Silvercorp Reports Net Income of $12.4 Million and Cash Flow of $15.9 Million in Third Quarter
PRESS RELEASE
Trading Symbol: TSX: SVM February 9, 2010 NYSE: SVM
SILVERCORP REPORTS NET INCOME OF $12.4 MILLION AND CASH FLOW OF $15.9 MILLION IN THIRD QUARTER
VANCOUVER, British Columbia – February 9, 2010 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) reports its unaudited financial and operating results for the third quarter ended December 31, 2009. The financial results are expressed in thousands of US dollars (US$) unless stated otherwise and all production figures are approximate.
THIRD QUARTER HIGHLIGHTS
During the quarter ended December 31, 2009 (“Q3 2010”), financial highlights included:
� Net earnings of $12.4 million, compared with a loss of $33.7 million in the same quarter last year, and up 39% compared to $8.9 million in the previous quarter (“Q2 2010”);
� Earnings per share of $0.08, compared with a loss of $0.22 per share in the same quarter last year, and $0.02 higher compared to earnings per share of $0.06 in Q2 2010;
� Record silver production of 1.22 million ounces and 16.2 million pounds of lead, representing 12% and 10% increases, respectively, compared to the same quarter last year;
� Total production cost of negative $6.87 per ounce of silver and cash cost of negative $7.73 per ounce of silver, net credit of other metals, making Silvercorp an industry leading low-cost silver producer;
� Cash flows from operating activities of $15.9 million, or $0.10 per share;
� Paid $3.0 million in quarterly dividend payments; and
� Total cash, cash equivalents and short term investments increased to $87.8 million.
FINANCIALS
Sales revenue for the third quarter was $31.3 million, a 106% increase from $15.2 million in the same quarter last year. The increase is due to the partial recovery of commodity prices and an increase in production. For the quarter, a record of 1.22 million ounces of silver, 16.2 million pounds lead and 4.5 million pounds zinc were produced, representing increases of 12%, 10% and 50%, respectively, over the same quarter last year.
During the nine months ended December 31, 2009, the Company recorded sales of $78.9 million, an increase of $12.8 million or 19% compared with the nine months ended December 31, 2008. The quantity of silver, lead and zinc sold in this year period was 12%, 19%, and 26% higher, respectively, than a year ago. The respective silver and zinc selling prices have increased by 6% and 28% while the lead price decreased 3% compared to the prior year period.
Cost of sales for the quarter was $6.0 million, representing a 19% decrease compared to the same quarter last year. During the nine months ended December 31, 2009, cost of sales was $16.2 million, down 30% compared to a year ago. This is despite a greater quantity of metals sold in the quarter.
Gross profit margin this quarter improved to 77% from 35% in the same quarter last year.
Consolidated net income for this quarter was $12.4 million or $0.08 per share, representing an increase of 39% compared to $8.9 million or $0.06 per share in the previous quarter, and an increase of $46.1 million compared to the same quarter last year, as a net loss of $33.7 million was reported in Q3 2009 as a result of $47.4 million impairment charges.
For the nine months ended December 31, 2009 and 2008, gross profit margin was 76% and 56%, respectively.
Net income for the nine months ended December 31, 2009 was $28.8 million or $0.18 per share compared to a net loss of $17.2 million in the same period last year.
Cash and cash equivalents plus short-term investments increased by $22.3 million to $87.8 million since March 31, 2009 of $65.4 million. The 34% increase is mainly due to $42.2 million cash generated by operating activities, offset by $12.4 million of capital expenditures and $8.9 million of cash dividend payments.
OPERATIONS
Silvercorp mined 119,335 tonnes of ore during the third quarter, 2,610 tonnes less than the same quarter last year, as operations at the TLP, LM and HPG mines are still ramping up after being suspended at the end of 2008. The average grades of silver, lead and zinc have improved to 440.8g/t, 8.3% and 3.0% from 323.9g/t, 6.1% and 1.8% in the same period last year, respectively. Silvercorp achieved record silver production of 1.22 million oz.
Consolidated cash cost per ounce of silver for the third quarter improved to negative $7.73, compared with $0.25 per ounce of silver in the same quarter last year and negative $6.33 per ounce in the prior quarter. The improvement in cash cost per ounce of silver was driven by higher realized prices for by-product credits and operational improvements which reduced dilution and improved head grades at the Company’s flagship Ying Mine.
During the quarter, production was primarily from the Ying Mine where 86,068 tonnes of ore was mined, an increase of 6% over the same quarter last year. Silver head grades at the Ying Mine improved to 489 g/t from 420 g/t in the prior year period.
The operating results for the past five quarters at the Ying Mine are summarized as follows:
Q3 2010 Q2 2010 Q1 2010 Q4 2009 Q3 2009 31-Dec-09 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
Ores Mined (tonne)
Direct Smelting Ores (tonne) 3,357 3,550 3,773 2,610 3,114
Ores to be milled (tonne) 79,713 82,475 55,232 77,968
82,711
86,068 83,263 86,248 57,842 81,082
Run of Mine Ores (tonne)
Direct Smelting Ores (tonne) 3,357 3,550 3,773 2,726 3,114
Ores Milled (tonne) 70,776 80,657 77,330 60,167 70,854
74,133 84,207 81,103 62,893 73,968
Head Grades of Run of Mine Ores
| Silver (gram/tonne) | 488.5 | 452.5 | 488.1 | 486.7 | 420.2 |
| Lead (%) | 9.0 | 8.1 | 9.1 | 9.1 | 7.7 |
| Zinc (%) | 3.4 | 3.0 | 3.1 | 3.1 | 2.6 |
Recovery Rate of the Run of Mine Ores
| Silver (%) | 91.0 | 92.8 | 93.3 | 93.1 | 93.0 |
| Lead (%) | 95.8 | 96.6 | 96.5 | 97.2 | 96.7 |
| Zinc (%) | 71.2 | 76.3 | 69.4 | 78.1 |
76.0
| Cash Mining Cost($ per tonne) | 45.75 | 46.16 | 42.27 | 45.44 | 45.10 |
| Total Mining Cost($ per tonne) | 56.90 | 54.71 | 52.70 | 58.71 | 61.60 |
| Cash Milling Cost($ per tonne) | 10.45 | 9.19 | 10.84 | 10.57 | 10.32 |
| Total Milling Cost($ per tonne) | 11.48 | 10.16 | 11.74 | 11.76 | 11.24 |
Production Cost per Ounce of Silver,
adjusted for by-product credits (7.47) (5.51) (4.19) (3.24) 0.18
Cash Cost per Ounce of Silver, adjusted for
by-product credits (8.36) (6.24) (5.00) (3.62) (1.39)
NSR PRICES
The Net Smelter Return (NSR) prices (net of smelter charges and 17% value added tax) for the past five quarters are as follows:
For the quarters ended
| December 31, September 30, | June 30, | March 31, | December 31, | ||
|---|---|---|---|---|---|
| 2009 | 2009 | 2009 | 2009 | 2008 | |
| Silver (US$/oz) | 12.99 | 10.99 | 9.89 | 8.68 | 7.34 |
| Gold (US$/oz) | 572 | 627 | 573 | 648 | 449 |
| Lead (US$/lb) | 0.76 | 0.67 | 0.56 | 0.52 | 0.41 |
| Zinc (US$/lb) | 0.64 | 0.53 | 0.46 | 0.37 | 0.28 |
Compared to the quarter ended December 31, 2008, the NSR prices for silver, lead and zinc all increased as a result of improved quoted metal prices and reduced smelter charges. NSR prices of silver and lead were approximately 85% of quoted Shanghai metal prices, excluding a 17% value added tax.
OUTLOOK
The Company will begin production at its new mill within this quarter, which will first process about 50,000 tonnes of stockpiled ores from Ying, HPG, LM, and TLP. Once fully ramped it will process 1,200 to 1,500 tonnes of ore per day. The new mill, together with the existing 1,000 tpd mill, provides sufficient capacity to accommodate anticipated increases in mine production in fiscal 2011 as production from HPG, TLP and LM mines continue to increase as mine development progresses.
For the fiscal year 2011, the Company’s production plan is to produce approximate 500,000 tonnes of ore at grades of 360 g/t silver, 8% lead, and 1.2% zinc to yield 5.3 million oz of silver, 83.7 million pounds of lead, and 10.3 million pounds of zinc.
Using the average metal prices in Q3 2010 and the above production projection, the Company’s mining operations are projected to generate revenue of $140 million, resulting in expected cash flows from mine operations of $95 million to $100 million. Capital expenditures for fiscal 2011 are budged at $13 million at the Ying Mine Camp, including $7 million for the Ying mine, $4 million for the TLP mine and $2 million for the HPG and LM mines.
At the GC project in Guangdong Province, China, the Company is engaged in the environmental permitting process. The environmental permitting process has taken longer than expected as the environmental authorities in China are drafting new regulations to address heavy metal discharge concerns in response to several environmental accidents in the country. The new regulations are expected to be completed and implemented in the first half of 2010.
In the meantime, the Company is in the process of compiling a feasibility study, which includes detailed mine and mill designs.
Silvercorp continues to pursue future growth opportunities by carrying out an aggressive exploration program within the existing exploration and mining permit areas and seeking out acquisitions projects in China and other jurisdictions.
CONFERENCE CALL AND WEBCAST INFORMATION
A conference call and live audio webcast to discuss these results is scheduled as follows:
Date: Wednesday, February 10, 2010 Time: 9:00 am PT (12:00 noon ET)
Dial-In Number: 1-612-288-0329 Live audio webcast: www.silvercorp.ca (click on the link on the home page)
Playback webcast can be accessed at: www.silvercorp.ca
About Silvercorp Metals Inc.
Silvercorp Metals Inc., China’s largest primary silver producer, is engaged in the acquisition, exploration and development of silver related mineral properties located in the People's Republic of China ("China"). Silvercorp Metals Inc. is operating and developing four Silver-Lead-Zinc mines at the highly profitable Ying Mining Camp, Henan Province, China. Silvercorp is also applying for a mining permit at its 95% owned GC & SMT property to profitably mine and produce silver, lead and zinc in Guangdong Province, China. The Company’s common shares are included as a component of the S&P/TSX Composite and the S&P/TSX Global Mining Indexes.
For further information: SILVERCORP METALS INC., Rui Feng, Chairman & CEO and Lorne Waldman, Corporate Secretary, Phone: (604) 669-9397, Fax: (604) 669-9387, Toll Free 1(888) 224-1881, Email: [email protected], Website: www.silvercorp.ca.
CAUTIONARY DISCLAIMER -- FORWARD LOOKING STATEMENTS
Statements in this press release other than purely historical factual information, including statements relating to mineral resources and reserves, or the Company’s future plans and objectives, or expected production levels, exploration, head grades, recovery rates, cash flows, acquisitions, and capital expenditures constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in mineral exploration, development, and mining. Production projections are based not on mineral reserves but on mineral resources which do not have demonstrated economic viability. There can be no assurance that such forward-looking statements, including those in the outlook section, will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on such statements. Except in accordance with applicable securities laws, the Company expressly disclaims any obligation to update any forward-looking statements or forward-looking statements that are incorporated by reference herein.
Unaudited Consolidated Balance Sheets
December 31, 2009 March 31, 2009
ASSETS
Current Assets
Cash and cash equivalents $ 53,503 $ 41,470 Short term investments 34,267 23,962
-
Restricted cash 732
| Accounts receivable, prepaids and deposits | 1,829 | 2,933 |
| Inventories | 6,327 | 1,529 |
| Current portion of future income tax assets | - | 143 |
| Amounts due from related parties | 312 | 249 |
96,238 71,018
| Long term prepaids | 669 | 1,058 |
| Long term investments | 14,449 | 12,186 |
| Restricted cash | - | 293 |
| Plant and equipment | 29,330 | 29,072 |
| Mineral rights and properties | 112,197 | 89,413 |
| Future income tax assets | 1,728 | 2,162 |
$
254,611 $ 205,202
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities $ 9,747 $ 8,533
| Deposits received | 1,914 | 1,290 |
| Bank loan and notes payable | 2,930 | 658 |
| Dividends payable | 3,109 | 2,564 |
| Income tax payable | 1,952 | 3,041 |
| Amounts due to related parties | 117 | 7,353 |
19,769 23,439
Future income tax liabilities 19,470 19,678 Asset retirement obligations 2,124 2,029 41,363 45,146
Non-controlling interests 18,413 7,610
SHAREHOLDERS' EQUITY
| Share capital | 137,044 | 135,604 |
| Contributed surplus | 4,473 | 3,764 |
| Reserves | 31,893 | 31,893 |
| Accumulated other comprehensive income (loss) | 10,184 | (10,167) |
| Retained earnings (Deficit) | 11,241 | (8,648) |
194,835 152,446
$
254,611 $ 205,202
Unaudited Consolidated Statement of Operations
(Expressed in thousands of U.S. dollars, except for share and per share figures)
Sales $
31,283 $ 15,168 $ 78,940 $ 66,131
| Cost of sales | 6,010 | 7,439 | 16,157 | 23,046 |
| Amortization and depletion | 1,043 | 2,489 | 2,796 | 6,259 |
| 7,053 | 9,928 | 18,953 | 29,305 | |
| Gross profit | 24,230 | 5,240 | 59,987 | 36,826 |
Expenses
| Accretion of asset retirement obligations | 32 | 27 | 93 | 87 |
| Amortization | 407 | 354 | 776 | 794 |
| Foreign exchange loss (gain) | 791 | 830 | (643) | (2,199) |
| General exploration and property investigation expenses | 941 | 196 | 4,207 | 1,825 |
| Impairment charges and bad debt | - | 47,433 | 698 | 47,800 |
| Investor relations | 131 | 87 | 312 | 441 |
| General and administrative | 2,688 | 2,416 | 7,221 | 7,296 |
| Professional fees | 201 | 185 | 1,439 | 1,358 |
| 5,191 | 51,528 | 14,103 | 57,402 | |
| 19,039 | (46,288) | 45,884 | (20,576) |
Other income and expenses
| Equity loss in investment | (107) | (22) | (325) | (1,467) |
| Loss on disposal of mineral rights and property | - | (819) | - | (819) |
| Loss on disposal of plant and equipment | (244) | (10) | (1,371) | (19) |
| Loss on held for trading securities | (10) | - | (22) | - |
| Interest income | 237 | 246 | 635 | 1,266 |
| Other income | 72 | 365 | 285 | 481 |
| (52) | (240) | (798) | (558) | |
| Income (loss) before income taxes and non-controlling intere | 18,987 | (46,528) | 45,086 | (21,134) |
Income tax expense (recovery)
| Current | 2,556 | 779 | 6,074 | 4,183 |
| Future | 125 | (7,212) | 351 | (7,600) |
| 2,681 | (6,433) | 6,425 | (3,417) | |
| Income (loss) before non-controlling interests | 16,306 | (40,095) | 38,661 | (17,717) |
| Non-controlling interests | (3,897) | 6,400 | (9,874) | 482 |
Net income (loss) $
12,409 $ (33,695) $ 28,787 $ (17,235)
Basic earnings (loss) per share $
0.08 $ (0.22) $ 0.18 $ (0.11)
Diluted earnings (loss) per share $
0.08 $ (0.22) $ 0.18 $ (0.11) Weighted Average Number of Shares Outstanding - Basic 162,379,441 151,689,501 161,853,198 151,760,854 Weighted Average Number of Shares Outstanding - Diluted 163,912,759 151,689,501 163,487,318 151,760,854
Unaudited Consolidated Statements of Cash Flows
Cash provided by (used for)
Operating activities
Net income (loss) for the period $ 12,409 $ (33,695) $ 28,787 $ (17,235) Add (deduct) items not affecting cash :
| Accretion of asset retirement obligations | 32 | 27 | 93 | 87 |
| Amortization | 1,450 | 2,843 | 3,572 | 7,053 |
| Equity Investment loss | 107 | 22 | 325 | 1,467 |
| Future income tax expenses (recovery) | 125 | (7,212) | 351 | (7,600) |
| Impairment charges and bad debt | - | 47,433 | 698 | 47,800 |
| Loss on held for trading securities | 10 | - | 22 | - |
| Loss on disposal of mineral property | - | 819 | - | 819 |
| Loss on disposal of plant and equipment | 244 | 10 | 1,371 | 19 |
| Non-controlling interests | 3,897 | (6,400) | 9,874 | (482) |
| Stock-based compensation | 423 | 727 | 1,322 | 1,996 |
| Unrealized foreign exchange loss (gain) | 48 | 2,523 | (970) | 3,494 |
| 18,745 | 7,097 | 45,445 | 37,418 |
Net change in non-cash working capital
| Accounts receivable and prepaids | 622 | 2,162 | 734 | 2,174 |
| Inventory | (2,288) | (113) | (4,596) | (2,532) |
| Restricted cash | - | - | 732 | - |
| Accounts payable and accrued liabilities | (1,054) | (621) | 370 | 899 |
| Income tax payable | 1,041 | 653 | (1,084) | (61) |
| Deposits received | (1,140) | (669) | 623 | (1,538) |
| Cash provided by operating activities | 15,926 | 8,509 | 42,224 | 36,360 |
Investing activities
| Acquisition, exploration and development expenditures | (3,290) | (996) | (11,031) | (36,402) |
| Acquisition of plant and equipment | (574) | (2,563) | (1,382) | (11,173) |
| Purchase of long term investments | - | (145) | (1,323) | (145) |
| Decrease (increase) of short term investments | (4,532) | (2,458) | (5,251) | 22,396 |
| Decrease (increase) in long term prepaids | 1,360 | (2,429) | (638) | (1,853) |
| Proceeds from disposal of mineral rights and properties | - | 814 | - | 814 |
| Proceeds from disposal of plant and equipment | 14 | 2 | 133 | 2 |
| Cash used in investing activities | (7,022) | (7,775) | (19,492) | (26,361) |
Financing activities
| Repayment from (advance to) related parties | 49 | (1,101) | (56) | 188 |
| Bank loan | - | - | 2,927 | - |
| Repayment of bankers acceptance | - | - | (658) | - |
| Distribution to non-controlling interest shareholder | (3,898) | - | (7,191) | (11,199) |
| Non-controlling interest contribution | - | 215 | - | 215 |
| Cash dividends distributed | (3,366) | (2,990) | (8,898) | (2,990) |
| Share subscriptions for cash, net of commission and expenses | 770 | - | 828 | 21 |
| Repurchase of shares to treasury for cancellation | - | (421) | - | (9,473) |
| Cash used in financing activities | (6,445) | (4,297) | (13,048) | (23,238) |
| Effect of exchange rate changes on cash and cash equivalents | 1,228 | (4,123) | 2,349 | (5,046) |
| Increased (decrease) in cash and cash equivalents | 3,687 | (7,686) | 12,033 | (18,285) |
| Cash and cash equivalents, beginning of period | 49,816 | 36,494 | 41,470 | 47,093 |
Cash and cash equivalents, end of period $
53,503 $ 28,808 $ 53,503 $ 28,808
Supplemental information:
Interest paid $ 23 $
- $ 116 $
Income tax paid $ 1,517 $
- $ 7,175 $ 4,149
Non-cash investing activities:
Common shares issued for mineral rights and properties $
- $
- $
- $ 36,485
- $
the quarter ended December 31, 2009:
Three months ended December 31, 2009
| Direct Smelting Ores(tonne) | 3,357 | 72 | - | - | 3,428 |
| Stockpiled Ores(tonne) | 82,711 | 8,629 | 15,995 | 8,571 | 115,907 |
| 86,068 | 8,701 | 15,995 | 8,571 | 119,335 |
| Direct Smelting Ores(tonne) | 3,357 | 72 | - | - | 3,428 |
| Stockpiled Ores Milled(tonne) | 70,776 | 8,734 | 1,313 | 6,208 | 87,032 |
| 74,133 | 8,807 | 1,313 | 6,208 | 90,460 | |
| Mining cost per tonne of ore mined($) | 56.90 | 66.13 | 60.40 | 53.70 | 57.81 |
| Cash mining cost per tonne of ore mined($) | 45.75 | 59.16 | 58.30 | 53.00 | 48.93 |
| Non cash mining cost per tonne of ore mined($) | 11.15 | 6.97 | 2.10 | 0.70 | 8.88 |
| Unit shipping costs ($) | 3.60 | 3.90 | 2.80 | 2.10 | 3.38 |
| Milling cost per tonne of ore milled($) | 11.48 | 12.41 | 61.21 | 11.25 | 12.28 |
| Cash milling cost per tonne of ore milled($) | 10.45 | 11.36 | 44.28 | 10.13 | 11.01 |
| Non cash milling cost per tonne of ore milled($) | 1.02 | 1.06 | 16.92 | 1.12 | 1.27 |
| Silver($ per ounce) | 2.58 | 4.35 | 13.10 | 7.28 | 2.93 |
| Gold($ per ounce) | 83.44 | 234.04 | - | 246.9 | 128.91 |
| Lead($ per pound) | 0.15 | 0.26 | 0.87 | 0.35 | 0.17 |
| Zinc($ per pound) | 0.13 | 0.19 | - | - | 0.14 |
| Total production cost per ounce of Silver($) | (7.47) | (17.91) | 15.00 | 5.62 | (6.87) |
| Total cash cost per ounce of Silver($) | (8.36) | (19.11) | 14.00 | 5.38 | (7.73) |
Total Recovery of the Run of Mine Ores
| Silver (%) | 91.0 | 85.4 | 86.4 | 86.4 | 92.1 |
| Lead(%) | 95.8 | 94.5 | 90.5 | 80.9 | 96.7 |
| Zinc(%) | 76.0 | 75.0 | - | - | 75.9 |
Head Grades of Run of Mine Ores
| Silver (gram/tonne) | 488.5 | 179.1 | 86.9 | 306.4 | 440.8 |
| Lead(%) | 9.0 | 7.0 | 2.7 | 2.1 | 8.3 |
| Zinc(%) | 3.4 | 1.5 | - | - | 3.0 |
Sales Data Metal Sales
| Silver(in thousands of ounce) | 1,086 | 44 | 1 | 89 | 1,220 |
| Gold(in thousands of ounce) | 0.2 | 0.3 | - | 0.0 | 0.5 |
| Lead (in thousands of pound) | 14,327 | 1,366 | 11 | 508 | 16,211 |
| Zinc(in thousands of pound) | 4,038 | 416 | - | - | 4,454 |
Metal Sales
| Silver($) | 14,094 | 555 | 11 | 1,184 | 15,844 |
| Gold($) | 84 | 210 | - | 9 | 303 |
| Lead($) | 10,917 | 1,037 | 8 | 321 | 12,283 |
| Zinc ($) | 2,618 | 235 | - | - | 2,853 |
| 27,713 | 2,037 | 19 | 1,514 | 31,283 |
Average Selling Price, Net of Value Added Tax and Smelter Charges
| Silver($ per ounce) | 12.98 | 12.76 | 11.00 | 13.27 | 12.99 |
| Gold($ per ounce) | 420.00 | 686.27 | - | 450.00 | 571.70 |
| Lead($ per pound) | 0.76 | 0.76 | 0.73 | 0.63 | 0.76 |
| Zinc($ per pound) | 0.65 | 0.56 | - | - | 0.64 |
the quarter ended December 31, 2008:
Three months ended December 31, 2008
| Direct Smelting Ores(tonne) | 3,114 | 162 | 8 | 4 | 3,288 |
| Stockpiled Ores(tonne) | 77,968 | 20,237 | 10,946 | 9,506 | 118,657 |
| 81,082 | 20,399 | 10,954 | 9,510 | 121,945 |
Run of Mine Ore (tonne)
| Direct Smelting Ores(tonne) | 3,114 | 162 | 8 | 4 | 3,288 |
| Ores Milled(tonne) | 70,854 | 23,692 | 10,563 | 10,118 | 115,227 |
| 73,968 | 23,854 | 10,571 | 10,122 | 118,515 | |
| Mining cost per tonne of ore mined($) | 61.60 | 61.33 | 62.44 | 95.96 | 64.30 |
| Cash mining cost per tonne of ore mined($) | 45.10 | 30.44 | 44.40 | 44.96 | 42.57 |
| Non cash mining cost per tonne of ore mined($) | 16.50 | 30.89 | 18.04 | 51.00 | 21.73 |
| Unit shipping costs ($) | 3.75 | 4.03 | 2.81 | 4.06 | 3.73 |
| Milling cost per tonne of ore milled($) | 11.24 | 14.49 | 13.36 | 18.14 | 12.70 |
| Cash milling cost per tonne of ore milled($) | 10.32 | 13.40 | 11.74 | 18.14 | 11.76 |
| Non cash milling cost per tonne of ore milled($) | 0.92 | 1.09 | 1.62 | - | 0.94 |
| Silver($ per ounce) | 3.49 | 10.55 | 8.77 | 9.81 | 4.81 |
| Gold($ per ounce) | 161.62 | 631.58 | 467.33 | 726.36 | 294.24 |
| Lead($ per pound) | 0.20 | 0.46 | 0.51 | 0.96 | 0.27 |
| Zinc($ per pound) | 0.13 | 0.43 | - | - | 0.19 |
| Total production cost per ounce of Silver($) | 0.18 | 17.59 | 10.04 | 11.13 | 2.54 |
| Total cash cost per ounce of Silver($) | (1.39) | 8.13 | 6.14 | 7.45 | 0.25 |
Total Recovery of the Run of Mine Ores
| Silver (%) | 93.0 | 76.5 | 90.8 | 87.9 | 91.4 |
| Lead(%) | 96.7 | 92.6 | 87.0 | 86.8 | 95.4 |
| Zinc(%) | 78.1 | 74.2 | - | - | 77.6 |
Head Grades of Run of Mine Ores
| Silver (gram/tonne) | 420.2 | 108.8 | 181.4 | 307.3 | 323.9 |
| Lead(%) | 7.7 | 4.6 | 2.8 | 1.9 | 6.1 |
| Zinc(%) | 2.6 | 1.2 | - | - | 1.8 |
Sales Data Metal Sales
| Silver(in thousands of ounce) | 880 | 53 | 79 | 78 | 1,090 |
| Gold(in thousands of ounce) | - | 0.6 | - | - | 0.6 |
| Lead (in thousands of pound) | 11,419 | 2,003 | 972 | 398 | 14,792 |
| Zinc(in thousands of pound) | 2,894 | 71 | - | - | 2,965 |
Metal Sales
| Silver($) | 6,481 | 401 | 555 | 570 | 8,007 |
| Gold($) | 3 | 245 | 6 | 15 | 269 |
| Lead($) | 4,708 | 659 | 397 | 283 | 6,047 |
| Zinc ($) | 823 | 22 | - | - | 845 |
| 12,015 | 1,327 | 958 | 868 | 15,168 |
Average Selling Price, Net of Value Added Tax and Smelter Charges
| Silver($ per ounce) | 7.37 | 7.50 | 7.02 | 7.27 | 7.34 |
| Gold($ per ounce) | 341.03 | 449.00 | 373.94 | 538.66 | 449.52 |
| Lead($ per pound) | 0.41 | 0.33 | 0.41 | 0.71 | 0.41 |
| Zinc($ per pound) | 0.28 | 0.31 | - | - | 0.28 |
the nine months ended December 31, 2009:
Nine months ended December 31, 2009
Mine Data
| Direct Smelting Ores(tonne) | 10,680 | 216 | 8 | - | 10,904 |
| Stockpiled Ores(tonne) | 244,899 | 23,100 | 27,724 | 19,093 | 314,816 |
| 255,579 | 23,316 | 27,732 | 19,093 | 325,720 |
| Direct Smelting Ores(tonne) | 10,680 | 217 | 8 | - | 10,904 |
| Ores Milled(tonne) | 228,763 | 24,175 | 2,844 | 7,287 | 263,070 |
| 239,443 | 24,392 | 2,852 | 7,287 | 273,974 | |
| Mining cost per tonne of ore mined($) | 54.83 | 54.68 | 64.43 | 59.61 | 55.91 |
| Cash mining cost per tonne of ore mined($) | 44.77 | 51.01 | 61.53 | 58.62 | 47.45 |
| Non cash mining cost per tonne of ore mined($) | 10.06 | 3.67 | 2.90 | 0.99 | 8.46 |
| Unit shipping costs($) | 3.53 | 3.65 | 2.88 | 2.42 | 3.42 |
| Milling cost per tonne of ore milled($) | 11.24 | 12.10 | 34.40 | 10.55 | 11.53 |
| Cash milling cost per tonne of ore milled($) | 10.23 | 11.08 | 26.01 | 9.54 | 10.45 |
| Non cash milling cost per tonne of ore milled($) | 1.00 | 1.03 | 8.38 | 1.01 | 1.08 |
Average Production Cost
| Silver($ per ounce) | 2.54 | 4.09 | 3.16 | 7.34 | 2.72 |
| Gold($ per ounce) | 101.90 | 243.21 | - | - | 140.05 |
| Lead($ per pound) | 0.15 | 0.24 | 0.20 | 0.36 | 0.16 |
| Zinc($ per pound) | 0.12 | 0.19 | - | - | 0.13 |
| Total production cost per ounce of Silver($) | (5.70) | (13.75) | (3.00) | 5.66 | (5.61) |
| Total cash cost per ounce of Silver($) | (6.51) | (14.52) | (3.25) | 5.42 | (6.40) |
Total Recovery of the Run of Mine Ores
| Silver (%) | 91.3 | 85.7 | 85.4 | 86.0 | 92.6 |
| Lead(%) | 95.4 | 93.5 | 90.1 | 84.0 | 96.4 |
| Zinc(%) | 75.8 | 72.3 | - | - | 75.7 |
Head Grades of Run of Mine Ores
| Silver (gram/tonne) | 476.3 | 151.1 | 91.7 | 312.5 | 439.5 |
| Lead(%) | 8.7 | 6.3 | 4.8 | 2.6 | 8.4 |
| Zinc(%) | 3.2 | 1.2 | - | - | 2.9 |
Sales Data Metal Sales
| Silver(in thousands of ounce) | 3,327 | 104 | 15 | 99 | 3,545 |
| Gold(in thousands of ounce) | 0.4 | 0.7 | - | 0.0 | 1.1 |
| Lead (in thousands of pound) | 43,428 | 3,236 | 201 | 588 | 47,453 |
| Zinc(in thousands of pound) | 11,324 | 669 | - | - | 11,993 |
Metal Sales -
| Silver($) | 37,500 | 1,160 | 160 | 1,283 | 40,103 |
| Gold($) | 190 | 464 | 1 | 10 | 665 |
| Lead($) | 28,952 | 2,130 | 134 | 374 | 31,590 |
| Zinc ($) | 6,244 | 338 | - | - | 6,582 |
| 72,886 | 4,092 | 295 | 1,667 | 78,940 |
Average Selling Price, Net of Value Added Tax and Smelter Charges
| Silver($ per ounce) | 11.27 | 11.15 | 10.39 | 12.96 | 11.31 |
| Gold($ per ounce) | 452.38 | 662.86 | - | 500.00 | 583.33 |
| Lead($ per pound) | 0.67 | 0.66 | 0.67 | 0.64 | 0.67 |
| Zinc($ per pound) | 0.55 | 0.51 | - | - | 0.55 |