SILVERCORP REPORTS ADJUSTED NET INCOME OF $12.4 MILLION, $0.07 PER SHARE, AND CASH FLOW FROM OPERATION OF $28.9 MILLION FOR Q1 FISCAL 2024
- Silvercorp Metals Inc. reported strong financial results for Q1 Fiscal 2024, with a significant increase in gold production and higher realized selling prices for gold and silver. They also have a strong balance sheet with a large amount of cash and cash equivalents.
- None.
Trading Symbol:
TSX: SVM
NYSE AMERICAN: SVM
HIGHLIGHTS FOR Q1 FISCAL 2024
- Mined 303,220 tonnes of ore, milled 295,095 tonnes of ore, and produced approximately 1.8 million ounces of silver, 1,552 ounces of gold, or approximately 1.9 million ounces of silver equivalent, plus 17.8 million pounds of lead, and 6.8 million pounds of zinc;
- Sold approximately 1.8 million ounces of silver, 1,495 ounces of gold, 17.3 million pounds of lead, and 6.9 million pounds of zinc, for revenue of
;$60.0 million - Reported net income attributable to equity shareholders of
, or$9.2 million per share;$0.05 - Realized adjusted earnings attributable to equity shareholders of
, or$12.4 million per share;$0.07 - Generated cash flow from operating activities of
;$28.9 million - Cash cost per ounce of silver, net of by-product credits, of negative
;$0.31 - All-in sustaining cost per ounce of silver, net of by-product credits, of
;$9.46 - Paid
of dividends to the Company's shareholders;$2.2 million - Spent and capitalized
on exploration drilling,$1.7 million on underground development, and$10.8 million on equipment and facilities, including$3.5 million on construction of the new tailings storage facility; and$2.4 million - Strong balance sheet with
in cash and cash equivalents and short-term investments. The Company holds a further equity investment portfolio in associates and other companies with a total market value of$200.6 million as at June 30, 2023.$121.5 million
CONSOLIDATED FINANCIAL RESULTS
Three months ended June 30, | |||
2023 | 2022 | Changes | |
Financial Results | |||
Revenue (in thousands of $) | $ 60,006 | $ 63,592 | -6 % |
Mine operating earnings (in thousands of $) | 23,301 | 24,902 | -6 % |
Net income (loss) attributable to equity holders (in thousands of $) | 9,217 | 10,169 | -9 % |
Earnings (loss) per share - basic ($/share) | 0.05 | 0.06 | -17 % |
Adjusted earnings attributable to equity holders (in thousands of $) | 12,369 | 13,529 | -9 % |
Adjusted earning per share - basic ($/share) | 0.07 | 0.08 | -8 % |
Net cash generated from operating activities (in thousands of $) | 28,881 | 40,176 | -28 % |
Capitalized expenditures (in thousands of $) | 15,916 | 15,528 | 2 % |
Metals sold | |||
Gold (ounces) | 1,495 | 1,100 | 36 % |
Silver (in thousands of ounces) | 1,815 | 1,915 | -5 % |
Lead (in thousands of pounds) | 17,330 | 19,125 | -9 % |
Zinc (in thousands of pounds) | 6,920 | 6,928 | 0 % |
Average Selling Price, Net of Value Added Tax and Smelter Charges | |||
Gold ($/ounce) | 1,682 | 1,594 | 6 % |
Silver ($/ounce) | 19.37 | 17.99 | 8 % |
Lead ($/pound) | 0.84 | 0.90 | -6 % |
Zinc ($/pound) | 0.82 | 1.23 | -33 % |
Financial Position as at | June 30, 2023 | March 31, 2023 | |
Cash and cash equivalents and short-term investments (in thousands of $) | 200,600 | 203,323 | -1 % |
Working capital (in thousands of $) | 169,531 | 177,808 | -5 % |
Net income attributable to equity shareholders of the Company in Q1 Fiscal 2024 was
In Q1 Fiscal 2024, the Company's consolidated financial results were mainly impacted by i) an increase of
Revenue in Q1 Fiscal 2024 was
Income from mine operations in Q1 Fiscal 2024 was
Cash flow provided by operating activities in Q1 Fiscal 2024 was
The Company ended the quarter with
Working capital as at June 30, 2023 was
CONSOLIDATED OPERATIONAL RESULTS
Three months ended June 30, | |||
2023 | 2022 | Changes | |
Ore Production (tonne) | |||
Ore mined | 303,220 | 300,104 | 1 % |
Ore milled | 295,095 | 298,176 | -1 % |
Metal Production | |||
Gold (ounces) | 1,552 | 1,100 | 41 % |
Silver (in thousands of ounces) | 1,780 | 1,860 | -4 % |
Lead (in thousands of pounds) | 17,816 | 19,088 | -7 % |
Zinc (in thousands of pounds) | 6,821 | 6,926 | -2 % |
Cash Costs | |||
Production costs per tonne of ore processed ($) | 78.63 | 82.99 | -5 % |
All-in sustaining costs per tonne of ore processed ($) | 134.08 | 147.29 | -9 % |
Cash costs per ounce of silver, net of by-product credits ($) | (0.31) | (1.57) | 80 % |
All-in sustaining costs per ounce of silver, net of by-product credits ($) | 9.46 | 9.25 | 2 % |
In Q1 Fiscal 2024, the Company mined 303,220 tonnes of ore, up
In Q1 Fiscal 2024, the Company produced approximately 1.8 million ounces of silver, 1,552 ounces of gold, 17.8 million pounds of lead, and 6.8 million pounds of zinc, representing an increase of
The consolidated production costs and all-in sustaining production costs per tonne of ore processed in Q1 Fiscal 2024 were
The consolidated cash cost per ounce of silver, net of by-product credits, was negative
The consolidated all-in sustaining cost per ounce of silver, net of by-product credits, was
EXPLORATION AND DEVELOPMENT
Capitalized Development and Expenditures | Expensed | ||||||||||
Ramp Development | Exploration and | Drilling | Plant & | Total | Mining Preparation | Drilling | |||||
(Metres) | ($ Thousand) | (Metres) | ($ Thousand) | (Metres) | ($ Thousand) | ($ Thousand) | (Metres) | ($ Thousand) | (Metres) | (Metres) | |
Q1 Fiscal 2024 | |||||||||||
Ying Mining District | 3,053 | $ 2,262 | 19,403 | $ 7,201 | 32,839 | $ 1,151 | $ 3,430 | 22,456 | $ 14,044 | 8,443 | 25,937 |
GC Mine | - | - | 3,813 | 1,294 | 7,926 | 518 | - | 3,813 | 1,812 | 3,055 | 17,897 |
Corporate and other | - | - | - | - | - | 51 | 9 | - | 60 | - | - |
Consolidated | 3,053 | $ 2,262 | 23,216 | $ 8,495 | 40,765 | $ 1,720 | $ 3,439 | 26,269 | $ 15,916 | 11,498 | 43,834 |
Q1 Fiscal 2023 | |||||||||||
Ying Mining District | 1,949 | $ 1,394 | 19,469 | $ 7,153 | 49,315 | $ 2,664 | $ 2,470 | 21,418 | $ 13,681 | 9,317 | 51,733 |
GC Mine | - | - | 3,540 | 1,157 | 4,634 | 178 | 232 | 3,540 | 1,567 | 2,365 | 15,266 |
Corporate and other | - | - | - | - | 1,982 | 287 | (7) | - | 280 | - | - |
Consolidated | 1,949 | $ 1,394 | 23,009 | $ 8,310 | 55,931 | $ 3,129 | $ 2,695 | $ 24,958 | $ 15,528 | 11,682 | 66,999 |
Changes (%) | |||||||||||
Ying Mining District | 57 % | 62 % | 0 % | 1 % | -33 % | -57 % | 39 % | 5 % | 3 % | -9 % | -50 % |
GC Mine | 0 % | 0 % | 8 % | 12 % | 71 % | 191 % | -100 % | 8 % | 16 % | 29 % | 17 % |
Corporate and other | - | - | - | - | -100 % | -82 % | -229 % | 0 % | -79 % | - | - |
Consolidated | 57 % | 62 % | 1 % | 2 % | -27 % | -45 % | 28 % | 5 % | 2 % | -2 % | -35 % |
Total capital expenditures in Q1 Fiscal 2024 were
In Q1 Fiscal 2024, on a consolidated basis, a total of 84,599 metres or
INDIVIDUAL MINE OPERATING PERFORMANCE
The table below summarizes the operating results at the Ying Mining District for the past five quarters.
Ying Mining District | Q1 F2024 | Q4 F2023 | Q3 F2023 | Q2 F2023 | Q1 F2023 |
June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |
Ore Production (tonne) | |||||
Ore mined | 213,748 | 132,205 | 206,854 | 215,927 | 214,038 |
Ore milled | 208,809 | 130,910 | 213,830 | 216,262 | 212,055 |
Head grades | |||||
Silver (grams/tonne) | 254 | 255 | 262 | 257 | 267 |
Lead (%) | 3.6 | 3.6 | 4.0 | 3.7 | 3.9 |
Zinc (%) | 0.7 | 0.6 | 0.7 | 0.7 | 0.7 |
Recovery rates | |||||
Silver (%) | 95.1 | 95.2 | 95.7 | 95.5 | 95.7 |
Lead (%) | 95.5 | 95.3 | 95.4 | 94.1 | 95.4 |
Zinc (%) | 69.6 | 68.3 | 66.4 | 62.5 | 58.1 |
Cash Costs | |||||
Cash production cost per tonne of ore processed ($) | 85.58 | 102.42 | 88.66 | 95.23 | 93.04 |
All-in sustaining cost per tonne of ore processed ($) | 133.94 | 170.69 | 141.21 | 127.89 | 156.07 |
Cash cost per ounce of Silver, net of by-product credits ($) | 0.26 | 1.37 | 0.24 | 1.86 | 0.28 |
All-in sustaining cost per ounce of silver, net of by-product credits ($) | 7.14 | 11.33 | 7.66 | 6.82 | 8.60 |
Metal Production | |||||
Gold ( ounces) | 1,552 | 1,000 | 1,100 | 1,200 | 1,100 |
Silver (in thousands of ounces) | 1,597 | 997 | 1,674 | 1,657 | 1,696 |
Lead (in thousands of pounds) | 15,382 | 9,688 | 17,647 | 16,201 | 16,718 |
Zinc (in thousands of pounds) | 2,113 | 1,164 | 2,082 | 1,976 | 1,928 |
The table below summarizes the operating results at the GC Mine for the past five quarters.
GC Mine | Q1 F2024 | Q4 F2023 | Q3 F2023 | Q2 F2023 | Q1 F2023 |
June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |
Ore Production (tonne) | |||||
Ore mined | 89,472 | 49,643 | 89,196 | 75,054 | 86,066 |
Ore milled | 86,286 | 48,483 | 89,612 | 75,381 | 86,121 |
Head grades | |||||
Silver (grams/tonne) | 80 | 88 | 75 | 72 | 71 |
Lead (%) | 1.4 | 1.3 | 1.4 | 1.2 | 1.4 |
Zinc (%) | 2.7 | 2.5 | 2.8 | 2.7 | 2.9 |
Recovery rates | |||||
Silver (%) | 82.7 | 78.9 | 83.0 | 81.0 | 83.4 |
Lead (%) | 90.7 | 90.9 | 90.3 | 88.5 | 89.8 |
Zinc (%) | 90.4 | 89.3 | 90.1 | 89.6 | 90.4 |
Cash Costs | |||||
Cash production cost per tonne of ore processed ($) | 62.02 | 67.34 | 52.35 | 59.84 | 57.92 |
All-in sustaining cost per tonne of ore processed ($) | 90.94 | 84.79 | 88.26 | 78.31 | 81.68 |
Cash cost per ounce of Silver, net of by-product credits ($) | (5.30) | (3.10) | (13.72) | (12.13) | (22.42) |
All-in sustaining cost per ounce of silver, net of by-product credits ($) | 9.51 | 5.93 | 5.02 | (0.73) | (7.48) |
Metal Production | |||||
Silver (in thousands of ounces) | 183 | 109 | 179 | 141 | 164 |
Lead (in thousands of pounds) | 2,434 | 1,250 | 2,412 | 1,782 | 2,370 |
Zinc (in thousands of pounds) | 4,708 | 2,413 | 4,892 | 4,010 | 4,998 |
CONFERENCE CALL DETAILS
A conference call to discuss these results will be held tomorrow, Friday, August 11, at 9:00 am PDT (12:00 pm EDT). To participate in the conference call, please dial the numbers below.
International/Local Toll: 416-764-8650
Conference ID: 73348006
Participants should dial-in 10 – 15 minutes prior to the start time. A replay of the conference call and transcript will be available on the Company's website at www.silvercorp.ca.
Mr. Guoliang Ma, P.Geo., Manager of Exploration and Resources of the Company, is the Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and given consent to the technical information contained in this news release.
About Silvercorp
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company's strategy is to create shareholder value by 1) focusing on generating free cashflow from long life mines; 2) organic growth through extensive drilling for discovery; 3) ongoing merger and acquisition efforts to unlock value; and 4) long term commitment to responsible mining and ESG. 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
ALTERNATIVE PERFORMANCE (NON-IFRS) MEASURES
This news release should be read in conjunction with the Company's Management Discussion & Analysis ("MD&A"), the unaudited condensed interim consolidated financial statements and related notes contains therein for the three months ended June 30, 2023, which have been posted on SEDAR+ under the Company's profile at www.sedarplus.ca and on EDGAR at www.sec.gov, and are also available on the Company's website at www.silvercorp.ca under the Investor section. This news release refers to various alternative performance (non-IFRS) measures, such as adjusted earnings and adjusted earnings per share, cash costs and all-in sustaining costs per ounce of silver, net of by-product credits, production costs and all-in sustaining production costs per tonne of ore processed, silver equivalent, and working capital. These measures are widely used in the mining industry as a benchmark for performance, but do not have standardized meanings under IFRS as an indicator of performance and may differ from methods used by other companies with similar description. The detailed description and reconciliation of these alternative performance (non-IFRS) measures have been incorporated by reference and can be found on page 26, section 11 – Alternative Performance (Non-IFRS) Measures in the MD&A for the three months ended June 30, 2023 filled on SEDAR at www.sedarplus.ca and EDGAR at www.sec.gov and which is incorporated by reference here in.
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 and US 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.
Actual results may vary from forward-looking statements. 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: global economic and social impact of COVID-19; fluctuating commodity prices; calculation of resources, reserves and mineralization and precious and base metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; feasibility and engineering reports; permits and licences; title to properties; property interests; joint venture partners; acquisition of commercially mineable mineral rights; financing; recent market events and conditions; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions into the Company's existing operations; competition; operations and political conditions; regulatory environment in
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" and in the Company's Annual Report on Form 40-F, and in the Company's other filings with Canadian and
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. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, guidance cannot be guaranteed. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.
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SOURCE Silvercorp Metals Inc
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