Questions? +1 (202) 335-3939 Login
Trusted News Since 1995
A service for mining industry professionals · Tuesday, November 12, 2019 · 501,889,225 Articles · 3+ Million Readers

Silvercorp Reports Net Income of $12.2 Million, $0.07 Per Share, an Increase of 52% Compared to the Prior Year Quarter

/EIN News/ -- VANCOUVER, British Columbia, Nov. 07, 2019 (GLOBE NEWSWIRE) -- 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 information
Silvercorp Metals Inc.
Lon Shaver  
Vice President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: 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.          
                   

Primary Logo

Powered by EIN News
Distribution channels: Business & Economy, Mining Industry


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.

Submit your press release