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Silvercorp Reports Net Income of $47.0 Million, $0.28 Per Share, for Fiscal 2018

/EIN News/ -- VANCOUVER, British Columbia, May 24, 2018 (GLOBE NEWSWIRE) -- Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX:SVM) (NYSE American:SVM) reported its financial and operating results for the fourth quarter and twelve months ended March 31, 2018.  All amounts are expressed in US Dollars.

FISCAL YEAR 2018 HIGHLIGHTS

  • Net income attributable to equity shareholders of $47.0 million, or $0.28 per share1, up 8% compared to net income attributable to equity shareholders of $43.7 million, or $0.26 per share in the prior year. Adjusted net income attributable to equity shareholders2 of $41.5 million or $0.25 per share after adjustment of impairment reversal and dilution gain, compared to adjusted net income attributable to equity shareholders of $38.6 million or $0.23 per share in the prior year;
  • Gross margin of 52% compared with 54% in the prior year;
  • Sales of $170.0 million, up 4% compared to $163.5 million in the prior year;
  • Silver, lead, and zinc metals sold amounted to approximately 6.0 million ounces of silver, 61.9 million pounds of lead, and 19.6 million pounds of zinc, compared to 6.5 million ounces of silver, 70.5 million pounds of lead, and 18.3 million pounds of zinc in the prior year.  The decrease of silver and lead sold was mainly due to silver-lead concentrate inventory built up as inventories of silver-lead concentrate stood at 4,070 tonnes (containing approximately 0.4 million ounces of silver); 
  • Total and cash mining costs per tonne ore2 of $73.48 and $54.60, respectively, compared to $64.16 and $46.07 in the prior year; 
  • Cash cost per ounce of silver2, net of by-product credits, of negative $4.73, compared to negative $3.09 in the prior year; 
  • All-in sustaining cost per ounce of silver2, net of by-product credits, of $3.27, compared to $3.82 in the prior year;
  • Spent $4.2 million to buyback 1,717,100 common shares of the Company;
  • Paid $3.4 million of dividends to equity shareholders of the Company;
  • Invested $23.4 million to participate in a private placement of New Pacific Metals Corp.; and
  • Ended the fiscal year with $106.1 million in cash and cash equivalents and short-term investments, an increase of $9.6 million or 10% compared to $96.5 million as at March 31, 2017.

_________________________________
1 Earnings per share refers to basic earnings per share
² Non IFRS measure, please refer to section 12 of the corresponding MD&A for reconciliation

HIGHLIGHTS FOR THE FOURTH QUARTER FISCAL 2018 (“Q4 FISCAL 2018”)

  • Net income attributable to equity shareholders of $12.2 million, or $0.07 per share in Q4 Fiscal 2018, compared to $13.5 million, or $0.08 per share in Q4 Fiscal 2017. The adjusted net income attributable to equity shareholders was $7.5 million, or $0.04 per share in Q4 Fiscal 2018 , after adjustment of impairment reversal of $4.7 million (Q4 Fiscal 2017 - $5.3 million), compared to $8.2 million or $0.05 per share in Q4 Fiscal 2017;
  • Gross margin of 50% compared with 60% in the prior year quarter;
  • Sales of $38.4 million, up 13% compared to $34.1 million in the prior year quarter; 
  • Silver, lead, and zinc metals sold amounted to approximately 1.4 million ounces of silver, 13.3 million pounds of lead, and 2.6 million pounds of zinc, compared to 1.3 million ounces of silver, 14.3 million pounds of lead, and 1.5 million pounds of zinc in the prior year quarter;
  • Head grades were 309 g/t for silver, 4.3% for lead, and 1.0% for zinc at the Ying Mining District, compared to 298 g/t for silver, 4.8% for lead and 0.8% for zinc in the prior year quarter;
  • Total and cash mining costs per tonne ore of $85.55 and $61.78, respectively, compared to $51.37 and $46.82 in the prior year quarter; 
  • Cash cost per ounce of silver, net of by-product credits, of negative $3.89, compared to negative $3.65 in the prior year quarter; 
  • All-in sustaining cost per ounce of silver, net of by-product credits, of $3.04, compared to $3.26 in the prior year quarter; and
  • Spent $2.4 million to buyback 929,100 common shares of the Company.

FINANCIALS

1.  Fiscal 2018 vs. Fiscal 2017

Net income attributable to the shareholders of the Company in Fiscal 2018 was $47.0 million, or $0.28 per share, up 8% compared to $43.7 million, or $0.26 per share in Fiscal 2017. The adjusted net income attributable to the shareholders of the Company was $41.5 million, or $0.25 per share after adjustments of impairment reversal and dilution gain, compared to the adjusted net income of $38.6 million, or $0.23 per share in Fiscal 2017.

Sales in Fiscal 2018 were $170.0 million, up 4% compared to $163.5 million in Fiscal 2017.  Silver and gold sales represented $82.4 million and $3.2 million, respectively, while base metals represented $84.5 million of total sales compared to silver, gold and base metal sales of $89.6 million, $3.3 million, and $70.6 million, respectively, in Fiscal 2017.

In Fiscal 2018, the Company’s consolidated financial results were mainly impacted by the following: i) an increase of 25% and 53%, in net realized selling prices for lead and zinc; ii) a decrease of 1% in net realized selling price for silver, iii) less silver and lead sold as inventory built up; and iv) higher per tonne production costs.

As at March 31, 2018, silver-lead concentrate inventories were 4,070 tonnes containing approximately 0.4 million ounces of silver and 4.2 million pounds of lead, an increase of 63% or 1,579 tonnes, compared to 2,491 tonnes silver-lead concentrate inventories containing approximately 0.2 million ounces of silver and 2.8 million pounds of lead held as at March 31, 2017.

Cost of sales in Fiscal 2018 was $82.2 million compared to $75.3 million in Fiscal 2017.  The cost of sales included $59.1 million cash production costs (Fiscal 2017 - $53.8 million), $4.8 million mineral resource tax (Fiscal 2017 - $3.8 million), and $18.2 million depreciation, amortization and depletion charges (Fiscal 2017 - $17.7 million). 

Gross profit margin in Fiscal 2018 was 52% compared to 54% in Fiscal 2017. Ying Mining District’s gross profit margin was 55% compared to a 57% gross profit margin in the prior year, while GC Mine’s gross profit margin was 36% compared to a 31% gross profit margin in the prior year.

General and administrative expenses in Fiscal 2018 were $18.7 million, an increase of 11% compared to $16.8 million in Fiscal 2017. The increase was mainly due to increased compensation to management and employees and increased costs of administration related to the resumption of activities at the XHP project and the BYP Mine.

Income tax expenses in Fiscal 2018 were $18.9 million, compared to $19.2 million in Fiscal 2017.  The income tax expense recorded in Fiscal 2018 included current income tax expense of $16.1 million (Fiscal 2017 - $13.1 million) and deferred income tax expenses of $2.8 million (Fiscal 2017 - $6.1 million).

Cash flows provided by operating activities in Fiscal 2018 were $67.9 million, a decrease of $9.6 million or 12%, compared to $77.5 million in the prior year. Before changes in non-cash operating working capital, cash flows provided by operating activities in Fiscal 2018 were $70.5 million, a decrease of $2.5 million or 3%, compared to $73.0 million in the prior year.  The decrease was mainly due to increased income taxes paid in Fiscal 2018.

The Company ended the fiscal year with $106.1 million in cash and short term investments, an increase of $9.6 million or 10% compared to $96.5 million as at March 31, 2017.

Working capital as at March 31, 2018 was $90.5 million, an increase of $19.8 million or 28%, compared to $70.7 million working capital as at March 31, 2017.

2.  Q4 Fiscal 2018 vs. Q4 Fiscal 2017

Net income attributable to equity shareholders of the Company in Q4 Fiscal 2018 was $12.2 million, or $0.07 per share compared to $13.5 million, or $0.08 per share in Q4 Fiscal 2017. The adjusted net income attributable to equity shareholders was $7.5 million, or $0.04 per share in Q4 Fiscal 2018, after adjustment of impairment reversal of $4.7 million (Q4 Fiscal 2017 - $5.3 million), compared to $8.2 million or $0.05 per share in Q4 Fiscal 2017.  

The Company’s consolidated financial results in Q4 Fiscal 2018 were mainly impacted by the following: i) an increase of 2%, 16%, and 35% in the net realized selling prices for silver, lead and zinc, respectively, compared to the prior year quarter; ii) an increase of 6% and 74% in silver and zinc sold; and iii) higher per tonne production costs.    

Sales in Q4 Fiscal 2018 were $38.4 million, up 13% compared to $34.1 million in Q4 Fiscal 2017. Silver and gold sales represented $19.8 million and $0.8 million, respectively, while base metals represented $17.9 million of total sales compared to silver, gold and base metals of $18.3 million, $0.7 million, and $15.1 million, respectively, in the prior year quarter.

Cost of sales in Q4 Fiscal 2018 was $19.3 million compared to $13.8 million in Q4 Fiscal 2017.  The cost of sales included $13.3 million cash production costs (Q4 Fiscal 2017 - $11.0 million), $1.1 million mineral resource taxes (Q4 Fiscal 2017 - $1.0 million), and $5.0 million depreciation, amortization and depletion charges (Q4 Fiscal 2017 - $1.8 million).  

Gross profit margin in Q4 Fiscal 2018 decreased to 50%, compared to 60% in Q4 Fiscal 2017.

Cash flows provided by operating activities in Q4 Fiscal 2018 were $2.9 million compared to $4.1 million in Q4 Fiscal 2017. Before changes in non-cash operating working capital, cash flows provided by operating activities in the current quarter were $11.1 million, an increase of $2.9 million, compared to $8.2 million in the prior year quarter.

OPERATIONS AND DEVELOPMENT

1.  Fiscal 2018 vs. Fiscal 2017

On a consolidated basis, the Company mined 859,924 tonnes of ore in Fiscal 2018, a decrease of 4% or 37,582 tonnes, compared to 897,506 tonnes in Fiscal 2017. Correspondingly, ore milled decreased by 4% or 35,837 tonnes to 863,070 tonnes, compared to 898,907 tonnes in Fiscal 2017. Ore mined at the Ying Mining District decreased by 4% or 22,619 tonnes to 614,141 tonnes from 636,760 tonnes in Fiscal 2017. In Fiscal 2018, at the Ying Mining District, approximately 5,000 tonnes of ore production were affected by the power downtime arising from power grid update work by the State Grid Corporation of China and approximately 15,000 tonnes of ore production were affected by public safety measures, such as explosive supply limitation and temporary suspension of mining activities, brought by the local governments for the 19th National Congress of Communist Party of China.

In Fiscal 2018, the Company sold 6.0 million ounces of silver, 3,100 ounces of gold, 61.9 million pounds of lead, and 19.6 million pounds of zinc, compared to 6.5 million ounces of silver, 3,300 ounces of gold, 70.5 million pounds of lead, and 18.3 million pounds of zinc, respectively, in Fiscal 2017.  The decrease of silver and lead sold was mostly due to silver-lead concentrate inventory built up.

The consolidated total mining costs and cash mining costs were $73.48 and $54.60 per tonne, respectively, in Fiscal 2018, an increase of 15% and 19% compared to $64.16 and $46.07 per tonne, respectively, in Fiscal 2017.  The increase in cash mining costs were mainly due to: i) a $2.6 million increase in mining preparation costs resulting from more underground tunnelling being expensed in Fiscal 2018, ii) a $2.0 million increase in raw material supply costs, and iii) a $0.6 million increase in mining labor costs. 

The consolidated total milling costs and cash milling costs were $13.82 and $11.25 per tonne, respectively, in Fiscal 2018, an increase of 6% and 6% compared to $13.04 and $10.57 per tonne, respectively, in Fiscal 2017. The increase in milling costs was mainly due to a $0.5 million increase in raw material costs.

The consolidated total production costs and cash costs per ounce of silver, net of by-product credits, were negative $1.70 and negative $4.73, respectively, in Fiscal 2018, compared to negative $0.37 and negative $3.09 respectively, in the prior year.  The overall improvement in cash cost per ounce of silver, net of by-product credits, is mainly due to a 19% increase in by-product credits, mainly arising from a 25% and 53% increase in lead and zinc realized selling prices, offset by 12% decrease in lead metals sold. Sales from lead and zinc accounted for 49% of the total sales and amounted to $83.7 million, an increase of $13.6 million, compared to $70.1 million in the prior year. 

The consolidated all-in sustaining costs per ounce of silver, net of by-product credits, is $3.27 in Fiscal 2018, compared to $3.82 in Fiscal 2017. 

2.  Q4 Fiscal 2018 vs. Q4 Fiscal 2017

The Company mined 143,262 tonnes of ore in Q4 Fiscal 2018, a decrease of 6% or 9,717 tonnes, compared to 152,979 tonnes in Q4 Fiscal 2017. Correspondingly, ore milled decreased by 6% or 9,443 tonnes to 138,537 tonnes, compared to 147,980 tonnes in Q4 Fiscal 2017. Ore mined at the Ying Mining District in Q4 Fiscal 2018 was comparable to the production in the prior year quarter, but ore mined at the GC Mine decreased by 10,782 tonnes.

In Q4 Fiscal 2018, approximately 1.4 million ounces of silver, 700 ounces of gold, 13.3 million pounds of lead, and 2.6 million pounds of zinc were sold compared to 1.3 million ounces of silver, 700 ounces of gold, 14.3 million of lead, and 1.5 million pounds of zinc sold in the prior year quarter.

The consolidated total mining and cash mining costs were $85.55 and $61.78 per tonne, respectively, in Q4 Fiscal 2018, compared to $51.37 and $46.82 per tonne, respectively, in the same prior year period while the consolidated total milling costs and cash milling costs were $19.14 and $14.96 per tonne, respectively, in Q4 Fiscal 2018, compared to $16.68 and $13.03 per tonne, respectively, in Q4 Fiscal 2017.

The consolidated cash production costs and all-in sustaining costs per ounce of silver, net of by-product credits, were negative $3.89 and $3.04, respectively, in Q4 Fiscal 2018, compared to negative $3.65 and $3.26, respectively, in Q4 Fiscal 2017.

3.  Ying Mining District, Henan Province, China

                 
Operational results - Ying Mining District                
  Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017   Fiscal year ended March 31,
 
   March 31, 2018  December 31, 2017 September 30, 2017  June 30, 2017   March 31, 2017     2018    2017*  
Ore Mined (tonne)    113,820   166,619   173,294   160,408   112,755       614,141   636,760  
Ore Milled (tonne)    112,285   167,543   173,946   164,959   108,051       618,732   638,211  
Head Grades                 
Silver (gram/tonne)    309   315   294   304   298       305   303  
Lead  (%)    4.3   4.5   4.3   4.6   4.8       4.4   4.7  
Zinc (%)    1.0   1.0   0.8   0.8   0.8       0.9   1.0  
Recoveries                 
Silver  (%)    95.9   95.8   95.6   95.8   96.6       95.7   95.5  
Lead  (%)    96.5   96.4   96.2   96.3   95.6       96.3   96.5  
Zinc (%)    54.5   57.3   50.7   45.8   46.2       52.3   46.0  
Metal Sales                 
Silver (in thousands of ounce)    1,319   1,322   1,472   1,324   1,255       5,437   5,930  
Gold (in thousands of ounce)    0.7   0.7   0.8   0.9   0.7       3.1   3.3  
Lead (in thousands of pound)    12,649   13,487   15,279   13,765   13,520       55,180   63,418  
Zinc (in thousands of pound)    1,106   2,006   2,269   755   1,033       6,136   5,848  
Cash mining costs ($ per tonne)    65.88   66.71   59.67   54.78   49.99       61.46   51.79  
Total mining costs ($ per tonne)    92.81   90.12   81.20   76.67   53.50       84.59   74.04  
Cash milling costs ($ per tonne)    12.59   9.84   8.50   8.07   10.43       9.49   9.03  
Total milling costs ($ per tonne)    15.80   11.87   10.45   10.10   13.60       11.71   11.26  
Cash production costs ($ per tonne)    82.84   80.60   71.85   66.93   64.34       74.96   64.70  
                 
Cash costs per ounce of silver ($)    (3.41 ) (4.53 ) (4.27 ) (2.97 ) (3.73 )     (3.88 ) (2.76 )
All-in sustaining costs per ounce of silver ($)    1.39   2.13   1.08   3.66   0.74       2.04   2.61  
* Milling costs were adjusted to exclude mineral resources tax      
                 

i)  Fiscal 2018 vs. Fiscal 2017

In Fiscal 2018, the total ore mined at the Ying Mining District was 614,141 tonnes, a decrease of 4% or 22,619 tonnes, compared to 636,760 tonnes mined in Fiscal 2017. Correspondingly, ore milled in Fiscal 2018 decreased by 3% to 618,732 tonnes from 638,211 tonnes in the prior year.

Head grades were 305 g/t for silver, 4.4% for lead, and 0.9% for zinc, compared to 303 g/t for silver, 4.7% for lead and 1.0% for zinc in the prior year. The Company continues to achieve improvements in dilution control using its “Enterprise Blog” to manage daily operations.   

In Fiscal 2018, the Ying Mining District sold approximately 5.4 million ounces silver, 55.2 million pounds of lead, and 6.1 million pounds of zinc, compared to 5.9 million ounces of silver, 63.4 million pounds of lead, and 5.8 million pounds of zinc in the prior year. The decrease of silver and lead sold was mostly due to silver-lead concentrate inventory built up.

As at March 31, 2018, silver-lead concentrate inventories at the Ying Mining District were 4,050 tonnes containing approximately 0.4 million ounces of silver and 4.2 million pounds of lead, an increase of 77% or 1,757 tonnes, compared to 2,293 tonnes silver-lead concentrate inventories containing approximately 0.2 million ounces of silver and 2.6 million pounds of lead held as at March 31, 2017.   

Total and cash mining costs at the Ying Mining District were $84.59 and $61.46 per tonne, respectively, in Fiscal 2018, compared to $74.04 and $51.79 per tonne, respectively, in Fiscal 2017. The increase in cash mining costs were mainly due to: i) a $2.0 million increase in raw material supply costs, ii) a $1.7 million increase in mining preparation costs resulting from more underground drilling and tunnelling being expensed in Fiscal 2018, and iii) a $0.5 million increase in mining labour costs. 

Total and cash milling costs at the Ying Mining District were $11.71 and $9.49 per tonne, respectively, in Fiscal 2018, compared to $11.26 and $9.03 per tonne, respectively, in Fiscal 2017. The increase in cash milling costs was mainly due to a 15% increase in raw material supply costs.

Correspondingly, cash production cost per tonne of ore processed in Fiscal 2018 at the Ying Mining District was $74.96, an increase of 16% compared to $64.70 in the prior year. 

Cash cost per ounce of silver, net of by-product credits, in Fiscal 2018 at the Ying Mining District, was negative $3.88, compared to negative $2.76 in the prior year.

All-in sustaining costs per ounce of silver, net of by-product credits, in Fiscal 2018 at the Ying Mining District was $2.04 compared to $2.61 in the prior year quarter.

In Fiscal 2018, approximately 104,798 m or $2.3 million of underground diamond drilling (Fiscal 2017 – 93,735 m or $2.1 million) and 19,723 m or $5.8 million of preparation tunnelling (Fiscal 2017 – 17,787 m or $5.0 million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition, approximately 61,827 m or $20.1 million of horizontal tunnels, raises and declines (Fiscal 2017 – 60,241 m or $18.1 million) were completed and capitalized.  

ii)  Q4 Fiscal 2018 vs. Q4 Fiscal 2017

In Q4 Fiscal 2018, a total of 113,820 tonnes of ore were mined and 112,285 tonnes milled at the Ying Mining District, up by 1% and 4%, compared to 112,755 tonnes mined and 108,051 tonnes milled in Q4 Fiscal 2017.

Average head grades were 309 g/t for silver, 4.3% for lead, and 1.0% for zinc compared to 298 g/t for silver, 4.8% for lead, and 0.8% for zinc, respectively, in the Q4 Fiscal 2017.

Metals sold were approximately 1.3 million ounces of silver, 700 ounces of gold, 12.6 million pounds of lead, and 1.1 million pounds of zinc, compared to 1.3 million ounces of silver, 700 ounces of gold, 13.5 million pounds of lead, and 1.0 million pounds of zinc in Q4 Fiscal 2017.

The cash mining costs at the Ying Mining District in Q4 Fiscal 2018 was $65.88 per tonne, compared to $49.99 in Q4 Fiscal 2017. The increase in cash mining costs were mainly due to: i) a $0.3 million increase in raw material supply costs, ii) a $0.4 million increase in mining preparation costs, and iii) a $0.7 million increase in direct mining contractor costs. 

The cash milling cost was $12.59 per tonne in Q4 Fiscal 2018, an increase of 21% compared to $10.43 in Q4 Fiscal 2017.

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 Q4 Fiscal 2018, were negative $3.41 and $1.39, respectively, compared to negative $3.73 and $0.74, respectively, in Q4 Fiscal 2017.

In Q4 Fiscal 2018, approximately 18,791 m or $0.6 million of underground diamond drilling (Q4 Fiscal 2017 – 21,961 m or $0.4 million) and 2,809 m or $0.9 million of preparation tunnelling (Q4 Fiscal 2017 – 2,718 m or $0.8 million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition, approximately 9,653 m or $3.9 million of horizontal tunnels, raises, and declines (Q4 Fiscal 2017 – 9,741 m or $2.9 million) were completed and capitalized.

4.  GC Mine, Guangdong Province, China

               
Operational results - GC Mine Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017   Fiscal year ended March 31,
 
  March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017   2018   2017*  
Ore Mined (tonne)    29,442   85,665   65,812   64,865   40,224       245,783   260,746  
Ore Milled (tonne)    26,252   88,494   63,648   65,944   39,929       244,338   260,696  
Head Grades                 
Silver (gram/tonne)    96   97   102   98   91       98   94  
Lead  (%)    1.3   1.4   1.4   1.6   1.3       1.5   1.4  
Zinc (%)    2.9   2.8   2.8   2.7   2.6       2.8   2.8  
Recovery Rates                 
Silver  (%)    76.3   73.6   74.4   81.2   72.8       76.2   75.7  
Lead  (%)    87.5   83.9   82.8   88.8   82.4       85.4   85.7  
Zinc (%)    85.7   81.3   81.6   80.9   74.8       81.8   84.7  
Metal Sales                 
Silver (in thousands of ounce)    63   196   155   189   53       603   564  
Lead (in thousands of pound)    688   2,263   1,656   2,147   818       6,754   7,055  
Zinc (in thousands of pound)    1,479   4,399   3,311   4,244   455       13,433   12,446  
Cash mining cost ($ per tonne)    45.92   35.48   34.60   39.20   37.91       37.48   32.10  
Total mining cost ($ per tonne)    57.47   43.10   42.62   46.99   45.37       45.73   40.03  
Cash milling cost ($ per tonne)    25.07   14.09   14.63   16.73   20.06       15.72   14.35  
Total milling cost ($ per tonne)    33.41   16.45   17.90   19.85   24.99       19.17   17.40  
Cash production cost ($ per tonne)    70.99   49.57   49.23   55.93   57.97       53.20   46.45  
                 
Cash cost per ounce of silver ($)    (13.95 ) (15.34 ) (13.56 ) (7.80 ) (1.72 )     (12.37 ) (6.64 )
All-in sustaining cost per ounce of silver ($)    (4.57 ) (4.52 ) (3.77 ) (2.48 ) 14.55       (3.69 ) 0.20  
* Milling costs were adjusted to exclude mineral resources tax       
       

i)  Fiscal 2018 vs. Fiscal 2017

The total ore mined at the GC Mine was 245,783 tonnes, a decrease of 14,963 tonnes or 6%, in Fiscal 2018, compared to 260,746 tonnes mined in Fiscal 2017, while ore milled decreased by 6% to 244,338 tonnes from 260,696 tonnes in the prior year. The decrease of ore mined at the GC Mine was mainly due to the impact arising from a changeover of a mining contractor and lack of skilled miners in the fourth quarter of Fiscal 2018. 

Head grades were 98 g/t for silver, 1.5% for lead, and 2.8% for zinc in Fiscal 2018, compared to 94 g/t for silver, 1.4% for lead, and 2.8% for zinc in the prior year. 

The GC Mine sold 603,000 ounces of silver, 6.8 million pounds of lead, and 13.4 million pounds of zinc in Fiscal 2018, compared to 564,000 ounces of silver, 7.1 million pounds of lead, and 12.4 million pounds of zinc sold in Fiscal 2017.  

Total and cash mining costs at the GC Mine were $45.73 and $37.48 per tonne, respectively, in Fiscal 2018, compared to $40.03 and $32.10 per tonne, respectively, in Fiscal 2017. The increase in cash mining costs was mainly due to a $0.9 million increase in mining preparation costs resulting from more underground drilling expensed in Fiscal 2018. 

Total and cash milling costs at the GC Mine were $19.17 and $15.72 per tonne, respectively, in Fiscal 2018, compared to $17.40 and $14.35 per tonne, respectively, in Fiscal 2017. The increase in milling costs was mainly due to higher raw material supply costs.

Correspondingly, cash production costs per tonne of ore processed in Fiscal 2018 at the GC Mine increased by 14% to $53.20 from $46.45 in the prior year due to the increase in both per tonne cash mining and milling costs.

Cash costs per ounce of silver, net of by-product credits, at the GC Mine, was negative $12.37 in Fiscal 2018, compared to negative $6.64 in the prior year. The improvement was mainly due to a 45% increase in by-product credits, mainly arising from an 8% increase in zinc sold and a 32% and 50% increase in net realized lead and zinc selling prices, offset by a 4% decrease in lead sold. Sales from lead and zinc accounted for 76% of the total sales at the GC Mine in Fiscal 2018, and amounted to $21.2 million, an increase of $6.9 million, compared to $14.3 million in the prior year.

All-in sustaining costs per ounce of silver, net of by-product credits, in Fiscal 2018 at the GC Mine was negative $3.69 compared to $0.20 in the prior year. The improvement was mainly due to higher by-product credits achieved as discussed above.

In Fiscal 2018, approximately 21,717 m or $1.1 million of underground diamond drilling (Fiscal 2017 – 12,484 m or $0.8 million) and 15,811 m or $4.5 million of tunnelling (Fiscal 2017 – 14,690 m or $4.0 million) were completed and expensed as mining preparation costs at the GC Mine. In addition, approximately 320 m or $0.3 million of horizontal tunnels, raises and declines (Fiscal 2017 – 1,721 m or $0.7 million) were completed and capitalized.  

ii)  Q4 Fiscal 2018 vs. Q4 Fiscal 2017

In Q4 Fiscal 2018, a total of 29,442 tonnes of ore were mined and 26,252 tonnes were milled at the GC Mine compared to 40,224 tonnes mined and 39,929 tonnes milled in Q4 Fiscal 2017.

Average head grades were 96 g/t for silver, 1.3% for lead, and 2.9% for zinc compared to 91 g/t for silver, 1.3% for lead, and 2.6% for zinc, respectively, in Q4 Fiscal 2017.  

Metals sold were approximately 63,000 ounces of silver, 0.7 million pounds of lead, and 1.5 million pounds of zinc, compared to 53,000 ounces of silver, 0.8 million pounds of lead, and 0.5 million pounds of zinc in Q4 Fiscal 2017.  

The cash mining costs at the GC Mine was $45.92 per tonne, an increase of 21%, in Q4 Fiscal 2018, compared to $37.91 per tonne in Q4 Fiscal 2017. The increase in cash mining costs was mainly due to lower production output resulting in higher unit costs allocation. 

Correspondingly, the cash milling costs at the GC Mine in Q4 Fiscal 2018 increased by 25% to $25.07 per tonne, compared to $20.06 per tonne in Q4 Fiscal 2017.

Cash costs per ounce of silver and all-in sustaining costs per ounce of silver, net of by‐product credits, at the GC Mine, in Q4 Fiscal 2018, were negative $13.95 and negative $4.57, respectively, compared to negative $1.72 and $14.55 in Q4 Fiscal 2017. The improvement is mainly due to higher by-product credits achieved arising from a 225% increase in zinc metal sold along with a 34% and 48% increase, respectively, in lead and zinc realized selling prices.

In Q4 Fiscal 2018, approximately 3,464 m or $0.2 million of underground diamond drilling (Q4 Fiscal 2017 – 2,995 m or $0.2 million) and 1,526 m or $0.7 million of tunnelling (Q4 Fiscal 2017 – 2,714 m or $0.8 million) were completed and expensed as mining preparation costs at the GC Mine. In addition, approximately 40 m or $0.1 million of horizontal tunnels, raises, and declines (Q4 Fiscal 2017 – 40 m or $0.1 million) were completed and capitalized.

Full Milling Operations Resumed at Ying

As announced on April 16, milling operations at the Ying Mining District were temporarily suspended due to a spillage incident. On April 28, one floatation line of 1,000 tonnes per day at the No. 2 mill, using the No. 1 tailing storage facility resumed operation. On May 23, the No. 2 tailing storage facility resumed usage after the fifth overflow well was permanently plugged, and full mill operations resumed. 

Mr. Guoliang Ma, P.Geo., Manager of Exploration and Resource of the Company, is the Qualified Person for Silvercorp under NI 43-101 and has reviewed and given consent to the technical information contained in this news release.

This earnings release should be read in conjunction with the Company's Management Discussion & Analysis, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted on SEDAR under the Company’s profile at www.sedar.com and are also available on the Company's website at www.silvercorp.ca.  All figures are in United States dollars unless otherwise stated.

About Silvercorp

Silvercorp is a low-cost silver-producing Canadian mining company with multiple mines in China. The Company's vision is to deliver shareholder value by focusing on the acquisition of underdeveloped projects with resource potential and the ability to grow organically. For more information, please visit our website at www.silvercorp.ca.

For further information
Silvercorp Metals Inc.
Lorne Waldman
Senior Vice 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; timing of receipt of permits and regulatory approvals; availability of funds from production to finance the Company’s operations; and access to and availability of funding for future construction, use of proceeds from any financing and development of the Company’s properties.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks relating to: fluctuating commodity prices; calculation of resources, reserves and mineralization and precious and base metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; feasibility and engineering reports; permits and licences; title to properties; property interests; joint venture partners; acquisition of commercially mineable mineral rights; financing; recent market events and conditions; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions into the Company’s existing operations; competition; operations and political conditions; regulatory environment in China and Canada; environmental risks; foreign exchange rate fluctuations; insurance; risks and hazards of mining operations; key personnel; conflicts of interest; dependence on management; internal control over financial reporting; and bringing actions and enforcing judgments under U.S. securities laws.

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company’s Annual Information Form for the year ended March 31, 2017 under the heading “Risk Factors”.  Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended.  Accordingly, readers should not place undue reliance on forward-looking statements.  

The Company’s forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

 
SILVERCORP METALS INC.
Consolidated Statements of Financial Position
(Unaudited - Expressed in thousands of U.S. dollars)
       
  As at March 31,
    As at March 31,  
    2018       2017  
ASSETS      
Current Assets      
Cash and cash equivalents $    49,199     $ 73,003  
Short-term investments     56,910       23,466  
Trade and other receivables     676       1,311  
Inventories     11,018       8,710  
Due from a related party     11       92  
Income tax receivable     534       -  
Prepaids and deposits     4,456       4,250  
      122,804       110,832  
Non-current Assets      
Long-term prepaids and deposits     954       959  
Reclamation deposits     5,712       5,054  
Investment in an associate     38,001       8,517  
Other investments     6,132       1,207  
Plant and equipment     71,211       65,201  
Mineral rights and properties     232,080       206,200  
TOTAL ASSETS $    476,894     $ 397,970  
       
LIABILITIES AND EQUITY      
Current Liabilities      
Accounts payable and accrued liabilities $    25,198     $ 30,374  
Deposits received     6,806       6,798  
Income tax payable     303       2,985  
      32,307       40,157  
Non-current Liabilities      
Deferred income tax liabilities     33,310       27,692  
Environmental rehabilitation     13,098       12,186  
Total Liabilities     78,715       80,035  
       
Equity      
Share capital     228,729       232,155  
Share option reserve     14,690       13,325  
Reserves     25,409       25,409  
Accumulated other comprehensive loss     (25,875 )     (50,419 )
Retained earnings     86,283       42,651  
Total equity attributable to the equity holders of the Company     329,236       263,121  
       
Non-controlling interests     68,943       54,814  
Total Equity     398,179       317,935  
       
TOTAL LIABILITIES AND EQUITY $    476,894     $ 397,970  
       


 
SILVERCORP METALS INC.
Consolidated Statements of Income
(Unaudited - Expressed in thousands of U.S. dollars, except for per share figures)
         
    Three Months Ended March 31,
    Years Ended March 31,
 
      2018     2017       2018     2017  
             
Sales   $    38,449   $ 34,064     $    170,039   $ 163,471  
Cost of sales            
Production costs       13,305     10,959         59,144     53,822  
Mineral resource taxes       1,081     975         4,764     3,777  
Depreciation and amortization       4,956     1,825         18,247     17,686  
        19,342     13,759         82,155     75,285  
Gross profit       19,107     20,305         87,884     88,186  
             
General and administrative       4,727     4,356         18,685     16,818  
Government fees and other taxes       538     531         2,971     4,007  
Foreign exchange loss (gain)       (862 )   197         1,628     (339 )
Loss on disposal of plant and equipment       5     81         329     538  
Gain on disposal of NSR       -     -         (4,320 )   -  
Share of loss (income) in associate       189     (122 )       700     (282 )
Dilution gain on investment in associate       -     -         (822 )   -  
Reclassification of other comprehensive loss upon ownership dilution of investment in associate       -     -         18     -  
Impairment reversal of investment in associate       (4,714 )   (5,278 )       (4,714 )   (5,278 )
Impairment of plant and equipment and mineral rights and properties       -     -         -     181  
Other income       (149 )   (424 )       (2,016 )   (748 )
Income from operations       19,373     20,964         75,425     73,289  
             
Finance income       793     591         2,839     2,206  
Finance costs       (120 )   (75 )       (449 )   (760 )
Income before income taxes       20,046     21,480         77,815     74,735  
             
Income tax expense       5,333     5,146         18,919     19,237  
Net income   $    14,713   $ 16,334     $    58,896   $ 55,498  
             
Attributable to:            
Equity holders of the Company   $    12,194   $ 13,507     $    46,994   $ 43,674  
Non-controlling interests       2,519     2,827         11,902     11,824  
    $    14,713   $ 16,334     $    58,896   $ 55,498  
             
Earnings per share attributable to the equity holders of the Company            
Basic earnings per share   $    0.07   $ 0.08     $    0.28   $ 0.26  
Diluted earnings per share   $    0.07   $ 0.08     $    0.27   $ 0.25  
Weighted Average Number of Shares Outstanding - Basic       167,374,757     167,602,781         167,848,117     167,185,234  
Weighted Average Number of Shares Outstanding - Diluted       171,756,605     171,984,629         171,405,904     171,350,024  
             


 
SILVERCORP METALS INC.
Consolidated Statements of Cash Flow
(Unaudited - Expressed in thousands of U.S. dollars)
       
  Three Months Ended March 31,
    Years Ended March 31,
 
    2018     2017       2018     2017  
Cash provided by          
Operating activities          
Net income $    14,713   $ 16,334     $    58,896   $ 55,498  
Add (deduct) items not affecting cash:          
Finance costs     120     75         449     760  
Depreciation, amortization and depletion     5,266     2,101         19,442     18,913  
Share of loss (income) in associate     189     (122 )       700     (282 )
Dilution gain on investment in associate     -     -         (822 )   -  
Reclassification of other comprehensive loss upon ownership dilution of investment in associate     -     -         18     -  
Gain on disposal of NSR     -     -         (4,320 )   -  
Impairment reversal of investment in associate     (4,714 )   (5,278 )       (4,714 )   (5,278 )
Impairment of plant and equipment and mineral rights and properties     -     -         -     181  
Income tax expense     5,333     5,146         18,919     19,237  
Finance income     (793 )   (591 )       (2,839 )   (2,206 )
Loss on disposal of plant and equipment     5     81         329     538  
Share-based compensation     422     361         1,566     1,015  
Reclamation     (158 )   (807 )       (194 )   (2,967 )
Income taxes paid     (10,096 )   (9,637 )       (19,743 )   (13,667 )
Interest received     793     591         2,839     2,206  
Interest paid     -     (9 )       -     (963 )
Changes in non-cash operating working capital     (8,223 )   (4,171 )       (2,625 )   4,485  
Net cash provided by operating activities     2,857     4,074         67,901     77,470  
           
Investing activities          
Mineral rights and properties          
Capital expenditures     (4,310 )   (2,209 )       (20,948 )   (27,814 )
Plant and equipment          
Additions     (1,697 )   (3,431 )       (6,152 )   (7,987 )
Proceeds on disposals     14     -         33     51  
Other investments          
Acquisition     -     -         -     (782 )
Proceeds on disposals     -     -         -     33  
Investment in associate     -     -         (23,861 )   -  
Net purchases of short-term investments     (9,458 )   7,424         (30,803 )   (4,094 )
Net cash used in investing activities     (15,451 )   1,784         (81,731 )   (40,593 )
           
Financing activities          
Bank loan          
Repayment     -     (4,325 )       -     (4,325 )
Non-controlling interests          
Distribution     (2,894 )   (762 )       (7,785 )   (2,222 )
Cash dividends distributed     -     -         (3,362 )   (1,585 )
Proceeds from issuance of common shares     208     415         550     904  
Common shares repurchased as part of normal course issuer bid     (2,398 )   -         (4,177 )   -  
Net cash used in financing activities     (5,084 )   (4,672 )       (14,774 )   (7,228 )
           
Effect of exchange rate changes on cash and cash equivalents     603     4,843         4,800     1,391  
           
(Decrease) increase in cash and cash equivalents     (17,075 )   6,029         (23,804 )   31,040  
           
Cash and cash equivalents, beginning of the year   66,274     66,974       73,003     41,963  
Cash and cash equivalents, end of the year $    49,199   $ 73,003     $    49,199   $ 73,003  
           


 
SILVERCORP METALS INC.
Mining Data
(Expressed in thousands of U.S. dollars, except for mining data figures)
           
      Year  ended March 31, 2018
      Ying Mining
District
1
  GC2    Consolidated  
           
Production Data      
  Mine Data       
    Ore Mined (tonne)    614,141     245,783     859,924  
    Ore Milled (tonne)    618,732     244,338     863,070  
           
  + Mining cost per tonne of ore mined ($)    84.59     45.73     73.48  
    Cash mining cost per tonne of ore mined ($)    61.46     37.48     54.60  
    Non cash mining cost per tonne of ore mined ($)    23.13     8.25     18.88  
           
  + Unit shipping costs($)    4.01     -     2.87  
           
  + Milling cost per tonne of ore milled ($)    11.71     19.17     13.82  
    Cash milling cost per tonne of ore milled ($)    9.49     15.72     11.25  
    Non cash milling cost per tonne of ore milled ($)    2.22     3.45     2.57  
           
  + Average Production Cost       
    Silver ($ per ounce)    5.93     6.52     6.21  
    Gold ($ per ounce)    443     -     475  
    Lead ($ per pound)    0.43     0.61     0.46  
    Zinc ($ per pound)    0.48     0.66     0.50  
    Other ($ per pound)    0.41     0.01     0.02  
           
  + Total production cost per ounce of Silver, net of by-product credits ($)    (1.07 )   (7.41 )   (1.70 )
  + Total cash cost per ounce of Silver, net of by-product credits ($)    (3.88 )   (12.37 )   (4.73 )
           
  + All-in sustaining cost per ounce of Silver, net of by-product credits ($)    2.04     (3.69 )   3.27  
  + All-in cost per ounce of Silver, net of by-product credits ($)    2.72     (2.88 )   4.01  
           
    Recovery Rates       
    Silver  (%)    95.7     76.2     93.5  
    Lead  (%)    96.3     85.4     95.1  
    Zinc (%)    52.3     81.8     68.7  
           
    Head Grades       
    Silver (gram/tonne)    305     98     246  
    Lead  (%)    4.4     1.5     3.6  
    Zinc (%)    0.9     2.8     1.4  
           
  Concentrate in stock       
    Lead concentrate (tonne)    4,050     20     4,070  
    Zinc concentrate (tonne)    350     20     370  
           
Sales Data      
  Metal Sales       
    Silver (in thousands of ounces)    5,437     603     6,040  
    Gold (in thousands of ounces)    3.1     -     3.1  
    Lead (in thousands of pounds)    55,180     6,754     61,934  
    Zinc (in thousands of pounds)    6,136     13,433     19,569  
    Other (in thousands of pounds)    524     16,276     16,800  
           
  Metal Sales       
    Silver (in thousands of $)    75,891     6,463     82,354  
    Gold (in thousands of $)    3,232     -     3,232  
    Lead (in thousands of $)    55,488     6,763     62,251  
    Zinc (in thousands of $)    7,000     14,462     21,462  
    Other (in thousands of $)    502     238     740  
        142,113     27,926     170,039  
  Average Selling Price, Net of Value Added Tax and Smelter Charges       
    Silver ($ per ounce)    13.96     10.72     13.63  
    Gold ($ per ounce)    1,043     -     1,043  
    Lead ($ per pound)    1.01     1.00     1.01  
    Zinc ($ per pound)    1.14     1.08     1.10  
           
  1 Ying Mining District includes mines: SGX, TLP, HPG,LM, BCG and HZG.
  2 GC Silver recovery rate consists of 55.2% from lead concentrates and 21.0% from zinc concentrates.
  2 GC Silver sold in zinc concentrates is subjected to higher smelter and refining charges which lowers the net silver selling price.
           


 
SILVERCORP METALS INC.
Mining Data
(Expressed in thousands of U.S. dollars, except for mining data figures)
       
      Year ended March 31, 2017
      Ying Mining
District
1
GC2 Total
           
Production Data      
  Mine Data      
    Ore Mined (tonne) 636,760   260,746   897,506  
    Ore Milled (tonne) 638,211   260,696   898,907  
           
  + Mining cost per tonne of ore mined ($) 74.04   40.03   64.16  
    Cash mining cost per tonne of ore mined ($)  51.79   32.10   46.07  
    Non cash mining cost per tonne of ore mined ($) 22.25   7.93   18.09  
           
  + Unit shipping costs($) 3.88   -   2.75  
           
  + Milling cost per tonne of ore milled ($)  11.26   17.40   13.04  
    Cash milling cost per tonne of ore milled ($)  9.03   14.35   10.57  
    Non cash milling cost per tonne of ore milled ($) 2.23   3.05   2.47  
           
  + Average Production Cost      
    Silver ($ per ounce)  5.71   6.98   6.03  
    Gold ($ per ounce) 410   -   443  
    Lead ($ per pound) 0.33   0.50   0.35  
    Zinc ($ per pound) 0.30   0.47   0.32  
    Other ($ per pound) -   0.03   0.02  
           
  + Total production cost per ounce of Silver, net of by-product credits ($) (0.23 ) (1.86 ) (0.37 )
  + Total cash cost per ounce of Silver, net of by-product credits ($) (2.76 ) (6.64 ) (3.09 )
           
  + All-in sustaining cost per ounce of Silver, net of by-product credits ($) 2.61   0.20   3.82  
  + All-in cost per ounce of Silver, net of by-product credits ($) 3.18   0.80   4.40  
           
    Recovery Rates      
    Silver  (%)  95.5   75.7   93.2  
    Lead  (%) 96.5   85.7   95.3  
    Zinc (%) 46.0   84.7   67.2  
           
    Head Grades      
    Silver (gram/tonne) 303   94   242  
    Lead  (%) 4.7   1.4   3.7  
    Zinc (%) 1.0   2.8   1.5  
           
  Concentrate in stock       
    Lead concentrate (tonne)  2,293   198   2,491  
    Zinc concentrate (tonne) 480   1,503   1,983  
           
Sales Data      
  Metal Sales       
    Silver (in thousands of ounces) 5,930   564   6,494  
    Gold (in thousands of ounces) 3.3   -   3.3  
    Lead (in thousands of pounds) 63,418   7,055   70,473  
    Zinc (in thousands of pounds) 5,848   12,446   18,294  
    Other (in thousands of pound) -   12,025   12,025  
           
  Metal Sales       
    Silver (in thousands of $) 83,606   5,950   89,556  
    Gold (in thousands of $) 3,344   -   3,344  
    Lead (in thousands of $)  51,479   5,373   56,852  
    Zinc (in thousands of $)  4,332   8,909   13,241  
    Other (in thousands of $)  -   478   478  
      142,761   20,710   163,471  
  Average Selling Price, Net of Value Added Tax and Smelter Charges      
    Silver ($ per ounce)  14.10   10.55   13.79  
    Gold ($ per ounce) 1,013   -   1,013  
    Lead ($ per pound) 0.81   0.76   0.81  
    Zinc ($ per pound) 0.74   0.72   0.72  
           
  1 Ying Mining District includes mines: SGX, TLP, HPG,LM, BCG and HZG.
  2 GC Silver recovery rate consists of 53.7% from lead concentrates and 21.9% from zinc concentrates.
  2 GC Silver sold in zinc concentrates is subjected to higher smelter and refining charges which lower the net silver selling price.
  + Mineral resouces tax was excluded from production costs, but presented as a separate line item on the consolidated statements of income
   


 
SILVERCORP METALS INC.
Mining Data
(Expressed in thousands of U.S. dollars, except for mining data figures)
       
       Three months ended March 31, 2018 
      Ying Mining District1   GC2    Total  
           
Production Data      
  Mine Data       
    Ore Mined (tonne)    113,820     29,442     143,262  
    Ore Milled (tonne)    112,285     26,252     138,537  
           
  + Mining cost per tonne of ore mined ($)    92.81     57.47     85.55  
    Cash mining cost per tonne of ore mined ($)    65.88     45.92     61.78  
    Non cash mining cost per tonne of ore mined ($)    26.93     11.55     23.77  
           
  + Unit shipping costs($)    4.37     -     3.46  
           
  + Milling cost per tonne of ore milled ($)    15.80     33.41     19.14  
    Cash milling cost per tonne of ore milled ($)    12.59     25.07     14.96  
    Non cash milling cost per tonne of ore milled ($)    3.21     8.34     4.18  
           
  + Average Production Cost       
    Silver ($ per ounce)    6.56     7.92     6.79  
    Gold ($ per ounce)    509     -     532  
    Lead ($ per pound)    0.49     0.81     0.52  
    Zinc ($ per pound)    0.57     0.89     0.61  
    Other ($ per pound)    -     0.03     0.06  
           
  + Total production cost per ounce of Silver, net of by-product credits ($)    (0.04 )   (5.73 )   (0.30 )
  + Total cash cost per ounce of Silver, net of by-product credits ($)    (3.41 )   (13.95 )   (3.89 )
           
  + All-in sustaining cost per ounce of Silver, net of by-product credits ($)    1.39     (4.57 )   3.04  
  + All-in cost per ounce of Silver, net of by-product credits ($)    2.81     2.62     4.91  
           
    Recovery Rates       
    Silver  (%)    95.9     76.3     94.6  
    Lead  (%)    96.5     87.5     95.9  
    Zinc (%)    54.5     85.7     67.6  
           
    Head Grades       
    Silver (gram/tonne)    309     96     269  
    Lead  (%)    4.3     1.3     3.8  
    Zinc (%)    1.0     2.9     1.3  
           
  Concentrate in stock       
    Lead concentrate (tonne)    4,050     20     4,070  
    Zinc concentrate (tonne)    350     20     370  
           
Sales Data      
  Metal Sales       
    Silver (in thousands of ounces)    1,319     63     1,382  
    Gold (in thousands of ounces)    0.7     -     0.7  
    Lead (in thousands of pounds)    12,649     688     13,337  
    Zinc (in thousands of pounds)    1,106     1,479     2,585  
           
  Metal Sales       
    Silver (in thousands of $)    19,041     728     19,769  
    Gold (in thousands of $)    784     -     784  
    Lead (in thousands of $)    13,760     815     14,575  
    Zinc (in thousands of $)    1,396     1,914     3,310  
    Other (in thousands of $)    7     4     11  
        34,988     3,461     38,449  
  Average Selling Price, Net of Value Added Tax and Smelter Charges       
    Silver ($ per ounce)    14.44     11.56     14.30  
    Gold ($ per ounce)    1,120     -     1,120  
    Lead ($ per pound)    1.09     1.18     1.09  
    Zinc ($ per pound)    1.26     1.29     1.28  
           
  1 Ying Mining District includes mines: SGX, TLP, HPG,LM, BCG and HZG.
  2 GC Silver recovery rate consists of 53.1% from lead concentrates and 23.2% from zinc concentrates.
  2 GC Silver sold in zinc concentrates is subjected to higher smelter and refining charges which lowers the net silver selling price.
           


 
SILVERCORP METALS INC.
Mining Data
(Expressed in thousands of U.S. dollars, except for mining data figures)
       
      Three months ended March 31, 2017
      Ying Mining
District
1
GC2 Total
           
Production Data       
  Mine Data      
    Ore Mined (tonne) 112,755   40,224   152,979  
    Ore Milled (tonne) 108,051   39,929   147,980  
           
  + Mining cost per tonne of ore mined ($) 53.50   45.37   51.37  
    Cash mining cost per tonne of ore mined ($)  49.99   37.91   46.82  
    Non cash mining cost per tonne of ore mined ($) 3.51   7.46   4.55  
           
  + Unit shipping costs($) 3.92   -   2.88  
           
  + Milling cost per tonne of ore milled ($)  13.60   24.99   16.68  
    Cash milling cost per tonne of ore milled ($)  10.43   20.06   13.03  
    Non cash milling cost per tonne of ore milled ($) 3.17   4.93   3.65  
           
  + Average Production Cost      
    Silver ($ per ounce)  4.93   9.97   5.26  
    Gold ($ per ounce) 331.79   -   354.95  
    Lead ($ per pound) 0.33   0.68   0.35  
    Zinc ($ per pound) 0.35   0.67   0.36  
    Other ($ per pound) -   0.04   0.02  
           
  + Total production cost per ounce of Silver, net of by-product credits ($) (2.54 ) 4.49   (2.25 )
  + Total cash cost per ounce of Silver, net of by-product credits ($) (3.73 ) (1.72 ) (3.65 )
           
  + All-in sustaining cost per ounce of Silver, net of by-product credits ($) 0.74   14.55   3.26  
  + All-in cost per ounce of Silver, net of by-product credits ($) 0.86   14.55   3.37  
           
    Recovery Rates      
    Silver  (%)  96.6   72.8   94.2  
    Lead  (%) 95.6   82.4   94.4  
    Zinc (%) 46.2   74.8   61.8  
           
    Head Grades      
    Silver (gram/tonne) 298   91   242  
    Lead  (%) 4.8   1.3   3.8  
    Zinc (%) 0.8   2.6   1.3  
           
  Concentrate in stock       
    Lead concentrate (tonne)  2,293   198   2,491  
    Zinc concentrate (tonne) 480   1,503   1,983  
           
Sales Data      
  Metal Sales       
    Silver (in thousands of ounces) 1,255   53   1,308  
    Gold (in thousands of ounces) 0.7   -   0.7  
    Lead (in thousands of pounds) 13,520   818   14,338  
    Zinc (in thousands of pounds) 1,033   455   1,488  
    Other (in thousands of pound) -   3,446   3,446  
           
  Metal Sales       
    Silver (in thousands of $) 17,653   682   18,335  
    Gold (in thousands of $) 662   -   662  
    Lead (in thousands of $)  12,756   717   13,473  
    Zinc (in thousands of $)  1,024   395   1,419  
    Other (in thousands of $)  -   175   175  
      32,095   1,969   34,064  
  Average Selling Price, Net of Value Added Tax and Smelter Charges      
    Silver ($ per ounce)  14.07   12.87   14.02  
    Gold ($ per ounce) 946   -   946  
    Lead ($ per pound) 0.94   0.88   0.94  
    Zinc ($ per pound) 0.99   0.87   0.95  
           
  1 Ying Mining District includes mines: SGX, TLP, HPG,LM, BCG and HZG.
  2 GC Silver recovery rate consists of 51.2% from lead concentrates and 21.7% from zinc concentrates.
  2 GC Silver sold in zinc concentrates is subjected to higher smelter and refining charges which lower the net silver selling price.
           

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