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NEW
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ember 31, 201
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2
FINANCIALS
Net income attributable to equity shareholders of the Company in Q3 Fiscal 2018 was $12.7 million or
basic earnings per share of $0.08, compared to $13.1 million, or $0.08 per share in Q3 Fiscal 2017.
Sales in Q3 Fiscal 2018 were $44.4 million, down 7% compared to $47.8 million in the same quarter last
year. Silver and gold sales represented $19.8 million and $0.6 million, respectively, while base metals
represented $23.9 million of total sales, compared to silver, gold and base metals sales of $23.4 million,
$0.7 million, and $23.7 million, respectively, in the prior year quarter.
The Company’s financial results in Q3 Fiscal 2018 were mainly impacted by the following: i) an increase of
8% and 37% in the realized selling prices for lead and zinc, compared to the prior year quarter, ii) a 3%
decrease in the realized selling price for silver, iii) less metals sold as inventory built up; and iv) higher per
tonne production costs.
As at December 31, 2017, silver‐lead concentrate inventories were 6,234 tonnes containing approximately
0.7 million ounces of silver and 6.9 million pounds of lead, an increase of 34% or 1,568 tonnes, compared
to 4,666 tonnes silver‐lead concentrate inventories containing approximately 0.5 million ounces of silver
and 5.4 million pounds of lead held as at December 31, 2016.
Cost of sales in Q3 Fiscal 2018 was $21.2 million, comparable to $21.5 million in Q3 Fiscal 2017. The cost
of sales included $15.6 million (Q3 Fiscal 2017 ‐ $14.9 million) cash production costs, $1.3 million mineral
resources tax (Q3 Fiscal 2017 ‐ $1.4 million), and $4.4 million (Q3 Fiscal 2017 ‐ $5.2 million) depreciation
and amortization charges.
Gross profit margin in Q3 Fiscal 2018 was 52%, compared to 55% in Q3 Fiscal 2017. Ying Mining District’s
gross margin was 55% compared to a 58% gross profit margin in the prior year quarter. GC Mine’s profit
margin was 41% compared to a 39% gross profit margin in the prior year quarter.
General and administrative expenses in Q3 Fiscal 2018 and the nine months ended December 31, 2017
were $4.9 million and $14.0 million (Q3 Fiscal 2017 ‐ $4.0 million, nine months ended December 31, 2016
‐ $12.5 million). The increase was mainly due to the resumption of activities at the XHP Project to review
alternatives and activities carried at the BYP Mine to renew its mining license, resulting in additional office
and administrative expenses and labour costs.
Income tax expenses in Q3 Fiscal 2018 were $4.3 million compared to $5.4 million in Q3 Fiscal 2017. The
income tax expense recorded in Q3 Fiscal 2017 included current income tax expense of $3.7 million (Q3
Fiscal 2016 – $4.7 million) and deferred income tax expense of $0.6 million (Q3 Fiscal 2016 – $0.6 million).
Cash flows provided by operating activities in Q3 Fiscal 2018 were $27.5 million, compared to $28.3
million in the prior year quarter. Before changes in non‐cash operating working capital, cash flows
provided by operating activities in Q3 Fiscal 2018 were $23.0 million, a decrease of $3.4 million or 13%,
compared to $26.4 million in the prior year quarter.
For the nine months ended December 31, 2017, net income attributable to equity shareholders of the
Company was $34.8 million or $0.21 per share, up 15% compared to $30.2 million or $0.18 per share in
the same prior year period; sales were $131.6 million, up 2% from $129.4 million in the same prior year
period; and cash flow from operating activities was $65.1 million, down 14% from $75.6 million in the
same prior year period.
Working capital as at December 31, 2017 was $84.9 million, an increase of $14.2 million or 20%,
compared to $70.7 million working capital as at March 31, 2017.
3
OPERATIONS AND DEVELOPMENT
(i) Q3 Fiscal 2018 vs. Q3 Fiscal 2017
On a consolidated basis, the Company mined 252,284 tonnes of ore in Q3 Fiscal 2018, comparable to
252,784 tonnes in Q3 Fiscal 2017. Ore milled were 256,037 tonnes, compared to 263,339 tonnes of ore
milled in Q3 Fiscal 2017.
In Q3 Fiscal 2018, the Company sold approximately 1.5 million ounces of silver, 700 ounces of gold, 15.8
million pounds of lead, and 6.4 million pounds of zinc, compared to 1.7 million ounces of silver, 700
ounces of gold, 19.5 million pounds of lead, and 5.7 million pounds of zinc, respectively, in Q3 Fiscal 2017.
Sales from lead and zinc accounted for 54% of the total sales and amounted to $23.8 million, an increase
of $0.3 million, compared to $23.5 million in the prior year quarter.
The consolidated total mining costs and cash mining costs were $74.16 and $56.11 per tonne, compared
to $67.12 and $47.52 per tonne, respectively, in Q3 Fiscal 2017. The increase in cash mining costs were
mainly due to: i) a $0.9 million increase in raw material supply costs, ii) a $0.4 million increase in mining
preparation costs resulting from more underground tunnelling expensed in the current quarter, and iii) a
$0.5 million increase in mining labor costs due to additional bonus accrued as per the Company’s profit
sharing plan in China.
The consolidated total milling costs and cash milling costs in Q3 Fiscal 2018 were $13.45 and $11.31 per
tonne, compared to $12.40 and $10.32 per tonne, respectively, in Q3 Fiscal 2017. The increase in cash
milling costs were mainly due to $0.2 million increase in raw material supply costs.
The consolidated total production costs and cash costs per ounce of silver, net of by‐product credits, were
negative $3.04 and negative $5.92 compared to negative $2.50 and negative $5.48 respectively, in the
prior year quarter. The overall decrease in cash cost per ounce of silver, net of by‐product credits, is
mainly due to a 1% increase in by‐product credits, mainly arising from 8% and 37% increase in lead and
zinc net realized selling prices.
The consolidated all‐in sustaining costs per ounce of silver, net of by‐product credits, is $3.16 compared to
$1.87 in Q3 Fiscal 2017.
(ii) Nine months ended December 31, 2017 vs Nine months ended December 31, 2016
For the nine months ended December 31, 2017, approximately 4.7 million ounces of silver, 2,400 ounces
of gold, 48.6 million pounds of lead, and 17.0 million pounds of zinc were sold compared to 5.2 million
ounces of silver, 2,600 ounces of gold, 56.1 million of lead, and 16.8 million pounds of zinc sold in the
same prior year period.
The consolidated total mining and cash mining costs were $71.07 and $53.17 per tonne, 6% and 16%
increase compared to $66.79 and $45.92 per tonne in the same prior year period while the consolidated
total milling costs and cash milling costs were $12.81 and $10.55, comparable to $12.86 and $10.62 per
tonne in the same prior year period.
The consolidated cash production costs and all‐in sustaining costs per ounce of silver, net of by‐product
credits, were negative $4.97 and $3.35 compared to negative $2.95 and $3.96, respectively, in the same
prior year period.
4
1. Ying Mining District, Henan Province, China
(i) Q3 Fiscal 2018 vs. Q3 Fiscal 2017
In Q3 Fiscal 2018, the total ore mined at the Ying Mining District was 166,619 tonnes, a decrease of 3% or
4,684 tonnes, compared to 171,303 tonnes mined in the prior year quarter. Correspondingly, ore milled in
Q3 Fiscal 2018 decreased by 8% to 167,543 tonnes from 182,259 tonnes in the prior year quarter.
Head grades were 315 grams per ton (“g/t”) for silver, 4.5% for lead, and 1.0% for zinc, compared to 303
g/t for silver, 4.8% for lead and 0.8% for zinc in the prior year quarter. The Company continues to achieve
improvements in dilution control using its “Enterprise Blog” to assist manage daily operations.
Metals sold were approximately 1.3 million ounces silver, 13.5 million pounds lead, and 2.0 million
pounds zinc, compared to 1.6 million ounces silver, 17.3 million pounds lead, and 1.2 million pounds of
zinc in the prior year quarter. The decrease of silver and lead sold was mainly due to silver‐lead
concentrate inventory built up.
Silver‐lead concentrate inventories were 6,200 tonnes containing approximately 0.7 million ounces of
silver and 6.8 million pounds of lead, an increase of 33% or 1,544 tonnes, compared to 4,656 tonnes
silver‐lead concentrate inventories held as at December 31, 2016.
Total and cash mining costs per tonne at the Ying Mining District in Q3 Fiscal 2018 were $90.12 and
$66.71 per tonne, respectively, compared to $80.53 and $55.21 per tonne in the prior year quarter. The
increase in cash mining costs were mainly due to: i) a $0.9 million increase in raw material supply costs,
and ii) a $0.4 million increase in mining labor costs due to additional bonus accrued as per the Company’s
profit sharing plan in China.
Total and cash milling costs per tonne at the Ying Mining District in Q3 Fiscal 2018 were $11.87 and $9.84,
compared to $11.03 and $9.09 in Q3 Fiscal 2017. The increase in cash milling costs was mainly due to a
15% increase in per tonne raw material supply costs.
Cash cost per ounce of silver, net of by‐product credits, in Q3 Fiscal 2018 at the Ying Mining District, was
negative $4.53, comparable to negative $4.60 in the prior year quarter.
All in sustaining costs per ounce of silver, net of by‐product credits, in Q3 Fiscal 2018 at the Ying Mining
District was $2.13 compared to $1.34 in the prior year quarter.
Approximately 25,109 m or $0.4 million of underground diamond drilling (Fiscal Q3 2017 – 36,756 m or
$0.6 million) and 5,187 m or $1.6 million of preparation tunnelling (Fiscal Q3 2017 – 4,900 m or $1.4
million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition,
approximately 16,326 m or $6.0 million of horizontal tunnel, raises and declines (Q3 Fiscal 2017 – 17,823
m or $5.5 million) were completed and capitalized.
Operational results ‐ Ying Mining District
Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017
December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 2017 2016
Ore Mined (tonne) 166,619 173,294 160,408 112,755 171,303 500,321 524,005
Ore Milled (tonne) 167,543 173,946 164,959 108,051 182,259 506,448 530,160
Head Grades
Silver (gram/tonne) 315 294 304 298 303 304 305
Lead (%) 4.5 4.3 4.6 4.8 4.8 4.5 4.7
Zinc (%) 1.0 0.8 0.8 0.8 0.8 0.9 1.0
Recoveries
Silver (%) 95.8 95.6 95.8 96.6 95.1 95.7 95.4
Lead (%) 96.4 96.2 96.3 95.6 96.7 96.3 96.4
Zinc (%) 57.3 50.7 45.8 46.2 47.5 51.7 46.0
Metal Sales
Silver (in thousands of ounces) 1,322 1,472 1,324 1,255 1,555 4,118 4,675
Gold (in thousands of ounces) 0.7 0.8 0.9 0.7 0.7 2.4 2.6
Lead (in thousands of pounds) 13,487 15,279 13,765 13,520 17,269 42,531 49,898
Zinc (in thousands of pounds) 2,006 2,269 755 1,033 1,210 5,030 4,815
Cash mining cost ($ per tonne) 66.71 59.67 54.78 49.99 55.21 60.45 52.18
Total mining cost ($ per tonne) 90.12 81.20 76.67 53.50 80.53 82.72 78.46
Cash milling cost ($ per tonne) 9.84 8.50 8.07 10.43 9.09 8.80 9.31
Total milling cost ($ per tonne) 11.87 10.45 10.10 13.60 11.03 10.80 11.35
Cash production cost ($ per tonne) 80.60 71.85 66.93 64.34 68.22 73.18 65.35
Cash cost per ounce of silver ($) (4.53) (4.27) (2.97) (3.73) (4.60) (4.03) (2.50)
All‐in sustaining cost per ounce of
silver ($) 2.13 1.08 3.66 0.74 1.34 2.25 3.11
Nine months ended December 31,
5
(ii) Nine months ended December 31, 2017 vs Nine months ended December 31, 2016
For the nine months ended December 31, 2017, a total of 500,321 tonnes of ore were mined and 506,448
tonnes milled at the Ying Mining District, down by 5% and 4%, compared to 524,005 tonnes mined and
530,160 tonnes milled in the same prior year period.
Average head grades were 304 g/t for silver, 4.5% for lead, and 0.9% for zinc compared to 305 g/t for
silver, 4.7% for lead, and 1.0% for zinc, respectively, in the same prior year period.
Metals sold were approximately 4.1 million ounces of silver, 2,400 ounces of gold, 42.5 million pounds of
lead, and 5.0 million pounds of zinc, compared to 4.7 million ounces of silver, 2,600 ounces of gold, 49.9
million pounds of lead, and 4.8 million pounds of zinc in prior year period.
The cash mining costs was $60.45 per tonne, an increase of 16% compared to $52.18 in the same prior
year period. The increase was mainly due to more underground drilling and tunneling being expensed as
mining preparation costs as well as the increase of raw material supply prices. The cash milling cost was
$8.80 per tonne, a decrease of 5% compared to $9.31 in the same prior year period.
Cash cost per ounce of silver and all in sustaining costs per ounce of silver, net of by‐product credits, were
negative $4.03 and $2.25 respectively, compared to negative $2.50 and $3.11 in the same prior year
period.
Approximately 86,007 m or $1.7 million of underground diamond drilling (same prior year period – 71,794
m or $1.7 million) and 16,914 or $4.9 million of preparation tunnelling (same prior year period – 15,069 m
or $4.2 million) were completed and expensed as mining preparation costs at the Ying Mining District. In
addition, approximately 52,174 m or $16.2 million of horizontal tunnel, raises, and declines (same prior
year period – 50,500 m or $15.2 million) were completed and capitalized.
2. GC Mine, Guangdong Province, China
(i) Q3 Fiscal 2018 vs. Q3 Fiscal 2017
In Q3 Fiscal 2018, the total ore mined at the GC Mine was 85,665 tonnes, an increase of 4,184 tonnes or
5%, compared to 81,481 tonnes mined in Q3 Fiscal 2017, while ore milled increased by 9% to 88,494
tonnes from 81,080 tonnes in the prior year quarter.
Head grades were 97 g/t for silver, 1.4% for lead, and 2.8% for zinc compared to 89 g/t for silver, 1.4% for
lead, and 2.8% for zinc in the prior year quarter.
The GC Mine sold 196 thousand ounces of silver, 2.3 million pounds of lead, 4.4 million pounds of zinc,
compared to 179 thousand ounces of silver, 2.2 million pounds of lead, and 4.5 million pounds of zinc sold
in the prior year quarter.
Operational results ‐ GC Mine Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Nine months ended December 31,
December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 2017 2016
Ore Mined (tonne) 85,665 65,812 64,865 40,224 81,481 216,341 220,522
Ore Milled (tonne) 88,494 63,648 65,944 39,929 81,080 218,086 220,767
Head Grades
Silver (gram/tonne) 97 102 98 91 89 99 94
Lead (%) 1.4 1.4 1.6 1.3 1.4 1.5 1.5
Zinc (%) 2.8 2.8 2.7 2.6 2.8 2.8 2.9
Recovery Rates
Silver (%) 73.6 74.4 81.2 72.8 75.4 76.1 76.2
Lead (%) 83.9 82.8 88.8 82.4 85.5 85.2 86.3
Zinc (%) 81.3 81.6 80.9 74.8 86.5 81.2 86.3
Metal Sales
Silver (in thousands of ounces) 196 155 189 53 179 540 511
Lead (in thousands of pounds) 2,263 1,656 2,147 818 2,214 6,066 6,237
Zinc (in thousands of pounds) 4,399 3,311 4,244 455 4,478 11,954 11,991
Cash mining cost ($ per tonne) 35.48 34.60 39.20 37.91 31.34 36.33 31.04
Total mining cost ($ per tonne) 43.10 42.62 46.99 45.37 38.90 44.12 39.05
Cash milling cost ($ per tonne) 14.09 14.63 16.73 20.06 13.09 14.60 13.76
Total milling cost ($ per tonne) 16.45 17.90 19.85 24.99 15.50 17.46 16.47
Cash production cost ($ per tonne) 49.57 49.23 55.93 57.97 44.43 50.93 44.80
Cash cost per ounce of silver ($) (15.34) (13.56) (7.80) (1.72) (13.11) (12.19) (7.15)
All‐in sustaining cost per ounce of
silver ($) (4.52) (3.77) (2.48) 14.55 (6.12) (3.59) (1.29)
6
Total and cash mining costs per tonne at the GC Mine in Q3 Fiscal 2018 were $43.10 and $35.48 per
tonne, compared to $38.90 and $31.34 per tonne in Q3 Fiscal 2017. The increase in cash mining costs was
mainly due to: i) a $0.2 million increase in mining preparation costs resulting from more underground
drilling expensed in the current quarter, and ii) a $0.2 million increase in mining contractor fees.
Total and cash milling costs per tonne at the GC Mine in Q3 Fiscal 2018 were $16.45 and $14.09,
compared to $15.50 and $13.09, respectively, in Q3 Fiscal 2017. The increase in milling costs was mainly
due to a $0.2 million increase in raw material supply costs.
Correspondingly, the cash production costs per tonne of ore processed in Q3 Fiscal 2018 at the GC Mine
increased to $49.57 from $44.43 in the prior year quarter.
Cash costs per ounce of silver, net of by‐product credits, at the GC Mine, was negative $15.34 compared
to negative $13.11 in the prior year quarter. The improvement was mainly due to a $1.4 million or 23%
increase in by‐product credits resulting from a 12% and 37% increase in net realized lead and zinc selling
prices at the GC Mine.
All in sustaining costs per ounce of silver, net of by‐product credits, in Q3 Fiscal 2018 at the GC Mine was
negative $4.52 compared to negative $6.12 in the prior year quarter.
Approximately 7,770 m or $0.4 million of underground diamond drilling (Q3 Fiscal 2017 – 3,935 m or $0.2
million) and 5,053 m or $1.2 million of tunnelling (Q3 Fiscal 2017 – 4,640 m or $1.3 million) were
completed and expensed as mining preparation costs at the GC Mine. In addition, approximately 17 m or
$0.1 million of horizontal tunnel, raises and declines (Q3 Fiscal 2017 – 554 m or $0.3 million) were
completed and capitalized.
(ii) Nine months ended December 31, 2017 vs Nine months ended December 31, 2016
For the nine months ended December 31, 2017, a total of 216,341 tonnes of ore were mined and 218,086
tonnes were milled at the GC Mine compared to 220,522 tonnes mined and 220,767 tonnes milled in the
same prior year period.
Average head grades were 99 g/t for silver, 1.5% for lead, and 2.8% for zinc compared to 94 g/t for silver,
1.5% for lead, and 2.9% for zinc, respectively, in the same prior year period.
Metals sold were 540 thousand ounces of silver, 6.1 million pounds of lead, and 12.0 million pounds of
zinc, compared to 511 thousand ounces of silver, 6.2 million pounds of lead, and 12.0 million pounds of
zinc in the same prior year period.
The cash mining costs at the GC Mine was $36.33 per tonne, an increase of 17% compared to $31.04 per
tonne in the same prior year period. The increase in cash mining costs was mainly due to a $0.9 million
increase in mining preparation costs as more underground drilling and tunnelling was expensed in the
current period.
The cash milling costs was $14.60 per tonne, an increase of 6% compared to $13.76 in the same prior year
period.
Cash costs per ounce of silver and all in sustaining costs per ounce of silver, net of by‐product credits,
were negative $12.19 and negative $3.59 respectively, compared to negative $7.15 and $1.29 in the same
prior year period. The improvement is mainly due to higher by‐product credits achieved arising from a
12% and 37% increase, respectively, in lead and zinc realized selling prices.
Approximately 18,253 m or $0.9 million of underground diamond drilling (same prior year period – 9,489
m or $0.6 million) and 14,285 m or $3.8 million of tunnelling (same prior year period – 11,976 m or $3.2
million) were completed and expensed as mining preparation costs at the GC Mine. In addition,
approximately 280 m or $0.2 million of horizontal tunnel, raise, and declines (same prior year period –
1,685 m or $0.7 million) were completed and capitalized.
FISCAL 2019 PRODUCTION AND CASH COST GUIDANCE
7
(*) Both AISC and cash cost are non‐IFRS measures. AISC refers to all‐in sustaining cost per tonne of ore processed. Cash cost refers
to cash production costs per tonne of ore processed. Foreign exchange rates assumptions used are: US$1 = CAD$1.25, US$1 =
RMB¥6.50.
In Fiscal 2019, the Company expects to process approximately 880,000 tonnes of ore, yielding 6.0 million
ounces of silver, 63.6 million pounds of lead, and 19.8 million pounds of zinc. Fiscal 2019 production
guidance represents an increase of approximately 4% in silver production, 1% in lead production, and 8%
in zinc production compared to the prior year’s guidance released on February 2, 2017.
1. Ying Mining District, Henan Province, China
In Fiscal 2019, Ying Mining District plans to mine and process 630,000 tonnes of ore averaging 285 g/t
silver, 4.3% lead, and 0.9% zinc with expected metal production of 5.4 million ounces of silver, 56.1 million
pounds of lead, and 6.2 million pounds of zinc. Fiscal 2019 production guidance at the Ying Mining District
represents an increase of approximately 4% in silver head grade and 2% in lead head grade compared to
prior year’s guidance. Metal production is comparable to prior year’s guidance.
The cash production costs is expected to be $75.4 per tonne of ore, and the all‐in sustaining costs is
estimated at $123.7 per tonne of ore processed.
Capital expenditures at the Ying Mining District in Fiscal 2019 are budgeted at $31.8 million, including
$23.2 million for mine tunnelling and ramp development and $8.6 million for equipment and
infrastructure.
2. GC Mine, Guangdong Province, China
In Fiscal 2019, GC Mine plans to mine and process 250,000 tonnes of ore averaging 98 g/t silver, 1.6% lead,
and 3.0% zinc with expected metal production of 0.6 million ounces of silver, 7.5 million pounds of lead
and 13.6 million pounds of zinc. Fiscal 2019 represents an increase of approximately 50% in silver
production, 6% in lead production, and 11% in zinc production.
The cash production costs is expected to be $57.2 per tonne of ore, and the all‐in sustaining costs would
be $57.2 per tonne of ore processed.
Capital expenditures at GC Mine in Fiscal 2019 are budgeted at $3.0 million, including $1.7 million for
mine tunnelling and ramp development and $1.3 million for equipment and infrastructure.
Mr. JianZhao Yin, P.Geo., is the Qualified Person for Silvercorp under 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, Financial Statements and Notes to Financial Statements for the corresponding period, which have
been posted on SEDAR at www.sedar.com and are also available on the Company's website
at www.silvercorp.ca. All figures are in United States dollars unless otherwise stated.
Ore processed Silver Lead Zinc
(tonnes) (g /t) (%) (%)
Yi ng Mining District 630,000 285 4.3 0.9
GC Mine 250,000 98 1.6 3.0
Silver Lead Zinc Cash cost* AISC*
(Moz) (Mlbs) (Mlbs) ( $/t) ( $/t)
Yi ng Mining District 5.4 56.1 6.2 75.4 123.7
GC Mine 0.6 7.5 13.6 57.2 75.5
Consolidated 6.0 63.6 19.8 70.2 122.2
8
About Silvercorp
Silvercorp is a low‐cost silver‐producing Canadian mining company with multiple mines in China. The
Company's vision is to deliver shareholder value by focusing on the acquisition of under developed
projects with resource potential and the ability to grow organically. For more information, please visit our
website at www.silvercorp.ca.
For further information
Silvercorp Metals Inc.
Lorne Waldman
Senior Vice President
Phone: (604) 669‐9397
Toll Free 1(888) 224‐1881
Email: [email protected]
Website: www.silvercorp.ca
CAUTIONARY DISCLAIMER ‐ FORWARD LOOKING STATEMENTS
Certain of the statements and information in this press 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. 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 or
information. Forward‐looking statements or information 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; 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 or information 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 or information, including, without limitation, risks relating to: 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 as per the requirements of the Sarbanes‐Oxley Act; 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 or
information. Forward‐looking statements or information 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 or information due to a variety of risks, uncertainties and other
factors, including, without limitation, those referred to in the Company’s Annual Information Form for the year ended
March 31, 2017 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 or information.