Silvercorp Reports Adjusted Net Income of $11.5 Million, $0.06 per Share, and Cash Flow from Operations of $23.6 Million for Q3 Fiscal 2024
NEWS RELEASE
Trading Symbol: TSX: SVM
NYSE AMERICAN: SVM
Silvercorp Reports Adjusted Net Income of $11.5 Million, $0.06 per Share,
and Cash Flow from Operations of $23.6 Million for Q3 Fiscal 2024
VANCOUVER, British Columbia – February 8, 20 24 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”)
(TSX/NYSE American: SVM) reports its financial and operating results for the three months ended December 31,
2023 (“Q3 Fiscal 2024”). All amounts are expressed in US dollars, and figures may not add due to rounding.
HIGHLIGHTS FOR Q3 FISCAL 2024
• Mined 345,273 tonnes of ore, milled 312,500 tonnes of ore, and produced approximately 1,342 ounces of
gold, 1.7 million ounces of silver, or approximately 1.8 million ounces of silver equivalent, plus 16.8 million
pounds of lead and 7.4 million pounds of zinc;
• Sold approximately 1,342 ounces of gold, 1.7 million ounces of silver, 16.2 million pounds of lead, and 7.3
million pounds of zinc, for revenue of $58.5 million;
• Reported net income attributable to equity shareholders of $10.5 million, or $0.06 per share;
• Realized adjusted earnings attributable to equity shareholders of $11.5 million, or $0.06 per share;
• Generated cash flow from operating activities of $23.6 million;
• Cash costs per ounce of silver, net of by-product credits, of negative $0.96;
• All-in sustaining costs per ounce of silver, net of by-product credits, of $11.33;
• Spent and capitalized $1.6 million on exploration drilling, $14.1 million on underground development, and
$3.9 million on equipment and facilities, including $1.3 million on construction of the new tailings storage
facility;
• Entered into a Bid Implementation Deed (“BID”) with OreCorp Limited (ASX: ORR) (“OreCorp”) to launch
an off-market takeover to acquire all OreCorp Shares not already owned by Silvercorp for A$0.19 cash plus
0.0967 common shares of Silvercorp per OreCorp Share; and
• Strong balance sheet with $198.3 million in cash and cash equivalents and short -term investments. The
Company holds a further equity investment portfolio in associates and other companies with a total market
value of $139.5 million as at December 31, 2023.
CONSOLIDATED FINANCIAL RESULTS
Revenue in Q3 Fiscal 2024 was $58.5 million, a slight decrease compared to $58.7 million in Q3 Fiscal 2023. The
decrease is mainly due to the decrease in silver and lead sold and a lower zinc price, offset by the increase in
the net realized selling prices for gold, silver, and lead.
Income from mine operations in Q3 Fiscal 2024 was $23.3 million, up 7% compared to $21.7 million in Q3 Fiscal
2023. Income from mine operations at the Ying Mining District was $21.5 million, compared to $19.0 million in
Q3 Fiscal 2023. Income from mine operations at the GC Mine was $1.9 million, compared to income of $2.9
million in Q3 Fiscal 2023.
Net income attributable to equity shareholders of the Company in Q3 Fiscal 2024 was $10.5 million or $0. 06
per share, compared to net income of $11.9 million or $0.07 per share in Q3 Fiscal 2023.
Compared to Q3 Fiscal 2023, the Company’s consolidated financial results in the current quarter were mainly
impacted by i) increases of 11%, 17%, and 2%, respectively, in the realized selling prices for gold, silver, and lead,
and a decrease of 15% in the realized selling price for zinc; ii) increases of 22% and 3%, respectively in gold and
zinc sold and decreases of 8% and 16%, respectively, in silver and lead sold; iii) a decrease of 4% in per tonne
production costs; iv) an improvement of $4.4 million in mark-to-market investments; and v) an increase of $5.0
million in the share of loss in associates.
Cash flow provided by operating activities in Q3 Fiscal 2024 was $23.6 million, down $2.1 million, compared to
$25.7 million in Q3 Fiscal 2023. The Company ended the quarter with $ 198.3 million in cash, cash equivalents
and short-term investments, up 5% compared to $189.1 million as at September 30, 2023.
Working capital as at December 31, 2023 was $159.6 million, up 3% compared to $154.3 million as at September
30, 2023.
Three months ended December 31, Nine months ended December 31,
2023 2022 Changes 2023 2022 C hanges
Financial Results
Revenue (in thousands of $) 58,508$ 58,651$ 0% 172,506$ 173,982$ -1%
Mine operating earnings (in thousands of $) 23,307 21,744 7% 67,551 61,007 11%
Net income (loss) attributable to equity holders (in thousands of $) 10,510 11,916 -12% 30,777 20,373 51%
Earnings (loss) per share - basic ($/share) 0.06 0.07 -14% 0.17 0.12 42%
Adjusted earnings attributable to equity holders (in thousands of $) 11,452 11,775 -3% 35,498 32,056 11%
Adjusted earning per share - basic ($/share) 0.06 0.07 -14% 0.20 0.18 11%
Net cash generated from operating activities (in thousands of $) 23,607 25,661 -8% 81,332 79,901 2%
Capitalized expenditures (in thousands of $) 19,635 15,484 27% 50,609 48,366 5%
Metals sold
Gold (ounces) 1,342 1,100 22% 5,352 3,400 57%
Silver (in thousands of ounces) 1,703 1,860 -8% 5,096 5,564 -8%
Lead (in thousands of pounds) 16,248 19,273 -16% 48,753 55,666 -12%
Zinc (in thousands of pounds) 7,320 7,119 3% 18,818 19,987 -6%
Average Selling Price, Net of Value Added Tax and Smelter Charges
Gold ($/ounce) 1,718 1,541 11% 1,754 1,479 19%
Silver ($/ounce) 20.14 17.17 17% 19.74 16.91 17%
Lead ($/pound) 0.87 0.85 2% 0.86 0.87 -1%
Zinc ($/pound) 0.82 0.96 -15% 0.81 1.09 -26%
Financial Position as at December 31, 2023 September 30, 2023 December 31, 2023 March 31, 2023
Cash and cash equivalents and short-term investments (in thousands of $) 198,295 189,091 5% 198,295 203,323 -2%
Working capital (in thousands of $) 159,555 154,330 3% 159,555 177,808 -10%
CONSOLIDATED OPERATIONAL RESULTS
In Q3 Fiscal 2024, the Company mined 345,273 tonnes of ore, up 17% compared to 296,050 tonnes in Q3 Fiscal
2023. Ore milled in Q3 Fiscal 2024 was 312,500 tonnes, up 3% compared to 303,442 tonnes in Q3 Fiscal 2023. A
total of 60,095 tonnes of ores were stockpiled at the Ying Mining District and will be processed in the fourth
quarter during the Chinese New Year holiday.
In Q3 Fiscal 2024, the Company produced approximately 1,342 ounces of gold, 1.7 million ounces of silver, or
approximately 1.8 million ounces of silver equivalent, plus 16.8 million pounds of lead and 7.4 million pounds
of zinc, representing increases of 2 2% and 6%, respectively, in gold and zinc production, and decreases of 9%
and 16%, respectively, in silver and lead production over Q3 Fiscal 2023. The decreases in silver and lead
production were mainly due to i) lower head grades achieved due to mining sequences; ii) more ores stockpiled
to be processed in the fourth quarter during the Chinese New Year holiday; and iii) 12,700 tonnes of gold ore
with grades of 1.9 grams per tonne (“g/t”) gold, 74 g/t silver, 1.0% lead and 0.1% zinc mined and processed, at
the Ying Mining District.
In Q3 Fiscal 2024, the consolidated mining costs were $59.43 per tonne, down 5% compared to $62.69 per tonne
in Q3 Fiscal 2023. The consolidated milling costs were $12.44 per tonne, down 1% compared to $12.56 per
tonne in Q3 Fiscal 2023. Correspondingly, the consolidated production costs per tonne of ore processed were
$74.26, down 4% compared to $77.73 in Q3 Fiscal 2023. The all-in sustaining production costs per tonne of ore
processed in Q3 Fiscal 2024 were $136.89, a slight decrease compared to $136.90 in Q3 Fiscal 2023. The
decrease was mainly attributed to higher ore production resulting in lower unit fixed costs allocation and an
approximate 4% depreciation of the Chinese yuan against the US dollar over the same prior year period.
In Q3 Fiscal 2024, the consolidated cash costs per ounce of silver, net of by-product credits, were negative $0.96,
compared to negative $1.15 in the prior year quarter. The consolidated all-in sustaining costs per ounce of silver,
net of by-product credits, were $11.33 compared to $9.28 in Q3 Fiscal 2023. The increase was mainly due to i)
a decrease of $2.5 million in by- product credits, offset by a decrease of $0. 5 million in all-in sustaining costs;
and ii) less silver sold resulting in higher unit costs per ounces of silver.
Three months ended December 31, Nine months ended December 31,
2023 2022 Changes 2 023 2022 Changes
Ore Production (tonne)
Ore mined 345,273 296,050 17% 921,958 887,135 4%
Ore milled
Gold ore 12,726 - 100% 36,419 - 100%
Silver ore 299,774 303,442 -1% 832,283 893,261 -7%
312,500 303,442 3% 868,702 893,261 -3%
Metal Production
Gold (ounces) 1,342 1,100 22% 5,352 3,400 57%
Silver (in thousands of ounces) 1,684 1,853 -9% 5,054 5,511 -8%
Silver equivalent (in thousands of ounces) 1,795 1,949 -8% 5,520 5,802 -5%
Lead (in thousands of pounds) 16,763 20,059 -16% 50,644 57,130 -11%
Zinc (in thousands of pounds) 7,404 6,974 6% 18,826 19,886 -5%
Cash Costs
Production costs per tonne of ore processed ($) 74.26 77.73 -4% 77.57 82.25 -6%
All-in sustaining costs per tonne of ore processed ($) 136.86 136.90 0% 139.79 137.33 2%
Cash costs per ounce of silver, net of by-product credits ($) (0.96) (1.15) 17% (0.74) (0.68) -9%
All-in sustaining costs per ounce of silver, net of by-product credits ($) 11.33 9.28 22% 10.72 8.94 20%
EXPLORATION AND DEVELOPMENT
Total capital expenditures in Q3 Fiscal 2024 were $19.6 million, up 26% compared to $ 15.6 million in Q3 Fiscal
2023. The increase is mainly due to more tunneling development and exploration activities conducted in Q3
Fiscal 2024.
In Q3 Fiscal 2024, on a consolidated basis, a total of 87,017 metres or $2.4 million worth of diamond drilling
were completed (Q3 Fiscal 2023 – 70,228 metres or $2.5 million), of which approximately 37,020 metres or $0.7
million worth of underground drilling were expensed as part of mining costs (Q3 Fiscal 2023 – 37,740 metres or
$1.1 million) and approximately 49,997 metres or $1.6 million worth of drilling were capitalized (Q3 Fiscal 2023
– 32,448 metres or $1.4 million ). In addition, approximately 12,155 metres or $4.5 million worth of preparation
tunnelling were completed and expensed as part of mining costs (Q3 Fiscal 2023 – 9,719 metres or $3.8 million),
and approximately 31,648 metres or $14.1 million worth of tunnels, raises, ramps and declines were completed
and capitalized (Q3 Fiscal 2023 – 20,945 metres or $9.0 million).
INDIVIDUAL MINE OPERATING PERFORMANCE
The table below summarizes the operating results at the Ying Mining District for the past five quarters and for
the nine months ended December 31, 2023 and 2022.
Equipment & Mill
and TSF Total
Mining Preparation
Tunnels Drilling
(Metres) ($ Thousand) (Metres) ($ Thousand) (Metres) ($ Thousand) ($ Thousand) ($ Thousand) (Metres) (Metres)
Q3 Fiscal 2024
Ying Mining District 3,986 2,651$ 23,834 9,612$ 39,085 1,338$ 3,679 17,280$ 10,010 24,693
GC Mine 81 108 3,747 1,688 10,912 250 218 2,264 2,145 12,327
Corporate and other - - - - - 82 9 91 - -
Consolidated 4,067 2,759$ 27,581 11,300$ 49,997 1,670$ 3,906$ 19,635$ 12,155 37,020
Q3 Fiscal 2023
Ying Mining District 1,776 1,294$ 15,527 6,549$ 27,066 895$ 3,250 11,988$ 7,933 25,270
GC Mine - - 3,642 1,133 4,444 204 1,951 3,288 1,786 12,470
Corporate and other - - - - 978 268 95 363 - -
Consolidated 1,776 1,294$ 19,169 7,682$ 32,488 1,367$ 5,296$ 15,639$ 9,719 37,740
Capitalized Development and Expenditures
Ramp Development
Exploration and Development
Tunnels Drilling
Expensed
Ying Mining District Q3 F2024 Q 2 F2024 Q1 F2024 Q4 F2023 Q3 F2023 Nine months ended December 31,
December 31, 2023 September 30, 2023 J une 30, 2023 March 31, 2023 December 31, 2022 2023 2022
Ore Production (tonne)
Ore mined 245,606 220,636 213,748 132,205 206,854 679,990 636,819
Ore milled
Gold ore 12,726 12,800 10,893 - - 36,419 -
Silver ore 201,475 200,068 197,916 130,910 213,830 599,459 642,147
214,201 212,868 208,809 130,910 213,830 635,878 642,147
Head grades
Silver (grams/tonne) 235 235 254 255 262 241 262
Lead (%) 3.5 3.5 3.6 3.6 4.0 3.5 3.9
Zinc (%) 0.7 0.7 0.7 0.6 0.7 0.7 0.7
Recovery rates
Silver (%) 94.9 95.0 95.1 95.2 95.7 95.0 95.7
Lead (%) 94.8 95.0 95.5 95.3 95.4 95.1 95.0
Zinc (%) 71.4 71.1 69.6 68.3 66.4 70.7 62.3
Cash Costs
Cash production cost per tonne of ore processed ($) 84.01 102.42 88.66 95.23 93.04 84.33 92.35
All-in sustaining cost per tonne of ore processed ($) 143.80 170.69 141.21 127.89 156.07 140.20 141.66
Cash cost per ounce of Silver, net of by-product credits ($) ( 0.09) 1.37 0.24 1.86 0.28 (0.38) 0.78
All-in sustaining cost per ounce of silver, net of by-product credits ($) 8 .99 11.33 7.66 6.82 8.60 8.04 7.71
Metal Production
Gold ( ounces) 1 ,342 1,552 1,000 1,100 1,200 5,352 3,400
Silver (in thousands of ounces) 1,511 1,597 997 1,674 1,657 4,665 5,083
Lead (in thousands of pounds) 14,552 15,382 9,688 17,647 16,201 43,471 49,316
Zinc (in thousands of pounds) 2,153 2,113 1,164 2,082 1,976 6,510 6,060
The table below summarizes the operating results at the GC Mine for the past five quarters and for the nine
months ended December 31, 2023 and 2022.
OPERATING OUTLOOK
The Company is currently refining the mine plan and expects to provide Fiscal 2025 guidance along with the
release of Fiscal 2024 production results in April 2024.
In the fourth quarter of Fiscal 2024, the Company expects to process 215,000 to 240,000 tonnes of ore to
produce approximately 1,200 to 1,300 ounces of gold, 1. 1 to 1.3 million ounces of silver, 11. 5 to 13.5 million
pounds of lead, and 4.5 to 5.0 million pounds of zinc, representing production increases of 11% to 30% in ore,
20% to 30% in gold, 0% to 17% in silver, 5% to 20% in lead, and 26% to 40% in zinc compared to the production
results in the same quarter last year.
CONFERENCE CALL DETAILS
A conference call to discuss these results will be held tomorrow, Friday, February 9, 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/Local Toll: 416-764-8650
Conference ID: 84281283
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.silvercorpmetals.com
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.
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
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 sound
Environmental, Social, and Governance (“ESG”) practices. For more informatio n, please visit our website at
www.silvercorpmetals.com.
For further information
Silvercorp Metals Inc.
Lon Shaver
President
GC Mine Q3 F2024 Q2 F2024 Q 1 F2024 Q4 F2023 Q3 F2023 Nine months ended December 31,
December 31, 2023 September 30, 2023 June 30, 2023 M arch 31, 2023 December 31, 2022 2023 2022
Ore Production (tonne)
Ore mined 99,667 89,472 49,643 89,196 75,054 241,968 250,316
Ore milled 98,299 86,286 48,483 89,612 75,381 232,824 251,114
Head grades
Silver (grams/tonne) 68 80 88 75 72 72 73
Lead (%) 1.1 1.4 1.3 1.4 1.2 1.2 1.3
Zinc (%) 2.7 2.7 2.5 2.8 2.7 2.7 2.8
Recovery rates
Silver (%) 80.3 82.7 78.9 83.0 81.0 81.8 82.5
Lead (%) 90.9 90.7 90.9 90.3 88.5 90.7 89.6
Zinc (%) 90.1 90.4 89.3 90.1 89.6 90.2 90.1
Cash Costs
Cash production cost per tonne of ore processed ($) 50.38 67.34 52.35 59.84 57.92 58.50 56.51
All-in sustaining cost per tonne of ore processed ($) 76.84 84.79 88.26 78.31 81.68 86.93 83.02
Cash cost per ounce of Silver, net of by-product credits ($) (8.95) (3.10) (13.72) (12.13) (22.42) (4.69) (16.08)
All-in sustaining cost per ounce of silver, net of by-product credits ($) 8.01 5.93 5.02 (0.73) (7.48) 11.98 (0.71)
Metal Production
Silver (in thousands of ounces) 173 183 109 179 141 431 481
Lead (in thousands of pounds) 2,211 2,434 1,250 2,412 1,782 5,282 6,350
Zinc (in thousands of pounds) 5,251 4,708 2,413 4,892 4,010 12,308 13,927
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: [email protected]
Website: www.silvercorpmetals.com
ALTERNATIVE PERFORMANCE (NON-IFRS) MEASURES
This news release should be read in conjunction with the Company's Management Discussion & Analysis (“MD&A”), the
unaudited condensed interim consolidated financial statements and related notes contains therein for the three and nine
months ended December 31, 2023, which have been posted on SEDAR+ under the Company’s profile at www.sedarplus.ca
and on EDGAR at www.sec.gov , and are also available on the Company's website at www.silvercorpmetals.com under the
Investor section. This news release refers to various alternative performance (non-IFRS) measures, such as adjusted earnings
and adjusted earnings per share, cash costs and all -in sustaining cost s per ounce of silver, net of by -product credits,
production costs and all-in sustaining production costs per tonne of ore processed, silver equivalent, 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. The detailed description and reconciliation of these alternative performance (non -IFRS) measures have been
incorporated by reference and can be found on page 32, section 11 – Alternative Performance (Non-IFRS) Measures in the
MD&A for the three and nine months ended December 31 , 2023 filled on SEDAR at www.sedarplus.ca and EDGAR at
www.sec.gov and which is incorporated by reference here in.
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”, “potent ial” 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 public
health crises; fluctuating commodity prices; calculation of resources, reserves and mineralization and precious and base
metal recovery; inte rpretations 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 p ersonnel; 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” and in the Company’s Annual Report on Form 40-F, and in the Company’s other filings
with Canadian and U.S. securities regulators. 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 obligatio n 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 dif fer 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.