Silvercorp Reports Adjusted Net Income of $12.4 Million, $0.07 PER Share, and Cash Flow from Operation of $28.9 Million FOR Q1 Fiscal 2024
NEWS RELEASE
Trading Symbol: TSX: SVM
NYSE AMERICAN: SVM
SILVERCORP REPORTS ADJUSTED NET INCOME OF $12.4 MILLION, $0.07 PER SHARE,
AND CASH FLOW FROM OPERATION OF $28.9 MILLION FOR Q1 FISCAL 2024
VANCOUVER, British Columbia – August 10, 202 3 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”)
(TSX/NYSE American: SVM) reported its financial and operating results for the three months ended June 30,
2023 (“Q1 Fiscal 2024”). All amounts are expressed in US dollars, and figures may not add due to rounding.
HIGHLIGHTS FOR Q1 FISCAL 2024
• Mined 303,220 tonnes of ore, milled 295,095 tonnes of ore, and produced approximately 1.8 million
ounces of silver, 1,552 ounces of gold, or approximately 1.9 million ounces of silver equivalent , plus 17.8
million pounds of lead, and 6.8 million pounds of zinc;
• Sold approximately 1.8 million ounces of silver, 1,495 ounces of gold, 17.3 million pounds of lead, and 6.9
million pounds of zinc, for revenue of $60.0 million;
• Reported net income attributable to equity shareholders of $9.2 million, or $0.05 per share;
• Realized adjusted earnings attributable to equity shareholders of $12.4 million, or $0.07 per share;
• Generated cash flow from operating activities of $28.9 million;
• Cash cost per ounce of silver, net of by-product credits, of negative $0.31;
• All-in sustaining cost per ounce of silver, net of by-product credits, of $9.46;
• Paid $2.2 million of dividends to the Company’s shareholders;
• Spent and capitalized $1.7 million on exploration drilling, $10.8 million on underground development, and
$3.5 million on equipment and facilities, including $2.4 million on construction of the new tailings storage
facility; and
• Strong balance sheet with $200.6 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 $121.5 million as at June 30, 2023.
CONSOLIDATED FINANCIAL RESULTS
Net income attributable to equity shareholders of the Company in Q1 Fiscal 2024 was $9.2 million or $0.05 per
share, compared to $10.2 million or $0.06 per share in the three months ended June 30, 2022 (“Q1 Fiscal 2023”).
In Q1 Fiscal 2024, the Company’s consolidated financial results were mainly impacted by i) an increase of 36%
in gold sold; ii) increases of 6% and 8%, respectively, in the realized selling prices for gold and silver; iii) a gain of
$1.1 million on inves tments; iv) a decrease of 5% in per tonne production costs; offset by v) decreases of 5%
and 9%, respectively, in silver and lead sold; vi) decreases of 6% and 33%, respectively, in the realized selling
prices for lead and zinc; and vi) a foreign exchange loss of $2.2 million arising from the depreciation of the US
dollar against the Canadian dollar.
Revenue in Q1 Fiscal 2024 was $60.0 million, down 6% compared to $63.6 million in Q1 Fiscal 2023. The
decrease is mainly due to i) a decrease of $3.4 million arising from less silver and lead sold; ii) a decrease of $3.9
million arising from the decrease in the net realized selling pri ces for lead and zinc, offset by iii) an increase of
$0.7 million arising from more gold sold; and iv) an increase of $2.6 million arising from the increase in the net
realized selling price for silver.
Income from mine operations in Q1 Fiscal 2024 was $2 3.3 million, down 6% compared to $24.9 million in Q1
Fiscal 2023. Income from mine operations at the Ying Mining District was $21.7 million, up 1% compared to
$21.4 million in Q1 Fiscal 2023. Income from mine operations at the GC Mine was $1.7 million, dow n 53%
compared to $3.6 million in Q1 Fiscal 2023.
Cash flow provided by operating activities in Q1 Fiscal 2024 was $28.9 million, down $28%, compared to $40.2
million in Q1 Fiscal 2023.
The Company ended the quarter with $ 200.6 million in cash, cash equivalents and short -term investments,
down 1% compared to $ 203.3 million as at March 31 , 202 3. The decrease was mainly due to a negative
translation impact on cash and cash equivalent s arising from the depreciation of the Chinese yuan against the
US dollar.
Working capital as at June 30, 2023 was $169.5 million, down 5% compared to $177.8 million as at March 31,
2023.
Three months ended June 30,
2023 2022 Changes
Financial Results
Revenue (in thousands of $) 60,006$ 63,592$ -6%
Mine operating earnings (in thousands of $) 23,301 24,902 -6%
Net income (loss) attributable to equity holders (in thousands of $) 9,217 10,169 -9%
Earnings (loss) per share - basic ($/share) 0.05 0.06 -17%
Adjusted earnings attributable to equity holders (in thousands of $) 12,369 13,529 -9%
Adjusted earning per share - basic ($/share) 0.07 0.08 -8%
Net cash generated from operating activities (in thousands of $) 28,881 40,176 -28%
Capitalized expenditures (in thousands of $) 15,916 15,528 2%
Metals sold
Gold (ounces) 1,495 1,100 36%
Silver (in thousands of ounces) 1,815 1,915 -5%
Lead (in thousands of pounds) 17,330 19,125 -9%
Zinc (in thousands of pounds) 6,920 6,928 0%
Average Selling Price, Net of Value Added Tax and Smelter Charges
Gold ($/ounce) 1,682 1,594 6%
Silver ($/ounce) 19.37 17.99 8%
Lead ($/pound) 0.84 0.90 -6%
Zinc ($/pound) 0.82 1.23 -33%
Financial Position as at June 30, 2023 March 31, 2023
Cash and cash equivalents and short-term investments (in thousands of $) 200,600 203,323 -1%
Working capital (in thousands of $) 169,531 177,808 -5%
CONSOLIDATED OPERATIONAL RESULTS
In Q1 Fiscal 2024, the Company mined 303,220 tonnes of ore, up 1% compared to 300,104 tonnes in Q1 Fiscal
2023. Ore milled in Q1 Fiscal 2024 was 295,095 tonnes, down 1% compared to 298,176 tonnes in Q1 Fiscal 2023.
In Q1 Fiscal 2024, the Company produced approximately 1.8 million ounces of silver, 1,552 ounces of gold, 17.8
million pounds of lead, and 6.8 million pounds of zinc, representing an increase of 41% in gold production, and
decreases of 4%, 7% and 2%, respectively, in silver, lead and zinc production over Q1 Fiscal 2023. The lower
silver and lead production is primarily due to a decrease in head grades at the Ying Mining District in line with
the mining sequence and Mineral Reserves.
The consolidated production costs and all-in sustaining production costs per tonne of ore processed in Q1 Fiscal
2024 were $78.63 and $134.08, down 5% and 9%, respectively, compared to $82.99 and $147.29 in Q1 Fiscal
2023. The decrease was due to a decrease of $2.7 million in sustaining capital expend itures and a translation
impact arising from the depreciation of the Chinese yuan against the US dollar.
The consolidated cash cost per ounce of silver, net of by -product credits, was negative $0.31, compared to
negative $1.57 in the prior year quarter. The increase was mainly due to a decrease of $4.3 million in by-product
credits, offset by a decrease of $1.8 million in expensed production costs.
The consolidated all -in sustaining cost per ounce of silver, net of by -product credits, was $9.46 compared to
$9.25 in Q1 Fiscal 2023. The increase was mainly due to the increase in cash cost per ounce of silver offset by a
decrease of $2.7 million in sustaining capital expenditures.
Three months ended June 30,
2023 2022 Changes
Ore Production (tonne)
Ore mined 303,220 300,104 1%
Ore milled 295,095 298,176 -1%
Metal Production
Gold (ounces) 1,552 1,100 41%
Silver (in thousands of ounces) 1,780 1,860 -4%
Lead (in thousands of pounds) 17,816 19,088 -7%
Zinc (in thousands of pounds) 6,821 6,926 -2%
Cash Costs
Production costs per tonne of ore processed ($) 78.63 82.99 -5%
All-in sustaining costs per tonne of ore processed ($) 134.08 147.29 -9%
Cash costs per ounce of silver, net of by-product credits ($) (0.31) (1.57) 80%
All-in sustaining costs per ounce of silver, net of by-product credits ($) 9.46 9.25 2%
EXPLORATION AND DEVELOPMENT
Total capital expenditures in Q1 Fiscal 2024 were $15.9 million, up 2% compared to $15.5 million in Q1 Fiscal
2023. Capital expenditures incurred to construct the new tailing storage facility (“TSF”) in Q1 Fiscal 2024 were
$2.4 million (Q1 Fiscal 2023 - $1.2 million). As of June 30, 2023, total expenditures incurred on the construction
of the TSF and the new mill w ere $7.2 million, and the construction is in line with the plan ned schedule and
budget.
In Q1 Fiscal 2024, on a consolidated basis, a total of 84,599 metres or $2.7 million worth of diamond drilling
were completed (Q1 Fiscal 2023 – 122,930 metres or $4.9 million), of which approximately 43,834 metres or
$1.0 million worth of underground drilling were expensed as p art of mining costs (Q1 Fiscal 2023 – 66,999
metres or $1.8 million) and approximately 40,765 metres or $1.7 million worth of drilling were capitalized (Q1
Fiscal 2023 – 55,931 metres or $3.1 million). In addition, approximately 11,498 metres or $4.0 million worth of
preparation tunnelling were completed and expensed as part of mining costs (Q1 Fiscal 2023 – 11,682 metres
or $4.1 million), and approximately 26,269 metres or $10.8 million worth of tunnels, raises, ramps and declines
were completed and capitalized (Q1 Fiscal 2023 – 24,958 metres or $9.7 million).
INDIVIDUAL MINE OPERATING PERFORMANCE
The table below summarizes the operating results at the Ying Mining District for the past five quarters.
Plant &
equipment
Mining Preparation
Tunnels Drilling
(Metres) ($ Thousand) (Metres) ($ Thousand) (Metres) ($ Thousand) ($ Thousand) (Metres) ($ Thousand) (Metres) (Metres)
Q1 Fiscal 2024
Ying Mining District 3,053 2,262$ 19,403 7,201$ 32,839 1,151$ 3,430$ 22,456 14,044$ 8,443 25,937
GC Mine - - 3,813 1,294 7,926 518 - 3,813 1,812 3,055 17,897
Corporate and other - - - - - 51 9 - 60 - -
Consolidated 3,053 2,262$ 23,216 8,495$ 40,765 1,720$ 3,439$ 26,269 15,916$ 11,498 43,834
Q1 Fiscal 2023
Ying Mining District 1,949 1,394$ 19,469 7,153$ 49,315 2,664$ 2,470$ 21,418 13,681$ 9,317 51,733
GC Mine - - 3,540 1,157 4,634 178 232 3,540 1,567 2,365 15,266
Corporate and other - - - - 1,982 287 (7) - 280 - -
Consolidated 1,949 1,394$ 23,009 8,310$ 55,931 3,129$ 2,695$ 24,958$ 15,528$ 11,682 66,999
Changes (%)
Ying Mining District 57% 62% 0% 1% -33% -57% 39% 5% 3% -9% -50%
GC Mine 0% 0% 8% 12% 71% 191% -100% 8% 16% 29% 17%
Corporate and other - - - - -100% -82% -229% 0% -79% - -
Consolidated 57% 62% 1% 2% -27% -45% 28% 5% 2% -2% -35%
Capitalized Development and Expenditures
Ramp Development
Exploration and
Development Tunnels Drilling Total
Expensed
Ying Mining District Q1 F2024 Q4 F2023 Q3 F2023 Q2 F2023 Q1 F2023
June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022
Ore Production (tonne)
Ore mined 213,748 132,205 206,854 215,927 214,038
Ore milled 208,809 130,910 213,830 216,262 212,055
Head grades
Silver (grams/tonne) 254 255 262 257 267
Lead (%) 3.6 3.6 4.0 3.7 3.9
Zinc (%) 0.7 0.6 0.7 0.7 0.7
Recovery rates
Silver (%) 95.1 95.2 95.7 95.5 95.7
Lead (%) 95.5 95.3 95.4 94.1 95.4
Zinc (%) 69.6 68.3 66.4 62.5 58.1
Cash Costs
Cash production cost per tonne of ore processed ($) 85.58 102.42 88.66 95.23 93.04
All-in sustaining cost per tonne of ore processed ($) 133.94 170.69 141.21 127.89 156.07
Cash cost per ounce of Silver, net of by-product credits ($) 0.26 1.37 0.24 1.86 0.28
All-in sustaining cost per ounce of silver, net of by-product credits ($) 7.14 11.33 7.66 6.82 8.60
Metal Production
Gold ( ounces) 1,552 1,000 1,100 1,200 1,100
Silver (in thousands of ounces) 1,597 997 1,674 1,657 1,696
Lead (in thousands of pounds) 15,382 9,688 17,647 16,201 16,718
Zinc (in thousands of pounds) 2,113 1,164 2,082 1,976 1,928
The table below summarizes the operating results at the GC Mine for the past five quarters.
CONFERENCE CALL DETAILS
A conference call to discuss these results will be held tomorrow, Friday, August 11, 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: 73348006
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.
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 ESG. For more
information, please visit our website at www.silvercorp.ca.
For further information
Silvercorp Metals Inc.
Lon Shaver
Vice President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: [email protected]
Website: www.silvercorp.ca
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 months
ended June 30, 2023, which have been posted on SEDAR+ under the Company’s profile at www.sedarplus.ca and on EDGAR
GC Mine Q1 F2024 Q4 F2023 Q3 F2023 Q2 F2023 Q1 F2023
June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022
Ore Production (tonne)
Ore mined 89,472 49,643 89,196 75,054 86,066
Ore milled 86,286 48,483 89,612 75,381 86,121
Head grades
Silver (grams/tonne) 80 88 75 72 71
Lead (%) 1.4 1.3 1.4 1.2 1.4
Zinc (%) 2.7 2.5 2.8 2.7 2.9
Recovery rates
Silver (%) 82.7 78.9 83.0 81.0 83.4
Lead (%) 90.7 90.9 90.3 88.5 89.8
Zinc (%) 90.4 89.3 90.1 89.6 90.4
Cash Costs
Cash production cost per tonne of ore processed ($) 62.02 67.34 52.35 59.84 57.92
All-in sustaining cost per tonne of ore processed ($) 90.94 84.79 88.26 78.31 81.68
Cash cost per ounce of Silver, net of by-product credits ($) (5.30) (3.10) (13.72) (12.13) (22.42)
All-in sustaining cost per ounce of silver, net of by-product credits ($) 9.51 5.93 5.02 (0.73) (7.48)
Metal Production
Silver (in thousands of ounces) 183 109 179 141 164
Lead (in thousands of pounds) 2,434 1,250 2,412 1,782 2,370
Zinc (in thousands of pounds) 4,708 2,413 4,892 4,010 4,998
at www.sec.gov, and are also available on the Company's website at www.silvercorp.ca 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 costs 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 m ay 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 26, section 11 – Alternative Performance (Non-IFRS) Measures in the MD&A for the three months
ended June 30 , 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”, “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; es timates 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 d evelopment
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 limi tation, 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.