Silvercorp Reports Operational Results and Financial Results Release Date for Third Quarter, Fiscal 2024
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Insights
The production and sales figures reported by Silvercorp Metals Inc. for Q3 Fiscal 2024 indicate several important trends that could influence investor sentiment. Notably, the increase in gold production by 22% and zinc production by 6% compared to Q3 Fiscal 2023 could be seen as a positive development. However, the decrease in silver and lead production, particularly the 16% decline in lead, may raise concerns about operational challenges or resource depletion.
From a market perspective, the mix of increases and decreases in production of different metals may affect the company's revenue diversification. Gold's increase could be beneficial if gold prices are favorable, potentially offsetting the revenue impact of lower lead and silver production. Investors might also consider the implications of stockpiling ores, as this could indicate strategic management of resources but also suggest potential future fluctuations in production levels.
Analyzing the operational results, the financial implications for Silvercorp's upcoming earnings report are multifaceted. The reported increase in gold and zinc production may lead to an improved financial performance if these metals command higher market prices. Conversely, the decrease in lead production, a significant revenue source for many mining companies, could negatively impact financial results.
Investors should also examine the cost implications of mining and milling more ore, as increased production volumes can lead to higher operational costs. The company's ability to manage these costs effectively will be crucial in determining the impact on profit margins. Additionally, the stockpiling of ores will likely defer revenue recognition, which could affect the company's cash flow in the short term but may provide a buffer against future production variability.
The operational results from Silvercorp highlight several industry-specific factors that investors should consider. The head grades for silver and lead have decreased, which is a key indicator of the quality of the ore being mined. Lower head grades can lead to higher costs per unit of metal produced and may signal that the company is accessing lower-quality ore bodies.
The fact that ores are being stockpiled for future processing is not unusual in the mining industry, especially during periods like the Chinese New Year when operations may slow down. However, this practice requires careful inventory management and can impact the timing of revenue recognition. Furthermore, the reported recovery rates, particularly the high gold recovery rate of 91.2%, are crucial in evaluating the efficiency of the company's extraction processes.
Trading Symbol: TSX: SVM
NYSE AMERICAN: SVM
- Gold production of 1,342 ounces, an increase of
22% over Q3 Fiscal 2023; - Silver equivalent (only silver and gold)1 production of approximately 1.8 million ounces;
- Zinc production of approximately 7.4 million pounds, an increase of
6% over Q3 Fiscal 2023; and - Lead production of approximately 16.8 million pounds, a decrease of
16% over Q3 Fiscal 2023.
Third Quarter Fiscal 2024 | Third Quarter Fiscal 2023 | |||||||
Ying Mining District | GC | Consolidated | Ying Mining District | GC | Consolidated | |||
Production Data | ||||||||
Ore Mined (tonnes) | 245,606 | 99,667 | 345,273 | 206,854 | 89,196 | 296,050 | ||
Ore Milled (tonnes) | ||||||||
Gold ore | 12,726 | - | 12,726 | - | - | - | ||
Silver ore | 201,475 | 98,299 | 299,774 | 213,830 | 89,612 | 303,442 | ||
214,201 | 98,299 | 312,500 | 213,830 | 89,612 | 303,442 | |||
Head Grades | ||||||||
Silver (gram/tonne) | 235 | 68 | 262 | 75 | ||||
Lead (%) | 3.5 | 1.1 | 4.0 | 1.4 | ||||
Zinc (%) | 0.7 | 2.7 | 0.7 | 2.8 | ||||
Recovery Rates | ||||||||
Silver (%) | 94.9 | 80.3 | 95.7 | 83.0 | ||||
Lead (%) | 94.8 | 90.9 | 95.4 | 90.3 | ||||
Zinc (%) | 71.4 | 90.1 | 66.4 | 90.1 | ||||
Metal production | ||||||||
Gold (ounces) | 1,342 | - | 1,342 | 1,100 | - | 1,100 | ||
Silver (in thousands of ounces) | 1,511 | 173 | 1,684 | 1,674 | 179 | 1,853 | ||
Silver equivalent (in thousands of ounces) | 1,622 | 173 | 1,795 | 1,770 | 179 | 1,949 | ||
Lead (in thousands of pounds) | 14,552 | 2,211 | 16,763 | 17,647 | 2,412 | 20,059 | ||
Zinc (in thousands of pounds) | 2,153 | 5,251 | 7,404 | 2,082 | 4,892 | 6,974 | ||
Metals sold | ||||||||
Gold (ounces) | 1,342 | - | 1,342 | 1,100 | - | 1,100 | ||
Silver (in thousands of ounces) | 1,536 | 167 | 1,703 | 1,675 | 185 | 1,860 | ||
Lead (in thousands of pounds) | 14,194 | 2,054 | 16,248 | 16,969 | 2,304 | 19,273 | ||
Zinc (in thousands of pounds) | 2,215 | 5,105 | 7,320 | 2,143 | 4,976 | 7,119 | ||
At the Ying Mining District, 245,606 tonnes of ore were mined, up
The decrease in silver and lead production was mainly due to i) lower head grades achieved due to mining sequences; ii) 60,095 tonnes of ores were stockpiled and will be processed in the fourth quarter during the Chinese New Year; and iii) 12,700 tonnes of gold ores were mined and processed with grades of 1.9 grams per tonne ("g/t") gold, 74 g/t silver,
At the GC Mine, 99,667 tonnes of ore were mined, up
Nine months ended December 31, 2023 | Nine months ended December 31, 2022 | |||||||
Ying Mining District | GC | Consolidated | Ying Mining District | GC | Consolidated | |||
Production Data | ||||||||
Ore Mined (tonnes) | 679,990 | 241,968 | 921,958 | 636,819 | 250,316 | 887,135 | ||
Ore Milled (tonnes) | ||||||||
Gold ore | 36,419 | - | 36,419 | - | - | - | ||
Silver ore | 599,459 | 232,824 | 832,283 | 642,147 | 251,114 | 893,261 | ||
635,878 | 232,824 | 868,702 | 642,147 | 251,114 | 893,261 | |||
Head Grades | ||||||||
Silver (gram/tonne) | 241 | 72 | 262 | 73 | ||||
Lead (%) | 3.5 | 1.2 | 3.9 | 1.3 | ||||
Zinc (%) | 0.7 | 2.7 | 0.7 | 2.8 | ||||
Recovery Rates | ||||||||
Silver (%) | 95.0 | 81.8 | 95.7 | 82.5 | ||||
Lead (%) | 95.1 | 90.7 | 95.0 | 89.6 | ||||
Zinc (%) | 70.7 | 90.2 | 62.3 | 90.1 | ||||
Metal production | ||||||||
Gold (ounces) | 5,352 | - | 5,352 | 3,400 | - | 3,400 | ||
Silver (in thousands of ounces) | 4,614 | 440 | 5,054 | 5,027 | 484 | 5,511 | ||
Silver equivalent (in thousands of ounces) | 5,080 | 440 | 5,520 | 5,318 | 484 | 5,802 | ||
Lead (in thousands of pounds) | 44,952 | 5,692 | 50,644 | 50,566 | 6,564 | 57,130 | ||
Zinc (in thousands of pounds) | 6,463 | 12,363 | 18,826 | 5,986 | 13,900 | 19,886 | ||
Metals sold | ||||||||
Gold (ounces) | 5,352 | - | 5,352 | 3,400 | - | 3,400 | ||
Silver (in thousands of ounces) | 4,665 | 431 | 5,096 | 5,083 | 481 | 5,564 | ||
Lead (in thousands of pounds) | 43,471 | 5,282 | 48,753 | 49,316 | 6,350 | 55,666 | ||
Zinc (in thousands of pounds) | 6,510 | 12,308 | 18,818 | 6,060 | 13,927 | 19,987 | ||
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.silvercorpmetals.com.
For further information
Silvercorp Metals Inc.
Lon Shaver
President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: investor@silvercorp.ca
Website: www.silvercorpmetals.com
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.
Additional information related to the Company, including Silvercorp's Annual Information Form, can be obtained under the Company's profile on SEDAR+ at www.sedarplus.ca, on EDGAR at www.sec.gov, and on the Company's website at www.silvercorpmetals.com.
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1 Silver equivalent is calculated by converting the gold metal quantity to its silver equivalent using the ratio between the net realized selling prices of gold and silver achieved, and then adding the converted amount expressed in silver ounces to the ounces of silver. |
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SOURCE Silvercorp Metals Inc
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