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, 2018
(“Q1 Fiscal 2019”). All amounts are expressed in US Dollars.
Q1 FISCAL YEAR 2019
HIGHLIGHTS
- Sales of $45.1 million, up 14% or
$5.4 million compared to $39.7 million in the prior year
quarter;
- Net income attributable to equity
shareholders of $10.9 million, or $0.07 per share1, an effective
increase of $4.3 million or 65% over the prior year quarter, which
was $6.6 million or $0.04 per share after excluding a one-time
non-cash gain on disposal of NSR, which increased the actual net
income attributable to shareholders to $10.9 million or $0.07 per
share for that period;
- Gross profit margin of 55% compared
with 50% in the prior year quarter;
- Cash flow from operations of $21.1
million, an increase of $4.2 million or 25% compared to $16.9
million in the prior year quarter;
- Silver, lead, and zinc metals sold
amounted to approximately 1.5 million ounces silver, 14.9 million
pounds lead, and 6.4 million pounds zinc, compared to 1.5 million
ounces silver, 15.9 million pounds lead, and 5.0 million pounds
zinc in the prior year quarter. The ending inventories of
silver-lead concentrate were 5,650 tonnes (containing approximately
0.5 million ounces of silver and 6.2 million pounds of lead), an
increase of 39%, compared to 4,070 tonnes of silver-lead
concentrate inventories as at March 31, 2018;
- Cash cost per ounce of silver2, net
of by-product credits, of negative $7.54, compared to negative
$3.57 in the prior year quarter;
- All-in sustaining cost per ounce of
silver2, net of by-product credits, of $0.41, compared to $4.70 in
the prior year quarter;
- Paid dividend of $2.1 million, or
$0.0125 per share, to equity shareholders; and,
- Ended the quarter with $114.8
million in cash and cash equivalents and short-term investments, an
increase of $8.7 million or 8% compared to $106.1 million as at
March 31, 2018.
FINANCIALS
Net income attributable to equity
shareholders of the Company in Q1 Fiscal 2019 was $10.9
million, or basic earnings per share of $0.07, compared to $10.9
million, or $0.07 per share ($6.6 million or $0.04 per share if
excluding one-time non-cash gain on disposal of NSR) in Q1 Fiscal
2018.
Sales in Q1 Fiscal 2019 were
$45.1 million, up 14% compared to $39.7 million in the prior year
quarter. Silver and gold sales represented $19.8 million and $0.7
million, respectively, while base metals represented $24.6 million
of total sales compared to silver, gold and base metals sales of
$20.2 million, $1.0 million, and $18.6 million, respectively, in
the prior year quarter.
The Company’s financial results in Q1 Fiscal
2019 were mainly impacted by the following: i) an increase of 2%,
34%, and 23% in the net realized selling price for silver, lead,
and zinc, respectively; ii) slightly less silver and lead sold; and
iii) an 8% increase in consolidated cash production costs per tonne
of ore processed.
As at June 30, 2018, inventories of silver-lead
concentrate were 5,650 tonnes (containing approximately 0.5 million
ounces of silver and 6.2 million pounds of lead), an increase of
39% and 37%, respectively, compared to 4,070 tonnes and 4,111
tonnes of silver-lead concentrate inventories as at March 31, 2018
and June 30, 2017, respectively.
Cost of sales in Q1 Fiscal 2019
was $20.3 million compared to $19.7 million in Q1 Fiscal 2018. The
cost of sales included $14.3 million cash production costs (Q1
Fiscal 2018 - $14.1 million), $1.2 million mineral resources tax
(Q1 Fiscal 2018 - $1.1 million), and $4.7 million depreciation and
amortization charges (Q1 Fiscal 2018 - $4.5 million). The cash
production costs expensed in cost of sales represent approximately
206,800 tonnes of ore processed and expensed at costs of $69.05 per
tonne (Q1 Fiscal 2018 – approximately 221,500 tonnes at $63.70 per
tonne)
Gross profit
margin in Q1 Fiscal 2019 improved to 55%, compared
to 50% in Q1 Fiscal 2018. Ying Mining District’s gross profit
margin was 59% compared to a 56% gross profit margin in the prior
year quarter, while GC Mine’s gross profit margin was 39% compared
to a 30% gross profit margin in the prior year quarter.
General and
administrative expenses in Q1 Fiscal 2019 were
$4.5 million, a slight decrease compared to $4.6 million in Q1
Fiscal 2018.
Income tax expenses in Q1
Fiscal 2019 were $6.5 million compared to $4.0 million in Q1 Fiscal
2018. The income tax expenses recorded in Q1 Fiscal 2019 included
current income tax expenses of $5.9 million (Q1 Fiscal 2018 –
$3.2million) and deferred income tax expenses of $0.5 million (Q1
Fiscal 2018 – $0.8 million).
Cash flows provided by operating
activities in Q1 Fiscal 2019 were $21.1 million, an
increase of $4.2 million or 25%, compared to $16.9 million in the
prior year quarter. Before changes in non-cash operating working
capital3, cash flows provided by operating activities in Q1 Fiscal
2019 were $23.5 million, an increase of $8.8 million or 60%,
compared to $14.7 million in the prior year quarter.
The Company ended the quarter with $114.8
million in cash and short-term investments, an increase of $8.7
million or 8% compared to $106.1 million as at March 31, 2018.
Working capital as at June 30, 2018 was $94.1
million, an increase of $3.6 million or 4%, compared to $90.5
million working capital as at March 31, 2018.
OPERATIONS AND DEVELOPMENT
In Q1 Fiscal 2019, on a consolidated basis, the
Company mined 236,697 tonnes of ore, an increase of 5% compared to
225,273 tonnes in Q1 Fiscal 2018. The increase in ore mined was
mainly due to an increase of 23% or 15,102 tonnes at the GC Mine,
offset by a decrease of 2% or 3,678 tonnes at the Ying Mining
District. Ore milled were 237,740 tonnes, up by 3% compared to
230,903 tonnes of ore milled in Q1 Fiscal 2018.
In Q1 Fiscal 2019, the Company sold 1.5 million
ounces of silver, 700 ounces of gold, 14.9 million pounds of lead,
and 6.4 million pounds of zinc, compared to 1.5 million ounces of
silver, 900 ounces of gold, 15.9 million pounds of lead, and 5.0
million pounds of zinc, respectively, in Q1 Fiscal 2018. As at June
30, 2018, inventories of silver-lead concentrate were 5,650 tonnes
(containing approximately 0.5 million ounces of silver and 6.2
million pounds of lead), an increase of 39% and 37%, respectively,
compared to 4,070 tonnes and 4,111 tonnes of silver-lead
concentrate inventories as at March 31, 2018 and June 30, 2017,
respectively.
In Q1 Fiscal 2019, the consolidated total mining
costs and cash mining costs were $74.39 and $54.47 per tonne, up 9%
and 8% compared to $68.12 and $50.29 per tonne, respectively, in Q1
Fiscal 2018, but below the annual guidance the Company announced in
February 2018. The increase in cash mining costs compared to Q1
Fiscal 2018 was mainly due to: i) a $0.3 million increase in mining
contractor costs as ore mined by the resuing mining method
increased by 8% at the Ying Mining District; ii) a $0.4 million
increase in mining preparation costs resulting from more
underground drilling and preparation tunnelling expensed in the
current quarter; iii) a $0.4 million increase in raw material
supply costs; and iv) a $0.3 million increase in mining labour
costs.
The consolidated total milling costs and cash
milling costs in Q1 Fiscal 2019 were $14.16 and $11.73 per tonne,
compared to $12.88 and $10.54 per tonne, respectively, in Q1 Fiscal
2018. The increase in cash milling costs was mainly due to a $0.2
million increase in raw material supply costs.
Correspondingly, the consolidated cash
production costs per tonne of ore processed in Q1 Fiscal 2019
increased by 8% to $69.05 from $63.70 in the prior year quarter,
but below the annual guidance the Company provided in February
2018.
In Q1 Fiscal 2019, the consolidated total
production costs and cash costs per ounce of silver, net of
by-product credits, were negative $4.29 and negative $7.54 compared
to negative $0.62 and negative $3.57 respectively, in the prior
year quarter. The overall improvement in cash cost per ounce of
silver, net of by-product credits, is mainly due to a 30% increase
in by-product credits, mainly arising from a 34% and 23% increase
in lead and zinc net realized selling prices. Sales from lead and
zinc accounted for 54% of the total sales and amounted to $24.5
million, an increase of $6.4 million, compared to $18.1 million in
the prior year quarter.
The consolidated all-in sustaining cost per
ounce of silver, net of by-product credits, is $0.41 compared to
$4.70 in Q1 Fiscal 2018.
1. Ying Mining District, Henan Province,
China
| |
|
|
|
|
|
Operational results - Ying Mining District |
|
|
Q1 2019 |
|
Q4
2018 |
|
Q3
2018 |
|
Q2
2018 |
|
Q1
2018 |
|
|
|
June 30,
2018 |
|
March 31, 2018 |
|
December 31, 2017 |
|
September 30, 2017 |
|
June 30, 2017 |
|
|
Ore Mined
(tonne) |
156,730 |
|
113,820 |
|
166,619 |
|
173,294 |
|
160,408 |
|
|
Ore Milled
(tonne) |
155,929 |
|
112,285 |
|
167,543 |
|
173,946 |
|
164,959 |
|
|
Head
Grades |
|
|
|
|
|
|
Silver
(gram/tonne) |
323 |
|
309 |
|
315 |
|
294 |
|
304 |
|
|
Lead
(%) |
4.5 |
|
4.3 |
|
4.5 |
|
4.3 |
|
4.6 |
|
|
Zinc
(%) |
1.1 |
|
1.0 |
|
1.0 |
|
0.8 |
|
0.8 |
|
|
Recoveries |
|
|
|
|
|
|
Silver
(%) |
96.0 |
|
95.9 |
|
95.8 |
|
95.6 |
|
95.8 |
|
|
Lead
(%) |
96.3 |
|
96.5 |
|
96.4 |
|
96.2 |
|
96.3 |
|
|
Zinc
(%) |
54.5 |
|
54.5 |
|
57.3 |
|
50.7 |
|
45.8 |
|
|
Metal
Sales |
|
|
|
|
|
|
Silver (in thousands of
ounce) |
1,313 |
|
1,319 |
|
1,322 |
|
1,472 |
|
1,324 |
|
|
Gold (in thousands of
ounce) |
0.7 |
|
0.7 |
|
0.7 |
|
0.8 |
|
0.9 |
|
|
Lead (in thousands of
pound) |
13,313 |
|
12,649 |
|
13,487 |
|
15,279 |
|
13,765 |
|
|
Zinc (in thousands of
pound) |
2,133 |
|
1,106 |
|
2,006 |
|
2,269 |
|
755 |
|
|
Cash mining costs ($ per
tonne) |
63.49 |
|
65.88 |
|
66.71 |
|
59.67 |
|
54.78 |
|
|
Total mining costs ($ per
tonne) |
89.57 |
|
92.81 |
|
90.12 |
|
81.20 |
|
76.67 |
|
|
Cash milling costs ($ per
tonne) |
10.30 |
|
12.59 |
|
9.84 |
|
8.50 |
|
8.07 |
|
|
Total milling costs ($ per
tonne) |
12.60 |
|
15.80 |
|
11.87 |
|
10.45 |
|
10.10 |
|
|
Cash production costs ($ per
tonne) |
78.10 |
|
82.84 |
|
80.60 |
|
71.85 |
|
66.93 |
|
| |
|
|
|
|
|
|
Cash costs per ounce of silver
($) |
(6.25 |
) |
(3.41 |
) |
(4.53 |
) |
(4.27 |
) |
(2.97 |
) |
|
All-in sustaining costs per ounce of
silver ($) |
(0.28 |
) |
1.39 |
|
2.13 |
|
1.08 |
|
3.66 |
|
| |
|
|
|
|
|
In Q1 Fiscal 2019, the total ore mined at the
Ying Mining District was 156,730 tonnes, a decrease of 2%, compared
to 160,408 tonnes mined in the prior year quarter. The decrease was
mainly due to a tailings leak incident reported on April 16, 2018
resulting in operating activities at the Ying Mining District being
interrupted for more than fifteen days.
Head grades were 323 grams per ton (“g/t”) for
silver, 4.5% for lead, and 1.1% for zinc, compared to 304 g/t for
silver, 4.6% for lead and 0.8% for zinc in the prior year quarter.
The Company continues to achieve improvements in dilution control
using its “Enterprise Blog” to assist and manage daily operations
and the higher grade justified more use of the resuing mining
method.
In Q1 Fiscal 2019, the Ying Mining District sold
approximately 1.3 million ounces silver, 13.3 million pounds lead,
and 2.1 million pounds zinc, compared to 1.3 million ounces silver,
13.8 million pounds lead, and 0.8 million pounds of zinc in the
prior year quarter.
As at June 30, 2018, silver-lead concentrate
inventories at the Ying Mining District were 5,250 tonnes
containing approximately 0.5 million ounces of silver and 6.0
million pounds of lead, an increase of 30% compared to 4,050 tonnes
silver-lead concentrate inventories as at March 31, 2018 and June
30, 2017.
Total and cash mining costs per tonne at the
Ying Mining District in Q1 Fiscal 2019 were $89.57 and $63.49 per
tonne, respectively, compared to $76.67 and $54.78 per tonne in the
prior year quarter. The increase in cash mining costs was mainly
due to: i) a $0.3 million increase in mining contractor costs as
ore mined by the resuing mining method increased by 8%; ii) a $0.1
million increase in mining preparation costs mainly resulting from
4% more preparation tunnelling expensed; iii) a $0.4 million
increase in raw material supply costs; and iv) a $0.2 million
increase in mining labour costs.
Total and cash milling costs per tonne at the
Ying Mining District in Q1 Fiscal 2019 were $12.60 and $10.30,
compared to $10.10 and $8.07 in Q1 Fiscal 2018. The increase in
cash milling costs was mainly due to: i) a $0.1 million increase in
labour costs; ii) a $0.1 million increase in raw material costs;
and iii) higher per tonne fixed costs allocation resulting from
lower ore milled and the leakage incident.
Correspondingly, cash production cost per tonne
of ore processed in Q1 Fiscal 2019 at the Ying Mining District was
$78.10, compared to $66.93 in the prior year quarter.
Cash cost per ounce of silver, net of by-product
credits, in Q1 Fiscal 2019 at the Ying Mining District, was
negative $6.25 compared to negative $2.97 in the prior year
quarter. The improvement was mainly due to a $5.1 million or 37%
increase in by-product credits offset by the 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 2019 at the Ying Mining
District was negative $0.28 compared to $3.66 in the prior year
quarter. The improvement was mainly due to lower cash cost per
ounce of silver as discussed above.
In Q1 Fiscal 2019, approximately 26,849 metres
or $0.6 million worth of underground diamond drilling (Q1 Fiscal
2018 – 31,064 metres or $0.7 million) and 5,541 metres or $1.6
million worth of preparation tunnelling (Q1 Fiscal 2018 – 5,337
metres or $1.4 million) were completed and expensed as mining
preparation costs at the Ying Mining District. In addition,
approximately 16,928 metres or $6.0 million worth of horizontal
tunnel, raises, ramps, and declines (Q1 Fiscal 2018 – 18,890 metres
or $5.2 million) were completed and capitalized.
2. GC Mine, Guangdong Province,
China
| |
|
|
|
|
|
| Operational
results - GC Mine |
Q1 2019 |
|
Q4
2018 |
|
Q3
2018 |
|
Q2
2018 |
|
Q1
2018 |
|
|
|
June 30, 2018 |
|
March 31, 2018 |
|
December 31, 2017 |
|
September 30, 2017 |
|
June 30, 2017 |
|
|
Ore Mined
(tonne) |
79,967 |
|
29,442 |
|
85,665 |
|
65,812 |
|
64,865 |
|
|
Ore Milled
(tonne) |
81,811 |
|
26,252 |
|
88,494 |
|
63,648 |
|
65,944 |
|
|
Head
Grades |
|
|
|
|
|
|
Silver
(gram/tonne) |
87 |
|
96 |
|
97 |
|
102 |
|
98 |
|
|
Lead
(%) |
1.3 |
|
1.3 |
|
1.4 |
|
1.4 |
|
1.6 |
|
|
Zinc
(%) |
2.9 |
|
2.9 |
|
2.8 |
|
2.8 |
|
2.7 |
|
|
Recovery
Rates |
|
|
|
|
|
|
Silver
(%) |
75.3 |
|
76.3 |
|
73.6 |
|
74.4 |
|
81.2 |
|
|
Lead
(%) |
87.1 |
|
87.5 |
|
83.9 |
|
82.8 |
|
88.8 |
|
|
Zinc
(%) |
84.8 |
|
85.7 |
|
81.3 |
|
81.6 |
|
80.9 |
|
|
Metal
Sales |
|
|
|
|
|
|
Silver (in thousands of
ounce) |
150 |
|
63 |
|
196 |
|
155 |
|
189 |
|
|
Lead (in thousands of
pound) |
1,583 |
|
688 |
|
2,263 |
|
1,656 |
|
2,147 |
|
|
Zinc (in thousands of
pound) |
4,244 |
|
1,479 |
|
4,399 |
|
3,311 |
|
4,244 |
|
|
Cash mining cost ($ per
tonne) |
36.78 |
|
45.92 |
|
35.48 |
|
34.60 |
|
39.20 |
|
|
Total mining cost ($ per
tonne) |
44.62 |
|
57.47 |
|
43.10 |
|
42.62 |
|
46.99 |
|
|
Cash milling cost ($ per
tonne) |
14.46 |
|
25.07 |
|
14.09 |
|
14.63 |
|
16.73 |
|
|
Total milling cost ($ per
tonne) |
17.14 |
|
33.41 |
|
16.45 |
|
17.90 |
|
19.85 |
|
|
Cash production cost ($ per
tonne) |
51.24 |
|
70.99 |
|
49.57 |
|
49.23 |
|
55.93 |
|
| |
|
|
|
|
|
|
Cash cost per ounce of silver
($) |
(18.81 |
) |
(13.95 |
) |
(15.34 |
) |
(13.56 |
) |
(7.80 |
) |
|
All-in sustaining cost per ounce of
silver ($) |
(11.36 |
) |
(4.57 |
) |
(4.52 |
) |
(3.77 |
) |
(2.48 |
) |
| |
|
|
|
|
|
In Q1 Fiscal 2019, the total ore mined at the GC
Mine was 79,967 tonnes, an increase of 23% compared to 64,865
tonnes mined in the prior year quarter, while ore milled increased
by 24% to 81,811 tonnes from 65,944 tonnes in the prior year
quarter. Head grades were 87 g/t for silver, 1.3% for lead, and
2.9% for zinc compared to 98 g/t for silver, 1.6% for lead, and
2.7% for zinc in the prior year quarter.
In Q1 Fiscal 2019, GC Mine sold approximately
150 thousand ounces of silver, 1.6 million pounds of lead, and 4.2
million pounds of zinc, compared to 189 thousand ounces of silver,
2.1 million pounds of lead, and 4.2 million pounds of zinc sold in
the prior year quarter.
Total and cash mining costs per tonne at the GC
Mine in Q1 Fiscal 2019 were $44.62 and $36.78 per tonne, a decrease
of 5% and 6% respectively, compared to $46.99 and $39.20 per tonne
in Q1 Fiscal 2018. Total and cash milling costs per tonne at the GC
Mine in Q1 Fiscal 2019 were $17.14 and $14.46, compared to $19.85
and $16.73, respectively, in Q1 Fiscal 2018. The decrease in cash
mining costs and cash milling costs was mainly due to lower per
tonne fixed costs allocation resulting from the increase in ore
mined and milled.
The cash production cost per tonne of ore
processed in Q1 Fiscal 2019 at the GC Mine was $51.24, a decrease
of 8% compared to $55.93 in the prior year quarter.
Cash costs per ounce of silver, net of
by-product credits, at the GC Mine, was negative $18.81 compared to
negative $7.80 in the prior year quarter. The improvement was
mainly due to the 8% improvement in cash production costs per tonne
as discussed above and an increase of $0.7 million in by-product
credits at the GC Mine.
All in sustaining costs per ounce of silver, net
of by-product credits, in Q1 Fiscal 2019 at the GC Mine was
negative $11.36 compared to negative $2.48 in the prior year
quarter, and the improvement was mainly due to the improvement in
the cash costs, per ounce of silver, net of by-product credits as
discussed above.
In Q1 Fiscal 2019, approximately 7,999 metres or
$0.4 million worth of underground diamond drilling (Q1 Fiscal 2018
– 4,972 metres or $0.3 million) and 5,241 metres or $1.6 million
worth of tunnelling (Q1 Fiscal 2018 – 5,292 metres or $1.3 million)
were completed and expensed as mining preparation costs at the GC
Mine. In addition, approximately 538 metres or $0.5 million worth
of horizontal tunnel, raises, ramps and declines (Q1 Fiscal 2018
–158 metres or $0.1 million) were completed and capitalized.
Mr. Guoliang Ma, P.Geo., Manager of Exploration
and Resource of the Company, 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 under
the Company’s profile 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 underdeveloped projects with resource potential and
the ability to grow organically. For more information, please visit
our website at www.silvercorp.ca.
For further information
Silvercorp Metals Inc.Lorne Waldman Senior Vice
PresidentPhone: (604) 669-9397Toll Free 1(888) 224-1881Email:
investor@silvercorp.caWebsite: www.silvercorp.ca
CAUTIONARY DISCLAIMER - FORWARD-LOOKING
STATEMENTS
Certain of the statements and information in
this news release constitute “forward-looking statements” within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and “forward-looking information” within the
meaning of applicable Canadian provincial securities laws
(collectively, “forward-looking statements”). Any 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. Forward-looking statements relate to,
among other things: the price of silver and other metals; the
accuracy of mineral resource and mineral reserve estimates at the
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 are subject to a
variety of known and unknown risks, uncertainties and other factors
that could cause actual events or results to differ from those
reflected in the forward-looking statements, including, without
limitation, risks relating to: 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; 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.
Forward-looking statements are statements about the future and are
inherently uncertain, and actual achievements of the Company or
other future events or conditions may differ materially from those
reflected in the forward-looking statements 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.
The Company’s forward-looking statements are
based on the assumptions, beliefs, expectations and opinions of
management as of the date of this news release, and other than as
required by applicable securities laws, the Company does not assume
any obligation to update forward-looking statements if
circumstances or management’s assumptions, beliefs, expectations or
opinions should change, or changes in any other events affecting
such statements. For the reasons set forth above, investors should
not place undue reliance on forward-looking statements.
_________________
1 Earnings per share refers to basic earnings per share2 Non
IFRS measure, please refer to section 10 of the corresponding
MD&A for reconciliation3 Non-IFRS measure
|
|
|
|
|
|
SILVERCORP METALS INC. Consolidated
Statements of Financial Position |
|
|
|
|
(Unaudited - Expressed in thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
As at June 30, |
|
|
As at March 31, |
|
|
|
|
2018 |
|
|
|
2018 |
|
|
ASSETS |
|
|
|
| Current
Assets |
|
|
|
| Cash and
cash equivalents |
$ |
72,869 |
|
|
$ |
49,199 |
|
|
Short-term investments |
|
41,949 |
|
|
|
56,910 |
|
| Trade and
other receivables |
|
480 |
|
|
|
676 |
|
|
Inventories |
|
13,304 |
|
|
|
11,018 |
|
| Due from
a related party |
|
19 |
|
|
|
11 |
|
| Income
tax receivable |
|
- |
|
|
|
534 |
|
|
Prepaids and deposits |
|
5,283 |
|
|
|
4,456 |
|
| |
|
133,904 |
|
|
|
122,804 |
|
| Non-current
Assets |
|
|
|
| Long-term
prepaids and deposits |
|
1,015 |
|
|
|
954 |
|
|
Reclamation deposits |
|
5,431 |
|
|
|
5,712 |
|
|
Investment in an associate |
|
37,191 |
|
|
|
38,001 |
|
| Other
investments |
|
6,108 |
|
|
|
6,132 |
|
| Plant and
equipment |
|
68,105 |
|
|
|
71,211 |
|
| Mineral
rights and properties |
|
222,862 |
|
|
|
232,080 |
|
|
TOTAL ASSETS |
$ |
474,616 |
|
|
$ |
476,894 |
|
| |
|
|
|
| LIABILITIES AND
EQUITY |
|
|
|
| Current
Liabilities |
|
|
|
| Accounts
payable and accrued liabilities |
$ |
30,044 |
|
|
$ |
25,198 |
|
| Bank
Loan |
|
4,541 |
|
|
|
- |
|
| Deposits
received |
|
2,953 |
|
|
|
6,806 |
|
|
Income tax payable |
|
2,215 |
|
|
|
303 |
|
| |
|
39,753 |
|
|
|
32,307 |
|
| Non-current
Liabilities |
|
|
|
| Deferred
income tax liabilities |
|
32,175 |
|
|
|
33,310 |
|
|
Environmental rehabilitation |
|
12,563 |
|
|
|
13,098 |
|
|
Total Liabilities |
|
84,491 |
|
|
|
78,715 |
|
| |
|
|
|
|
Equity |
|
|
|
| Share
capital |
|
229,416 |
|
|
|
228,729 |
|
| Share
option reserve |
|
14,961 |
|
|
|
14,690 |
|
|
Reserves |
|
25,409 |
|
|
|
25,409 |
|
|
Accumulated other comprehensive loss |
|
(39,500 |
) |
|
|
(25,875 |
) |
|
Retained earnings |
|
95,109 |
|
|
|
86,283 |
|
| Total equity
attributable to the equity holders of the Company |
|
325,395 |
|
|
|
329,236 |
|
| |
|
|
|
| Non-controlling
interests |
|
64,730 |
|
|
|
68,943 |
|
|
Total Equity |
|
390,125 |
|
|
|
398,179 |
|
| |
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
$ |
474,616 |
|
|
$ |
476,894 |
|
| |
|
|
|
|
|
|
|
|
|
| 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, |
|
|
|
|
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
45,125 |
|
$ |
39,697 |
|
|
|
|
Cost of sales |
|
|
|
|
|
|
Production costs |
|
|
14,277 |
|
|
14,109 |
|
|
|
| Mineral
resource taxes |
|
|
1,249 |
|
|
1,111 |
|
|
|
|
Depreciation and amortization |
|
|
4,748 |
|
|
4,472 |
|
|
|
|
|
|
|
20,274 |
|
|
19,692 |
|
|
|
|
Gross profit |
|
|
24,851 |
|
|
20,005 |
|
|
|
|
|
|
|
|
|
|
| General
and administrative |
|
|
4,472 |
|
|
4,570 |
|
|
|
|
Government fees and other taxes |
|
|
802 |
|
|
841 |
|
|
|
| Foreign
exchange (gain) loss |
|
|
(788 |
) |
|
1,615 |
|
|
|
| Loss on
disposal of plant and equipment |
|
|
10 |
|
|
170 |
|
|
|
| Gain on
disposal of NSR |
|
|
- |
|
|
(4,320 |
) |
|
|
| Share of
loss in associate |
|
|
279 |
|
|
244 |
|
|
|
|
Other expense (income) |
|
|
63 |
|
|
(181 |
) |
|
|
|
Income from operations |
|
|
20,013 |
|
|
17,066 |
|
|
|
|
|
|
|
|
|
|
| Finance
income |
|
|
796 |
|
|
574 |
|
|
|
|
Finance costs |
|
|
(134 |
) |
|
(105 |
) |
|
|
|
Income before income taxes |
|
|
20,675 |
|
|
17,535 |
|
|
|
| |
|
|
|
|
|
|
Income tax expense |
|
|
6,498 |
|
|
4,021 |
|
|
|
|
Net income |
|
$ |
14,177 |
|
$ |
13,514 |
|
|
|
| |
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
| Equity
holders of the Company |
|
$ |
10,921 |
|
$ |
10,937 |
|
|
|
|
Non-controlling interests |
|
|
3,256 |
|
|
2,577 |
|
|
|
|
|
|
$ |
14,177 |
|
$ |
13,514 |
|
|
|
| |
|
|
|
|
|
| Earnings per
share attributable to the equity holders of the
Company |
|
|
|
|
|
|
Basic earnings per share |
|
$ |
0.07 |
|
$ |
0.07 |
|
|
|
|
Diluted earnings per share |
|
$ |
0.06 |
|
$ |
0.06 |
|
|
|
|
Weighted Average Number of Shares Outstanding -
Basic |
|
|
167,263,945 |
|
|
167,890,187 |
|
|
|
|
Weighted Average Number of Shares Outstanding -
Diluted |
|
|
170,230,705 |
|
|
169,784,602 |
|
|
|
| |
|
|
|
|
|
|
|
|
| SILVERCORP METALS INC.
Consolidated Statements of Cash Flow |
|
(Unaudited - Expressed in thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
2018 |
|
|
2017 |
|
| Cash provided
by |
|
|
| Operating
activities |
|
|
| Net
income |
$ |
14,177 |
|
$ |
13,514 |
|
| Add
(deduct) items not affecting cash: |
|
|
| Finance
costs |
|
134 |
|
|
105 |
|
|
Depreciation, amortization and depletion |
|
5,053 |
|
|
4,752 |
|
| Share of
loss (income) in associate |
|
279 |
|
|
244 |
|
| Gain on
disposal of NSR |
|
- |
|
|
(4,320 |
) |
| Income
tax expense |
|
6,498 |
|
|
4,021 |
|
| Finance
income |
|
(796 |
) |
|
(574 |
) |
| Loss on
disposal of plant and equipment |
|
10 |
|
|
170 |
|
|
Share-based compensation |
|
456 |
|
|
403 |
|
|
Reclamation |
|
(4 |
) |
|
(4 |
) |
| Income
taxes paid |
|
(3,088 |
) |
|
(4,137 |
) |
| Interest
received |
|
796 |
|
|
574 |
|
| Changes
in non-cash operating working capital |
|
(2,367 |
) |
|
2,144 |
|
|
Net cash provided by operating activities |
|
21,148 |
|
|
16,892 |
|
| |
|
|
| Investing
activities |
|
|
| Mineral
rights and properties |
|
|
| Capital
expenditures |
|
(5,729 |
) |
|
(5,911 |
) |
| Plant and
equipment |
|
|
|
Additions |
|
(1,221 |
) |
|
(1,211 |
) |
| Proceeds
on disposals |
|
27 |
|
|
- |
|
| Net
redemption (purchases) of short-term investments |
|
13,262 |
|
|
(3,704 |
) |
|
Net cash used in investing activities |
|
6,339 |
|
|
(10,826 |
) |
| |
|
|
| Financing
activities |
|
|
| Bank
loan |
|
|
|
Proceeds |
|
4,527 |
|
|
- |
|
|
Non-controlling interests |
|
|
|
Distribution |
|
(3,329 |
) |
|
(4,891 |
) |
| Cash
dividends distributed |
|
(2,095 |
) |
|
(1,679 |
) |
| Proceeds
from issuance of common shares |
|
502 |
|
|
3 |
|
|
Net cash used in financing activities |
|
(395 |
) |
|
(6,567 |
) |
|
Effect of exchange rate changes on cash and cash
equivalents |
|
(3,422 |
) |
|
1,798 |
|
| |
|
|
|
Increase in cash and cash equivalents |
|
23,670 |
|
|
1,297 |
|
|
Cash and cash equivalents, beginning of the
period |
|
49,199 |
|
|
73,003 |
|
|
Cash and cash equivalents, end of the period |
$ |
72,869 |
|
$ |
74,300 |
|
| |
|
|
| |
|
|
|
|
|
| SILVERCORP METALS INC. Mining
Data |
| (Expressed
in thousands of U.S. dollars, except for mining data figures)
|
| |
|
|
|
|
|
| |
|
|
Three
months ended June 30,
2018 |
| |
|
|
Ying Mining
District1 |
GC2 |
Consolidated |
| |
|
|
|
|
|
|
Production Data |
|
|
|
| |
Mine
Data |
|
|
|
| |
|
Ore Mined
(tonne) |
156,730 |
|
79,967 |
|
236,697 |
|
| |
|
Ore Milled
(tonne) |
155,929 |
|
81,811 |
|
237,740 |
|
| |
|
|
|
|
|
| |
+ |
Mining cost per tonne of ore mined
($) |
89.57 |
|
44.62 |
|
74.39 |
|
| |
|
Cash mining cost per tonne of ore
mined ($) |
63.49 |
|
36.78 |
|
54.47 |
|
| |
|
Non cash mining cost per tonne of
ore mined ($) |
26.08 |
|
7.84 |
|
19.92 |
|
| |
|
|
|
|
|
| |
+ |
Unit shipping
costs($) |
4.31 |
|
- |
|
2.85 |
|
| |
|
|
|
|
|
| |
+ |
Milling cost per tonne of ore milled
($) |
12.60 |
|
17.14 |
|
14.16 |
|
| |
|
Cash milling cost per tonne of ore
milled ($) |
10.30 |
|
14.46 |
|
11.73 |
|
| |
|
Non cash milling cost per tonne of
ore milled ($) |
2.30 |
|
2.68 |
|
2.43 |
|
| |
|
|
|
|
|
| |
+ |
Average Production
Cost |
|
|
|
| |
|
Silver ($ per ounce) |
5.42 |
|
5.65 |
|
5.71 |
|
| |
|
Gold ($ per ounce) |
383 |
|
- |
|
417 |
|
| |
|
Lead ($ per pound) |
0.44 |
|
0.65 |
|
0.48 |
|
| |
|
Zinc ($ per pound) |
0.46 |
|
0.66 |
|
0.49 |
|
| |
|
Other ($ per pound) |
0.48 |
|
- |
|
0.02 |
|
| |
|
|
|
|
|
| |
+ |
Total production cost per ounce of Silver, net of
by-product credits ($) |
(3.26 |
) |
(13.28 |
) |
(4.29 |
) |
| |
+ |
Total cash cost per ounce of Silver, net of by-product
credits ($) |
(6.25 |
) |
(18.81 |
) |
(7.54 |
) |
| |
|
|
|
|
|
| |
+ |
All-in sustaining cost per ounce of Silver, net of
by-product credits ($) |
(0.28 |
) |
(11.36 |
) |
0.41 |
|
| |
+ |
All-in cost per ounce of Silver, net of by-product credits
($) |
0.81 |
|
(11.36 |
) |
1.55 |
|
| |
|
|
|
|
|
| |
|
Recovery Rates |
|
|
|
| |
|
Silver
(%) |
96.0 |
|
75.3 |
|
93.4 |
|
| |
|
Lead
(%) |
96.3 |
|
87.1 |
|
95.1 |
|
| |
|
Zinc (%) |
54.5 |
|
84.8 |
|
72.3 |
|
| |
|
|
|
|
|
| |
|
Head Grades |
|
|
|
| |
|
Silver (gram/tonne) |
323 |
|
87 |
|
242 |
|
| |
|
Lead
(%) |
4.5 |
|
1.3 |
|
3.4 |
|
| |
|
Zinc (%) |
1.1 |
|
2.9 |
|
1.7 |
|
| |
|
|
|
|
|
| Concentrate in
stock |
|
|
|
| |
|
Lead concentrate
(tonne) |
5,250 |
|
400 |
|
5,650 |
|
| |
|
Zinc concentate
(tonne) |
200 |
|
180 |
|
380 |
|
| |
|
|
|
|
|
|
Sales Data |
|
|
|
| Metal Sales |
|
|
|
| |
|
Silver (in thousands of
ounces) |
1,313 |
|
150 |
|
1,463 |
|
| |
|
Gold (in thousands of
ounces) |
0.7 |
|
- |
|
0.7 |
|
| |
|
Lead (in thousands of
pounds) |
13,313 |
|
1,583 |
|
14,896 |
|
| |
|
Zinc (in thousands of
pounds) |
2,133 |
|
4,244 |
|
6,377 |
|
| |
|
Other (in thousands of
pounds) |
108 |
|
3,794 |
|
3,902 |
|
| |
|
|
|
|
|
| Metal Sales |
|
|
|
| |
|
Silver (in thousands of
$) |
18,350 |
|
1,473 |
|
19,823 |
|
| |
|
Gold (in thousands of
$) |
692 |
|
- |
|
692 |
|
| |
|
Lead (in thousands of
$) |
15,275 |
|
1,776 |
|
17,051 |
|
| |
|
Zinc (in thousands of
$) |
2,516 |
|
4,896 |
|
7,412 |
|
| |
|
Other (in thousands of
$) |
134 |
|
13 |
|
147 |
|
| |
|
|
36,967 |
|
8,158 |
|
45,125 |
|
| Average Selling Price, Net of Value Added Tax and
Smelter Charges |
|
|
|
| |
|
Silver ($ per ounce) |
13.98 |
|
9.82 |
|
13.55 |
|
| |
|
Gold ($ per ounce) |
989 |
|
- |
|
989 |
|
| |
|
Lead ($ per pound) |
1.15 |
|
1.12 |
|
1.14 |
|
| |
|
Zinc ($ per pound) |
1.18 |
|
1.15 |
|
1.16 |
|
| |
|
|
|
|
|
| |
1 Ying
Mining District includes mines: SGX, TLP, HPG,LM, BCG and HZG. |
|
|
|
| |
2 GC Silver
recovery rate consists of 49.6% from lead concentrates and 25.7%
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) |
| |
|
|
|
| |
|
|
Three months ended June 30, 2017 |
| |
|
|
Ying Mining
District1 |
GC2 |
Total |
| |
|
|
|
|
|
|
Production Data |
|
|
|
| |
Mine Data |
|
|
|
| |
|
Ore Mined (tonne) |
160,408 |
|
64,865 |
|
225,273 |
|
| |
|
Ore Milled (tonne) |
164,959 |
|
65,944 |
|
230,903 |
|
| |
|
|
|
|
|
| |
+ |
Mining cost per tonne of ore mined ($) |
76.67 |
|
46.99 |
|
68.12 |
|
| |
|
Cash mining cost per tonne of ore mined
($) |
54.78 |
|
39.20 |
|
50.29 |
|
| |
|
Non cash mining cost per tonne of ore mined
($) |
21.89 |
|
7.93 |
|
17.83 |
|
| |
|
|
|
|
|
| |
+ |
Unit shipping costs($) |
4.08 |
|
- |
|
2.87 |
|
| |
|
|
|
|
|
| |
+ |
Milling cost per tonne of ore milled
($) |
10.10 |
|
19.85 |
|
12.88 |
|
| |
|
Cash milling cost per tonne of ore milled
($) |
8.07 |
|
16.73 |
|
10.54 |
|
| |
|
Non cash milling cost per tonne of ore milled
($) |
2.03 |
|
3.12 |
|
2.34 |
|
| |
|
|
|
|
|
| |
+ |
Average Production Cost |
|
|
|
| |
|
Silver ($ 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 cost per ounce of Silver, net of
by-product credits ($) |
(0.23 |
) |
(3.33 |
) |
(0.62 |
) |
| |
+ |
Total cash cost per ounce of Silver, net of by-product
credits ($) |
(2.97 |
) |
(7.80 |
) |
(3.57 |
) |
| |
|
|
|
|
|
| |
+ |
All-in sustaining cost per ounce of Silver, net of
by-product credits ($) |
3.66 |
|
(2.48 |
) |
4.70 |
|
| |
+ |
All-in cost per ounce of Silver, net of by-product credits
($) |
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 pound) |
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. |
| |
+ Mineral
resources tax was excluded from production costs, but presented as
a separate line item on the consolidated statements of income |
| |
|
Silvercorp Metals (AMEX:SVM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Silvercorp Metals (AMEX:SVM)
Historical Stock Chart
From Apr 2023 to Apr 2024
