Silvercorp Reports Operational Results and Financial Results Release Date for the First Quarter, Fiscal 2025
Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) reported Q1 Fiscal 2025 operational results, highlighting record revenue of approximately $72.0 million, a 20% increase year-over-year. Ore mined increased by 13% to 341,927 tonnes, while ore milled rose 4% to 307,696 tonnes. However, silver production decreased by 4% to 1.7 million ounces due to 59,293 tonnes of inventory stockpile not yet processed. Lead and zinc production also declined by 12% and 6% respectively. The Ying Mining District saw a 20% increase in ore mined, while the GC Mine experienced slight decreases in production. The company expects to process stockpiled ore in Q3 and Q4 once mill capacity expansion is completed.
- Record revenue of $72.0 million, up 20% year-over-year
- Ore mined increased by 13% to 341,927 tonnes
- Ore milled rose 4% to 307,696 tonnes
- Ying Mining District ore mined increased by 20%
- Silver production decreased by 4% to 1.7 million ounces
- Lead production declined by 12% to 15.6 million pounds
- Zinc production decreased by 6% to 6.4 million pounds
- GC Mine experienced decreases in silver, lead, and zinc production
Insights
Financial Performance and Revenue Insights: The announcement reveals a
Stockpile and Future Production: The accumulation of 59,293 tonnes of stockpile ore due to mill capacity constraints is a notable point. While this indicates a temporary production bottleneck, the planned operation of a new mill by November 2024, which will process 1,500 tonnes per day, suggests potential for increased future output. Investors should watch for updates on this development, as it could represent a significant uplift in production rates in the latter part of Fiscal 2025.
Key Financial Metrics and Stock Valuation: The market will closely watch the upcoming audited financial results in August. Metrics such as net income, EBITDA and free cash flow will provide more granularity on the financial health of the company. The revenue increase is positive, but the decreasing metals production raises concerns that need addressing. Investors should balance the revenue growth with these operational challenges.
Market Position and Demand Trends: Silvercorp's reported revenue growth of
Competitive Landscape: In the mining sector, production capacity and efficiency are critical. Silvercorp's challenges with mill capacity constraints highlight potential competitive disadvantages. Companies with more advanced infrastructure or those that can quickly adapt to capacity issues may capitalize on this gap. Investors should monitor how Silvercorp addresses these constraints and whether they can maintain or grow their market share.
Investment Implications: For retail investors, understanding the balance between current operational challenges and future production potential is key. The upcoming mill expansion is a positive indicator, but its successful implementation and impact on production will be determinative. This balance will ultimately influence Silvercorp's market positioning and stock performance.
Trading Symbol: TSX: SVM
NYSE AMERICAN: SVM
Q1 Fiscal 2025 Operational Results
- Record revenue of approximately
$72.0 million 20% over the same quarter last year ("Q1 Fiscal 2024") - Ore mined of 341,927 tonnes, up
13% over Q1 Fiscal 2024; - Ore milled of 307,696 tonnes, up
4% over Q1 Fiscal 2024; - Inventory stockpile ores amounted to 59,293 tonnes not yet processed due to mill capacity constraints, with additional ore to be added to the stockpile in the coming quarter. If they had been processed, the Company's metal production would have aligned with its Fiscal 2025 annual guidance, and are anticipated to be processed when the 1,500 tonnes per day new mill is in operation by November 2024.
- Silver production of 1.7 million ounces, a decrease of
4% over Q1 Fiscal 2024 as 59,293 tonnes of inventory stockpile ores were not yet processed at the Ying Mining District due to mill capacity constraints; - Silver equivalent (only silver and gold)i production of approximately 1.8 million ounces;
- Lead production of approximately 15.6 million pounds, a decrease of
12% over Q1 Fiscal 2024; and - Zinc production of approximately 6.4 million pounds, a decrease of
6% over Q1 Fiscal 2024.
Q1 Fiscal 2025 | Q1 Fiscal 2024 | ||||||
Ying Mining District | GC | Consolidated | Ying Mining District | GC | Consolidated | ||
Production Data | |||||||
Ore Mined (tonnes) | 256,079 | 87,768 | 343,847 | 213,748 | 89,472 | 303,220 | |
Ore Milled (tonnes) | |||||||
Gold ore | 8,476 | — | 8,476 | 10,893 | — | 10,893 | |
Silver ore | 212,766 | 86,454 | 299,220 | 197,916 | 86,286 | 284,202 | |
221,242 | 86,454 | 307,696 | 208,809 | 86,286 | 295,095 | ||
Head Grades | |||||||
Silver (gram/tonne) | 235 | 64 | 254 | 80 | |||
Lead (%) | 3.1 | 0.9 | 3.6 | 1.4 | |||
Zinc (%) | 0.7 | 2.4 | 0.7 | 2.7 | |||
Recovery Rates | |||||||
Silver (%) | 95.0 | 84.1 | 95.1 | 82.7 | |||
Lead (%) | 94.4 | 90.0 | 95.5 | 90.7 | |||
Zinc (%) | 72.3 | 90.4 | 69.6 | 90.4 | |||
Metal Production | |||||||
Gold (ounces) | 1,146 | — | 1,146 | 1,552 | — | 1,552 | |
Silver (in thousands of ounces) | 1,572 | 145 | 1,717 | 1,597 | 183 | 1,780 | |
Silver equivalent (in thousands of ounces) | 1,657 | 145 | 1,802 | 1,729 | 183 | 1,912 | |
Lead (in thousands of pounds) | 14,080 | 1,539 | 15,619 | 15,382 | 2,434 | 17,816 | |
Zinc (in thousands of pounds) | 2,468 | 3,966 | 6,434 | 2,113 | 4,708 | 6,821 | |
Metals Sold | |||||||
Gold (ounces) | 998 | — | 998 | 1,495 | — | 1,495 | |
Silver (in thousands of ounces) | 1,590 | 149 | 1,739 | 1,631 | 184 | 1,815 | |
Lead (in thousands of pounds) | 14,119 | 1,544 | 15,663 | 15,002 | 2,328 | 17,330 | |
Zinc (in thousands of pounds) | 2,493 | 3,991 | 6,484 | 2,132 | 4,788 | 6,920 | |
In Q1 Fiscal 2025, a total of 256,079 tonnes of ore were mined at the Ying Mining District, up
At the GC Mine, 87,768 tonnes of ore were mined, down
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 cash flow 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
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 mill capacity expansion and new tailing storage facility construction; 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.
i 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
FAQ
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