tonne at the GC Mine in Q1
Fiscal 2018 were $19.85 and
$16.73, compared to $18.81 and $15.60,
respectively, in Q1 Fiscal 2017. The slight increase in milling
costs was mainly due to additional efforts in improving the milling
recovery rates resulting in additional labor costs and material
consumption.
The cash production costs per tonne of ore processed in Q1
Fiscal 2018 at the GC Mine increased to $55.93 from $49.10
in the prior year quarter.
Cash costs per ounce of silver, net of by-product credits, at
the GC Mine, was negative $7.80
compared to negative $0.28 in the
prior year quarter. The decrease was mainly due to $2.8 million or 91% increase in by-product
credits as a 40% and 66% increase in net realized lead and zinc
selling prices and more lead and zinc metals sold at the GC
Mine.
All in sustaining costs per ounce of silver, net of by-product
credits, in Q1 Fiscal 2018 at the GC Mine was negative $2.48 compared to $4.76 in the prior year quarter as a 40% and 66%
increase in net realized lead and zinc selling prices and more lead
and zinc metals sold.
In Q1 Fiscal 2018, approximately 4,972 m or $0.3 million of underground diamond drilling (Q1
Fiscal 2017 – 3,309 m or $0.2
million) and 5,292 m or $1.3
million of tunnelling (Q1 Fiscal 2017 – 3,486 m or
$1.0 million) were completed and
expensed as mining preparation costs at the GC Mine. In addition,
approximately 158 m or $0.1 million
of horizontal tunnel, raises and declines (Q1 Fiscal 2017 – 582 m
or $0.2 million) were completed and
capitalized.
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 June
30,
|
|
As at March
31,
|
|
|
2017
|
|
2017
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
74,300
|
|
$
|
73,003
|
|
Short-term
investments
|
|
27,751
|
|
23,466
|
|
Trade and other
receivables
|
|
1,270
|
|
1,311
|
|
Inventories
|
|
9,344
|
|
8,710
|
|
Due from related
parties
|
|
37
|
|
92
|
|
Prepaids and
deposits
|
|
4,226
|
|
4,250
|
|
|
116,928
|
|
110,832
|
Non-current
Assets
|
|
|
|
|
|
Long-term prepaids
and deposits
|
|
868
|
|
959
|
|
Reclamation
deposits
|
|
5,139
|
|
5,054
|
|
Investment in an
associate
|
|
8,486
|
|
8,517
|
|
Other
investments
|
|
5,520
|
|
1,207
|
|
Plant and
equipment
|
|
65,536
|
|
65,201
|
|
Mineral rights and
properties
|
|
211,418
|
|
206,200
|
TOTAL
ASSETS
|
|
$
|
413,895
|
|
$
|
397,970
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
26,383
|
|
$
|
30,374
|
|
Deposits
received
|
|
7,754
|
|
6,798
|
|
Income tax
payable
|
|
2,138
|
|
2,985
|
|
|
36,275
|
|
40,157
|
Non-current
Liabilities
|
|
|
|
|
|
Deferred income tax
liabilities
|
|
28,938
|
|
27,692
|
|
Environmental
rehabilitation
|
|
12,486
|
|
12,186
|
Total
Liabilities
|
|
77,699
|
|
80,035
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Share
capital
|
|
232,159
|
|
232,155
|
|
Share option
reserve
|
|
13,727
|
|
13,325
|
|
Reserves
|
|
25,409
|
|
25,409
|
|
Accumulated other
comprehensive loss
|
|
(45,222)
|
|
(50,419)
|
|
Retained
earnings
|
|
51,909
|
|
42,651
|
Total equity
attributable to the equity holders of the Company
|
277,982
|
|
263,121
|
|
|
|
|
|
Non-controlling
interests
|
|
58,214
|
|
54,814
|
Total
Equity
|
|
336,196
|
|
317,935
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
413,895
|
|
$
|
397,970
|
SILVERCORP METALS
INC.
|
Consolidated
Statements of Income
|
(Unaudited -
Expressed in thousands of U.S. dollars, except for per share
figures)
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2017
|
2016
|
|
|
|
|
Sales
|
|
$
|
39,697
|
$
|
35,271
|
Cost of
sales
|
|
|
|
|
Production
costs
|
|
14,109
|
14,153
|
|
Mineral resource
taxes
|
|
1,111
|
411
|
|
Depreciation and
amortization
|
|
4,472
|
4,963
|
|
|
19,692
|
19,527
|
Gross
profit
|
|
20,005
|
15,744
|
|
|
|
|
General and
administrative
|
|
4,570
|
4,385
|
Government fees and
other taxes
|
|
841
|
1,695
|
Foreign exchange
loss
|
|
1,615
|
123
|
Loss on disposal of
plant and equipment
|
|
170
|
264
|
Gain on disposal of
NSR
|
|
(4,320)
|
-
|
Share of loss
(income) in associate
|
|
244
|
(17)
|
Impairment of plant
and equipment and mineral rights and properties
|
-
|
181
|
Other
income
|
|
(181)
|
(40)
|
Income from
operations
|
|
17,066
|
9,153
|
|
|
|
|
Finance
income
|
|
574
|
431
|
Finance
costs
|
|
(105)
|
(264)
|
Income before
income taxes
|
|
17,535
|
9,320
|
|
|
|
|
Income tax
expense
|
|
4,021
|
2,800
|
Net
income
|
|
$
|
13,514
|
$
|
6,520
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Equity holders of the
Company
|
|
$
|
10,937
|
$
|
4,674
|
|
Non-controlling
interests
|
|
2,577
|
1,846
|
|
|
$
|
13,514
|
$
|
6,520
|
|
|
|
|
Earnings per share
attributable to the equity holders of the Company
|
|
Basic earnings per
share
|
|
$
|
0.07
|
$
|
0.03
|
Diluted earnings
per share
|
|
$
|
0.06
|
$
|
0.03
|
Weighted Average
Number of Shares Outstanding - Basic
|
|
167,890,187
|
166,939,465
|
Weighted Average
Number of Shares Outstanding - Diluted
|
|
169,784,602
|
169,819,527
|
SILVERCORP METALS
INC.
|
Consolidated
Statements of Cash Flow
|
(Unaudited -
Expressed in thousands of U.S. dollars)
|
|
|
|
Three Months Ended
June 30,
|
|
2017
|
2016
|
Cash provided
by
|
|
|
Operating
activities
|
|
|
|
Net income
|
$
|
13,514
|
$
|
6,520
|
|
Add (deduct) items
not affecting cash:
|
|
|
|
|
Finance
costs
|
105
|
105
|
|
|
Depreciation,
amortization and depletion
|
4,752
|
5,320
|
|
|
Share of loss
(income) in associate
|
244
|
(17)
|
|
|
Gain on disposal of
NSR
|
(4,320)
|
-
|
|
|
Impairment of plant
and equipment and mineral rights and properties
|
-
|
181
|
|
|
Income tax
expense
|
4,021
|
2,800
|
|
|
Finance
income
|
(574)
|
(431)
|
|
|
Loss on disposal of
plant and equipment
|
170
|
264
|
|
|
Share-based
compensation
|
403
|
243
|
|
Income taxes (paid)
recovered
|
(4,137)
|
91
|
|
Interest
received
|
574
|
431
|
|
Interest
paid
|
-
|
(51)
|
|
Changes in non-cash
operating working capital
|
2,144
|
4,726
|
Net cash provided
by operating activities
|
16,896
|
20,182
|
|
|
|
Investing
activities
|
|
|
|
Mineral rights and
properties
|
|
|
|
|
Capital
expenditures
|
(5,911)
|
(5,020)
|
|
Plant and
equipment
|
|
|
|
|
Additions
|
(1,211)
|
(2,384)
|
|
|
Proceeds on
disposals
|
-
|
17
|
|
Reclamation deposit
paid
|
(4)
|
(385)
|
|
Net purchases of
short-term investments
|
(3,704)
|
(3,981)
|
Net cash used in
investing activities
|
(10,830)
|
(11,753)
|
|
|
|
Financing
activities
|
|
|
|
Non-controlling
interests
|
|
|
|
|
Distribution
|
(4,891)
|
-
|
|
Cash dividends
distributed
|
(1,679)
|
-
|
|
Proceeds from
issuance of common shares
|
3
|
215
|
Net cash used in
financing activities
|
(6,567)
|
215
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
1,798
|
(1,005)
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
1,297
|
7,639
|
Cash and cash
equivalents, beginning of the year
|
73,003
|
41,963
|
Cash and cash
equivalents, end of the year
|
$
|
74,300
|
$
|
49,602
|
SILVERCORP METALS
INC.
|
Mining
Data
|
(Unaudited -
Expressed in thousands of U.S. dollars)
|
|
|
|
Three months
ended June 30, 2017
|
|
|
|
Ying Mining
District1
|
GC2
|
Consolidated
|
|
|
|
|
|
|
Production
Data
|
|
|
|
|
Mine
Data
|
|
|
|
|
|
Ore Mined
(tonne)
|
160,408
|
64,865
|
225,273
|
|
|
Ore Milled
(tonne)
|
164,959
|
65,944
|
230,903
|
|
|
|
|
|
|
|
+
|
Mining costs
per tonne of ore mined ($)
|
76.67
|
46.99
|
68.12
|
|
|
|
Cash mining costs
per tonne of ore mined ($)
|
54.78
|
39.20
|
50.29
|
|
|
|
Non cash mining
costs per tonne of ore mined ($)
|
21.89
|
7.79
|
17.83
|
|
|
|
|
|
|
|
+
|
Unit
shipping costs ($)
|
4.08
|
-
|
2.87
|
|
|
|
|
|
|
|
+
|
Milling
costs per tonne of ore milled ($)
|
10.10
|
19.85
|
12.88
|
|
|
|
Cash milling costs
per tonne of ore milled ($)
|
8.07
|
16.73
|
10.54
|
|
|
|
Non cash milling
costs per tonne of ore milled ($)
|
2.03
|
3.12
|
2.34
|
|
|
|
|
|
|
|
+
|
Average
Production Costs
|
|
|
|
|
|
|
Silver ($ per
ounce)
|
5.74
|
7.03
|
6.24
|
|
|
|
Gold ($ per
ounce)
|
445
|
-
|
499
|
|
|
|
Lead ($ per
pound)
|
0.35
|
0.56
|
0.40
|
|
|
|
Zinc ($ per
pound)
|
0.41
|
0.62
|
0.44
|
|
|
|
Other ($ per
pound)
|
0.34
|
0.02
|
0.02
|
|
|
|
|
|
|
|
+
|
Total
production costs per ounce of Silver, net of by-product credits
($)
|
(0.23)
|
(3.33)
|
(0.62)
|
|
+
|
Total cash
costs per ounce of Silver, net of by-product credits
($)
|
(2.97)
|
(7.80)
|
(3.57)
|
|
|
|
|
|
|
|
+
|
All-in
sustaining costs per ounce of Silver, net of by-product credits
($)
|
3.66
|
(2.48)
|
4.70
|
|
+
|
All-in costs
per ounce of Silver, net of by-product credits
($)
|
3.96
|
0.51
|
5.33
|
|
|
|
|
|
|
|
|
Recovery
Rates
|
|
|
|
|
|
|
Silver
(%)
|
95.8
|
81.2
|
94.1
|
|
|
|
Lead
(%)
|
96.3
|
88.8
|
95.4
|
|
|
|
Zinc
(%)
|
45.8
|
80.9
|
66.2
|
|
|
|
|
|
|
|
|
Head
Grades
|
|
|
|
|
|
|
Silver
(gram/tonne)
|
304
|
98
|
245
|
|
|
|
Lead
(%)
|
4.6
|
1.6
|
3.7
|
|
|
|
Zinc
(%)
|
0.8
|
2.7
|
1.3
|
|
|
|
|
|
|
|
Concentrate
in stock
|
|
|
|
|
|
Lead concentrate
(tonne)
|
4,050
|
61
|
4,111
|
|
|
Zinc concentate
(tonne)
|
980
|
237
|
1,217
|
|
|
|
|
|
|
Sales
Data
|
|
|
|
|
Metal
Sales
|
|
|
|
|
|
Silver (in
thousands of ounces)
|
1,324
|
189
|
1,513
|
|
|
Gold (in thousands
of ounces)
|
0.9
|
-
|
0.9
|
|
|
Lead (in thousands
of pounds)
|
13,765
|
2,147
|
15,912
|
|
|
Zinc (in thousands
of pounds)
|
755
|
4,244
|
4,999
|
|
|
Other (in
thousands of pounds)
|
254
|
7,902
|
8,156
|
|
|
|
|
|
|
|
Metal
Sales
|
|
|
|
|
|
Silver (in
thousands of $)
|
18,204
|
1,979
|
20,183
|
|
|
Gold (in thousands
of $)
|
959
|
-
|
959
|
|
|
Lead (in thousands
of $)
|
11,647
|
1,801
|
13,448
|
|
|
Zinc (in thousands
of $)
|
739
|
3,942
|
4,681
|
|
|
Other (in
thousands of $)
|
208
|
218
|
426
|
|
|
|
31,757
|
7,940
|
39,697
|
|
Average
Selling Price, Net of Value Added Tax and Smelter
Charges
|
|
|
|
|
|
Silver ($ per
ounce)
|
13.75
|
10.47
|
13.34
|
|
|
Gold ($ per
ounce)
|
1,066
|
-
|
1,066
|
|
|
Lead ($ per
pound)
|
0.85
|
0.84
|
0.85
|
|
|
Zinc ($ per
pound)
|
0.98
|
0.93
|
0.94
|
|
|
|
|
|
|
1
|
Ying Mining District
includes mines: SGX, TLP, HPG,LM, BCG and HZG.
|
2
|
GC Silver recovery
rate consists of 60.5% from lead concentrates and 20.8% 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
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 costs per
tonne of ore mined ($)
|
78.64
|
41.91
|
68.70
|
|
|
Cash mining costs
per tonne of ore mined ($)
|
52.33
|
33.50
|
47.24
|
|
|
Non cash mining
costs per tonne of ore mined ($)
|
26.30
|
8.41
|
21.46
|
|
|
|
|
|
|
|
+
|
Unit shipping
costs($)
|
3.87
|
-
|
2.82
|
|
|
|
|
|
|
|
+
|
Milling costs per
tonne of ore milled ($)
|
12.25
|
18.81
|
14.05
|
|
|
Cash milling costs
per tonne of ore milled ($)
|
10.07
|
15.60
|
11.59
|
|
|
Non cash milling
costs per tonne of ore milled ($)
|
2.18
|
3.21
|
2.46
|
|
|
|
|
|
|
|
+
|
Average Production
Costs
|
|
|
|
|
|
|
Silver ($ 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
costs per ounce of Silver, net of by-product credits
($)
|
2.96
|
4.60
|
3.11
|
|
+
|
Total cash costs
per ounce of Silver, net of by-product credits ($)
|
0.12
|
(0.28)
|
0.08
|
|
|
|
|
|
|
|
+
|
All-in sustaining
costs per ounce of Silver, net of by-product credits
($)
|
5.80
|
4.76
|
7.06
|
|
+
|
All-in costs per
ounce of Silver, net of by-product credits ($)
|
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
|
|
|
|
|
|
|
|
Concentrate in
stock
|
|
|
|
|
|
Lead concentrate
(tonne)
|
3,669
|
55
|
3,724
|
|
|
Zinc concentate
(tonne)
|
280
|
133
|
413
|
|
|
|
|
|
|
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
|
|
|
Other (in
thousands of pounds)
|
-
|
8,186
|
8,186
|
|
|
|
|
|
|
|
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)
|
969
|
-
|
969
|
|
|
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 lower the net silver selling price.
|
SOURCE Silvercorp Metals Inc