Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX/NYSE
American: SVM) reports production and sales figures for the third
quarter of Fiscal 2021 ended December 31, 2020 (“Q3 Fiscal 2021”).
The Company produced approximately 1.7 million ounces of
silver, 900 ounces of gold, 17.1 million pounds of lead, and 8.7
million pounds of zinc, and sold approximately 1.6 million ounces
of silver, 800 ounces of gold, 16.8 million pounds of lead, and 9.0
million pounds of zinc in Q3 Fiscal 2021. For the first nine
months of Fiscal 2021, the Company produced approximately 5.1
million ounces of silver, 3,200 ounces of gold, 56.3 million pounds
of lead, and 23.3 million pounds of zinc.
The Company is on track to produce between 6.2 –
6.5 million ounces of silver, 66.1 – 68.5 million pounds of lead,
and 24.5 – 26.7 million pounds of zinc in Fiscal 2021, in line with
the annual production guidance previously reported in the Company’s
news release dated February 6, 2020. The Company will report
its unaudited financial and operating results for Q3 Fiscal 2021,
expected to be released on Thursday, February 4, 2021 after market
close.
Q3 FISCAL 2021 OPERATING
HIGHLIGHTS
- At the Ying Mining District, the
Company mined 182,268 tonnes of ore, a 3% increase compared to the
third quarter of Fiscal 2020 (“Q3 Fiscal 2020”), and milled 162,905
tonnes of ore, down 7% over Q3 Fiscal 2020. This decrease was
caused by power rationing in December 2020 as the local government
is subject to an annual environmental emissions KPI assessment.
Approximately 1.5 million ounces of silver, 900 ounces of
gold, 14.4 million pounds of lead, and 1.9 million pounds of zinc
were produced, representing a 7% increase in gold production, and
decreases of 6% in silver, 13% in lead, and 25% in zinc production
compared to Q3 Fiscal 2020.
- At the GC Mine, the Company mined
97,177 tonnes of ore, a 12% increase over Q3 Fiscal 2020, and
milled 97,743 tonnes of ore, a 9% increase over Q3 Fiscal 2020.
Approximately 212 thousand ounces of silver, 2.8 million
pounds of lead, and 6.8 million pounds of zinc were produced,
representing a 23% increase in zinc production, and decreases of 2%
in silver and 21% in lead production compared to Q3 Fiscal
2020.
- On a consolidated basis, the
Company mined 279,445 tonnes of ore, a 6% increase over Q3 Fiscal
2020, and milled 260,648 tonnes of ore, a decrease of 2% compared
to Q3 Fiscal 2020. Approximately 1.7 million ounces of
silver, 900 ounces of gold, 17.1 million pounds of lead, and 8.7
million pounds of zinc were produced, representing increases of 7%
in gold and 8% in zinc production, and decreases of 6% in silver
and 15% in lead production compared to Q3 Fiscal 2020.
- On a consolidated basis, the
Company sold approximately 1.6 million ounces of silver, 800 ounces
of gold, 16.8 million pounds of lead, and 9.0 million pounds of
zinc, representing increases of 14% in gold and 7% in zinc sold,
and decreases of 4% in silver and 11% in lead sold compared to Q3
Fiscal 2020.
The operational results for Q3 Fiscal 2021 are
summarized as follows:
|
|
Three months ended December 31, 2020 |
|
Three months ended December 31, 2019 |
|
|
Ying Mining District |
GC |
Consolidated |
|
Ying Mining District |
GC |
Consolidated |
|
|
|
|
|
|
|
|
|
Production Data |
|
|
|
|
|
|
|
|
Ore Mined (tonne) |
182,268 |
97,177 |
279,445 |
|
176,149 |
86,437 |
262,586 |
|
Ore Milled (tonne) |
162,905 |
97,743 |
260,648 |
|
175,488 |
89,372 |
264,860 |
|
|
|
|
|
|
|
|
|
|
Head Grades |
|
|
|
|
|
|
|
|
Silver (gram/tonne) |
297 |
82 |
216 |
|
296 |
96 |
228 |
|
Lead (%) |
4.3 |
1.4 |
3.2 |
|
4.6 |
2.0 |
3.7 |
|
Zinc (%) |
0.8 |
3.5 |
1.8 |
|
0.9 |
3.3 |
1.7 |
|
|
|
|
|
|
|
|
|
|
Recovery Rates |
|
|
|
|
|
|
|
|
Silver (%) |
93.9 |
82.6 |
|
|
96.1 |
78.0 |
|
|
Lead (%) |
96.4 |
89.6 |
|
|
96.3 |
90.4 |
|
|
Zinc (%) |
63.3 |
89.7 |
|
|
70.3 |
85.5 |
|
|
|
|
|
|
|
|
|
|
Sales Data |
|
|
|
|
|
|
|
|
Silver (in thousands of ounces) |
1,446 |
201 |
1,647 |
|
1,475 |
234 |
1,709 |
|
Gold (in thousands of ounces) |
0.8 |
- |
0.8 |
|
0.7 |
- |
0.7 |
|
Lead (in thousands of pounds) |
14,207 |
2,599 |
16,806 |
|
14,912 |
3,867 |
18,779 |
|
Zinc (in thousands of pounds) |
2,241 |
6,724 |
8,965 |
|
2,882 |
5,471 |
8,353 |
|
|
|
|
|
|
|
|
|
Metal production |
|
|
|
|
|
|
|
|
Silver (in thousands of ounces) |
1,464 |
212 |
1,676 |
|
1,563 |
216 |
1,779 |
|
Gold (in thousands of ounces) |
0.9 |
- |
0.9 |
|
0.9 |
|
0.9 |
|
Lead (in thousands of pounds) |
14,361 |
2,750 |
17,111 |
|
16,548 |
3,496 |
20,044 |
|
Zinc (in thousands of pounds) |
1,857 |
6,816 |
8,673 |
|
2,483 |
5,552 |
8,035 |
The operational results for the first nine
months of Fiscal 2021 are summarized as follows:
|
|
Nine months ended December 31, 2020 |
|
Nine months ended December 31, 2019 |
|
|
Ying Mining District |
GC |
BYP |
Consolidated |
|
Ying Mining District |
GC |
Consolidated |
|
|
|
|
|
|
|
|
|
|
Production Data |
|
|
|
|
|
|
|
|
|
Ore Mined (tonne) |
537,464 |
264,389 |
- |
801,853 |
|
528,818 |
250,417 |
779,235 |
|
Ore Milled (tonne) |
519,677 |
267,230 |
- |
786,908 |
|
532,317 |
257,367 |
789,684 |
|
|
|
|
- |
|
|
|
|
|
|
Head Grades |
|
|
- |
|
|
|
|
|
|
Silver (gram/tonne) |
293 |
85 |
- |
222 |
|
311 |
97 |
241 |
|
Lead (%) |
4.4 |
1.7 |
- |
3.5 |
|
4.6 |
1.9 |
3.7 |
|
Zinc (%) |
0.8 |
3.4 |
- |
1.7 |
|
0.9 |
3.3 |
1.7 |
|
|
|
|
|
|
|
|
|
|
|
Recovery Rates |
|
|
|
|
|
|
|
|
|
Silver (%) |
94.4 |
82.6 |
- |
|
|
96.1 |
76.9 |
|
|
Lead (%) |
96.2 |
89.5 |
- |
|
|
95.9 |
89.2 |
|
|
Zinc (%) |
61.7 |
88.2 |
- |
|
|
62.6 |
85.8 |
|
|
|
|
|
|
|
|
|
|
|
Sales Data |
|
|
|
|
|
|
|
|
|
Silver (in thousands of ounces) |
4,674 |
585 |
- |
5,259 |
|
4,848 |
610 |
5,458 |
|
Gold (in thousands of ounces) |
2.9 |
- |
1.2 |
4.1 |
|
2.8 |
- |
2.8 |
|
Lead (in thousands of pounds) |
47,571 |
8,671 |
- |
56,242 |
|
46,137 |
9,553 |
55,690 |
|
Zinc (in thousands of pounds) |
5,662 |
17,672 |
- |
23,334 |
|
6,400 |
15,942 |
22,342 |
|
|
|
|
|
|
|
|
|
|
Metal production |
|
|
|
|
|
|
|
|
|
Silver (in thousands of ounces) |
4,532 |
604 |
- |
5,135 |
|
4,978 |
617 |
5,595 |
|
Gold (in thousands of ounces) |
3.2 |
- |
- |
3.2 |
|
3.1 |
- |
3.1 |
|
Lead (in thousands of pounds) |
47,382 |
8,892 |
- |
56,274 |
|
49,863 |
9,738 |
59,601 |
|
Zinc (in thousands of pounds) |
5,420 |
17,919 |
- |
23,340 |
|
6,338 |
15,967 |
22,304 |
Ying Mining District
In Q3 Fiscal 2021, ore mined at the Ying Mining
District was 182,268 tonnes, an increase of 3% compared to 176,149
tonnes in Q3 Fiscal 2020. Ore milled was 162,905 tonnes, with
average head grades of 297 grams per tonne (“g/t”) for silver, 4.3%
for lead, and 0.8% for zinc, compared to 175,488 tonnes of ore
milled with average head grades of 296 g/t for silver, 4.6% for
lead, and 0.9% for zinc in Q3 Fiscal 2020. The decrease in
ore milled during the quarter was caused by the milling operations
being temporarily suspended for seven days due to power rationing.
The Company expects to process the unmilled ores in Q4 Fiscal
2021. Metals production at the Ying Mining District in Q3
Fiscal 2021 was approximately 1.5 million ounces of silver, 14.4
million pounds of lead, and 1.9 million pounds of zinc, compared to
approximately 1.6 million ounces of silver, 16.5 million pounds of
lead, and 2.5 million pounds of zinc produced in Q3 Fiscal
2020.
For the first nine months of Fiscal 2021, metals
production at the Ying Mining District was approximately 4.5
million ounces of silver, 47.4 million pounds of lead, and 5.4
million pounds of zinc, compared to approximately 4.9 million
ounces of silver, 49.9 million pounds of lead, and 6.3 million
pounds of zinc during the same prior year period. The Ying
Mining District is on track to achieve its annual guidance to
produce 5.6 – 5.8 million ounces of silver, 56.6 – 58.0 million
pounds of lead, and 7.0 – 8.0 million pounds of zinc in Fiscal
2021.
GC Mine
In Q3 Fiscal 2021, ore mined at the GC Mine was
97,177 tonnes, an increase of 12% compared to 86,437 tonnes in Q3
Fiscal 2020. Ore milled was 97,743 tonnes, with average head
grades of 82 g/t for silver, 1.4% for lead, and 3.5% for zinc,
compared to 89,372 tonnes of ore milled with average head grades of
96 g/t for silver, 2.0% for lead, and 3.3% for zinc in Q3 Fiscal
2020. Metals production at the GC Mine in Q3 Fiscal 2021 was
approximately 212 thousand ounces of silver, 2.8 million pounds of
lead, and 6.8 million pounds of zinc, compared to approximately 216
thousand ounces of silver, 3.5 million pounds of lead, and 5.6
million pounds of zinc produced in Q3 Fiscal
2020.
For the first nine months of Fiscal 2021, metals
production at the GC Mine was approximately 604 thousand ounces of
silver, 8.9 million pounds of lead, and 17.9 million pounds of
zinc, compared to approximately 617 thousand ounces of silver, 9.7
million pounds of lead, and 16.0 million pounds of zinc in the same
prior year period. The GC Mine is on track to achieve its
annual guidance to produce 600 – 700 thousand ounces of silver, 9.5
– 10.5 million pounds of lead, and 17.5 – 18.7 million pounds of
zinc in Fiscal 2021.
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: social and economic impacts of
COVID-19; 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.
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