Silvercorp Reports Net Income of $46.4 Million, $0.27 per Share, and Cash Flow From Operations of $85.9 Million for Fiscal 2021
Silvercorp Metals Inc. (SVM) announced strong financial results for Fiscal 2021, reporting a revenue of $192.1 million, a 21% increase from the previous year. Net income rose 35% to $46.4 million, or $0.27 per share. The company mined 964,925 tonnes of ore, with silver production slightly up at 6.3 million ounces. For Q4 alone, revenue surged 89% year-over-year to $35.7 million, and net income reached $7.0 million. Silvercorp also reported significant cash reserves of $199.1 million, up 40% from the prior year.
- Revenue of $192.1 million, up 21% from $158.8 million.
- Net income increased to $46.4 million or $0.27 per share, a 35% rise.
- Mined 964,925 tonnes of ore, a 9% increase from the previous year.
- Q4 revenue surged 89% to $35.7 million.
- Strong cash position of $199.1 million, up 40% year-over-year.
- Cash flow from operations decreased to $2.2 million in Q4, down 64% from the prior year.
Trading Symbol: TSX: SVM
NYSE AMERICAN: SVM
VANCOUVER, BC, May 20, 2021 /PRNewswire/ - 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, 2021 ("Fiscal 2021). All amounts are expressed in US Dollars, and figures may not add due to rounding.
FISCAL YEAR 2021 HIGHLIGHTS
- Mined 964,925 tonnes of ore and milled 967,581 tonnes of ore, up
9% and8% , respectively, compared to the prior year, with silver and lead production meeting the production guidance and zinc production beating the production guidance; - Sold approximately 6.3 million ounces of silver, 4,700 ounces of gold, 67.1 million pounds of lead, and 27.9 million pounds of zinc, up
1% ,42% ,3% , and10% , respectively, compared to the prior year; - Revenue of
$192.1 million , up21% or$33.3 million compared to$158.8 million in the prior year; - Net income attributable to equity shareholders of
$46.4 million , or$0.27 per share, up35% compared to$34.3 million , or$0.20 per share in the prior year; - Cash cost per ounce of silver, net of by-product credits, of negative
$1.80 compared to negative$1.91 in the prior year; - All-in sustaining cost per ounce of silver, net of by-product credits, of
$7.49 , compared to$6.86 in the prior year; - Cash flow from operations of
$85.9 million , up11% or$8.7 million compared to$77.2 million in the prior year; - Received
$6.5 million (CAD$9.0 million ) break fee from Guyana Goldfields Inc. ("Guyana Goldfields") and realized a gain of$15.4 million on disposal of the shares of Guyana Goldfields; - Paid
$4.4 million of dividends to the Company's shareholders; - Invested
$5.8 million in a private placement of New Pacific Metals Corp. ("NUAG") to maintain the Company's ownership interest; - Acquired a
26.99% interest in Whitehorse Gold Corp. ("WHG"), having a fair market value of$15.1 million as at March 31, 2021, as a result of (a) receiving 5,740,285 WHG common shares under a spin-out transaction completed by NUAG, and (b) subscribing for 5,774,000 WHG common shares at total cost of$1.3 million under a private placement; - Won an online auction to acquire the exploration rights to the Zhonghe Silver Project from the Henan provincial government of China, with the mineral rights transfer contract pending the national security clearance by the related authorities;
- Acquired a
43.8% interest in the La Yesca Silver Project in Mexico through a new corporate structure, New Infini Silver Inc. for approximately$9.1 million ; and - Strong balance sheet with
$199.1 million in cash and cash equivalents and short-term investments, an increase of$56.6 million or40% compared to$142.5 million as at March 31, 2020. This does not include$212.1 million in total market value of investments in associates and equity investments in other companies as at March 31, 2021.
HIGHLIGHTS FOR Q4 FISCAL 2021
- Mined 163,072 tonnes of ore and milled 180,674 tonnes of ore, up
53% and76% , respectively, compared to the prior year quarter; - Sold approximately 1.1 million ounces of silver, 700 ounces of gold, 10.9 million pounds of lead, and 4.6 million pounds of zinc, up
32% ,40% ,13% , and50% respectively, compared to approximately 0.8 million ounces of silver, 500 ounces of gold, 9.7 million pounds of lead, and 3.1 million pounds of zinc in the prior year quarter; - Revenue of
$35.7 million , up89% or$16.8 million compared to$18.9 million in the prior year quarter; - Net income attributable to equity shareholders of
$7.0 million , or$0.04 per share, compared to$3.2 million or$0.02 per share, in the prior year quarter; - Cash cost per ounce of silver, net of by-product credits, of negative
$0.39 compared to negative$0.85 in the prior year quarter; - All-in sustaining cost per ounce of silver, net of by-product credits, of
$12.55 , compared to$15.17 in the prior year quarter; and - Cash flow from operations of
$2.2 million , compared to$6.3 million in the prior year quarter. The decrease was mainly due to$9.4 million use of cash from working capital changes. Before changes in non-cash working capital, cash flows provided by operating activities in the current quarter were$11.9 million , up$2.7 million compared to$9.2 million in Q4 Fiscal 2020.
CONSOLIDATED FINANCIAL RESULTS
Three months ended March 31, | Year ended March 31, | ||||||||||
2021 | 2020 | Changes | 2021 | 2020 | Changes | ||||||
Financial | |||||||||||
Revenue (in thousands of $) | $ | 35,732 | $ | 18,859 | $ | 192,105 | $ | 158,829 | |||
Mine operating earnings (in thousands of $) | 13,404 | 3,204 | 84,162 | 59,374 | |||||||
Net earnings attributable to equity shareholders | 7,021 | 3,163 | 46,376 | 34,274 | |||||||
Earning per share - basic ($/share) | 0.04 | 0.02 | 0.27 | 0.20 | |||||||
Net cash generated from operating activities (in thousands of $) | 2,231 | 6,278 | - | 85,912 | 77,246 | ||||||
Capitalized expenditures (in thousands of $) | 10,115 | 3,917 | 45,556 | 33,671 | |||||||
Cash and cash equivalents and short-term investments (in thousands of $) | 199,092 | 142,519 | 199,092 | 142,519 | |||||||
Working capital (in thousands of $) | 184,013 | 130,351 | 184,013 | 130,351 | |||||||
Metals sold | |||||||||||
Silver (in thousands of ounces) | 1,056 | 800 | 6,315 | 6,257 | |||||||
Gold (in thousands of ounces) | 0.7 | 0.5 | 4.7 | 3.3 | |||||||
Lead (in thousands of pounds) | 10,876 | 9,654 | 67,118 | 65,344 | |||||||
Zinc (in thousands of pounds) | 4,580 | 3,059 | 27,914 | 25,401 | |||||||
Average Selling Price, Net of Value Added Tax and Smelter Charges | |||||||||||
Silver ($/ounce) | 20.11 | 12.29 | 17.61 | 13.56 | |||||||
Gold ($/ounce) | 1,437 | 1,250 | 1,430 | 1,185 | |||||||
Lead ($/pound) | 0.81 | 0.67 | 0.75 | 0.80 | - | ||||||
Zinc ($/pound) | 0.98 | 0.51 | 0.78 | 0.62 |
1. Fiscal 2021 Financial Results
Net income attributable to equity shareholders of the Company in Fiscal 2021 was
In Fiscal 2021, the Company's consolidated financial results were mainly impacted by i) an increase of
Revenue in Fiscal 2021 was
Income from mine operations in Fiscal 2021 was
Cash flow provided by operating activities in Fiscal 2021 was
The Company ended the fiscal year with
Working capital as at March 31, 2021 was
2. Q4 Fiscal 2021 Financial Results
Net income attributable to equity shareholders of the Company in Q4 Fiscal 2021 was
Compared to the prior year quarter, the Company's consolidated financial results in Q4 Fiscal 2021 were mainly impacted by the following: i) an increase of
Revenue in Q4 Fiscal 2021 was
Income from mine operations in Q4 Fiscal 2021 was
Cash flows provided by operating activities in Q4 Fiscal 2021 were
CONSOLIDATED OPERATIONAL RESULTS
Three months ended March 31, | Year ended March 31, | ||||||
2021 | 2020 | Changes | 2021 | 2020 | Changes | ||
Ore Production (tonne) | |||||||
Ore mined | 163,072 | 106,595 | 964,925 | 885,830 | |||
Ore milled | 180,674 | 102,431 | 967,581 | 892,215 | |||
Metal Production | |||||||
Silver (in thousands of ounces) | 1,195 | 696 | 6,330 | 6,291 | |||
Gold (in thousands of ounces) | 0.3 | 0.2 | 3.5 | 3.3 | |||
Lead (in thousands of pounds) | 12,156 | 7,772 | 68,430 | 67,373 | |||
Zinc (in thousands of pounds) | 4,672 | 3,276 | 28,012 | 25,581 | |||
Cash Costs | |||||||
Cash cost per ounce of Silver, net of by-product credits($) | (0.39) | (0.85) | (1.80) | (1.91) | |||
All-in sustaining cost per ounce of silver, net of by-product credits ($) | 12.55 | 15.17 | - | 7.49 | 6.86 | ||
Cash production cost per tonne of ore processed ($) | 85.70 | 68.93 | 72.71 | 68.91 | |||
All-in sustaining cost per tonne of ore processed ($) | 156.36 | 188.57 | - | 128.20 | 125.29 |
1. Fiscal 2021 Operational Results
In Fiscal 2021, on a consolidated basis, the Company mined 964,925 tonnes of ore, up
The Company produced approximately 6.3 million ounces of silver, 3,500 ounces of gold, 68.4 million pounds of lead, and 28.0 million pounds of zinc, up
In Fiscal 2021, the consolidated cash production cost per tonne of ore processed in Fiscal 2021 was
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
In Fiscal 2021, on a consolidated basis, a total of 254,900 metres or
2. Q4 Fiscal 2021 Operational Results
In Q4 Fiscal 2021, the Company mined 163,072 tonnes of ore, up
The Company produced approximately 1.2 million ounces of silver, 300 ounces of gold, 12.2 million pounds of lead, and 4.7 million pounds of zinc, up
In Q4 Fiscal 2021, the consolidated cash production cost per tonne of ore processed was
In Q4 Fiscal 2021, the consolidated cash cost per ounce of silver, net of by-product credits, was negative
In Q4 Fiscal 2021, the consolidated all-in sustaining cost per ounce of silver, net of by-product credits, was
In Q4 Fiscal 2021, on a consolidated basis, a total of 49,459 metres or
INDIVIDUAL MINE OPERATING PERFORMANCE
Ying Mining District | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Year ended Mar 31, | ||
March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | 2021 | 2020 | ||
Ore Production (tonne) | ||||||||
Ore mined | 112,561 | 182,268 | 181,020 | 174,176 | 69,379 | 650,025 | 598,197 | |
Ore milled | 131,725 | 162,905 | 179,083 | 177,689 | 69,188 | 651,402 | 601,605 | |
Head grades | ||||||||
Silver (gram/tonne) | 280 | 297 | 288 | 293 | 297 | 290 | 309 | |
Lead (%) | 3.9 | 4.3 | 4.4 | 4.6 | 4.6 | 4.3 | 4.6 | |
Zinc (%) | 0.8 | 0.8 | 0.7 | 0.8 | 1.0 | 0.8 | 0.9 | |
Recovery rates | ||||||||
Silver (%) | 93.7 | 93.9 | 94.4 | 94.7 | 95.3 | 94.2 | 96.0 | |
Lead (%) | 95.1 | 96.4 | 96.1 | 96.2 | 95.7 | 96.0 | 95.9 | |
Zinc (%) | 65.0 | 63.3 | 57.9 | 63.8 | 67.7 | 62.4 | 63.2 | |
Cash Costs | ||||||||
Cash cost per ounce of Silver, net of by-product credits($) | 1.20 | (1.12) | (0.14) | (0.87) | 0.30 | (0.39) | (1.18) | |
All-in sustaining cost per ounce of silver, net of by-product credits ($) | 10.00 | 5.24 | 6.63 | 4.14 | 11.86 | 6.09 | 5.49 | |
Cash production cost per tonne of ore processed ($) | 98.13 | 83.09 | 80.06 | 76.21 | 83.59 | 83.01 | 77.08 | |
All-in sustaining cost per tonne of ore processed ($) | 155.14 | 133.07 | 132.36 | 116.99 | 195.78 | 132.54 | 132.52 | |
Metal Production | ||||||||
Silver (in thousands of ounces) | 1,083 | 1,464 | 1,525 | 1,544 | 614 | 5,615 | 5,592 | |
Gold (in thousands of ounces) | 0.3 | 0.9 | 1.1 | 1.2 | 0.2 | 3.5 | 3.3 | |
Lead (in thousands of pounds) | 10,504 | 14,361 | 16,080 | 16,941 | 6,573 | 57,886 | 56,436 | |
Zinc (in thousands of pounds) | 1,496 | 1,857 | 1,643 | 1,920 | 999 | 6,916 | 7,337 |
In Fiscal 2021, a total of 208,904 metres or
GC Mine | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Year ended Mar 31, | ||
March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | 2021 | 2020 | ||
Ore Production (tonne) | ||||||||
Ore mined | 50,511 | 97,177 | 86,833 | 80,379 | 37,216 | 314,900 | 287,633 | |
Ore milled | 48,949 | 97,743 | 84,850 | 84,637 | 33,243 | 316,179 | 290,610 | |
Head grades | ||||||||
Silver (gram/tonne) | 87 | 82 | 81 | 93 | 94 | 85 | 97 | |
Lead (%) | 1.7 | 1.4 | 1.8 | 1.9 | 1.8 | 1.7 | 1.9 | |
Zinc (%) | 3.3 | 3.5 | 3.4 | 3.4 | 3.5 | 3.4 | 3.3 | |
Recovery rates | ||||||||
Silver (%) | 81.9 | 82.6 | 82.5 | 82.8 | 80.7 | 82.5 | 77.4 | |
Lead (%) | 89.7 | 89.6 | 89.2 | 89.8 | 90.4 | 89.6 | 89.3 | |
Zinc (%) | 88.2 | 89.7 | 87.3 | 87.3 | 87.7 | 88.2 | 86.0 | |
Cash Costs | ||||||||
Cash cost per ounce of Silver, net of by-product credits($) | (12.80) | (14.43) | (12.70) | (6.59) | (10.03) | (11.48) | (7.65) | |
All-in sustaining cost per ounce of silver, net of by-product credits ($) | 0.52 | (1.05) | (1.78) | 2.41 | 8.31 | - | 0.77 | |
Cash production cost per tonne of ore processed ($) | 58.56 | 54.07 | 48.47 | 47.08 | 41.94 | 51.44 | 51.91 | |
All-in sustaining cost per tonne of ore processed ($) | 87.69 | 78.63 | 69.07 | 65.84 | 88.18 | 74.09 | 69.33 | |
Metal Production | ||||||||
Silver (in thousands of ounces) | 112 | 212 | 182 | 209 | 82 | 716 | 699 | |
Lead (in thousands of pounds) | 1,652 | 2,750 | 3,006 | 3,136 | 1,199 | 10,544 | 10,937 | |
Zinc (in thousands of pounds) | 3,176 | 6,816 | 5,490 | 5,613 | 2,277 | 21,096 | 18,244 |
In Fiscal 2021, approximately 45,996 metres or
UPDATE ON MINING CONTRACTS RENEWAL AT THE YING MINING DISCTRICT
The Company updates that the Company has successfully negotiated and renewed contracts with all mining contractors at the Ying Mining District, except one that worked at the LME mine. The renewed contracts with terms of two to three years represent an overall
The previous mining contractor at the LME mine was terminated as no agreement was able to reach. The Company has hired most of the previous workers to work at the mine as internal contractors.
CONFERENCE CALL DETAILS
A conference call to discuss these results will be held tomorrow, Friday, May 21, at 9:00 am PDT (12:00 pm EDT). To participate in the conference call, please dial the numbers below.
Canada/USA TF: 888-664-6383
International Toll: 416-764-8650
Conference ID: 57492576
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.
This earnings release should be read in conjunction with the Company's Management Discussion & Analysis ("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. This earnings release refers to various alternative performance (non-IFRS) measures, such as cash cost and all-in sustaining cost per ounce of silver, net of by-product credits, cash production cost and all-in sustaining production cost per tonne of ore processed, 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. Accordingly, to facilitate a better understanding of these measures as calculated by the Company, please refer to section 12 of the corresponding MD&A for detailed description and reconciliation.
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.
CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS
Certain of the statements and information in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian provincial securities laws (collectively, "forward-looking statements"). Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "believes", "plans", "projects", "estimates", "assumes", "intends", "strategies", "targets", "goals", "forecasts", "objectives", "budgets", "schedules", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements. Forward-looking statements relate to, among other things: the price of silver and other metals; the accuracy of mineral resource and mineral reserve estimates at the Company's material properties; the sufficiency of the Company's capital to finance the Company's operations; estimates of the Company's revenues and capital expenditures; estimated production from the Company's mines in the Ying Mining District and the GC Mine; timing of receipt of permits and regulatory approvals; availability of funds from production to finance the Company's operations; and access to and availability of funding for future construction, use of proceeds from any financing and development of the Company's properties.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks relating to: 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.
This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company's Annual Information Form under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements.
The Company's forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements if circumstances or management's assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.
View original content to download multimedia:http://www.prnewswire.com/news-releases/silvercorp-reports-net-income-of-46-4-million-0-27-per-share-and-cash-flow-from-operations-of-85-9-million-for-fiscal-2021--301296516.html
SOURCE Silvercorp Metals Inc
FAQ
What were Silvercorp's Q4 results for fiscal 2021?
How much did Silvercorp's revenue grow in fiscal 2021?
What was Silvercorp's net income for fiscal 2021?
What is the cash position of Silvercorp as of March 31, 2021?