Silvercorp Reports Net Income of $34.3 Million, $0.20 PER Share, and Cash Flow from Operations of $77.2 Million FOR Fiscal 2020
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NEWS RELEASE
Trading Symbol: TSX: SVM
NYSE AMERICAN: SVM
SILVERCORP REPORTS NET INCOME OF $34.3 MILLION, $0.20 PER SHARE,
AND CASH FLOW FROM OPERATIONS OF $77.2 MILLION FOR FISCAL 2020
VANCOUVER, British Columbia – May 21, 2020 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”)
(TSX: SVM) (NYSE American: SVM) reported its financial and operating results for the fourth quarter and
twelve months ended March 31, 2020 (“Fiscal 2020”). All amounts are expressed in US Dollars.
Despite the extended shut-down during the three months ended March 31, 2020 (“Q4 Fiscal 2020”) due
to C OVID-19, the Company was able to achieve full year production target, surpassing its Fiscal 2020
guidance. As reported in the Company’s news release dated May 7, 2020, the Company’s operations were
ramped up to full capacity in March 2020 with no employee infection and the Company is in full
compliance with government measures to prevent spread of COVID-19.
FISCAL YEAR 2020 HIGHLIGHTS
Silver, lead and zinc production surpassed annual guidance by 3%, 3% and 17% ; respectively;
Ore mined down 2% to 885,830 tonnes compared to the prior year;
Sold approximately 6.3 million ounces of silver, 3,300 ounces of gold, 65.3 million pounds of lead,
and 25.4 million pounds of zinc, representing a decrease of 2% and 6% in silver and gold sold and an
increase of 1% and 12% in lead and zinc sold compared to the prior year ;
Revenue of $158.8 million, down 7%, compared to $170.5 million in the prior year;
Net income attributable to equity shareholders of $34.3 million or $0.20 per share compared to
$39.7 million or $0.23 per share in the prior year. Excluding the impairment reversal of $9.2 million
recorded in Fiscal 2019, the net income to equity shareholders in Fiscal 2020 was up 6% compared to
the adjusted net income attributable to equity shareholders 1
of $32.2 million, or $0.19 per share, in
the prior year. In Fiscal 2020, the Company’s consolidated financial results were impacted mainly by
operations in China being suspended for an extra month in Q4 Fiscal 2020 due to COVID -19;
Cash cost per ounce of silver 1, net of by -product credits, of negative $1.91 comp ared to negative
$4.29 in the prior year;
All-in sustaining cost per ounce of silver 1, net of by -product credits, of $6. 86, compared to $3.52 in
the prior year;
Cash flow from operations of $77.2 million, up 10% compared to $70.4 million in the prior year;
Paid $4.3 million of dividends to the Company’s shareholders, compared to $4.2 million in the prior
year;
Invested $7.0 million in New Pacific Metals Corp. (“NUAG”) to maintain the Company’s ownership
interest at 28.8%; and
1 Alternative performance (Non-IFRS) measure. Please refer to section 13 of the corresponding MD&A for
reconciliation.
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Strong balance sheet with $142.5 million in cash and cash equivalents and short -term investments,
an increase of $27.2 million or 24% compared to $115.3 million as at March 31, 2019.
HIGHLIGHTS FOR Q4 FISCAL 2020
Ore mined down 34% to 106,595 tonnes compared to the prior year quar ter;
Sold approximately 0.8 million ounces of silver, 500 ounces of gold, 9.7 million pounds of lead, and
3.1 million pounds of zinc, down 39%, 29%, 24%, and 58% respectively, compared to approximately
1.3 million ounces of silver, 700 ounces of gold, 12. 7 million pounds of lead, and 7.3 million pounds
of zinc in the prior year quarter.
Revenue of $18.9 million, down 46% compared to $35.0 million in the prior year quarter;
Net income attributable to equity shareholders of $3.2 million, or $0.02 per share, compared to the
adjusted net income attributable to equity shareholders of $4.6 million or $0.03 per share, in the
prior year quarter . In Q4 Fiscal 2020, the Company’s consolidated financial results were impacted
mainly by the decrease in metal prices and operations in China being suspended for an extra month
due to COVID-19;
Cash cost per ounce of silver, net of by -product credits, of negative $0.85 compared to negative
$3.97 in the prior year quarter;
All-in sustaining cost per ounce of silver, net of b y-product credits, of $15.17, compared to $4.49 in
the prior year quarter; and
Cash flow from operations of $6.3 million, compared to $8.3 million in the prior year quarter.
FINANCIALS
1. Fiscal 2020 vs. Fiscal 2019
Net income attributable to equity shareholders of the Company in Fiscal 2020 was $34.3 million or $0.20
per share, compared to $ 39.7 million or $0.23 per share in Fiscal 2019. Excluding the impairment reversal
of $9.2 million recorded in Fiscal 2019, the net income attributable to equity shareholders in Fiscal 2020
was up 6% compared to the adjusted net income attributable to equity shareholders of $32.2 million, or
$0.19 per share in Fiscal 2019.
In Fiscal 2020, the Company’s consolidated financial results were mainly impacted by i) operations in
China being suspended for an extra month in Q4 Fiscal 20 20 due to C OVID-19; ii) an increase of 1% and
12% in lead and zinc sold , offset by a 2% decrease in silver sold, respectively; iii) an increase of 7%, in the
realized selling price for silver , offset by decrease s of 19% and 32% in the realized selling price s for lead
and zinc, respectively; and iv) an increase of $2.7 million in foreign exchange gain arising from the
appreciation of the US dollar against the Canadian dollar.
Revenue in Fiscal 2020 was $158.8 million, down $11.7 million compared to $170.5 million in Fiscal 2019.
The decrease was mainly due to the decrease in the realized selling prices for lead and zinc. Revenue from
silver and gold was $84.9 million and $3.9 million, up 5% and 7%, respectively, compared to $80.7 million
and $3.6 million i n Fiscal 2019, while revenue from lead and zinc was $52.0 million and $15.8 million,
down 19% and 24%, compared to $64.1 and 20.7 million in Fiscal 2019.
Production costs expensed in Fiscal 2020 were $62.0 million, a slight decrease compared to $62.5 milli on
in Fiscal 2019. The production costs expensed represent approximately 900,000 tonnes of ore processed
and expensed at a cost of $68.91 per tonne, compared to approximately 893,000 tonnes at $69.92 per
tonne in Fiscal 2019.
Mineral resource taxes in Fiscal 2020 were $4.5 million, compared to $4.9 million in Fiscal 2019, and the
decrease was mainly due to lower revenue.
Government fees and other taxes in Fiscal 2020 were $ 2.1 million compared to $2.7 million in Fiscal
2019. Government fees and o ther taxes are comprised of environmental protection fees, surtaxes on
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value-added tax, 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 Fi scal 2020 was $59.4 million, or 37% of revenue, compared to $70.9
million or 42% of revenue in Fiscal 2019 . The decrease was mainly due to the decrease in the realized
selling prices for lead and zinc. Income from mine operations at the Ying Mining Distri ct was $54.1 million
or 41% of revenue , compared to $65.2 million or 46% of revenue in Fiscal 2019. Income from mine
operations at the GC Mine was $5.7 million or 21% of revenue , compared to $7.5 million or 26% of
revenue in Fiscal 2019.
General and administrative expenses in Fiscal 2020 were $20.2 million, an increase of $1.1 million or 6% ,
compared to $19.0 million in Fiscal 2019. The increase was mainly due to an increase of $0.7 million in
share-based compensation expenses and an increase of $0.7 million in amortization and depreciation
expenses. General and administrative expenses include corporate administrative expenses of $10.1
million (Fiscal 2019 - $9.5 million) and mine administrative expense s of $10.1 million (Fiscal 2019 - $9.6
million).
Income tax expenses in Fiscal 2020 were $8.9 million, compared to $20.9 million in Fiscal 2019. The
income tax expense recorded in Fiscal 2020 included a current income tax expense of $5.6 million (Fiscal
2019 - $17.8 million) and a deferred income tax e xpense of $ 3.3 million (Fiscal 2019 - $3.1 million). The
current income tax included $2.8 million of withholding tax (Fiscal 2019 - $5.2 million), which was paid at
a rate of 10% on dividends and interest distributed out of China. The decrease in income tax expenses was
mainly due to the tax benefit realized arising from the disposal of the XHP project and less income from
mine operations.
Cash flow provided by operating activities in Fiscal 20 20 was $77.2 million, up $6.9 million or 10%
compared to $70.4 million in Fiscal 2019.
The Company ended the fiscal year with $ 142.5 million in cash, cash equivalents and short -term
investments, an increase of $27.2 million or 24%, compared to $115.3 million as at March 31, 2019.
Working capital as at March 31, 20 20 was $130.4 million, an increase of $ 33.4 million or 34%, compared
to $97.0 million as at March 31, 2019.
2. Q4 Fiscal 2020 vs. Q4 Fiscal 2019
Net income attributable to equity shareholders of the Company in Q4 Fiscal 2020 was $3.2 million or
$0.02 per share, compared to $12.1 million or $0.07 per share in Q4 Fiscal 2019. Excluding the impairment
reversal of $9.2 million recorded in Q4 Fiscal 2019, the adjusted net income attributable to equity
shareholders was $4.6 million or $0.03 per share in Q4 Fiscal 2019.
Compared to the prior year quarter, the Company’s consolidated financial results in Q4 Fiscal 2020 were
mainly impacted by the following: i) operations in China being suspended for an extra month due to
COVID-19; ii) a decrease of 3%, 26%, and 32% in the n et realized selling price of silver, lead and zinc; and
iii) a foreign exchange gain of $5.4 million recorded arising from the appreciation of the US dollar against
the Canadian dollar.
Revenue in Q4 Fiscal 2020 was $18.9 million, down 46%, compared to $35.0 million in Q4 Fiscal 2019. The
decrease was mainly due to lower production and the decrease in net realized selling prices. Revenue
from silver and gold was $9.8 million and $0.6 million, respectively, compared to $16.7 million and $0.8
million in Q4 F iscal 2019, while revenue from base metals was $8.4 million, compared to $17.5 million in
Q4 Fiscal 2019.
Production costs expensed in Q4 Fiscal 2020 were $8.3 million, compared to $ 13.0 million in Q4 Fiscal
2019. The decrease was mainly due to less metal sold in the current quarter. The production costs
expensed in Q4 Fiscal 2019 represent approximately 121,000 tonnes of ore processed and expensed at a
cost of $68.93 per tonne, compared to 174,000 tonnes at a cost of $74.80 per tonne in Q4 Fiscal 2019.
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Income from mine operations in Q4 Fiscal 2020 was $3.2 million or 17% of revenue, compared to $13.6
million or 39% of revenue in Q4 Fiscal 2019. The decrease was mainly due to the decreas e in metal sold
and realized selling prices. Income from mine operations at the Ying Mining District was $3.1 million or
20% of revenue , compared to $12.2 million or 44% of revenue in Q4 Fiscal 2019. Income from mine
operations at the GC Mine was $0.2 million or 7% of revenue, compared to $1.7 million or 24% of revenue
in Q4 Fiscal 2019.
Cash flows provided by operating activities in Q4 Fiscal 20 20 were $6. 3 million, a decrease of $ 2.0
million, compared to $8.3 million in Q4 Fiscal 2019.
OPERATIONS AND DEVELOPMENT
1. Fiscal 2020 vs. Fiscal 2019
In Fiscal 2020 , on a consolidated basis, the Company mined 885,830 tonnes of ore, a decrease of 2% or
20,964 tonnes, compared to 906,794 tonnes in Fiscal 2019. Ore milled in Fiscal 2020 was 892,215 tonnes,
a decrease of 2% or 16,631 tonnes compared to 908,846 tonnes in Fiscal 2019.
The Company sold approximately 6.3 million ounces of silver, 3,300 ounces of gold, 65.3 million pounds of
lead, and 25.4 million pounds of zinc, representing a decrease of 2% and 6% i n silver and gold sold and an
increase of 1% and 12% in lead and zinc sold, respectively, compared to 6.4 million ounces of silver, 3,500
ounces of gold, 64.8 million pounds of lead, and 22.7 million pounds of zinc in Fiscal 2019.
In Fiscal 2020, the consolidated total mining cost and cash mining cost were $76.25 and $54.90 per tonne,
up 2% and down 1%, respectively, compared to $74.98 and $55.35 per tonne, respectively, in Fiscal 2019.
The decrease in the cash mining cost was mainly due to a decrease of 5% in mining preparation cost s,
offset by an increase of 3% in direct mining contractors’ cost.
The consolidated total milling cost and cash milling cost were $13.17 and $11.36 per tonne, down 6% and
3%, respectively, compared to $13.99 and $11.69 per tonne, respectively, in Fiscal 2019. The
improvement in the cash milling cost was mainly due to decrease s of 4% in utility cost s and 6% in raw
material costs.
The consolidated cash production cost per tonne of ore processed in Fiscal 2020 was $68.91, a d ecrease
of 1% compared to $69.92 in Fiscal 2019 and 4% below the Company’s annual guidance. The consolidated
all-in sustaining production cost per tonne of ore processed was $125.29, an increase of 5% compared to
$119.48 in Fiscal 2019, but in line with the Company’s annual guidance.
In Fiscal 2020, the consolidated cash cost per ounce of silver, net of by -product credits, was negative
$1.91, compared to negative $4.29 in the prior year. The increase was mainly due to a decrease of $15.9
million in by-product credits. The decrease in by-product credits was mainly due to a decrease of 19% and
32%, respectively, in net realized selling price s for lead and zinc, partially offset by an increase of 1% and
12% in lead and zinc sold. Sales from lead and zinc in Fis cal 2020 amounted to $67.7 million, a decrease of
$17.1 million, compared to $84.8 million in Fiscal 2019.
The consolidated all-in sustaining cost per ounce of silver, net of by -product credits, was $6.86, compared
to $3.52 in Fiscal 2019. The increase was mainly due to the increase in the cash cost per ounce of silver as
discussed above and an increase of $4.7 million in sustaining capital expenditures.
2. Q4 Fiscal 2020 vs. Q4 Fiscal 2019
In Q4 Fiscal 2020, the Company mined 106,595 tonnes of ore, a decrease of 34%, compared to 161,400
tonnes in Q4 Fiscal 2019. Ore milled in Q4 Fiscal 2020 was 102,431 tonnes, a decrease of 36% compared
to 159,904 tonnes in Q4 Fiscal 2019.
In Q4 Fiscal 2020, the Company sold approximately 0.8 million ounces of silver, 500 ounces of gold, 9.7
million pounds of lead, and 3.1 million pounds of zinc, down 39%, 29%, 24%, and 58% , respectively,
compared to approximately 1.3 million ounces of silver, 700 ounces of gold, 12.7 mil lion pounds of lead,
and 7.3 million pounds of zinc in Q4 Fiscal 2019.
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In Q4 Fiscal 2020, the consolidated total mining cost and cash mining cost were $75.91 and $53.26 per
tonne, down 5% and 7%, respectively, compared to $80.22 and $57.55 per tonne in Q4 Fiscal 2019. The
consolidated total milling cost and cash milling cost i n Q4 Fiscal 2020 were $15.67 and $13.10 per tonne,
down 11% and 10%, respectively, compared to $17.58 and $14.53 per tonne in Q4 Fiscal 2019. The
consolidated all-in sustaining production cost per tonne was $188.57, up 37% , compared to $138.01 in Q4
Fiscal 2019. The increase was mainly due to lower production resulting in higher per tonne fixed cost
allocation. The all -in sustaining production cost in Q4 Fiscal 2020 was $19.6 million, a decrease of $2.6
million, compared to $22.2 million in Q4 Fiscal 2019.
In Q4 Fiscal 2020, the consolidated cash cost per ounce of silver, net of by -product credits, was negative
$0.85, compared to negative $3.97 in Q4 Fiscal 2019. The increase was mainly due to a decrease of $9.2
million in by-product credits.
In Q4 Fiscal 2020, the consolidated all-in sustaining cost per ounce of silver, net of by -product credits, was
$15.17, compared to $4.49 in Q4 Fiscal 2019. The increase was mainly due to i) a decrease of $9.2 million
in by-product credits; ii) less silver sold resulting in a higher per ounce cost, and partially offset by iii) a
decrease of $2.2 million in all-in sustaining production cost.
3. Ying Mining District, Henan Province, China
Fiscal 2020 vs. Fiscal 2019
In Fiscal 2020, the total ore mined at the Ying Mining District was 598,197 tonnes, a decrease of 4% or
24,379 tonnes, compared to 622,576 tonnes mined in Fiscal 2019. Ore milled was 601,605 tonnes, a
decrease of 3% or 18,246 tonnes, compared to 619,851 tonnes in Fiscal 2019.
Head grades of ore milled at the Ying Mining District in Fiscal 2020 were 309 grams per tonne (“g/t”) for
silver, 4.6% for lead, and 0.9% for zinc, compared to 311 g/t for silver, 4.4% for lead, and 0.9% for zinc in
Fiscal 2019.
In Fiscal 2020, the Ying Mining District sold approximately 5.6 million ounces of silver, 3,300 ounces of
gold, and 54.5 million pounds of lead, down 4%, 6%, and 3%, respectively, compared to 5.8 million ounces
of silver, 3,500 ounces of gold, and 56.1 million pounds of lead in Fi scal 2019 while zinc sold was 7.3
million pounds in Fiscal 2020, up 10% compared to 6.6 million pounds in Fiscal 2019.
Total mining cost and cash mining cost per tonne at the Ying Mining District in Fiscal 2020 were $90.61
and $63.00 per tonne, respectiv ely, compared to $88.19 and $63.39 per tonne, respectively, in Fiscal
2019. Total milling cost and cash milling cost per tonne at the Ying Mining District in Fiscal 2020 were
$12.03 and $10.16, down by 4% and 3% , respectively, compared to $12.58 and $10.43 , respectively, in
Fiscal 2019.
Correspondingly, the cash production cost per tonne of ore processed at the Ying Mining District in Fiscal
2020 was $77.08, down 1% compared to $78.04 in Fiscal 2019. The all -in sustaining cost per tonne of ore
Ying Mining District Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019
March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 2020 2019
Ore Mined (tonne) 69,379 176,149 176,085 176,584 111,032 598,197 622,576
Ore Milled (tonne) 69,188 175,488 179,248 177,681 107,039 601,605 619,851
Head Grades
Silver (gram/tonne) 297 296 306 330 324 309 311
Lead (%) 4.6 4.6 4.5 4.6 4.5 4.6 4.4
Zinc (%) 1.0 0.9 0.8 0.9 0.9 0.9 0.9
Recoveries
Silver (%) 95.3 96.1 96.2 95.8 95.5 96.0 95.8
Lead (%) 95.7 96.3 95.7 95.9 96.1 95.9 95.7
Zinc (%) 67.7 70.3 58.6 58.3 63.7 63.2 54.1
Metal Sales
Silver (in thousands of ounce) 711 1,475 1,711 1,662 1,141 5,558 5,764
Gold (in thousands of ounce) 0.5 0.7 1.1 1.0 0.7 3.3 3.5
Lead (in thousands of pound) 8,322 14,912 16,389 14,835 10,310 54,459 56,138
Zinc (in thousands of pound) 865 2,882 1,428 2,090 2,464 7,264 6,626
Cash mining costs ($/tonne) 68.10 64.69 59.26 63.05 65.24 63.00 63.39
Shipping costs ($/tonne) 3.96 3.89 3.82 4.04 3.97 3.92 4.22
Cash milling costs ($/tonne) 11.53 10.99 9.81 9.15 12.57 10.16 10.43
Cash production costs ($/tonne) 83.59 79.57 72.89 76.24 81.78 77.08 78.04
All-in sustaining production costs ($/tonne) 195.78 126.43 117.37 129.14 141.63 132.52 126.93
Cash costs per ounce of silver ($) 0.30 (0.72) (1.95) (1.44) (3.02) (1.18) (3.35)
All-in sustaining costs per ounce of silver ($) 11.86 5.57 3.40 4.82 3.28 5.49 2.60
Year ended March 31,
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processed was $132.52, up 4%, compared to $126.93 in Fiscal 2019 . The increase was mainly due to an
increase of $2.9 million in sustaining capital expenditures.
Cash cost per ounce of silver, net of by -product credits, at the Ying Mining District in Fiscal 2020, was
negative $1.18 compared to negative $3.35 in Fiscal 2019. The increase was mainly due to a decrease of
$13.0 million in by-product credits.
All-in sustaining cost per ounce of silver, net of by -product credits, at the Ying Mining District in Fiscal
2020 was $5.49 compared to $2.60 in the prior year. The increase was mainly due to the increase in cash
cost per ounce of silver as discussed above and a n increase of $2.9 million in sustaining capital
expenditures.
In Fiscal 2020, approximately 85,643 metres or $2.5 million worth of underground diamond drilling (Fiscal
2019 – 75,955 metres or $1.8 million) and 19,088 metres or $5.7 million worth of prep aration tunnelling
(Fiscal 2019 – 18,656 metres or $5.4 million) were completed and expensed as mining preparation cost s
at the Ying Mining District. In addition, approximately 70,240 metres or $23.9 million worth of horizontal
tunnels, raises, ramps and declines (Fiscal 2019 – 65,653 metres or $23.2 million) were completed and
capitalized.
Q4 Fiscal 2020 vs. Q4 Fiscal 2019
In Q4 Fiscal 2020 , a total of 69,379 tonnes of ore were mined at the Ying Mining District, a decrease of
38% or 41,653 tonnes, compared to 111,032 tonnes in Q4 Fiscal 2019. Ore milled was 69,188 tonnes, a
decrease of 35% or 37,851 tonnes, compared to 107,039 tonnes in Q4 Fiscal 2019.
Average head grades of ore processed were 297 g/t for silver, 4.6% for lead, and 1.0% for zinc compared
to 324 g/t for silver, 4.5% for lead, and 0.9% for zinc in Q4 Fiscal 2019.
Metals sold were approximately 0.7 million ounces of silver, 500 ounces of gold, 8.3 million pounds of
lead, and 0.9 million pounds of zinc, compare d to 1.1 million ounces of silver, 700 ounces of gold, 10.3
million pounds of lead, and 2.5 million pounds of zinc in Q4 Fiscal 2019.
In Q4 Fiscal 2020, the cash mining cost at the Ying Mining District was $ 68.1 per tonne, up 4% compared
to $65.24 in Q4 Fiscal 2019. The cash milling cost was $11.53 per tonne, down 8% compared to $12.57 in
Q4 Fiscal 2019.
Correspondingly, the cash production cost per tonne of ore processed at the Ying Mining District in Q4
Fiscal 2020 was $83.59, up 2% compared to $81.78 in Q4 Fiscal 2019. The all -in sustaining cost per tonne
of ore processed was $195.78, up 38%, compared to $141.63 in Q4 Fiscal 2019 . The increase was mainly
due to lower production output resulting in a higher per tonne fix ed cost allocation. The all-in sustaining
production cost at the Ying Mining District was $13.6 million, a decrease of $1.9 million, compared to
$15.4 million in Q4 Fiscal 2019.
In Q4 Fiscal 2020, the cash cost per ounce of silver and all in sustaining cos t per ounce of silver, net of by -
product credits, at the Ying Mining District were $0.30 and $11.86, respectively , compared to negative
$3.02 and $3.28 in Q4 Fiscal 2019.
In Q4 Fiscal 2020, approximately 12,412 metres or $0.4 million worth of underground diamond drilling
(Q4 Fiscal 2019 – 6,083 metres or $0.3 million) and 1,810 metres or $0.6 million worth of preparation
tunnelling (Q4 Fiscal 2019 – 3,061 metres or $1.0 million) were completed and expensed as mining
preparation costs at the Ying Mining Dis trict. In addition, approximately 7,979 metres or $2.9 million
worth of horizontal tunnels, raises, ramps, and declines (Q4 Fiscal 2019 – 10,730 metres or $4.0 million)
were completed and capitalized.
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4. GC Mine, Guangdong Province, China
Fiscal 2020 vs. Fiscal 2019
In Fiscal 2020, the total ore mined at the GC Mine was 287,633 tonnes, an increase of 1% or 3,415 tonnes,
compared to 284,218 tonnes in Fiscal 2019, while ore milled was 290,610 tonnes, an increase of 1% or
1,615 tonnes, compared to 288,995 tonnes in Fiscal 2019.
Average head grades of ore processed at the GC Mine were 97 g/t for silver, 1.9% for lead, and 3.3% for
zinc, compared to 86 g/t for silver, 1.5% for lead, and 3.0% for zinc in the prior year. Recovery rates for
ore processed at the GC Mine were 77.4% for silver, 89.3% for lead, and 86.0% for zinc, compared to
78.4% for silver, 90.4% for lead, and 84.9% for zinc in Fiscal 2019.
In Fiscal 2020, the GC Mine sold 699,000 ounces of silver, 10.9 million pounds of lead, and 18.1 million
pounds of zinc, up 12%, 26%, and 13%, respectively, compared to 626,000 ounces of silver, 8.7 million
pounds of lead, and 16.1 million pounds of zinc in Fiscal 2019.
Total mining cost and cash mining cost at the GC Mine in Fiscal 2020 were $46.40 and $38.06 per tonne,
respectively, a slight increase of 1% compared to $46.04 and $37.73 per tonne, respectively, in Fiscal
2019. Total milling cost and cash milling cost per tonne at the GC Mine were $15.52 and $13.85,
respectively, down 9% and 4%, compared to $17.01 and $14.39, respectively, in Fiscal 2019.
Correspondingly, the cash production cost per tonne of ore processed at the GC Mine in Fiscal 2020 was
$51.91, a slight decrease compared to $52.12 in Fiscal 2019. All-in sustaining production cost per tonne of
ore processed was $69.57, up 9%, compared to $63.59 in Fiscal 2019 . The increase was mainly due to an
increase of $1.3 million in sustaining capital expenditures.
Cash cost per ounce of silver, net of by -product credits, at the GC Mine, was negative $7.65 compared to
negative $12.97 in the prior year. The increase was mainly due to a decrease of $2.9 million in by-product
credits resulting from a de crease of 18% and 33%, respectively, in the net realized selling prices for lead
and zinc, offset by an increase of 26% and 13%, respectively, in lead and zinc sold.
All-in sustaining cost per ounce of silver, net of by -product credits, at the GC Mine in Fiscal 2020 was
$0.77 compared to negative $6.28 in the prior year. The increase was mainly due to i) the increase in cash
cost per ounce of silver as discussed above, ii) an increase of $0.8 million in general and administrative
expenses, and iii) an increase of $1.3 million in sustaining capital expenditures.
In Fiscal 2020, approximately 22,513 metres or $1.0 million worth of underground diamond drilling (Fiscal
2019 – 24,727 metres or $1.3 million) and 19,315 metres or $4.6 million worth of tunnell ing (Fiscal 2019 –
19,844 metres or $5.2 million) were completed and expensed as mining preparation costs at the GC Mine.
In addition, approximately 3,327 metres or $2.4 million of horizontal tunnels, raises, ramps, and declines
(Fiscal 2019 – 1,374 metres or $1.0 million) were completed and capitalized.
GC Mine Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019
March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 2020 2019
Ore Mined (tonne) 37,216 86,437 83,172 80,808 50,368 287,633 284,218
Ore Milled (tonne) 33,243 89,372 86,134 81,861 52,865 290,610 288,995
Head Grades
Silver (gram/tonne) 94 96 100 95 101 97 86
Lead (%) 1.8 2.0 2.0 1.9 1.8 1.9 1.5
Zinc (%) 3.5 3.3 3.2 3.4 3.3 3.3 3.0
Recovery Rates
Silver (%) 80.7 78.0 75.9 76.8 81.3 77.4 78.4
Lead (%) 90.4 90.4 88.3 88.7 91.5 89.3 90.4
Zinc (%) 87.7 85.5 86.1 85.7 85.7 86.0 84.9
Metal Sales
Silver (in thousands of ounce) 89 234 183 193 173 699 626
Lead (in thousands of pound) 1,332 3,867 2,680 3,007 2,360 10,885 8,650
Zinc (in thousands of pound) 2,194 5,471 5,227 5,244 4,874 18,137 16,090
Cash mining cost ($/tonne) 25.58 42.96 37.80 38.83 40.58 38.06 37.73
Cash milling cost ($/tonne) 16.36 14.01 12.72 13.85 18.52 13.85 14.39
Cash production cost ($/tonne) 41.94 56.97 50.52 52.68 59.10 51.91 52.12
All-in sustaining production costs ($/tonne) 88.18 71.03 62.94 67.33 72.11 69.33 63.59
Cash cost per ounce of silver ($) (10.03) (4.33) (9.98) (8.38) (10.23) (7.65) (12.97)
All-in sustaining cost per ounce of silver ($) 8.31 2.18 (2.89) (0.96) (4.97) 0.77 (6.28)
Year ended March 31,
8
Q4 Fiscal 2020 vs. Q4 Fiscal 2019
In Q4 Fiscal 2020, a total of 37,216 tonnes of ore were mined and 33,243 tonnes were milled at the GC
Mine, down 26% and 37%, respectively, compared to 50,368 tonnes mined and 52,865 tonnes milled in
Q4 Fiscal 2019.
Average head grades of ore milled were 94 g/t for silver, 1.8% for lead, and 3.5% for zinc compared to 101
g/t for silver, 1.8% for lead, and 3.3% for zinc in Q4 Fiscal 2019.
Metals sold were approximatel y 89,000 ounces of silver, 1.3 million pounds of lead, and 2.2 million
pounds of zinc, down 49%, 44%, and 55%, respectively, compared to 173,000 ounces of silver, 2.4 million
pounds of lead, and 4.9 million pounds of zinc in Q4 Fiscal 2019.
The cash mining cost at the GC Mine was $25.58 per tonne, down 37% compared to $40.58 per tonne in
Q4 Fiscal 2019. The decrease was mainly due to the decrease in tunneling expensed as mining preparation
costs. The cash milling cost was $16.36 per tonne, down 12% compa red to $18.52 in Q4 Fiscal
2019. Correspondingly, the cash production cost per tonne decreased by 29% to $41.94 from $59.10 in
Q4 Fiscal 2019, while the all -in sustaining production cost per tonne of ore processed increased by 22% to
$88.18 from $72.11 i n Q4 Fiscal 2019. The increase in all -in sustaining production cost was mainly due to
less production output resulting in a higher per tonne fixed cost allocation.
Cash cost per ounce of silver and all -in sustaining cost per ounce of silver, net of by‐p roduct credits, at the
GC Mine in Q4 Fiscal 2020, were negative $10.03 and $8.31, respectively, compared to negative $10.23
and negative $4.97 in Q4 Fiscal 2019. The increase was mainly due to i) a decrease of $3.5 million in by -
product credits, ii) an inc rease of $0.5 million in general and administrative expenses, and iii) an increase
of $0.6 million in sustaining capital expenditures.
In Q4 Fiscal 2020, approximately 2,200 metres or $0.1 million worth of underground diamond drilling (Q4
Fiscal 2019 – 2,864 metres or $0.3 million) and 353 metres or $0.1 million of tunnelling (Q4 Fiscal 2019 –
3,366 metres or $0.9 million) were completed and expensed as mining preparation costs at the GC Mine.
In addition, approximately 1,851 metres or $1.4 million of horizontal tunnels, raise, and declines (Q4 Fiscal
2019 – 262 metres or $0.2 million) were completed and capitalized.
Mr. Guoliang Ma, P.Geo., Manager of Exploration and Resource s 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.
This earnings release should be read in conjunction with the Company's Management Discussion &
Analysis, Financial Statements and Notes to Financial Statements for the corresponding period, which have
been posted on SEDAR under the Company’s profile at www.sedar.com and are also available on the
Company's website at www.silvercorp.ca.
About Silvercorp
Silvercorp is a profitable Canadian mining company producing silver, lead and zinc metals in concentrates
from mines in China. The Company’s goal is to continuously create healthy returns to shareholders
through efficient management, organic growth and the acquisition of profitable projects. Silvercorp
balances profitability, social and environmental relationships, employees’ wellbeing, and sustainable
development. 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