SVM Silvercorp Metals Inc

Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX/NYSE American: SVM) reported its financial and operating results for the second quarter ended September 30, 2019 (“Q2 Fiscal 2020”).  All amounts are expressed in US Dollars.

Q2 FISCAL YEAR 2020 HIGHLIGHTS

• Ore milled up 11% compared to the prior year quarter;
• Produced and sold approximately 1.9 million ounces of silver, 1,100 ounces of gold, 19.1 million pounds of lead, and 6.7 million pounds of zinc, compared to 1.9 million ounces of silver, 1,000 ounces of gold, 19.4 million pounds of lead, and 4.9 million pounds of zinc in the prior year quarter;
• Revenue up 4% to $49.9 million compared to the prior year quarter;
• Net income attributable to equity shareholders of $12.2 million, or $0.07 per share, up 52% compared to $8.0 million, or $0.05 per share in the prior year quarter;
• Cash production cost per tonne of ore processed1 of $65.73, down 1%, compared to $66.33 in the prior year quarter; 
• Cash cost per ounce of silver1, net of by-product credits, of negative $2.72, up 20% compared to negative $3.37 in the prior year quarter;
• All-in sustaining cost per ounce of silver1, net of by-product credits, of $4.15, up 63% compared to $2.54 in the prior year quarter;
• Cash flow from operations of $26.2 million, up 24% compared to $21.1 million in the prior year quarter;
• Strong balance sheet with $135.2 million in cash and cash equivalents and short-term investments, an increase of $19.9 million or 17%, compared to $115.3 million as at March 31, 2019; and,
• Ended the quarter with inventories of 4,176 tonnes of silver-lead concentrate and 586 tonnes of zinc concentrate, up 28% and 59%, respectively, compared to 3,248 tonnes of silver-lead concentrate and 586 tonnes of zinc concentrate as at March 31, 2019.

1 Non-IFRS measure. Please refer to section 10 of the corresponding MD&A for reconciliation.

FINANCIALS

Net income attributable to equity shareholders of the Company in Q2 Fiscal 2020 was $12.2 million, or $0.07 per share, an increase of $4.2 million, compared to $8.0 million, or $0.05 per share in the three months ended September 30, 2018 (“Q2 Fiscal 2019”).

Compared to Q2 Fiscal 2019, the Company’s financial results in Q2 Fiscal 2020 were mainly impacted by i) increases of 18% and 17% in the average realized selling prices for silver and gold; ii) increases of 10% and 36% in gold and zinc sold; offset by iii) decreases of 12% and 31% in the average realized selling prices for lead and zinc, and iv) a decrease of 2% in lead sold.

Sales in Q2 Fiscal 2020 were $49.9 million, up 4% or $1.8 million, compared to $48.1 million in Q2 Fiscal 2019. Silver, gold, and base metals sales represented $27.4 million, $1.3 million, and $21.1 million, respectively, compared to silver, gold and base metals sales of $23.4 million, $1.0 million, and $23.6 million, respectively, in Q2 Fiscal 2019.

Cost of sales in Q2 Fiscal 2020 was $24.5 million, a decrease of $0.9 million or 4%, compared to $25.4 million in Q2 Fiscal 2019.  The cost of sales included $17.3 million (Q2 Fiscal 2019 - $18.2 million) cash production costs, $1.4 million mineral resources tax (Q2 Fiscal 2019 - $1.4 million), and $5.8 million (Q2 Fiscal 2019 - $5.8 million) depreciation and amortization charges. The decrease in cash production costs expensed was mainly due to a decrease of 1% in cash production costs per tonne of ore processed and less silver and lead sold.

Gross profit margin in Q2 Fiscal 2020 was 51%, compared to 47% in Q2 Fiscal 2019. Ying Mining District’s gross profit margin was 53% compared to 50% in Q2 Fiscal 2019. GC Mine’s gross profit margin was 37% compared to 29% in Q2 Fiscal 2019.

General and administrative expenses in Q2 Fiscal 2020 were $4.9 million, an increase of $0.3 million, compared to $4.6 million in Q2 Fiscal 2019. The increase was mainly due to higher labour costs resulting from an increase in employees’ pay-rates and non-cash share-based compensation expenses.

Share of loss in an associate in Q2 Fiscal 2020 was $0.2 million, compared to $0.1 million in Q2 Fiscal 2019. The loss represents the Company’s equity pickup in New Pacific Metals Corp.(“NUAG”).

Income tax expenses in Q2 Fiscal 2020 were $5.1 million compared to $5.8 million in Q2 Fiscal 2019.  The income tax expense recorded in Q2 Fiscal 2020 included current income tax expense of $1.0 million (Q2 Fiscal 2019 – $5.1 million) and deferred income tax expense of $4.1 million (Q2 Fiscal 2019 – $0.7 million).

Cash flow provided by operating activities in Q2 Fiscal 2020 was $26.2 million, an increase of $5.1 million, compared to $21.1 million in Q2 Fiscal 2019. 

For the six months ended September 30, 2019, net income attributable to equity shareholders of the Company was $24.8 million or $0.14 per share, an increase of $5.8 million, compared to $19.0 million or $0.11 per share in the same prior year period; sales were $95.5 million, up 2% from $93.2 million in the same prior year period; share of loss in NUAG was $0.5 million, compared to $0.4 million in the same prior year period; and cash flow from operating activities was $46.1 million, up 9% from $42.2 million in the same prior year period.

The Company ended the period with $135.2 million in cash and short-term investments, an increase of $19.9 million or 17%, compared to $115.3 million as at March 31, 2019.

Working capital as at September 30, 2019 was $125.0 million, an increase of $28.0 million or 29%, compared to $97.0 million as at March 31, 2019.

OPERATIONS AND DEVELOPMENT

(i)   Q2 Fiscal 2020 vs. Q2 Fiscal 2019

In Q2 Fiscal 2020, on a consolidated basis, the Company mined 259,257 tonnes of ore, an increase of 4% or 10,838 tonnes, compared to 248,419 tonnes in Q2 Fiscal 2019.  Ore mined at the GC Mine increased by 23% or 15,415 tonnes, while the ore mined at the Ying Mining District decreased by 3% or 4,577 tonnes.  Ore milled was 265,281 tonnes, up 11% compared to 239,728 tonnes in Q2 Fiscal 2019.

In Q2 Fiscal 2020, the Company sold approximately 1.9 million ounces of silver, 1,100 ounces of gold, 19.1 million pounds of lead, and 6.7 million pounds of zinc, compared to 1.9 million ounces of silver, 1,000 ounces of gold, 19.4 million pounds of lead, and 4.9 million pounds of zinc in Q2 Fiscal 2019. As at September 30, 2019, the Company had inventories of 4,176 tonnes of silver-lead concentrate and 586 tonnes of zinc concentrate, up 28% and 59%, respectively, compared to 3,248 tonnes of silver-lead concentrate and 368 tonnes of zinc concentrate as at March 31, 2019.

In Q2 Fiscal 2020, the consolidated total mining costs and cash mining costs were $72.85 and $52.37 per tonne, compared to $72.71 and $53.90 per tonne, respectively, in Q2 Fiscal 2019.  The consolidated total milling costs and cash milling costs in Q2 Fiscal 2020 were $12.46 and $10.76 per tonne, compared to $11.60 and $9.36 per tonne, respectively, in Q2 Fiscal 2019. The increase in the cash milling cost was mainly due to an increase of $0.3 million in material costs resulting from the timing difference of maintenance and prevention work performed at the mills.

The consolidated cash production cost per tonne of ore processed in Q2 Fiscal 2020 were $65.73, down 1% compared to $66.33 in Q2 Fiscal 2019, and below the Company’s Fiscal 2020 annual guidance of $71.80. The consolidated all-in sustaining production cost per tonne of ore processed was $109.51, an increase of 2% compared to $107.51 in Q2 Fiscal 2019, but below the Company’s Fiscal 2020 annual guidance of $125.50. The increase was primarily due to an increase of $1.7 million in sustaining capital expenditures.

In Q2 Fiscal 2020, the consolidated cash cost per ounce of silver, net of by-product credits, was negative $2.72, compared to negative $3.37 in the prior year quarter. The increase was mainly due to a decrease of $1.11 in by-product credits per ounce of silver mainly resulting from the decrease in the realized selling prices for lead and zinc. Sales from lead and zinc in the current quarter amounted to $20.2 million, a decrease of $2.9 million, compared to $23.2 million in the prior year quarter.   In Q2 Fiscal 2020, the consolidated all-in sustaining costs per ounce of silver, net of by-product credits, was $4.15 compared to $2.54 in Q2 Fiscal 2019.  The increase was mainly due to the decrease in by-product credits and the increase in sustaining capital expenditures as discussed above.

In Q2 Fiscal 2020, on a consolidated basis, approximately 32,948 metres or $1.1 million worth of diamond drilling (Q2 Fiscal 2019 – 30,027 metres or $0.8 million) and 11,656 metres or $3.1 million worth of preparation tunnelling (Q2 Fiscal 2019 – 10,619 metres or $3.1 million) were completed and expensed as mining preparation costs. In addition, approximately 20,107 metres or $7.1 million worth of horizontal tunnels, raises, ramps and declines (Q2 Fiscal 2019 – 18,875 metres or $6.2 million) were completed and capitalized.

(ii)   Six months ended September 30, 2019 vs. six months ended September 30, 2018

For the six months ended September 30, 2019, on a consolidated basis, the Company mined 516,649 tonnes of ore, an increase of 6% or 31,532 tonnes, compared to 485,117 tonnes mined in the same prior year period. Ore milled was 524,824 tonnes, up 10% compared to 477,468 tonnes in the same prior year period.

The Company sold approximately 3.7 million ounces of silver, 2,100 ounces of gold, 36.9 million pounds of lead, and 14.0 million pounds of zinc, increases of 11%, 24%, 8%, and 24%, respectively, compared to 3.4 million ounces of silver, 1,700 ounces of gold, 34.3 million pounds of lead, and 11.3 million pounds of zinc sold in the same prior year period.

For the six months ended September 30, 2019, the consolidated total mining costs and cash mining costs were $75.12 and $53.91 per tonne, respectively, compared to $74.40 and $55.05 per tonne in the same prior year period. The consolidated total milling costs and cash milling costs were $12.47 and $10.69, respectively, compared to $12.87 and $10.54 per tonne in the same prior year period.

Correspondingly, the consolidated cash production costs per tonne of ore processed for the six months ended September 30, 2019 were $67.29, down 2% compared to $68.55 in the same prior year period. The all-in sustaining production costs per tonne of ore processed were $114.89, up 4% compared to $110.91 in the same prior year period mainly due to an increase of $4.7 million in sustaining capital expenditures. However, both the cash production costs and all-in sustaining production costs per tonne were lower than the Company’s Fiscal 2020 annual guidance

For the six months ended September 30, 2019, the consolidated cash cost per ounce of silver, net of by-product credits, was negative $2.45, compared to negative $5.18 in the same prior year period. The increase was mainly due to a decrease of $2.99 in by-product credits per ounce of silver mainly resulting from decreases in realized selling prices for lead and zinc. Sales from lead and zinc for the six months ended September 30, 2019 amounted to $40.6 million, a decrease of $7.0 million, compared to $47.6 million in the same period year period.   The consolidated all-in sustaining costs per ounce of silver, net of by-product credits, was $4.91 compared to $1.61 in the same prior year period. The increase was mainly due to the decrease in by-product credits and the increase in sustaining capital expenditures.  

For the six months ended September 30, 2019, on a consolidated basis, approximately 64,566 metres or $2.0 million worth of diamond drilling (same prior year period – 64,295 metres or $1.8 million) and 24,312 metres or $6.2 million worth of preparation tunnelling (same prior year period – 21,401 metres or $6.3 million) were completed and expensed as mining preparation costs. In addition, approximately 41,499 metres or $14.5 million worth of horizontal tunnels, raises, ramps and declines (same prior year period – 36,341 metres or $13.2 million) were completed and capitalized. 

1. Ying Mining District, Henan Province, China

Ying Mining District	Q2 2020		Q1 2020		Q4 2019		Q3 2019		Q2 2019			Six months ended September 30,
	September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018		September 30, 2018			2019		2018
Ore Mined (tonne)	176,085		176,584		111,032		174,152		180,662			352,669		337,393
Ore Milled (tonne)	179,147		177,681		107,039		184,684		172,200			356,828		328,129
Head Grades
Silver (gram/tonne)	306		330		324		296		308			318		315
Lead (%)	4.5		4.6		4.5		4.1		4.6			4.5		4.6
Zinc (%)	0.8		0.9		0.9		0.8		0.9			0.9		1.0
Recoveries
Silver (%)	96.2		95.8		95.5		95.6		96.1			96.0		96.1
Lead (%)	95.7		95.9		96.1		95.2		95.6			95.7		95.8
Zinc (%)	58.6		58.3		63.7		50.2		51.2			58.5		52.9
Metal Sales
Silver (in thousands of ounce)	1,711		1,662		1,141		1,545		1,765			3,373		3,078
Gold (in thousands of ounce)	1.1		1.0		0.7		1.1		1.0			2.1		1.7
Lead (in thousands of pound)	16,389		14,835		10,310		15,156		17,359			31,225		30,672
Zinc (in thousands of pound)	1,428		2,090		2,464		381		1,648			3,518		3,781
Cash mining costs ($ per tonne)	59.26		63.05		65.24		63.04		58.65			61.16		62.15
Shipping costs ($ per tonne)	3.82		4.04		3.97		4.27		4.26			3.82		4.28
Cash milling costs ($ per tonne)	9.81		9.15		12.57		10.49		8.54			9.48		9.37
Cash production costs ($ per tonne)	72.89		76.24		81.78		77.80		71.45			74.46		75.80
All-in sustaining production costs ($/tonne)	117.37		129.14		141.63		135.47		108.75			123.24		116.17
Cash costs per ounce of silver ($)	(1.95	)	(1.44	)	(3.02	)	(1.74	)	(2.80	)		(1.70	)	(4.27	)
All-in sustaining costs per ounce of silver ($)	3.40		4.82		3.28		5.80		1.52			4.10		0.75

(i)   Q2 Fiscal 2020 vs. Q2 Fiscal 2019

In Q2 Fiscal 2020, the total ore mined at the Ying Mining District was 176,085 tonnes, down by 3% or 4,577 tonnes, compared to 180,662 tonnes mined in Q2 Fiscal 2019.  Ore milled was 179,147 tonnes, up by 4% or 6,947 tonnes, compared to 172,200 tonnes in Q2 Fiscal 2019.

Head grades of ore milled at the Ying Mining District in Q2 Fiscal 2020 were 306 grams per tonne (“g/t”) for silver, 4.5% for lead, and 0.8% for zinc, compared to 308 g/t for silver, 4.6% for lead and 0.9% for zinc in Q2 Fiscal 2019. The Company continues to achieve good dilution control using its “Enterprise Blog” to assist and manage daily operations.    

In Q2 Fiscal 2020, the Ying Mining District sold approximately 1.7 million ounces of silver, 16.4 million pounds of lead, and 1.4 million pounds of zinc, compared to 1.8 million ounces of silver, 17.4 million pounds of lead, and 1.6 million pounds of zinc in Q2 Fiscal 2019. As at September 30, 2019, the Ying Mining District had inventories of 3,580 tonnes of silver-lead concentrate and 550 tonnes zinc concentrate, compared to 3,150 tonnes of silver-lead concentrate and 250 tonnes of zinc concentrate as at March 31, 2019.

Total and cash mining costs per tonne at the Ying Mining District in Q2 Fiscal 2020 were $85.63 and $59.26 per tonne, respectively, compared to $81.50 and $58.65 per tonne in Q2 Fiscal 2019. The increase was due mainly to an overall 3% increase in the mining contractors’ rate.

Total and cash milling costs per tonne at the Ying Mining District in Q2 Fiscal 2020 were $11.53 and $9.81, respectively, compared to $10.47 and $8.54 in Q2 Fiscal 2019. The increase in per tonne cash milling costs was mainly due to an increase of $0.2 million in material costs rising from the timing difference of maintenance and prevention work performed at the mill.   

Correspondingly, the cash production cost per tonne of ore processed was $72.89, up 2% compared to $71.45 in the prior year quarter, but below the Fiscal 2020 annual guidance of $78.20. The all-in sustaining cash production cost per tonne of ore processed were $117.37, up 8% compared to $108.75 in the prior year quarter. The increase was mainly due to an increase of $1.3 million in sustaining capital expenditures. The all-in sustaining cash production costs per tonne at the Ying Mining District were also below the Fiscal 2020 annual guidance of $130.20.  

Cash cost per ounce of silver, net of by-product credits, in Q2 Fiscal 2020 at the Ying Mining District, was negative $1.95 compared to negative $2.80 in Q2 Fiscal 2019. The increase was mainly due to a decrease of $1.28 in by-product credits per ounce of silver resulting from the decrease of lead and zinc realized selling prices. Sales from lead and zinc at the Ying Mining District in Q2 Fiscal 2020 were $14.9 million, a decrease of $3.4million, compared to $18.3 million in Q2 Fiscal 2019. All-in sustaining cost per ounce of silver, net of by-product credits, was $3.40 compared to $1.52 in the prior year quarter. The increase was mainly due to the decrease in by-product credits and the increase in sustaining capital expenditures.

In Q2 Fiscal 2020, approximately 27,007 metres or $0.8 million worth of underground diamond drilling (Q2 Fiscal 2019 – 22,672 metres or $0.5 million) and 5,554 metres or $1.6 million worth of preparation tunnelling (Q2 Fiscal 2019 – 5,376 metres or $1.7 million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition, approximately 19,661 metres or $6.7 million worth of horizontal tunnels, raises, ramps and declines (Q2 Fiscal 2019 – 18,634 metres or $6.0 million) were completed and capitalized.     

(ii)   Six months ended September 30, 2019 vs. six months ended September 30, 2018

For the six months ended September 30, 2019, a total of 352,669 tonnes of ore were mined at the Ying Mining District, an increase of 5% or 15,276 tonnes compared to 337,393 tonnes in the same prior year period. Ore milled was 356,828 tonnes, up by 9% or 28,669 tonnes compared to 328,129 tonnes in the same prior year period. Average head grades of ore processed were 318 g/t for silver, 4.5% for lead, and 0.9% for zinc compared to 315 g/t for silver, 4.6% for lead, and 1.0% for zinc, in the same prior year period.

During the same time period, the Ying Mining District sold approximately 3.4 million ounces of silver, 2,100 ounces of gold, 31.2 million pounds of lead, and 3.5 million pounds of zinc, compared to 3.1 million ounces of silver, 1,700 ounces of gold, 30.7 million pounds of lead, and 3.8 million pounds of zinc in the same prior year period.

For the six months ended September 30, 2019, the cash mining costs at the Ying Mining District were $61.16 per tonne, down 2% compared to $62.15 in the prior year period while the cash milling costs were $9.48 per tonne, a slight increase of 1% compared to $9.37 in the prior year period. Correspondingly, the cash production costs per tonne of ore processed were $74.57, down 2% compared to $75.80 in the prior year period. The all-in sustaining cash production costs per tonne of ore processed were $123.24, up 6%, compared to $116.17. The increase was mainly due to an increase of $3.8 million in sustaining capital expenditures. 

Cash cost per ounce of silver and all-in sustaining costs per ounce of silver, net of by‐product credits, at the Ying Mining District, for the six months ended September 30, 2019, were negative $1.70 and $4.10 respectively, compared to negative $4.27 and $0.75 in the same prior year period. The increase was mainly due to the decrease in by-product credits per ounce of silver and the increase in sustaining capital expenditures. Sales from lead and zinc at the Ying Mining District for the six months ended September 30, 2019 were $29.3 million, a decrease of $6.8 million, compared to $36.1 million in the same prior year period.

For the six months ended September 30, 2019, approximately 50,655 metres or $1.4 million worth of underground diamond drilling (same prior year period – 49,521 metres or $1.1 million) and 11,949 metres or $3.3 million worth of preparation tunnelling (same prior year period – 10,917 metres or $3.3 million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition, approximately 40,556 metres or $13.8 million worth of horizontal tunnels, raises, and declines (same prior year period – 35,562 metres or $12.5 million) were completed and capitalized.

2.  GC Mine, Guangdong Province, China

GC Mine	Q2 2020		Q1 2020		Q4 2019		Q3 2019		Q2 2019			Six months ended September 30,
	September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018		September 30, 2018			2019		2018
Ore Mined (tonne)	83,172		80,808		50,368		86,126		67,757			163,980		147,724
Ore Milled (tonne)	86,134		81,861		52,865		86,792		67,528			167,996		149,339
Head Grades
Silver (gram/tonne)	100		95		101		84		78			97		83
Lead (%)	2.0		1.9		1.8		1.6		1.4			1.9		1.3
Zinc (%)	3.2		3.4		3.3		3.1		2.8			3.3		2.8
Recovery Rates
Silver (%)	75.9		76.8		81.3		80.5		76.7			76.4		75.9
Lead (%)	88.3		88.7		91.5		91.6		91.2			88.5		89.1
Zinc (%)	86.1		85.7		85.7		85.5		83.3			85.9		84.1
Metal Sales
Silver (in thousands of ounce)	183		193		173		167		136			376		286
Lead (in thousands of pound)	2,680		3,007		2,360		2,644		2,063			5,686		3,646
Zinc (in thousands of pound)	5,227		5,244		4,874		3,730		3,240			10,471		7,484
Cash mining cost ($ per tonne)	37.80		38.83		40.58		34.17		41.25			38.31		38.83
Cash milling cost ($ per tonne)	12.72		13.85		18.52		14.08		11.45			13.27		13.10
Cash production cost ($ per tonne)	50.52		52.68		59.10		48.25		52.70			51.58		51.93
All-in sustaining production costs ($/tonne)	62.94		67.33		72.11		56.88		67.58			65.09		64.51
Cash cost per ounce of silver ($)	(9.98	)	(8.38	)	(10.23	)	(12.32	)	(10.81	)		(9.16	)	(15.01	)
All-in sustaining cost per ounce of silver ($)	(2.89	)	(0.96	)	(4.97	)	(6.54	)	(2.03	)		(1.90	)	(6.92	)

(i)   Q2 Fiscal 2020 vs. Q2 Fiscal 2019

In Q2 Fiscal 2020, the total ore mined at the GC Mine was 83,172 tonnes, an increase of 23% or 15,415 tonnes, compared to 67,757 tonnes in Q2 Fiscal 2019, while ore milled was 86,134 tonnes, an increase of 28% or 18,606 tonnes compared to 67,528 tonnes in Q2 Fiscal 2019.  Average head grades of ore processed at the GC Mine were 100 g/t for silver, 2.0% for lead, and 3.2% for zinc compared to 78 g/t for silver, 1.4% for lead, and 2.8% for zinc in Q2 Fiscal 2019. 

In Q2 Fiscal 2020, the GC Mine sold 183,000 ounces of silver, 2.7 million pounds of lead, and 5.2 million pounds of zinc, compared to 136,000 ounces of silver, 2.1 million pounds of lead, and 3.2 million pounds of zinc in Q2 Fiscal 2019.  

Total and cash mining costs per tonne at the GC Mine in Q2 Fiscal 2020 were $45.81 and $37.80 per tonne, respectively, a decrease of 7% and 8%, compared to $49.29 and $41.25 per tonne in Q2 Fiscal 2019. The decrease was mainly due to higher production output resulting in lower per tonne fixed costs allocation. Total and cash milling costs per tonne at the GC Mine in Q2 Fiscal 2020 were $14.38 and $12.72, respectively, compared to $14.47 and $11.45 in Q2 Fiscal 2019.

Correspondingly, cash production costs per tonne of ore processed were $50.52, down 4% compared to $52.70 in Q2 Fiscal 2019, and all-in sustaining costs per tonne of ore processed were $62.94, down 7% compared to $67.58 in Q2 Fiscal 2019.

Cash costs per ounce of silver, net of by-product credits, at the GC Mine, was negative $9.98 compared to negative $10.81 in Q2 Fiscal 2019. The increase was mainly due to the decrease in by-product credits per ounce of silver resulting from more silver sold and the decrease in lead and zinc realized selling prices. All-in sustaining costs per ounce of silver, net of by-product credits, in Q2 Fiscal 2020 at the GC Mine was negative $2.89 compared to negative $2.03 in Q2 Fiscal 2019.

In Q2 Fiscal 2020, approximately 5,941 metres or $0.3 million worth of underground diamond drilling (Q2 Fiscal 2019 – 7,355 metres or $0.3 million) and 6,102 metres or $1.5 million worth of tunnelling (Q2 Fiscal 2019 – 5,243 metres or $1.4 million) were completed and expensed as mining preparation costs at the GC Mine. In addition, approximately 446 metres or $0.4 million of horizontal tunnels, raises and declines (Q2 Fiscal 2019 – 241 metres or $0.2 million) were completed and capitalized.

(ii)   Six months ended September 30, 2019 vs. six months ended September 30, 2018

For the six months ended September 30, 2019, a total of 163,980 tonnes of ore were mined and 167,996 tonnes were milled at the GC Mine, an increase of 11% and 12%, respectively, compared to 147,724 tonnes mined and 149,339 tonnes milled in the same prior year period. Average head grades of ore milled were 97 g/t for silver, 1.9% for lead, and 3.3% for zinc compared to 83 g/t for silver, 1.3% for lead, and 2.8% for zinc, in the same prior year period.  

During the same time period, the GC Mine sold approximately 376,000 ounces of silver, 5.7 million pounds of lead, and 10.5 million pounds of zinc, compared to 286,000 ounces of silver, 3.6 million pounds of lead, and 7.5 million pounds of zinc in the same prior year period.  

For the six months ended September 30, 2019, the cash mining cost at the GC Mine was $38.31 per tonne, a slight decrease of 1% compared to $38.83 per tonne in the same prior year period. The cash milling cost was $13.27 per tonne, a slight increase of 1% compared to $13.10 in the same prior year period.   Correspondingly, the cash production costs per tonne of ore processed at the GC Mine were $51.58, a slight decrease compared to $51.93 in the same prior year period. The all-in sustaining cash production cost per tonne of ore processed was $65.09 compared to $64.51 in the same prior year period.

Cash costs per ounce of silver and all-in sustaining costs per ounce of silver, net of by‐product credits, at the GC Mine, for the six months ended September 30, 2019, were negative $9.16 and negative $1.90 respectively, compared to negative $15.01 and negative $6.92 in the same prior year period. 

For the six months ended September 30, 2019, approximately 13,911 metres or $0.6 million worth of underground diamond drilling (same prior year period – 14,774 metres or $0.7 million) and 12,363 m or $2.9 million of tunnelling (same prior year period – 10,484 metres or $3.0 million) were completed and expensed as mining preparation costs at the GC Mine. In addition, approximately 943 metres or $0.7 million of horizontal tunnels, raise, and declines (same prior year period – 779 metres or $0.7 million) were completed and capitalized.

OUTLOOK

The Company expects its consolidated production in Fiscal 2020 will exceed its annual guidance and that production costs will be within the budget. Due to soft demand for lead battery arising from weak automobile market and the winter season environmental control measures in China, smelters are reducing their silver-lead concentrates purchase and increasing their smelter charges from last quarter’s RMB 2,200 per tonne lead metal to RMB 2,700 per tonne lead metal currently. Accordingly, the Company plans to build up its silver-lead concentrate inventories over the next two quarters for better price.  

Mr. Guoliang Ma, P.Geo., Manager of Exploration and Resources 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.  

About Silvercorp

Silvercorp is a profitable Canadian mining company producing silver, lead and zinc metals in concentrates from mines in China. The Company’s goal is to continuously create healthy returns to shareholders through efficient management, organic growth and the acquisition of profitable projects. Silvercorp balances profitability, social and environmental relationships, employees’ wellbeing, and sustainable development. For more information, please visit our website at www.silvercorp.ca.

For further informationSilvercorp Metals Inc.Lon Shaver  Vice PresidentPhone: (604) 669-9397Toll Free 1(888) 224-1881Email: investor@silvercorp.ca Website: www.silvercorp.ca

CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws (collectively, “forward-looking statements”). Any 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 and the GC Mine; 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 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.

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

	As at September 30,				As at March 31,
	2019				2019
ASSETS
Current Assets
Cash and cash equivalents	$	56,092			$	67,441
Short-term investments		79,103				47,836
Trade and other receivables		1,917				467
Current portion of lease receivable		198				-
Inventories		9,580				10,836
Due from a related party		2,941				3,022
Income tax receivable		3,778				1,301
Prepaids and deposits		5,148				3,958
		158,757				134,861
Non-current Assets
Long-term prepaids and deposits		520				769
Long-term portion lease receivable		468				-
Reclamation deposits		8,969				7,953
Investment in an associate		43,413				38,703
Other investments		10,785				9,253
Plant and equipment		67,044				68,617
Mineral rights and properties		221,792				238,920
TOTAL ASSETS	$	511,748			$	499,076
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	29,009			$	29,856
Current portion of lease obligation		599				-
Bank Loan		-				4,475
Deposits received		1,252				3,040
Income tax payable		2,895				502
		33,755				37,873
Non-current Liabilities
Long-term portion of lease obligation		1,887				-
Deferred income tax liabilities		34,121				34,334
Environmental rehabilitation		12,713				13,688
Total Liabilities		82,476				85,895
Equity
Share capital		238,251				231,269
Share option reserve		16,146				15,898
Reserves		25,409				25,409
Accumulated other comprehensive loss		(56,066	)			(41,864	)
Retained earnings		138,614				116,734
Total equity attributable to the equity holders of the Company		362,354				347,446
Non-controlling interests		66,918				65,735
Total Equity		429,272				413,181
TOTAL LIABILITIES AND EQUITY	$	511,748			$	499,076

SILVERCORP METALS INC. Consolidated Statements of Income(Unaudited - Expressed in thousands of U.S. dollars, except for per share figures)

		Three Months Ended September 30,							Six Months Ended September 30,
		2019			2018				2019			2018
Sales		$	49,886		$	48,091			$	95,462		$	93,216
Cost of sales
Production costs			17,290			18,238				35,290			32,515
Mineral resource taxes			1,408			1,392				2,659			2,641
Depreciation and amortization			5,814			5,761				11,683			10,509
			24,512			25,391				49,632			45,665
Gross profit			25,374			22,700				45,830			47,551
General and administrative			4,901			4,605				9,449			9,077
Government fees and other taxes			496			767				1,090			1,569
Foreign exchange loss (gain)			(797	)		708				57			(80	)
Loss on disposal of plant and equipment			121			124				263			134
Gain on disposal of mineral rights and properties			-			-				(1,477	)		-
Share of loss in associate			244			105				525			384
Dilution gain on investment in associate			-			-				(723	)		-
Reclassification of other comprehensive loss upon
ownership dilution of investment in associate			-			-				(21	)		-
Other expense (income)			291			213				490			276
Income from operations			20,118			16,178				36,177			36,191
Finance income			818			825				1,747			1,621
Finance costs			(136	)		(163	)			(311	)		(297	)
Income before income taxes			20,800			16,840				37,613			37,515
Income tax expense			5,139			5,763				4,651			12,261
Net income		$	15,661		$	11,077			$	32,962		$	25,254
Attributable to:
Equity holders of the Company		$	12,221		$	8,037			$	24,828		$	18,958
Non-controlling interests			3,440			3,040				8,134			6,296
		$	15,661		$	11,077			$	32,962		$	25,254
Earnings per share attributable to the equity holders of the Company
Basic earnings per share		$	0.07		$	0.05			$	0.15		$	0.11
Diluted earnings per share		$	0.07		$	0.05			$	0.14		$	0.11
Weighted Average Number of Shares Outstanding - Basic			170,842,478			168,105,986				170,419,199			167,687,266
Weighted Average Number of Shares Outstanding - Diluted			171,904,531			170,312,229				171,261,945			169,773,955

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

	Three Months Ended June 30,							Six Months Ended September 30,
	2019			2018				2019			2018
Cash provided by
Operating activities
Net income	$	15,661		$	11,077			$	32,962		$	25,254
Add (deduct) items not affecting cash:
Finance costs		136			163				311			297
Depreciation, amortization and depletion		6,203			6,048				12,423			11,101
Share of (income) loss in associate		244			105				525			384
Dilution gain on investment in associate		-			-				(723	)		-
Reclassification of other comprehensive loss upon ownership
dilution of investment in associate		-			-				(21	)		-
Income tax expense		5,139			5,763				4,651			12,261
Finance income		(818	)		(825	)			(1,747	)		(1,621	)
Loss on disposal of plant and equipment		121			124				263			134
Gain on disposal of mineral rights and properties		-			-				(1,477	)		-
Share-based compensation		701			456				1,026			912
Reclamation expenditures and deposits		(63	)		(21	)			(74	)		(21	)
Income taxes paid		(1,011	)		(5,388	)			(2,930	)		(8,476	)
Interest received		818			825				1,747			1,621
Interest paid		(32	)		(48	)			(105	)		(48	)
Changes in non-cash operating working capital		(870	)		2,808				(715	)		441
Net cash provided by operating activities		26,229			21,087				46,116			42,239
Investing activities
Mineral rights and properties
Capital expenditures		(7,239	)		(6,064	)			(14,009	)		(11,793	)
Proceeds on disposals		1,455			-				6,146			-
Plant and equipment
Additions		(2,158	)		(422	)			(4,329	)		(1,643	)
Proceeds on disposals		2			2				3			29
Reclamation deposits
Paid		(1,543	)		(41	)			(1,549	)		(45	)
Other investments
Acquisition		(1,726	)		-				(1,726	)		-
Proceeds on disposals		1,266			-				1,266			-
Investment in associate		(187	)		-				(3,210	)		-
Net redemption (purchases) of short-term investments		(9,543	)		(30,481	)			(33,618	)		(17,219	)
Principal received on lease receivable		9			-				36			-
Net cash provided by (used in) investing activities		(19,664	)		(37,006	)			(50,990	)		(30,671	)
Financing activities
Bank loan
Proceeds		-			-				-			4,527
Repayment		-			-				(4,369	)		-
Principal payments on lease obligation		(187	)		-				(288	)		-
Non-controlling interests
Distribution		(3,259	)		(3,305	)			(3,259	)		(6,634	)
Cash dividends distributed		-			-				(2,125	)		(2,095	)
Proceeds from issuance of common shares		4,857			518				5,077			1,020
Net cash used in financing activities		1,411			(2,787	)			(4,964	)		(3,182	)
Effect of exchange rate changes on cash and cash equivalents		(1,207	)		(641	)			(1,511	)		(4,063	)
Increase in cash and cash equivalents		6,769			(19,347	)			(11,349	)		4,323
Cash and cash equivalents, beginning of the period		49,323			72,869				67,441			49,199
Cash and cash equivalents, end of the period	$	56,092		$	53,522			$	56,092		$	53,522

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

Consolidated			Three months ended September 30,							Six months ended September 30,
			2019		2018		Changes			2019		2018		Changes
Production Data
	Mine Data
		Ore Mined (tonne)	259,257		248,419		4	%		516,649		485,117		6	%
		Ore Milled (tonne)	265,281		239,728		11	%		524,824		477,468		10	%
		Head Grades
		Silver (gram/tonne)	238		243		-2	%		246		242		2	%
		Lead (%)	3.6		3.7		-2	%		3.7		3.5		5	%
		Zinc (%)	1.6		1.4		13	%		1.6		1.5		10	%
		Recovery Rates
		Silver (%)	93.4		94.3		-1	%		93.5		93.9		0	%
		Lead (%)	94.4		95.1		-1	%		94.5		95.0		-1	%
		Zinc (%)	76.9		69.0		11	%		76.3		70.8		8	%
Cost Data
	+	Mining cost per tonne of ore mined ($)	72.85		72.71		0	%		75.12		74.40		1	%
		Cash mining cost per tonne of ore mined ($)	52.37		53.90		-3	%		53.91		55.05		-2	%
		Depreciation and amoritzation charges per tonne of ore mined ($)	20.48		18.81		9	%		21.21		19.35		10	%
	+	Unit shipping costs ($)	2.60		3.07		-15	%		2.69		2.96		-9	%
	+	Mining cost per tonne of ore milled ($)	12.46		11.60		7	%		12.47		12.87		-3	%
		Cash milling cost per tonne of ore milled ($)	10.76		9.36		15	%		10.69		10.54		1	%
		Depreciation and amoritzation charges per tonne of ore milled ($)	1.70		2.24		-24	%		1.78		2.33		-24	%
	+	Cash production cost per tonne of ore processed ($)	65.73		66.33		-1	%		67.90		68.55		-2	%
	+	All-in sustaining cost per tonne of ore processed ($)	109.51		107.45		2	%		114.80		110.91		4	%
	+	Cash cost per ounce of Silver, net of by-product credits ($)	(2.72	)	(3.37	)	19	%		(2.45	)	(5.18	)	53	%
	+	All-in sustaining cost per tonne of ore processed ($)	4.15		2.54		63	%		4.91		1.61		205	%
Concentrate inventory
		Lead concentrate (tonne)	4,176		3,732		12	%		4,176		3,732		12	%
		Zinc concentrate (tonne)	586		598		-2	%		586		598		-2	%
Sales Data
	Metal Sales
		Silver (in thousands of ounces)	1,894		1,901		0	%		3,749		3,364		11	%
		Gold (in thousands of ounces)	1.1		1.0		10	%		2.1		1.7		24	%
		Lead (in thousands of pounds)	19,069		19,422		-2	%		36,911		34,318		8	%
		Zinc (in thousands of pounds)	6,655		4,888		36	%		13,989		11,265		24	%
	Revenue
		Silver (in thousands of $)	27,439		23,439		17	%		50,997		43,262		18	%
		Gold (in thousands of $)	1,314		1,024		28	%		2,396		1,716		40	%
		Lead (in thousands of $)	16,202		18,789		-14	%		31,380		35,840		-12	%
		Zinc (in thousands of $)	4,045		4,361		-7	%		9,197		11,773		-22	%
		Other (in thousands of $)	886		478		85	%		1,492		625		139	%
			49,886		48,091		4	%		95,462		93,216		2	%
	Average Selling Price, Net of Value Added Tax and Smelter Charges
		Silver ($ per ounce)	14.49		12.33		18	%		13.60		12.86		6	%
		Gold ($ per ounce)	1,195.00		1,024		17	%		1,141.00		1,009		13	%
		Lead ($ per pound)	0.85		0.97		-12	%		0.85		1.04		-18	%
		Zinc ($ per pound)	0.61		0.89		-31	%		0.66		1.05		-37	%

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

Ying Mining District			Three months ended September 30,							Six months ended September 30,
			2019		2018		Changes			2019		2018		Changes
Production Data
	Mine Data
		Ore Mined (tonne)	176,085		180,662		-3	%		352,669		337,393		5	%
		Ore Milled (tonne)	179,147		172,200		4	%		356,828		328,129		9	%
		Head Grades
		Silver (gram/tonne)	306		308		-1	%		318		315		1	%
		Lead (%)	4.5		4.6		-3	%		4.5		4.6		-1	%
		Zinc (%)	0.8		0.9		-11	%		0.9		1.0		-14	%
		Recovery Rates
		Silver (%)	96.2		96.1		0	%		96.0		96.1		0	%
		Lead (%)	95.7		95.6		0	%		95.7		95.8		0	%
		Zinc (%)	58.6		51.2		15	%		58.5		52.9		11	%
Cost Data
	+	Mining cost per tonne of ore mined ($)	85.63		81.50		5	%		88.55		86.50		2	%
		Cash mining cost per tonne of ore mined ($)	59.26		58.65		1	%		61.16		62.15		-2	%
		Depreciation and amoritzation charges per tonne of ore mined ($)	26.37		22.85		15	%		27.39		24.35		12	%
	+	Unit shipping costs ($)	3.82		4.26		-10	%		3.82		4.28		-11	%
	+	Mining cost per tonne of ore milled ($)	11.53		10.47		10	%		11.23		11.48		-2	%
		Cash milling cost per tonne of ore milled ($)	9.81		8.54		15	%		9.48		9.37		1	%
		Depreciation and amoritzation charges per tonne of ore milled ($)	1.72		1.93		-11	%		1.75		2.11		-17	%
	+	Cash production cost per tonne of ore processed ($)	72.89		71.45		2	%		74.57		75.80		-2	%
	+	All-in sustaining cost per tonne of ore processed ($)	117.37		108.75		8	%		123.24		116.17		6	%
	+	Cash cost per ounce of Silver, net of by-product credits ($)	(1.95	)	(2.80	)	30	%		(1.70	)	(4.27	)	60	%
	+	All-in sustaining cost per tonne of ore processed ($)	3.40		1.52		124	%		4.10		0.75		447	%
Concentrate inventory
		Lead concentrate (tonne)	3,580		3,452		4	%		3,580		3,452		4	%
		Zinc concentrate (tonne)	550		230		139	%		550		230		139	%
Sales Data
	Metal Sales
		Silver (in thousands of ounces)	1,711		1,765		-3	%		3,373		3,078		10	%
		Gold (in thousands of ounces)	1.1		1.0		10	%		2.1		1.7		24	%
		Lead (in thousands of pounds)	16,389		17,359		-6	%		31,225		30,672		2	%
		Zinc (in thousands of pounds)	1,428		1,648		-13	%		3,518		3,781		-7	%
	Revenue
		Silver (in thousands of $)	25,481		22,140		15	%		47,211		40,490		17	%
		Gold (in thousands of $)	1,314		1,024		28	%		2,396		1,716		40	%
		Lead (in thousands of $)	13,945		16,822		-17	%		26,638		32,097		-17	%
		Zinc (in thousands of $)	960		1,464		-34	%		2,624		3,980		-34	%
		Other (in thousands of $)	598		296		102	%		1,203		430		180	%
			42,298		41,746		1	%		80,072		78,713		2	%
	Average Selling Price, Net of Value Added Tax and Smelter Charges
		Silver ($ per ounce)	14.89		12.54		19	%		14.00		13.15		6	%
		Gold ($ per ounce)	1,195		1,024		17	%		1,141		1,009		13	%
		Lead ($ per pound)	0.85		0.97		-12	%		0.85		1.05		-19	%
		Zinc ($ per pound)	0.67		0.89		-25	%		0.75		1.05		-29	%

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

GC Mine			Three months ended September 30,							Six months ended September 30,
			2019		2018		Changes			2019		2018		Changes
Production Data
	Mine Data
		Ore Mined (tonne)	83,172		67,757		23	%		163,980		147,724		11	%
		Ore Milled (tonne)	86,134		67,528		28	%		167,996		149,339		12	%
		Head Grades
		Silver (gram/tonne)	100		78		28	%		97		83		17	%
		Lead (%)	2.0		1.4		39	%		1.9		1.3		46	%
		Zinc (%)	3.2		2.8		14	%		3.3		2.8		17	%
		Recovery Rates
		Silver (%) *	75.9		76.7		-1	%		76.4		75.9		1	%
		Lead (%)	88.3		91.2		-3	%		88.5		89.1		-1	%
		Zinc (%)	86.1		83.3		3	%		85.9		84.1		2	%
Cost Data
	+	Mining cost per tonne of ore mined ($)	45.81		49.29		-7	%		46.22		46.76		-1	%
		Cash mining cost per tonne of ore mined ($)	37.80		41.25		-8	%		38.31		38.83		-1	%
		Depreciation and amoritzation charges per tonne of ore mined ($)	8.01		8.04		0	%		7.91		7.93		0	%
	+	Mining cost per tonne of ore milled ($)	14.38		14.47		-1	%		15.12		15.93		-5	%
		Cash milling cost per tonne of ore milled ($)	12.72		11.45		11	%		13.27		13.10		100	%
		Depreciation and amoritzation charges per tonne of ore milled ($)	1.66		3.02		-45	%		1.85		2.83		-35	%
	+	Cash production cost per tonne of ore processed ($)	50.52		52.70		-4	%		51.58		51.93		-1	%
	+	All-in sustaining cost per tonne of ore processed ($)	62.94		67.58		-7	%		65.09		64.51		1	%
	+	Cash cost per ounce of Silver, net of by-product credits ($)	(9.98	)	(10.81	)	8	%		(9.16	)	(15.01	)	39	%
	+	All-in sustaining cost per tonne of ore processed ($)	(2.89	)	(2.03	)	-42	%		(1.90	)	(6.92	)	73	%
Concentrate inventory
		Lead concentrate (tonne)	596		280		113	%		596		280		113	%
		Zinc concentrate (tonne)	36		368		-90	%		36		368		-90	%
Sales Data
	Metal Sales
		Silver (in thousands of ounces)	183		136		35	%		376		286		31	%
		Lead (in thousands of pounds)	2,680		2,063		30	%		5,686		3,646		56	%
		Zinc (in thousands of pounds)	5,227		3,240		61	%		10,471		7,484		40	%
	Revenue
		Silver (in thousands of $)	1,958		1,299		51	%		3,786		2,772		37	%
		Lead (in thousands of $)	2,257		1,967		15	%		4,742		3,743		27	%
		Zinc (in thousands of $)	3,085		2,897		6	%		6,573		7,793		-16	%
		Other (in thousands of $)	288		182		58	%		289		195		48	%
			7,588		6,345		20	%		15,390		14,503		6	%
	Average Selling Price, Net of Value Added Tax and Smelter Charges
		Silver ($ per ounce) **	10.70		9.55		12	%		10.07		9.69		4	%
		Lead ($ per pound)	0.84		0.95		-12	%		0.83		1.03		-19	%
		Zinc ($ per pound)	0.59		0.89		-34	%		0.63		1.04		-39	%
* Silver recovery rate includes silver recovered in lead concentrate and silver recovered in zinc concentrate.
** Silver sold in zinc concentrates is subjected to higher smelter and refining charges which lowers the net silver selling price.