Silvercorp Reports Net Income of $15.5 Million, $0.09 PER Share, and Cash Flow from Operations of $30.1 Million FOR Q1 Fiscal 2021
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NEWS RELEASE
Trading Symbol: TSX/NYSE American: SVM
NYSE AMERICAN: SVM
SILVERCORP REPORTS NET INCOME OF $15.5 MILLION, $0.09 PER SHARE,
AND CASH FLOW FROM OPERATIONS OF $30.1 MILLION FOR Q1 FISCAL 2021
VANCOUVER, British Columbia – August 6, 2020 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”)
(TSX/NYSE American: SVM) reported its financial and operating results for the first quarter ended June 30,
2020 (“Q1 Fiscal 2021”). All amounts are expressed in US Dollars.
Q1 FISCAL YEAR 2021 HIGHLIGHTS
Mined 254,555 tonnes of ore, down 1% compared to the prior year quarter;
Sold approximately 1.9 million ounces of silver, 1,100 ounces of gold, 20.9 million pounds of lead,
and 7.0 million pounds of zinc, re presenting an increase of 1%, 10%, and 17% in silver, gold and lead
sold, and a decrease of 5% in zinc sold, compared to the prior year quarter;
Revenue of $46.7 million, up 2% or $1.1 million compared to $45.6 million in the prior year quarter;
Net income attributable to equity shareholders of $15.5 million, or $0.09 per share, compared to
$12.6 million or $0.07 per share in the prior year quarter;
Cash cost per ounce of silver1, n e t o f b y ‐ p r o d u c t c r e d i t s , o f n e g a t i v e $ 1 . 4 8 , c o m p a r e d t o n e gative
$2.17 in the prior year quarter;
All‐in sustaining cost per ounce of silver 1, net of by‐product credits, of $5.61, compared to $5.69 in
the prior year quarter;
Cash flow from operations of $30.1 million, compared to $19.9 million in the prior year quarter;
Gain of $16.4 million on equity investments;
Receipt of $6.5 million (CAD$9.0 million) break fee from Guyana Goldfields Inc.;
Paid dividends of $2.2 million, or $0.0125 per share, to equity shareholders;
Invested $5.8 million in New Pacific Metals Corp. (“NUAG”) to maintain the Company’s ownership
interest at 28.8%;
Strong balance sheet with $178.4 million in cash and cash equiv alents and short‐term investments,
an increase of $35.9 million or 25% compared to March 31, 2020; and,
Investment in NUAG with market value of $178.2 million and other investments of $7.4 million.
FINANCIALS
Net income attributable to equity shareholders of the Company in Q1 Fiscal 2021 was $15.5 million, or
$0.09 per share, compared to $12.6 million, or $0.07 per share in the three months ended June 30, 2019
(“Q1 Fiscal 2020”).
1 Alternative performance (non‐IFRS) measure. Please refer to section 10 of the corresponding MD&A for reconciliation.
2
The Company’s financial results in Q1 Fiscal 2021 were mainly impacted by the following: i) an increase of
1%, 10% and 17% in the amount of silver, gold, and lead sold, respectively; offset by a 5% decrease in the
amount of zin c sold ; ii ) a n in crease of 10% and 2 4% in the net realized selling prices for silver and gold,
offset by a decrease of 19% and 14% in the net realized selling prices for lead and zinc; iii) gain of $16.4
million on equity investments, of which $5.5 million was reported in profit and $10.9 million was reported
in other comprehensive income; o ffset by a $1.8 million increas e in foreign exchange loss; and iv) a $5.9
million increase in income tax expenses.
Revenue in Q1 Fiscal 2021 was $46.7 million, up 2% or $1.1 million comp ared to $45.6 million in the prior
year quarter. The increase was mainly due to i) an increase of $2.4 million in revenue arising from the
increase in the amount of silver, gold and lead sold; ii) an in crease of $2.7 million in revenue arising from
the increase in net realized selling prices for silver and gold; offset by iii) a decrease of $3.6 million in
revenue arising from the decrease in net realized selling price for lead and zinc; and iv) a decrease of $0.2
million in revenue due to less zinc sold. Silver, gold and base metal sales represented $26.2 million, $1.5
million, and $19.0 million, respectively, compared to silver, gold and base metals sales of $23.6 million,
$1.1 million, and $20.9 million, respectively, in the prior year quarter. Revenue from the Ying Mining
District in Q1 Fiscal 2021 was $39.7 million, up 5% compared to $37.8 million in the prior year quarter.
Revenue from the GC Mine in Q1 Fiscal 2021 was $7.0 million, do wn 10% compared to $7.8 million in the
prior year quarter.
Production costs expensed in Q1 Fiscal 2021 were $17.7 million, a slight decrease compared to $18.0
million in Q1 Fiscal 2020. The production costs expensed repres ent approximately 264,680 tonnes of ore
processed and expensed at a cost of $67.05 per tonne, compared to approximately 261,440 tonnes at
$68.85 per tonne in Q1 Fiscal 2020.
Mineral resource taxes in Q1 Fiscal 2021 were $1.34 million, up 7% compared to $1.25 million in Q1 Fiscal
2020, and the increase was mainly due to higher revenue.
Government fees and other taxes in Q1 Fiscal 2021 were $0.5 million, compared to $0.6 million in Q1
Fiscal 2020. Government fees and other taxes are comprised of environmental protection fees, surtaxes
on VAT, land usage levies, stamp duties and other miscellaneous levies, duties and taxes imposed by the
state and local Chinese governments.
Income from mine operations in Q1 Fiscal 2021 was $19.3 million, or 41% of revenue, compare d to $17.7
million or 39% of revenue in Q1 Fiscal 2020. Income from mine o perations at the Ying Mining District was
$17.6 million or 44% of revenue, compared to $16.0 million or 4 2% of revenue in Q1 Fiscal 2020. Income
from mine operations at the GC Mine was $1.8 million or 26% of revenue, compared to $1.8 million or
23% of revenue in Q1 Fiscal 2020.
General and administrative expenses in Q1 Fiscal 2021 were $4.7 million, an increase of $0.2 million
compared to $4.5 million in Q1 Fiscal 2020. The increase was ma inly due to an increase of $0.4 million in
share‐based compensation offset by a decrease of $0.2 million in salaries and benefits. General and
administrative expenses include corporate administrative expens es of $2.7 million (Q1 Fiscal 2020 ‐ $2.4
million) and mine administrative expenses of $2.1 million (Q1 Fiscal 2020 ‐ $2.1 million).
Foreign exchange loss in Q1 Fiscal 2021 was $2.7 million, an increase of $1.8 million compared to $0.9
million in Q1 Fiscal 2020. The foreign exchange loss is mainly driven by the appreciation of Canadian
dollar against US dollar.
Property evaluation and business development expenses i n Q 1 F i s c a l 2 0 2 1 w e r e a r e c o v e r y o f $ 3 . 8
million, compared to an expense of $0.1 million in Q1 Fiscal 2020. On April 26, 2020, the Company
entered into a definitive agreement with Guyana Goldfields Inc. (“Guyana Goldfields”), subsequently
amended on May 18, 2020 (collect ively, the “Arrangement Agreeme nt”) to acquire all of the issued and
outstanding shares of Guyana Gol dfields. On June 10, 2020, Guya na Goldfield terminated the
A r r a n g e m e n t A g r e e m e n t a n d p a i d t h e C o m p a n y a b r e a k f e e o f $ 6 . 5 million (CAD$9.0 million). Net of
expenses of $2.5 million, a gain of $4.0 million on this transa ction was recorded as a recovery of property
evaluation and business development expenses.
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Gain on equity investments recorded in profit in Q1 Fiscal 2021 was $5.5 million, compared to $nil in Q1
Fiscal 2020. A total gain of $16.4 million on equity investments was reported in the current quarter, of
which $10.9 million was recorded in other comprehensive income as the Company made elections to
account for equity investments on an instrument‐by‐instrument basis.
Income tax expenses in Q1 Fiscal 2021 was $5.4 million, an increase of $5.9 million, compared to an
income tax recovery of $0.5 million in Q1 Fiscal 2020. In Q1 Fi scal 202 1, the Compan y recorde d curr ent
income tax expenses of $4.6 million (Q1 Fiscal 2020 – $1.8 mill ion), and deferred income tax expenses of
$0.8 million (Q1 Fiscal 2020 – deferred income tax recovery of $2.2 million). The current income tax
expenses in Q1 Fiscal 2020 included withholding tax expenses of $1.1 million, which was paid at a rate of
10% on dividends distributed out of China. The deferred income tax recovery in Q1 Fiscal 2020 was mainly
related to the tax benefit recognized arising from the disposal of the XHP Project.
Cash flow provided by operating activities in Q1 Fiscal 2021 was $30.1 million, up $10.2 million or 51%,
compared to $19.9 million in Q1 Fiscal 2020.
The Company ended the quarter with $178.4 million in cash, cash equivalents and short‐term
investments, an increase of $35.9 million or 25%, compared to $142.5 million as at March 31, 2020.
Working capital as at June 30, 2020 was $153.7 million, an incr ease of $23.4 million or 18%, compared to
$130.4 million as at March 31, 2020.
OPERATIONS AND DEVELOPMENT
In Q1 Fiscal 2021, on a consolidated basis, the Company mined 254,555 tonnes of ore, a slight decrease of
1% or 2,837 tonnes compared to 257,392 tonnes in Q1 Fiscal 2020. Ore milled was 262,326 tonnes, a
slight increase of 1% or 2,784 tonnes, compared to 259,542 tonnes in Q1 Fiscal 2020.
The Company sold approximately 1.9 million ounces of silver, 1,100 ounces of gold, 20.9 million pounds of
lead, and 7.0 million pounds of zinc, compared to 1.9 million o unces of silver, 1,000 ounces of gold, 17.8
million pounds of lead, and 7.3 million pounds of zinc in Q1 Fiscal 2020.
In Q1 Fiscal 2021, the consolidated total mining and cash minin g costs were $73.91 and $54.97 per tonne,
down 5% and 1% compared to $77.40 and $55.45 per tonne, respectively, in Q1 Fiscal 2020. The decrease
in cash mining costs was mainl y due to a decrease of $3.70 per tonne in the cash mining costs at the GC
mine, offset by an increase of $1.07 per tonne in the cash mining costs at the Ying Mining District.
The consolidated total milling and cash milling costs in Q1 Fis cal 2021 were $11.04 and $9.58 per tonne,
down 12% and 10% compared to $12.49 and $10.63 per tonne, respectively, in Q1 Fiscal 2020. The
decrease in per tonne cash milling costs was mainly due to a decrease of $0.2 million in labour costs.
Correspondingly, the consolidated cash production cost per tonn e of ore processed in Q1 Fiscal 2021 was
$67.05, down 3% compared to $68.85 in Q1 Fiscal 2020. The consolidated all‐in sustaining production
costs per tonne of ore processed was $112.59, down 6% compared to $120.16 in Q1 Fiscal 2020. The
decrease was mainly due to the lower per tonne production costs as discussed above and a $1.6 million
decrease in sustaining capital expenditures.
In Q1 Fiscal 2021, the consolidated cash cost per ounce of silv er, net of by‐product credits, was negative
$1.48, compared to negative $2.17, in Q1 Fiscal 2020. The incr ease in cash cost per ounce of silver, net of
by‐product credits, was mainly due to a decrease of $1.5 million in by‐product sales.
In Q1 Fiscal 2021, the consolidated all‐in sustaining cost per ounce of silver, net of by‐product credits, was
$5.61 compared to $5.69 in Q1 Fiscal 2020. The decrease was ma inly due to i) a $1.6 million decrease in
sustaining capital expenditures, offset by ii) the increase in cash cost per ounce of silver, net of by‐product
credits as discussed above.
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1. Ying Mining District, Henan Province, China
In Q1 Fiscal 2021, the total ore mined at the Ying Mining Distr ict was 174,176 tonnes, a slight decrease of
1% or 2,408 tonnes compared to 176,584 tonnes mined in the prior year quarter. Ore milled was 177,689
tonnes, comparable to 177,681 tonnes in Q1 Fiscal 2020.
Head grades were 293 grams per to nne (“g/t”) for silver, 4.6% for lead, and 0.8% for zinc, compared to
3 3 0 g/ t for s i l v e r, 4.6 % f or l e ad, an d 0 . 9% f or zi n c i n t he pr ior ye ar qu a rt er . T he v ar i ati on i n si l v er h e a d
grade is mainly related to the Company’s planned mining sequenc e and is in line with Fiscal 2021
Guidance (defined below).
I n Q 1 F i s c a l 2 0 2 1 , t h e Y i n g M i n i n g D i s t r i c t s o l d a p p r o x i m a t e l y 1.7 million ounces of silver, 17.8 million
pounds of lead, and 2.0 million pounds of zinc, compared to 1.7 million ounces of silver, 14.8 million
pounds of lead, and 2.1 million pounds of zinc in the prior year quarter.
Total and cash mining costs per tonne at the Ying Mining District in Q1 Fiscal 2021 were $87.94 and
$64.12 per tonne, respectively, compared to $91.47 and $63.05 p er tonne in the prior year quarter. The
increase in the per tonne cash mining cost was mainly due to a 2% increase in mining preparation costs.
Total and cash milling costs per tonne at the Ying Mining District in Q1 Fiscal 2021 were $10.04 and $8.45,
respectively, compared to $10.93 and $9.15 in Q1 Fiscal 2020. The decrease in per tonne milling costs was
mainly due to a decrease of $0. 39 per tonne in labour costs and a decrease of $0.23 per tonne in utility
costs.
Correspondingly, the cash production cost per tonne of ore processed in Q1 Fiscal 2021 at the Ying Mining
District was $76.21, compared to $76.24 in the prior year quart er. The all‐in sustaining production cost
per tonne of ore processed was $116.99, down 9% compared to $12 9.14 in Q1 Fiscal 2020. The decrease
was mainly due to a $2.0 million decrease in sustaining capital expenditures.
Cash cost per ounce of silver, ne t of by‐product credits, in Q1 Fiscal 2021 at the Ying Mining District, was
negative $0.8 7 compared to negative $1.44 in the prior year qua rter. The increase was mainly due to a
$0.5 million decrease in by‐product sales resulting from a decrease in the net realized selling prices of lead
and zinc.
All‐in sustaining cost per ounce of silver, net of by‐product c redits, in Q1 Fiscal 2021 at the Ying Mining
District was $4.14 compared to $4.82 in Q1 Fiscal 2020. The decrease was mainly due to a $2.0 million
decrease in sustaining capital expenditures.
Ying Mining District Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020
June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 J une 30, 2019
Ore Mined (tonne) 174,176 69,379 176,149 176,085 176,584
Ore Milled (tonne) 177,689 69,188 175,488 179,147 177,681
Head Grades
Silver (gram/tonne) 293 297 296 306 330
Lead (%) 4.6 4.6 4.6 4.5 4.6
Zinc (%) 0.8 1.0 0.9 0.8 0.9
Recoveries
Silver (%) 94.7 95.3 96.1 96.2 95.8
Lead (%) 96.2 95.7 96.3 95.7 95.9
Zinc (%) 63.8 67.7 70.3 58.6 58.3
Metal Sales
Silver (in thousands of ounce) 1,672 711 1,475 1,711 1,662
Gold (in thousands of ounce) 1.1 0.5 0.7 1.1 1.0
Lead (in thousands of pound) 17,779 8,322 14,912 16,389 14,835
Zinc (in thousands of pound) 2,037 865 2,882 1,428 2,090
Cash mining cost ($/tonne) 64.12 68.10 64.69 59.26 63.05
Shipping costs ($/tonne) 3.64 3.96 3.89 3.82 4.04
Cash milling costs ($/tonne) 8.45 11.53 10.99 9.81 9.15
Cash production costs ($/tonne) 76.21 83.59 79.57 72.89 76.24
All‐in sustaining production costs ($/tonne) 116.99 195.78 126.43 117.37 129.41
Cash costs per ounce of silver ($) (0.87) 0.30 (0.72) (1.95) (1.44)
All‐in sustaining costs per ounce of silver ($) 4.14 11.86 5.57 3.40 4.82
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In Q1 Fiscal 2021, approximately 28,485 metres or $0.8 million worth of diamond drilling (Q1 Fiscal 2020 –
23,648 metres or $0.6 million) and 6,207 metres or $1.8 million worth of preparation tunnelling (Q1 Fiscal
2020 – 6,395 metres or $1.7 million) were completed and expensed as mining preparation costs at the
Ying Mining District. In addition, approximately 23,108 metres or $7.8 million worth of horizontal tunnels,
raises, ramps and declines (Q1 Fiscal 2020 – 20,895 metres or $ 7.1 million) were completed and
capitalized.
2. GC Mine, Guangdong Province, China
In Q1 Fiscal 2021, the total ore mined at the GC Mine was 80,37 9 tonnes, a slight decrease compared to
80,808 tonnes in Q1 Fiscal 2020. Ore milled was 84,637 tonnes, a n i n c r e a s e o f 3 % o r 2 , 7 7 6 t o n n e s
compared to 81,861 tonnes in Q1 Fiscal 2020.
Average head grades of ore processed at the GC Mine were 93 g/t for silver, 1.9% for lead, and 3.4% for
zinc, compared to 95 g/t for silver, 1.9% for lead, and 3.4% fo r zinc in Q1 Fiscal 2020. Recovery rates of
ore processed were 82.8% for silver, 89.8% for lead, and 87.3% for zinc, compared to 76.8% for silver,
88.7% for lead, and 85.7% for zinc in Q1 Fiscal 2020.
In Q1 Fiscal 2021, GC Mine sold approximately 200,000 ounces of silver, 3.1 million pounds of lead, and
4.9 million pounds of zinc, compared to 193,000 ounces of silver, 3.0 million pounds of lead, and 5.2
million pounds of zinc in Q1 Fiscal 2020.
Total and cash mining costs per tonne at the GC Mine in Q1 Fiscal 2021 were $43.50 and $35.13 per
tonne, a decrease of 7% and 10%, respectively, compared to $46.64 and $38.83 per tonne, respectively, in
Q1 Fiscal 2020. The decrease in t he cash mining cost was mainly due to a $0.7 million decrease in mining
preparation costs. Total and cash milling cost per tonne at the GC Mine in Q1 Fiscal 2021 were $13.14 and
$ 1 1 . 9 5 , a d e c r e a s e o f 1 7 % a n d 1 4 % , r e s p e c t i v e l y , c o m p a r e d t o $ 15.88 and $13.85, respectively, in Q1
Fiscal 2020. The decrease in cash milling costs was mainly due to a $0.1 million decrease in labour costs.
Correspondingly, the cash produc tion cost per tonne of ore proc essed in Q1 Fiscal 2021 at the GC Mine
was $47.08, a decrease of 11% compared to $52.68 in Q1 Fiscal 2020. The all‐in sustaining production
costs per tonne of ore processed was $65.84, down 2% compared to $67.33 in Q1 Fiscal 2020.
Cash cost per ounce of silver, net of by‐product credits, at th e GC Mine, was negative $6.59 compared to
negative $8.38 in Q1 Fiscal 2020. The increase was mainly due to a $1.0 million decrease in by‐product
sales resulting from a decrease in the net realized selling prices of lead and zinc.
GC Mine Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020
June 30, 2020 Ma rch 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019
Ore Mined (tonne) 80,379 37,216 86,437 83,172 80,808
Ore Milled (tonne) 84,637 33,243 89,372 86,134 81,861
Head Grades
Silver (gram/tonne) 93 94 96 100 95
Lead (%) 1.9 1.8 2.0 2.0 1.9
Zinc (%) 3.4 3.5 3.3 3.2 3.4
Recovery Rates
Silver (%) 82.8 80.7 78.0 75.9 76.8
Lead (%) 89.8 90.4 90.4 88.3 88.7
Zinc (%) 87.3 87.7 85.5 86.1 85.7
Metal Sales
Silver (in thousands of ounce) 200 89 234 183 193
Lead (in thousands of pound) 3,106 1,332 3,867 2,680 3,007
Zinc (in thousands of pound) 4,921 2,194 5,471 5,227 5,244
Cash mining cost ($/tonne) 35.13 25.58 42.96 37.80 38.83
Cash milling cost ($/tonne) 11.95 16.36 14.01 12.72 13.85
Cash production cost ($/tonne) 47.08 41.94 56.97 50.52 52.68
All‐in sustaining production costs ($/tonne) 65.84 88.18 71.03 62.94 67.33
Cash cost per ounce of silver ($) (6.59) (10.03) (4.33) (9.98) (8.38)
All‐in sustaining cost per ounce of silver ($) 2.41 8.31 2.18 (2.89) (0.96)
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All‐in sustaining cost per ounce of silver, net of by‐product c redits, in Q1 Fiscal 2021 at the GC Mine was
$ 2 . 4 1 c o m p a r e d t o n e g a t i v e $ 0 . 9 6 i n Q 1 F i s c a l 2 0 2 0 . T h e i n c r e a se was mainly due to i) the increase in
cash cost per ounce of silver, ne t of by‐product credits, as di scussed above, and ii) a $0.3 million increase
in sustaining capital expenditures.
In Q1 Fiscal 2021, approximately 8,212 metres or $0.3 million w orth of underground diamond drilling (Q1
Fiscal 2020 – 7,970 metres or $0.3 million) and 3,458 metres or $0.8 million worth of tunnelling (Q1 Fiscal
2020 – 6,261 metres or $1.4 million) were completed and expensed as mining preparation costs at the GC
Mine. In addition, approximately 3,267 metres or $1.2 million w orth of horizontal tunnels, raises, ramps
and declines (Q1 Fiscal 2020 – 497 metres or $0.3 million) were completed and capitalized.
3. Annual Operating Outlook
All references to Fiscal 2021 Guidance in this news release refers to the “Fiscal 2021 Production, Cash Cost
Guidance” section in the Company’s Fiscal 2020 Annual MD&A date d May 20, 2020 (“Fiscal 2021
Guidance”) filed under the Company’s profile at www.sedar.com.
(i) Production and Production Costs
The following table summarizes the Q1 Fiscal 2021 production an d production costs achieved compared
to the respective Fiscal 2021 Guidance:
Based on year‐to‐date production, production costs and the expected production for the remainder of the
year, the Company reaffirms its Fiscal 2021 Guidance.
(ii) Development and Capital Expenditures
The following table summarizes the Q1 Fiscal 2021 development w ork and capitalized expenditures
compared to the respective Fiscal 2021 Guidance.
Head grades Metal production Production costs
Ore processed Silver Lead Zinc Silver Lead Zinc Cash cost AISC
(tonnes) (g/t) (%) (%) (Koz) (Klbs) (Klbs) ($/t) ($/t)
Q1 Fiscal 2021 Actual Results
Y ing Mining Dist rict 177,689 293 4.6 0.8 1,544 16,941 1,920 76.21 116.99
GC Mi ne 84,637 93 1.9 3.4 209 3,135 5,613 47.08 65.84
Consolidated 262,326 228 3.7 1.6 1,753 20,076 7,533 67.05 112.59
Fiscal 2021 Guidance
Ying Mining District 640,000 ‐ 660,000 292 4.3 0.9 5,600‐5,800 56,600‐58,000 7,000‐8,000 74.7‐82.5 133.5 ‐ 140.5
GC Mine 290,000 ‐ 310,000 96 1.7 3.3 600‐700 9,500‐10,500 17,500‐18,700 52.2‐57.5 78.5 ‐ 82.9
Consolidated 930,000 ‐ 970,000 229‐231 3.5‐3.5 1.6‐1.7 6,200‐6,500 66 ,100‐68,500 24,500‐26,700 66.6‐73.6 122.6‐135.5
% of Fiscal 2021 Guidance*
Ying Mining District 27% 100% 107% 89% 27% 30% 26% 97% 85%
GC Mine 28% 97% 112% 103% 32% 31% 31% 86% 82%
Consolidated 28% 99% 106% 97% 28% 30% 29% 96% 87%
* Percentage caculated based on mid‐point of the related Fiscal 2021 Gui da nce
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Based on year‐to‐date capital expenditures and the expected capital expenditures for the remainder of
the year (save for the capital expenditures to be incurred to b uild an aggregate plant as described below,
which was not included in the Company’s Fiscal 2021 Guidance), the Company reaffirms the Fiscal 2021
Guidance.
The Company is investing approximately $2.9 million (approximately RMB¥20.0 million) to construct a
1,000,000 tonnes per year aggregate plant to crush and recycle the waste rock from the Ying Mining
District with the goal of supplying the resulting products to the local construction market. The plant is
e x p e c t e d t o b e c o m m i s s i o n e d i n O c t o b e r 2 0 2 0 , a n d i t s p r o f i t s , after capital recovery, will be shared
between the local government, the local communities, and employees. This investment demonstrates our
ongoing commitment and efforts to minimize our operations’ impa c t s o n t h e e n v i r o n m e n t a n d o u r
commitment to create a sustainable contribution to the communities where our people work and live.
(iii) Ongoing Exploration Programs
The Company is currently undertaking extensive drill programs a t the Ying and GC Mines with two main
objectives: i) areas with existing development and access are being re‐examined to define more resources
and reserves, which may lead to a substantial reduction in mini ng and sustaining capital costs associated
with the tonnes identified, and ii) areas which may have been overlooked for potential gold mineralization
are being tested for different alteration styles from the typical silver‐lead zones.
Mr. Guoliang Ma, P.Geo., Manager of Exploration and Resources o f the Company, is the Qualified Person
as defined by National Instrument 43‐101 – Standards of Disclosure for Minera l Projects 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 Co mpany's Management Discussion &
Analysis, Financial Statements and Notes to Financial Statements for the corresponding period, which have
b e e n p o s t e d o n S E D A R u n d e r t h e C o m p a n y ’ s p r o f i l e a t w w w . s e d a r . com and are also available on the
Company's website at www.silvercorp.ca.
About Silvercorp
Silvercorp is a profitable Canad ian mining company producing si lver, lead and zinc metals in concentrates
f r o m m i n e s i n C h i n a . T h e C o m p a n y ’ s g o a l i s t o c o n t i n u o u s l y c r e at e h e a l t h y r e t u r n s t o s h a r e h o l d e r s
through efficient management, organic growth and the acquisitio n of profitable proj ects. Silvercorp
balances profitability, social an d environmental relationships, employees’ wellbeing, and sustainable
development. For more information, please visit our website at www.silvercorp.ca.
For further information
Silvercorp Metals Inc.
Equipment &
Facilities
(Metres) ($ Thousand) (Metres) ($ Thousand) ($ Thousand) (Metres) ($ Thousand)
Q1 Fiscal 2021 Actual Results
Y ing Mining Dist rict 2, 218 1,711 $ 20,890 6,110 $ 1,038 $ 23,108 8,859 $
GC Mine 309 256 2,958 912 193 3,267 1,361
Consolidated 2,527 1,967 $ 23,848 7,022 $ 1,231 $ 26,375 10,220 $
Fiscal 2021 Guidance
Y ing Mining Dist rict 6, 700 5,500 $ 81,300 26,900 $ 4,600 $ 88,000 37,000 $
GC Mi ne 1,600 1,400 11,000 3,200 800 12,600 5,400
Consolidated 8,300 6,900 $ 92,300 30,100 $ 5,400 $ 100,600 42,400 $
% of Fiscal 2021 Guidance
Ying Mining District 33% 31% 26% 23% 23% 26% 24%
GC Mine 19% 18% 27% 29% 24% 26% 25%
Consolidated 30% 29% 26% 23% 23% 26% 24%
Capitalized Development and Expenditures
Ramp Development
Exploration and
Development Tunnels Total
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Lon Shaver
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 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 provincial securities laws (collectively, “forward‐looking statements”). Any
statements or information that express or involve discussions w ith respect to predictions, ex pectations, beliefs, plans,
projections, objectives, assumptions or future events or perfor mance (often, but not always, using words or phrases
s u c h a s “ e x p e c t s ” , “ i s e x p e c t e d ” , “ a n t i c i p a t e s ” , “ b e l i e v e s ” , “ plans”, “projects”, “estimates”, “assumes”, “intends”,
“strategies”, “targets”, “goals”, “forecasts”, “objectives”, “b udgets”, “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 exp ressions) 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 mi neral resource and mineral rese rve 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.
Forward‐looking statements are subject to a variety of known an d unknown risks, uncertainties and other factors that
could cause actual events or res ults to differ from those refle cted 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 preci ous 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 mark et events and conditions; economic factors affecting
the Company; timing, estimated amount, capital and operating ex penditures 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 Canad a; 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 materia l l y f r o m t h o s e r e f l e c t e d i n t h e f o r w a r d ‐ l o o k i n g
statements due to a variety of risks, uncertainties and other f actors, including, without lim itation, those referred to in
the Company’s Annual Information Form under the heading “Risk F actors”. Although the Company has attempted to
identify important factors that could cause actual results to d iffer materially, there may be ot her factors t hat ca use
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 assum ptions, beliefs, expectations and opinions of
management as of the date of this news release, and other than as required by applicable securities laws, the
Company does not assume any obligation to update forward‐looking statements if circumstances or management’s
assumptions, beliefs, expectations or opinions should change, o r changes in any other events affecting such
statements. For the reasons set forth above, investors should not place undue reliance on forward‐looking statements.