Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX/NYSE
American: SVM) reports its production results for the fourth
quarter (“Q4 Fiscal 2020”) and fiscal year ended March 31, 2020
(“Fiscal 2020”). Fiscal 2020 production guidance was achieved for
all metals at all operations (please refer to the Silvercorp news
release dated February 14, 2019). The Company expects to release
its audited financial and operating results for the fiscal year
ended March 31, 2020 on Thursday, May 21, 2020 after market close.
FISCAL YEAR 2020 CONSOLIDATED PRODUCTION
HIGHLIGHTS
Silvercorp's
operations in China are usually suspended two weeks for the Chinese
New Year holiday. During the 2020 holiday season (Q4 Fiscal 2020),
the operations in China were shut down for an extra month due to
the Covid-19 situation in China at that time as the Company
reported in the news released on January 29, February 18, and March
12, 2020. The operations were ramped up to full capacity in March
2020 with no employee infection and are in full compliance with
government measures to prevent the spread of the virus. Total ore
mined in March 2020 was 75,199 tonnes, representing approximately
95% of full capacity in normal situations.
Despite the extended shut-down during Q4 Fiscal
2020, the Company was able to achieve its full year production
target, surpassing its Fiscal 2020 guidance:
- Silver production of approximately 6.3 million ounces, 3% above
Fiscal 2020 guidance;
- Lead production of approximately 67.4 million pounds, 3% above
Fiscal 2020 guidance; and
- Zinc production of approximately 25.6 million pounds, 17% above
Fiscal 2020 guidance.
FISCAL YEAR 2020 CONSOLIDATED
OPERATIONAL RESULTS
|
|
|
Three months ended March 31, 2020 |
|
Twelve months ended March 31, 2020 |
|
|
|
Ying MiningDistrict |
GC |
Consolidated |
|
Ying MiningDistrict |
GC |
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
Production Data |
|
|
|
|
|
|
|
|
|
Ore Mined
(tonne) |
69,379 |
37,216 |
106,595 |
|
598,197 |
287,633 |
885,830 |
|
|
Ore Milled
(tonne) |
69,188 |
33,243 |
102,431 |
|
601,605 |
290,610 |
892,215 |
|
|
|
|
|
|
|
|
|
|
|
|
Head
Grades |
|
|
|
|
|
|
|
|
|
Silver (gram/tonne) |
297 |
94 |
|
|
309 |
97 |
|
|
|
Lead (%) |
4.6 |
1.8 |
|
|
4.6 |
1.9 |
|
|
|
Zinc (%) |
1.0 |
3.5 |
|
|
0.9 |
3.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Recovery
Rates |
|
|
|
|
|
|
|
|
|
Silver (%) |
95.3 |
80.7 |
|
|
96.0 |
77.4 |
|
|
|
Lead (%) |
95.7 |
90.4 |
|
|
95.9 |
89.3 |
|
|
|
Zinc (%) |
67.7 |
87.7 |
|
|
63.2 |
86.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Metal production |
|
|
|
|
|
|
|
|
|
Silver (in
thousands of ounces) |
614 |
81 |
695 |
|
5,592 |
699 |
6,291 |
|
|
Lead (in
thousands of pounds) |
6,572 |
1,198 |
7,771 |
|
56,436 |
10,937 |
67,372 |
|
|
Zinc (in thousands of pounds) |
994 |
2,277 |
3,271 |
|
7,337 |
18,244 |
25,581 |
Ying Mining District
In Fiscal 2020, metals production at the Ying
Mining District was approximately 5.6 million ounces of silver,
56.4 million pounds of lead, and 7.3 million pounds of zinc. Silver
and zinc production surpassed the mine’s annual guidance by 2% and
16%, respectively, while lead production was in line with guidance.
Ore mined at the Ying Mining District was 598,197 tonnes and ore
milled was 601,605 tonnes, with average head grades of 309 grams
per tonne (“g/t”) for silver, 4.6% for lead and 0.9% for zinc. Head
grades for silver and lead were 7% and 6%, respectively, over the
mine’s annual guidance.
In Q4 Fiscal 2020, ore mined at the Ying Mining
District was 69,379 tonnes, a decrease of 41,653 tonnes compared to
111,032 tonnes in the three months ended March 31, 2019 (“Q4 Fiscal
2019”). Correspondingly, ore milled was 69,188 tonnes, a decrease
of 37,851 tonnes compared to 107,039 tonnes in Q4 Fiscal 2019.
Average head grades were 297 g/t for silver, 4.6% for lead, and 1%
for zinc in Q4 Fiscal 2020.
GC Mine
In Fiscal 2020, metals production at the GC Mine
was approximately 0.7 million ounces of silver, 10.9 million pounds
of lead, and 18.2 million pounds of zinc. Silver, lead, and zinc
production surpassed the mine’s annual guidance by 16%, 23% and
18%, respectively. Ore mined at the GC Mine was 287,633 tonnes and
ore milled was 290,610 tonnes, with average head grades of 97 g/t
for silver, 1.9% for lead and 3.3% for zinc. Head grades for
silver, lead and zinc at the GC Mine surpassed the mine’s annual
guidance by 1%, 12% and 7%, respectively.
In Q4 Fiscal 2020, ore mined at the GC Mine was
37,216 tonnes, a decrease of 13,150 tonnes compared to 50,366
tonnes in Q4 Fiscal 2019. Correspondingly, ore milled was 33,243
tonnes, a decrease of 19,622 tonnes compared to 52,865 tonnes in Q4
Fiscal 2019. Average head grades were 94 g/t for silver, 1.8% for
lead, and 3.5% for zinc in Q4 Fiscal 2020.
FISCAL 2021 PRODUCTION GUIDANCE
UPDATE
The Company reiterates its Fiscal 2021
production guidance which was previously announced in the Company’s
news release dated February 6, 2020, as the Company’s operations
are back to normal. The Company may reduce or defer certain
discretionary capital expenditures as a cost-saving measure in
light of decreases in metal prices due to Covid-19 impacts.
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 information
Silvercorp Metals Inc.Lon ShaverVice
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 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 (AMEX:SVM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Silvercorp Metals (AMEX:SVM)
Historical Stock Chart
From Sep 2023 to Sep 2024