Silvercorp Reports Net Income of $15.5 Million, $0.09 Per Share, and Cash Flow From Operations of $29.6 Million for Q2 Fiscal 2021
Silvercorp Metals reported strong financial results for Q2 Fiscal 2021, with revenues of $56.4 million, up 13% year-over-year. The company mined 267,853 tonnes of ore and sold approximately 1.7 million ounces of silver and 2,200 ounces of gold. Net income attributable to shareholders was $15.5 million, or $0.09 per share, reflecting a 27% increase. Cash flow from operations rose 13% to $29.6 million. Strong investment in junior exploration companies and a solid balance sheet with $200.1 million in cash were also highlighted.
- Revenue of $56.4 million, up 13% year-over-year.
- Net income attributable to shareholders increased by 27% to $15.5 million.
- Strong cash flow from operations of $29.6 million, up 13%.
- Solid balance sheet with $200.1 million in cash and short-term investments.
- Decrease in silver sold by 8% compared to the prior year.
- Increase in all-in sustaining cost per ounce of silver to $6.99 from $4.15.
VANCOUVER, British Columbia, Nov. 05, 2020 (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, 2020 (“Q2 Fiscal 2021”). All amounts are expressed in US Dollars.
Q2 FISCAL YEAR 2021 HIGHLIGHTS
- Mined 267,853 tonnes of ore, up
3% compared to the prior year quarter; - Sold approximately 1.7 million ounces of silver, 2,200 ounces of gold, 18.6 million pounds of lead, and 7.4 million pounds of zinc, representing an increase of
100% and11% in gold and zinc sold, and a decrease of8% and3% in silver and lead sold, compared to the prior year quarter; - Revenue of
$56.4 million , up13% or$6.5 million compared to$49.9 million in the prior year quarter; - Net income attributable to equity shareholders of the Company of
$15.5 million , or$0.09 per share, up27% compared to$12.2 million or$0.07 per share in the prior year quarter; - Cash cost per ounce of silver1, net of by-product credits, of negative
$2.09 , compared to negative$2.72 in the prior year quarter; - All-in sustaining cost per ounce of silver1, net of by-product credits, of
$6.99 , compared to$4.15 in the prior year quarter; - Cash flow from operations of
$29.6 million , up13% compared to$26.2 million in the prior year quarter; - Gain of
$2.8 million on equity investments; - Invested
$5.6 million in two Canadian junior exploration companies; - Investment in New Pacific Metals Corp. (“NUAG”) with market value of
$212.0 million and other investments of$16.4 million ; and - Strong balance sheet with
$200.1 million in cash and cash equivalents and short-term investments, an increase of$21.7 million or12% compared to$178.4 million as at June 30, 2020.
FINANCIALS
Net income attributable to equity shareholders of the Company in Q2 Fiscal 2021 was
Compared to Q2 Fiscal 2020, the Company’s financial results in Q2 Fiscal 2021 were mainly impacted by the following: i) an increase of
Revenue in Q2 Fiscal 2021 was
Production costs expensed in Q2 Fiscal 2021 were
Income from mine operations in Q2 Fiscal 2021 was
General and administrative expenses in Q2 Fiscal 2021 were
Foreign exchange loss in Q2 Fiscal 2021 was
Share of loss in an associate in Q2 Fiscal 2021 was
Gain on equity investments recorded in profit in Q2 Fiscal 2021 was
Income tax expenses in Q2 Fiscal 2021 were
Cash flow provided by operating activities in Q2 Fiscal 2021 was
For the six months ended September 30, 2020, net income attributable to equity shareholders of the Company was
The Company ended the period with
Working capital as at September 30, 2020 was
1 Alternative performance (non-IFRS) measure. Please refer to section 10 of the corresponding MD&A for reconciliation.
OPERATIONS AND DEVELOPMENT
(i) Q2 Fiscal 2021 vs. Q2 Fiscal 2020
In Q2 Fiscal 2021, on a consolidated basis, the Company mined 267,853 tonnes of ore, up
In Q2 Fiscal 2021, the Company sold approximately 1.7 million ounces of silver, 2,200 ounces of gold, 18.6 million pounds of lead, and 7.4 million pounds of zinc, an increase of
In Q2 Fiscal 2021, the consolidated total mining and cash mining costs were
The consolidated total milling and cash milling costs were
Correspondingly, the consolidated cash production cost per tonne of ore processed in Q2 Fiscal 2021 was
In Q2 Fiscal 2021, the consolidated cash cost per ounce of silver, net of by-product credits, was negative
In Q2 Fiscal 2021, on a consolidated basis, approximately 71,274 metres or
(ii) Six months ended September 30, 2020 vs. six months ended September 30, 2019
For the six months ended September 30, 2020, on a consolidated basis, the Company mined 522,408 tonnes of ore, up
The Company sold approximately 3.6 million ounces of silver, 3,300 ounces of gold, 39.4 million pounds of lead, and 14.4 million pounds of zinc, an increase of
For the six months ended September 30, 2020, the consolidated total mining cost and cash mining cost were
The consolidated total milling cost and cash milling cost were
Correspondingly, the consolidated cash production cost per tonne of ore processed was
For the six months ended September 30, 2020, the consolidated cash cost per ounce of silver, net of by-product credits, was negative
For the six months ended September 30, 2020, on a consolidated basis, approximately 107,971 metres or
1. Ying Mining District, Henan Province, China
| Ying Mining District | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Six months ended September 30, | ||||||||
| September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | 2020 | 2019 | ||||||||
| Ore Mined (tonne) | 181,020 | 174,176 | 69,379 | 176,149 | 176,085 | 355,196 | 352,669 | |||||||
| Ore Milled (tonne) | 179,083 | 177,689 | 69,188 | 175,488 | 179,147 | 356,772 | 356,828 | |||||||
| Head Grades | ||||||||||||||
| Silver (gram/tonne) | 288 | 293 | 297 | 296 | 306 | 290 | 318 | |||||||
| Lead (%) | 4.4 | 4.6 | 4.6 | 4.6 | 4.5 | 4.5 | 4.5 | |||||||
| Zinc (%) | 0.7 | 0.8 | 1.0 | 0.9 | 0.8 | 0.8 | 0.9 | |||||||
| Recoveries | ||||||||||||||
| Silver (%) | 94.4 | 94.7 | 95.3 | 96.1 | 96.2 | 94.6 | 96.0 | |||||||
| Lead (%) | 96.1 | 96.2 | 95.7 | 96.3 | 95.7 | 96.1 | 95.7 | |||||||
| Zinc (%) | 57.9 | 63.8 | 67.7 | 70.3 | 58.6 | 60.9 | 58.5 | |||||||
| Metal Sales | ||||||||||||||
| Silver (in thousands of ounce) | 1,556 | 1,672 | 711 | 1,475 | 1,711 | 3,228 | 3,373 | |||||||
| Gold (in thousands of ounce) | 1.0 | 1.1 | 0.5 | 0.7 | 1.1 | 2.1 | 2.1 | |||||||
| Lead (in thousands of pound) | 15,585 | 17,779 | 8,322 | 14,912 | 16,389 | 33,364 | 31,225 | |||||||
| Zinc (in thousands of pound) | 1,384 | 2,037 | 865 | 2,882 | 1,428 | 3,421 | 3,518 | |||||||
| Cash mining cost ($/tonne) | 67.77 | 64.12 | 68.10 | 64.69 | 59.26 | 65.98 | 61.16 | |||||||
| Shipping costs ($/tonne) | 3.79 | 3.64 | 3.96 | 3.89 | 3.82 | 3.72 | 3.93 | |||||||
| Cash milling costs ($/tonne) | 8.50 | 8.45 | 11.53 | 10.99 | 9.81 | 8.48 | 9.48 | |||||||
| Cash production costs ($/tonne) | 80.06 | 76.21 | 83.59 | 79.57 | 72.89 | 78.18 | 74.57 | |||||||
| All-in sustaining production costs ($/tonne) | 132.36 | 116.99 | 195.78 | 126.43 | 117.37 | 124.74 | 123.24 | |||||||
| Cash costs per ounce of silver ($) | (0.14 | ) | (0.87 | ) | 0.30 | (0.72 | ) | (1.95 | ) | (0.52 | ) | (1.70 | ) | |
| All-in sustaining costs per ounce of silver ($) | 6.63 | 4.14 | 11.86 | 5.57 | 3.40 | 5.34 | 4.10 | |||||||
i) Q2 Fiscal 2021 vs. Q2 Fiscal 2020
In Q2 Fiscal 2021, the total ore mined at the Ying Mining District was 181,020 tonnes, up
Head grades were 288 grams per tonne (“g/t”) for silver,
In Q2 Fiscal 2021, the Ying Mining District sold approximately 1.6 million ounces of silver, 1,000 ounces of gold, 15.6 million pounds of lead, and 1.4 million pounds of zinc, compared to 1.7 million ounces of silver, 1,100 ounces of gold, 16.4 million pounds of lead, and 1.4 million pounds of zinc in Q2 Fiscal 2020.
Total and cash mining costs per tonne at the Ying Mining District in Q2 Fiscal 2021 were
Total and cash milling costs per tonne at the Ying Mining District in Q2 Fiscal 2021 were
Correspondingly, the cash production cost per tonne of ore processed in Q2 Fiscal 2021 at the Ying Mining District was
In Q2 Fiscal 2021, cash cost per ounce of silver, net of by-product credits, at the Ying Mining District was negative
In Q2 Fiscal 2021, approximately 59,540 metres or
ii) Six months ended September 30, 2020 vs. six months ended September 30, 2019
For the six months ended September 30, 2020, a total of 355,196 tonnes of ore were mined at the Ying Mining District, up
During the same time period, the Ying Mining District sold approximately 3.2 million ounces of silver, 2,100 ounces of gold, 33.4 million pounds of lead, and 3.4 million pounds of zinc, compared to 3.4 million ounces of silver, 2,100 ounces of gold, 31.2 million pounds of lead, and 3.5 million pounds of zinc in the same prior year period.
For the six months ended September 30, 2020, the cash mining cost at the Ying Mining District was
Correspondingly, the cash production cost per tonne of ore processed was
For the six months ended September 30, 2020, the cash cost per ounce of silver and all-in sustaining cost per ounce of silver, net of by-product credits, at the Ying Mining District, were negative
For the six months ended September 30, 2020, approximately 88,025 metres or
2. GC Mine, Guangdong Province, China
| GC Mine | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Six months ended September 30, | |||||||||
| September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | 2020 | 2019 | |||||||||
| Ore Mined (tonne) | 86,833 | 80,379 | 37,216 | 86,437 | 83,172 | 167,212 | 163,980 | ||||||||
| Ore Milled (tonne) | 84,850 | 84,637 | 33,243 | 89,372 | 86,134 | 169,487 | 167,996 | ||||||||
| Head Grades | |||||||||||||||
| Silver (gram/tonne) | 81 | 93 | 94 | 96 | 100 | 87 | 97 | ||||||||
| Lead (%) | 1.8 | 1.9 | 1.8 | 2.0 | 2.0 | 1.8 | 1.9 | ||||||||
| Zinc (%) | 3.4 | 3.4 | 3.5 | 3.3 | 3.2 | 3.4 | 3.3 | ||||||||
| Recovery Rates | |||||||||||||||
| Silver (%) * | 82.5 | 82.8 | 80.7 | 78.0 | 75.9 | 82.7 | 76.4 | ||||||||
| Lead (%) | 89.2 | 89.8 | 90.4 | 90.4 | 88.3 | 89.5 | 88.5 | ||||||||
| Zinc (%) | 87.3 | 87.3 | 87.7 | 85.5 | 86.1 | 87.3 | 85.9 | ||||||||
| Metal Sales | |||||||||||||||
| Silver (in thousands of ounce) | 184 | 200 | 89 | 234 | 183 | 384 | 376 | ||||||||
| Lead (in thousands of pound) | 2,966 | 3,106 | 1,332 | 3,867 | 2,680 | 6,072 | 5,686 | ||||||||
| Zinc (in thousands of pound) | 6,027 | 4,921 | 2,194 | 5,471 | 5,227 | 10,948 | 10,471 | ||||||||
| Cash mining cost ($/tonne) | 36.43 | 35.13 | 25.58 | 42.96 | 37.80 | 35.80 | 38.31 | ||||||||
| Cash milling cost ($/tonne) | 12.04 | 11.95 | 16.36 | 14.01 | 12.72 | 12.00 | 13.27 | ||||||||
| Cash production cost ($/tonne) | 48.47 | 47.08 | 41.94 | 56.97 | 50.52 | 47.80 | 51.58 | ||||||||
| All-in sustaining production costs ($/tonne) | 69.07 | 65.84 | 88.18 | 71.03 | 62.94 | 67.49 | 65.09 | ||||||||
| Cash cost per ounce of silver ($) | (12.70 | ) | (6.59 | ) | (10.03 | ) | (4.33 | ) | (9.98 | ) | (9.52 | ) | (9.16 | ) | |
| All-in sustaining cost per ounce of silver ($) | (1.78 | ) | 2.41 | 8.31 | 2.18 | (2.89 | ) | 0.40 | (1.90 | ) | |||||
| * Silver recovery includes silver recovered in lead concentrate and silver recovered in zinc concentrate. | |||||||||||||||
i) Q2 Fiscal 2021 vs. Q2 Fiscal 2020
In Q2 Fiscal 2021, the total ore mined at the GC Mine was 86,833 tonnes, up
Average head grades of ore processed at the GC Mine were 81 g/t for silver,
In Q2 Fiscal 2021, GC Mine sold approximately 184 thousand ounces of silver, 3.0 million pounds of lead, and 6.0 million pounds of zinc, compared to 183 thousand ounces of silver, 2.7 million pounds of lead, and 5.2 million pounds of zinc in Q2 Fiscal 2020.
Total and cash mining costs per tonne at the GC Mine in Q2 Fiscal 2021 were
Correspondingly, the cash production cost per tonne of ore processed at the GC Mine was
In Q2 Fiscal 2021, the cash cost per ounce of silver, net of by-product credits, at the GC Mine, was negative
All-in sustaining cost per ounce of silver, net of by-product credits, at the GC Mine was negative
In Q2 Fiscal 2021, approximately 11,734 metres or
ii) Six months ended September 30, 2020 vs. six months ended September 30, 2019
For the six months ended September 30, 2020, a total of 167,212 tonnes of ore were mined and 169,487 tonnes were milled at the GC Mine, an increase of
During the same time period, the GC Mine sold approximately 384 thousand ounces of silver, 6.1 million pounds of lead, and 10.9 million pounds of zinc, compared to 376 thousand ounces of silver, 5.7 million pounds of lead, and 10.5 million pounds of zinc in the same prior year period.
For the six months ended September 30, 2020, the cash mining costs at the GC Mine was
For the six months ended September 30, 2020, the cash cost per ounce of silver and all-in sustaining cost per ounce of silver, net of by‐product credits, at the GC Mine, were negative
For the six months ended September 30, 2020, approximately 19,946 metres or
OUTLOOK
Based on the year-to-date production levels, production costs, capital expenditures, and the expected production and costs for the remainder of the year, the Company is on track to meet its annual production and cost guidance.
Based on the year-to-date drilling completed, the Company expects its Fiscal 2021 drilling program to exceed its annual guidance. The Company is currently undertaking extensive drill programs at the Ying Mining District and GC Mine with two main objectives: i) areas with existing development and access are being re-examined to potentially define additional resources and reserves, which may lead to a substantial reduction in mining and sustaining capital costs associated with the tonnes identified, and ii) areas which may have been overlooked for potential gold mineralization are being tested for different alteration styles from the typical silver-lead zones.
Scientific and technical information contained in this news release has been reviewed and approved by Mr. Guoliang Ma, P.Geo., Manager of Exploration and Resources of the Company and a Qualified Person as such the term is defined in National Instrument 43-101 – Standards of Disclosure of Mineral Projects.
This earnings release should be read in conjunction with the Company's MD&A, 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 forward-looking statements 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; projected cash operating costs and all-in sustaining costs, and budgets, on a consolidated and mine-by-mine basis; projections included in the Company’s annual cost guidance; 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: 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 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, as well as those risks and uncertainties discussed in the Company’s corresponding MD&A and other public filings of the Company. 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 expressed or implied in the forward-looking statements.
The Company’s forward-looking statements are necessarily based on a number of estimates, assumptions, beliefs, expectations and opinions of management as of the date of this news release that while considered reasonable by management of the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates, assumptions, beliefs, expectations and opinions include, but are not limited to, those related to the Company’s ability to carry on current and future operations, including: the duration and effects of COVID-19 on our operations and workforce; development and exploration activities; the timing, extent, duration and economic viability of such operations; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the Company’s ability to meet or achieve estimates, projections and forecasts; the availability and cost of inputs; the price and market for outputs; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or permits; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions; and other assumptions and factors generally associated with the mining industry. 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. 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. 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, | ||||||
| 2020 | 2020 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 95,320 | $ | 65,777 | |||
| Short-term investments | 104,763 | 76,742 | |||||
| Trade and other receivables | 1,365 | 1,178 | |||||
| Current portion of lease receivable | 200 | 186 | |||||
| Inventories | 6,705 | 8,430 | |||||
| Due from related parties | 52 | 1,519 | |||||
| Income tax receivable | - | 1,093 | |||||
| Prepaids and deposits | 4,954 | 3,254 | |||||
| 213,359 | 158,179 | ||||||
| Non-current Assets | |||||||
| Long-term prepaids and deposits | 647 | 390 | |||||
| Long-term portion lease receivable | 273 | 348 | |||||
| Reclamation deposits | 8,000 | 9,230 | |||||
| Investment in an associate | 51,587 | 44,555 | |||||
| Other investments | 16,425 | 8,750 | |||||
| Plant and equipment | 70,124 | 66,722 | |||||
| Mineral rights and properties | 243,470 | 224,586 | |||||
| TOTAL ASSETS | $ | 603,885 | $ | 512,760 | |||
| LIABILITIES AND EQUITY | |||||||
| Current Liabilities | |||||||
| Accounts payable and accrued liabilities | $ | 34,983 | $ | 23,129 | |||
| Current portion of lease obligation | 611 | 567 | |||||
| Deposits received | 4,568 | 3,195 | |||||
| Income tax payable | 3,861 | 937 | |||||
| 44,023 | 27,828 | ||||||
| Non-current Liabilities | |||||||
| Long-term portion of lease obligation | 1,313 | 1,502 | |||||
| Deferred income tax liabilities | 38,872 | 35,758 | |||||
| Environmental rehabilitation | 9,098 | 8,700 | |||||
| Total Liabilities | 93,306 | 73,788 | |||||
| Equity | |||||||
| Share capital | 248,171 | 243,926 | |||||
| Equity reserves | 10,793 | (21,142 | ) | ||||
| Retained earnings | 174,683 | 145,898 | |||||
| Total equity attributable to the equity holders of the Company | 433,647 | 368,682 | |||||
| Non-controlling interests | 76,932 | 70,290 | |||||
| Total Equity | 510,579 | 438,972 | |||||
| TOTAL LIABILITIES AND EQUITY | $ | 603,885 | $ | 512,760 | |||
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, | |||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||
| Revenue | $ | 56,372 | $ | 49,886 | $ | 103,077 | $ | 95,462 | ||||||
| Cost of mine operations | ||||||||||||||
| Production costs | 19,688 | 17,290 | 37,435 | 35,290 | ||||||||||
| Depreciation and amortization | 5,592 | 5,814 | 11,332 | 11,683 | ||||||||||
| Mineral resource taxes | 1,433 | 1,408 | 2,769 | 2,659 | ||||||||||
| Government fees and other taxes | 648 | 496 | 1,188 | 1,090 | ||||||||||
| General and administrative | 2,339 | 2,211 | 4,396 | 4,340 | ||||||||||
| 29,700 | 27,219 | 57,120 | 55,062 | |||||||||||
| Income from mine operations | 26,672 | 22,667 | 45,957 | 40,400 | ||||||||||
| Corporate general and administrative | 2,784 | 2,583 | 5,471 | 4,936 | ||||||||||
| Property evaluation and business development | 126 | 107 | (3,659 | ) | 173 | |||||||||
| Foreign exchange loss (gain) | 1,349 | (797 | ) | 4,019 | 57 | |||||||||
| Loss on disposal of plant and equipment | 19 | 121 | 211 | 263 | ||||||||||
| Gain on disposal of mineral rights and properties | - | - | - | (1,477 | ) | |||||||||
| Share of loss in associate | 319 | 244 | 480 | 525 | ||||||||||
| Dilution gain on investment in associate | - | - | - | (723 | ) | |||||||||
| Reclassification of other comprehensive income upon ownership dilution of investment in associate | - | - | - | (21 | ) | |||||||||
| Gain on equity investments designated as FVTPL | (2,771 | ) | - | (8,237 | ) | - | ||||||||
| Other expense (income) | 69 | 291 | (179 | ) | 490 | |||||||||
| Income from operations | 24,777 | 20,118 | 47,851 | 36,177 | ||||||||||
| Finance income | 741 | 818 | 1,688 | 1,747 | ||||||||||
| Finance costs | (84 | ) | (136 | ) | (231 | ) | (311 | ) | ||||||
| Income before income taxes | 25,434 | 20,800 | 49,308 | 37,613 | ||||||||||
| Income tax expense | 5,877 | 5,139 | 11,259 | 4,651 | ||||||||||
| Net income | $ | 19,557 | $ | 15,661 | $ | 38,049 | $ | 32,962 | ||||||
| Attributable to: | ||||||||||||||
| Equity holders of the Company | $ | 15,472 | $ | 12,221 | $ | 30,963 | $ | 24,828 | ||||||
| Non-controlling interests | 4,085 | 3,440 | 7,086 | 8,134 | ||||||||||
| $ | 19,557 | $ | 15,661 | $ | 38,049 | $ | 32,962 | |||||||
| Earnings per share attributable to the equity holders of the Company | ||||||||||||||
| Basic earnings per share | $ | 0.09 | $ | 0.07 | $ | 0.18 | $ | 0.15 | ||||||
| Diluted earnings per share | $ | 0.09 | $ | 0.07 | $ | 0.18 | $ | 0.14 | ||||||
| Weighted Average Number of Shares Outstanding - Basic | 174,688,227 | 170,842,478 | 174,344,733 | 170,419,199 | ||||||||||
| Weighted Average Number of Shares Outstanding - Diluted | 177,112,569 | 171,904,531 | 176,697,376 | 171,261,945 | ||||||||||
SILVERCORP METALS INC.
Consolidated Statements of Cash Flow
(Unaudited - Expressed in thousands of U.S. dollars)
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||
| Cash provided by | |||||||||||||
| Operating activities | |||||||||||||
| Net income | $ | 19,557 | $ | 15,661 | $ | 38,049 | $ | 32,962 | |||||
| Add (deduct) items not affecting cash: | |||||||||||||
| Finance costs | 84 | 136 | 231 | 311 | |||||||||
| Depreciation, amortization and depletion | 6,029 | 6,203 | 12,177 | 12,423 | |||||||||
| Share of loss in associate | 319 | 244 | 480 | 525 | |||||||||
| Dilution gain on investment in associate | - | - | - | (723 | ) | ||||||||
| Reclassification of other comprehensive loss upon ownership dilution of investment in associate | - | - | - | (21 | ) | ||||||||
| Income tax expense (recovery) | 5,877 | 5,139 | 11,259 | 4,651 | |||||||||
| Gain on equity investments designated as FVTPL | (2,771 | ) | - | (8,237 | ) | - | |||||||
| Loss on disposal of plant and equipment | 19 | 121 | 211 | 263 | |||||||||
| Gain on disposal of mineral rights and properties | - | - | - | (1,477 | ) | ||||||||
| Share-based compensation | 1,032 | 701 | 1,755 | 1,026 | |||||||||
| Reclamation expenditures | - | (63 | ) | (68 | ) | (74 | ) | ||||||
| Income taxes paid | (3,074 | ) | (1,011 | ) | (5,823 | ) | (2,930 | ) | |||||
| Interest paid | (25 | ) | (32 | ) | (50 | ) | (105 | ) | |||||
| Changes in non-cash operating working capital | 2,544 | (870 | ) | 9,759 | (715 | ) | |||||||
| Net cash provided by operating activities | 29,591 | 26,229 | 59,743 | 46,116 | |||||||||
| Investing activities | |||||||||||||
| Mineral rights and properties | |||||||||||||
| Capital expenditures | (8,853 | ) | (7,239 | ) | (16,714 | ) | (14,009 | ) | |||||
| Proceeds on disposals | - | 1,455 | - | 6,146 | |||||||||
| Plant and equipment | |||||||||||||
| Additions | (2,189 | ) | (2,158 | ) | (2,995 | ) | (4,329 | ) | |||||
| Proceeds on disposals | - | 2 | 1 | 3 | |||||||||
| Reclamation deposits | |||||||||||||
| Paid | (11 | ) | (1,543 | ) | (261 | ) | (1,549 | ) | |||||
| Refund | 30 | - | 1,805 | - | |||||||||
| Other investments | |||||||||||||
| Acquisition | (5,865 | ) | (1,726 | ) | (11,403 | ) | (1,726 | ) | |||||
| Proceeds on disposals | 1,232 | 1,266 | 17,806 | 1,266 | |||||||||
| Investment in associate | - | (187 | ) | (5,805 | ) | (3,210 | ) | ||||||
| Net redemptions (purchases) of short-term investments | (16,341 | ) | (9,543 | ) | (15,451 | ) | (33,618 | ) | |||||
| Principal received on lease receivable | 49 | 9 | 94 | 36 | |||||||||
| Net cash used in investing activities | (31,948 | ) | (19,664 | ) | (32,923 | ) | (50,990 | ) | |||||
| Financing activities | |||||||||||||
| Related parties | |||||||||||||
| Repayments received | - | - | 1,423 | - | |||||||||
| Bank loan | |||||||||||||
| Repayment | - | - | - | (4,369 | ) | ||||||||
| Principal payments on lease obligation | (138 | ) | (187 | ) | (270 | ) | (288 | ) | |||||
| Non-controlling interests | |||||||||||||
| Distribution | - | (3,259 | ) | (3,239 | ) | (3,259 | ) | ||||||
| Cash dividends distributed | - | - | (2,178 | ) | (2,125 | ) | |||||||
| Proceeds from issuance of common shares | 1,854 | 4,857 | 2,686 | 5,077 | |||||||||
| Net cash provided by (used in) financing activities | 1,716 | 1,411 | (1,578 | ) | (4,964 | ) | |||||||
| Effect of exchange rate changes on cash and cash equivalents | 1,937 | (1,207 | ) | 4,301 | (1,511 | ) | |||||||
| Increase (decrease) in cash and cash equivalents | 1,296 | 6,769 | 29,543 | (11,349 | ) | ||||||||
| Cash and cash equivalents, beginning of the period | 94,024 | 49,323 | 65,777 | 67,441 | |||||||||
| Cash and cash equivalents, end of the period | $ | 95,320 | $ | 56,092 | $ | 95,320 | $ | 56,092 | |||||
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, | |||||||||||||
| 2020 | 2019 | Changes | 2020 | 2019 | Changes | ||||||||||
| Production Data | |||||||||||||||
| Mine Data | |||||||||||||||
| Ore Mined (tonne) | 267,853 | 259,257 | 3 | % | 522,408 | 516,649 | 1 | % | |||||||
| Ore Milled (tonne) | 263,933 | 265,281 | -1 | % | 526,259 | 524,824 | 0 | % | |||||||
| Head Grades | |||||||||||||||
| Silver (gram/tonne) | 221 | 238 | -7 | % | 225 | 246 | -9 | % | |||||||
| Lead (%) | 3.5 | 3.6 | -2 | % | 3.6 | 3.7 | -2 | % | |||||||
| Zinc (%) | 1.6 | 1.6 | 0 | % | 1.6 | 1.6 | 1 | % | |||||||
| Recovery Rates | |||||||||||||||
| Silver (%) | 93.0 | 93.4 | 0 | % | 93.1 | 93.5 | 0 | % | |||||||
| Lead (%) | 94.9 | 94.4 | 1 | % | 95.1 | 94.5 | 1 | % | |||||||
| Zinc (%) | 78.0 | 76.9 | 1 | % | 78.9 | 76.3 | 3 | % | |||||||
| Cost Data | |||||||||||||||
| + | Mining cost per tonne of ore mined ($) | 76.95 | 72.85 | 6 | % | 75.46 | 75.12 | 0 | % | ||||||
| Cash mining cost per tonne of ore mined ($) | 57.61 | 52.37 | 10 | % | 56.32 | 53.91 | 4 | % | |||||||
| Depreciation and amortization charges per tonne of ore mined ($) | 19.34 | 20.48 | -6 | % | 19.14 | 21.21 | -10 | % | |||||||
| + | Unit shipping costs ($) | 2.57 | 2.60 | -1 | % | 2.54 | 2.69 | -6 | % | ||||||
| + | Milling costs per tonne of ore milled ($) | 11.11 | 12.46 | -11 | % | 11.08 | 12.47 | -11 | % | ||||||
| Cash milling costs per tonne of ore milled ($) | 9.64 | 10.76 | -10 | % | 9.61 | 10.69 | -10 | % | |||||||
| Depreciation and amortization charges per tonne of ore milled ($) | 1.47 | 1.70 | -14 | % | 1.47 | 1.78 | -17 | % | |||||||
| + | Cash production cost per tonne of ore processed ($) | 69.82 | 65.73 | 6 | % | 68.47 | 67.29 | 2 | % | ||||||
| + | All-in sustaining cost per tonne of ore processed ($) | 124.24 | 109.51 | 13 | % | 118.46 | 114.80 | 3 | % | ||||||
| + | Cash cost per ounce of Silver, net of by-product credits ($) | (2.09 | ) | (2.72 | ) | 23 | % | (1.77 | ) | (2.45 | ) | 28 | % | ||
| + | All-in sustaining cost per ounce of silver, net of by-product credits ($) | 6.99 | 4.15 | 68 | % | 6.28 | 4.91 | 28 | % | ||||||
| Concentrate inventory | |||||||||||||||
| Lead concentrate (tonne) | 1,327 | 4,176 | -68 | % | 1,327 | 4,176 | -68 | % | |||||||
| Zinc concentrate (tonne) | 635 | 586 | 8 | % | 635 | 586 | 8 | % | |||||||
| Sales Data | |||||||||||||||
| Metal Sales | |||||||||||||||
| Silver (in thousands of ounces) | 1,740 | 1,894 | -8 | % | 3,612 | 3,749 | -4 | % | |||||||
| Gold (in thousands of ounces) | 2.2 | 1.1 | 100 | % | 3.3 | 2.1 | 57 | % | |||||||
| Lead (in thousands of pounds) | 18,551 | 19,069 | -3 | % | 39,436 | 36,911 | 7 | % | |||||||
| Zinc (in thousands of pounds) | 7,411 | 6,655 | 11 | % | 14,369 | 13,989 | 3 | % | |||||||
| Revenue | |||||||||||||||
| Silver (in thousands of $) | 33,047 | 27,439 | 20 | % | 59,233 | 50,997 | 16 | % | |||||||
| Gold (in thousands of $) | 3,016 | 1,314 | 130 | % | 4,493 | 2,396 | 88 | % | |||||||
| Lead (in thousands of $) | 14,387 | 16,202 | -11 | % | 28,761 | 31,380 | -8 | % | |||||||
| Zinc (in thousands of $) | 5,236 | 4,045 | 29 | % | 9,391 | 9,197 | 2 | % | |||||||
| Other (in thousands of $) | 685 | 886 | -23 | % | 1,199 | 1,492 | -20 | % | |||||||
| 56,371 | 49,886 | 13 | % | 103,077 | 95,462 | 8 | % | ||||||||
| Average Selling Price, Net of Value Added Tax and Smelter Charges | |||||||||||||||
| Silver ($ per ounce) | 18.99 | 14.49 | 31 | % | 16.40 | 13.60 | 21 | % | |||||||
| Gold ($ per ounce) | 1,371 | 1,195 | 15 | % | 1,362 | 1,141 | 19 | % | |||||||
| Lead ($ per pound) | 0.78 | 0.85 | -8 | % | 0.73 | 0.85 | -14 | % | |||||||
| Zinc ($ per pound) | 0.71 | 0.61 | 16 | % | 0.65 | 0.66 | -2 | % | |||||||
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, | |||||||||||||
| 2020 | 2019 | Changes | 2020 | 2019 | Changes | ||||||||||
| Production Data | |||||||||||||||
| Mine Data | |||||||||||||||
| Ore Mined (tonne) | 181,020 | 176,085 | 3 | % | 355,196 | 352,669 | 1 | % | |||||||
| Ore Milled (tonne) | 179,083 | 179,147 | 0 | % | 356,772 | 356,828 | 0 | % | |||||||
| Head Grades | |||||||||||||||
| Silver (gram/tonne) | 288 | 306 | -6 | % | 290 | 318 | -9 | % | |||||||
| Lead (%) | 4.4 | 4.5 | -3 | % | 4.5 | 4.5 | 0 | % | |||||||
| Zinc (%) | 0.7 | 0.8 | -8 | % | 0.8 | 0.9 | -16 | % | |||||||
| Recovery Rates | |||||||||||||||
| Silver (%) | 94.4 | 96.2 | -2 | % | 94.6 | 96.0 | -1 | % | |||||||
| Lead (%) | 96.1 | 95.7 | 0 | % | 96.1 | 95.7 | 0 | % | |||||||
| Zinc (%) | 57.9 | 58.6 | -1 | % | 60.9 | 58.5 | 4 | % | |||||||
| Cost Data | |||||||||||||||
| + | Mining cost per tonne of ore mined ($) | 92.30 | 85.63 | 8 | % | 90.16 | 88.55 | 2 | % | ||||||
| Cash mining cost per tonne of ore mined ($) | 67.77 | 59.26 | 14 | % | 65.98 | 61.16 | 8 | % | |||||||
| Depreciation and amortization charges per tonne of ore mined ($) | 24.53 | 26.37 | -7 | % | 24.18 | 27.39 | -12 | % | |||||||
| + | Unit shipping costs ($) | 3.79 | 3.82 | -1 | % | 3.72 | 3.93 | -5 | % | ||||||
| + | Milling costs per tonne of ore milled ($) | 10.09 | 11.53 | -12 | % | 10.07 | 11.23 | -10 | % | ||||||
| Cash milling cost per tonne of ore milled ($) | 8.50 | 9.81 | -13 | % | 8.48 | 9.48 | -11 | % | |||||||
| Depreciation and amortization charges per tonne of ore milled ($) | 1.59 | 1.72 | -8 | % | 1.59 | 1.75 | -9 | % | |||||||
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"@type": "FAQPage",
"name": "Silvercorp Reports Net Income of $15.5 Million, $0.09 Per Share, and Cash Flow From Operations of $29.6 Million for Q2 Fiscal 2021 FAQs",
"mainEntity": [
{
"@type": "Question",
"name": "What were Silvercorp Metals' earnings for Q2 Fiscal 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Silvercorp reported earnings of $15.5 million or $0.09 per share for Q2 Fiscal 2021."
}
},
{
"@type": "Question",
"name": "How much revenue did Silvercorp Metals generate in Q2 Fiscal 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Silvercorp generated $56.4 million in revenue for Q2 Fiscal 2021, a 13% increase from the previous year."
}
},
{
"@type": "Question",
"name": "What was the cash flow from operations for Silvercorp Metals in Q2 Fiscal 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The cash flow from operations for Q2 Fiscal 2021 was $29.6 million, which is up 13% year-over-year."
}
},
{
"@type": "Question",
"name": "What are the key financial highlights of Silvercorp Metals for Q2 Fiscal 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Key financial highlights include revenue growth of 13%, net income increase of 27%, and a cash balance of $200.1 million."
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FAQ
What were Silvercorp Metals' earnings for Q2 Fiscal 2021?
Silvercorp reported earnings of $15.5 million or $0.09 per share for Q2 Fiscal 2021.
How much revenue did Silvercorp Metals generate in Q2 Fiscal 2021?
Silvercorp generated $56.4 million in revenue for Q2 Fiscal 2021, a 13% increase from the previous year.
What was the cash flow from operations for Silvercorp Metals in Q2 Fiscal 2021?
The cash flow from operations for Q2 Fiscal 2021 was $29.6 million, which is up 13% year-over-year.
What are the key financial highlights of Silvercorp Metals for Q2 Fiscal 2021?
Key financial highlights include revenue growth of 13%, net income increase of 27%, and a cash balance of $200.1 million.
Silvercorp Metals Inc. Common Shares
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