Silvercorp Reports Net Income of $46.4 Million, $0.27 per Share, and Cash Flow From Operations of $85.9 Million for Fiscal 2021
Silvercorp Reports Net Income of $46.4 Million, $0.27 per Share, and Cash
Flow From Operations of $85.9 Million for Fiscal 2021
Trading Symbol:
TSX:
SVM
NYSE AMERICAN: SVM
VANCOUVER, BC
,
May 20, 2021
/CNW/ -
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, 2021
("Fiscal 2021). All amounts are expressed in US Dollars, and figures may not
add due to rounding.
FISCAL YEAR 2021 HIGHLIGHTS
Mined 964,925 tonnes of ore and milled 967,581 tonnes of ore, up 9% and 8%, respectively, compared to the prior year, with silver and lead production
meeting the production guidance and zinc production beating the production guidance;
Sold approximately 6.3 million ounces of silver, 4,700 ounces of gold, 67.1 million pounds of lead, and 27.9 million pounds of zinc, up 1%, 42%, 3%, and
10%, respectively, compared to the prior year;
Revenue of
$192.1 million
, up 21% or
$33.3 million
compared to
$158.8 million
in the prior year;
Net income attributable to equity shareholders of
$46.4 million
, or
$0.27
per share, up 35% compared to
$34.3 million
, or
$0.20
per share in the prior year;
Cash cost per ounce of silver, net of by-product credits, of negative
$1.80
compared to negative
$1.91
in the prior year;
All-in sustaining cost per ounce of silver, net of by-product credits, of
$7.49
, compared to
$6.86
in the prior year;
Cash flow from operations of
$85.9 million
, up 11% or
$8.7 million
compared to
$77.2 million
in the prior year;
Received
$6.5 million
(
CAD$9.0 million
) break fee from Guyana Goldfields Inc. ("Guyana Goldfields") and realized a gain of
$15.4 million
on disposal of the
shares of Guyana Goldfields;
Paid
$4.4 million
of dividends to the Company's shareholders;
Invested
$5.8 million
in a private placement of New Pacific Metals Corp. ("NUAG") to maintain the Company's ownership interest;
Acquired a 26.99% interest in Whitehorse Gold Corp. ("WHG"), having a fair market value of
$15.1 million
as at
March 31, 2021
, as a result of (a) receiving
5,740,285 WHG common shares under a spin-out transaction completed by NUAG, and (b) subscribing for 5,774,000 WHG common shares at total cost of
$1.3 million
under a private placement;
Won an online auction to acquire the exploration rights to the Zhonghe Silver Project from the
Henan
provincial government of
China
, with the mineral rights
transfer contract pending the national security clearance by the related authorities;
Acquired a 43.8% interest in the La Yesca Silver Project in
Mexico
through a new corporate structure, New Infini Silver Inc. for approximately
$9.1 million
;
and
Strong balance sheet with
$199.1 million
in cash and cash equivalents and short-term investments, an increase of
$56.6 million
or 40% compared to
$142.5
million
as at
March 31, 2020
. This does not include
$212.1 million
in total market value of investments in associates and equity investments in other
companies as at
March 31, 2021
.
HIGHLIGHTS FOR Q4 FISCAL 2021
Mined 163,072 tonnes of ore and milled 180,674 tonnes of ore, up 53% and 76%, respectively, compared to the prior year quarter;
Sold approximately 1.1 million ounces of silver, 700 ounces of gold, 10.9 million pounds of lead, and 4.6 million pounds of zinc, up 32%, 40%, 13%, and 50%
respectively, compared to approximately 0.8 million ounces of silver, 500 ounces of gold, 9.7 million pounds of lead, and 3.1 million pounds of zinc in the prior
year quarter;
Revenue of
$35.7 million
, up 89% or
$16.8 million
compared to
$18.9 million
in the prior year quarter;
Net income attributable to equity shareholders of
$7.0 million
, or
$0.04
per share, compared to
$3.2 million
or
$0.02
per share, in the prior year quarter;
Cash cost per ounce of silver, net of by-product credits, of negative
$0.39
compared to negative
$0.85
in the prior year quarter;
All-in sustaining cost per ounce of silver, net of by-product credits, of
$12.55
, compared to
$15.17
in the prior year quarter; and
Cash flow from operations of
$2.2 million
, compared to
$6.3 million
in the prior year quarter. The decrease was mainly due to
$9.4 million
use of cash from
working capital changes. Before changes in non-cash working capital, cash flows provided by operating activities in the current quarter were
$11.9 million
, up
$2.7 million
compared to
$9.2 million
in Q4 Fiscal 2020.
CONSOLIDATED FINANCIAL RESULTS
Three months ended March 31,
Year ended March 31,
2021
2020
Changes
2021
2020
Changes
Financial
Revenue (in thousands of $)
$
35,732
$
18,859
89%
$
192,105
$
158,829
21%
Mine operating earnings (in thousands of $)
13,404
3,204
318%
84,162
59,374
42%
Net earnings attributable to equity shareholders
7,021
3,163
122%
46,376
34,274
35%
Earning per share - basic ($/share)
0.04
0.02
100%
0.27
0.20
35%
Net cash generated from operating activities (in thousands of $)
2,231
6,278
-64%
85,912
77,246
11%
Capitalized expenditures (in thousands of $)
10,115
3,917
158%
45,556
33,671
35%
Cash and cash equivalents and short-term investments (in thousands of $)
199,092
142,519
40%
199,092
142,519
40%
Working capital (in thousands of $)
184,013
130,351
41%
184,013
130,351
41%
Metals sold
Silver (in thousands of ounces)
1,056
800
32%
6,315
6,257
1%
Gold (in thousands of ounces)
0.7
0.5
40%
4.7
3.3
42%
Lead (in thousands of pounds)
10,876
9,654
13%
67,118
65,344
3%
Zinc (in thousands of pounds)
4,580
3,059
50%
27,914
25,401
10%
Average Selling Price, Net of Value Added Tax and Smelter Charges
Silver ($/ounce)
20.11
12.29
64%
17.61
13.56
30%
Gold ($/ounce)
1,437
1,250
15%
1,430
1,185
21%
Lead ($/pound)
0.81
0.67
21%
0.75
0.80
-6%
Zinc ($/pound)
0.98
0.51
92%
0.78
0.62
26%
1.
Fiscal 2021 Financial Results
Net income attributable to equity shareholders of the Company
in Fiscal 2021 was
$46.4 million
or
$0
.27 per share, up 35% or
$12.1 million
, compared to
$34.3 million
or
$0
.20 per share in Fiscal 2020.
In Fiscal 2021, the Company's consolidated financial results were mainly impacted by i) an increase of 1%, 42%, 3%, and 10%, respectively, in silver, gold, lead
and zinc sold; ii) an increase of 30%, 21%, and 26%, respectively, in the realized selling prices for silver, gold and zinc; iii) a
$7.7 million
gain on equity investment;
offset by iv) a decrease of 6% in the realized selling price for lead, and v) a
$7.7 million
foreign exchange loss.
Revenue
in Fiscal 2021 was
$192.1 million
, up 21% or
$33.3
million compared to
$158.8 million
in Fiscal 2020. The increase was mainly due to i) an increase of
$5.9 million
arising from the increase in the quantities of metal sold; ii) an increase of
$30.2 million
arising from the increase in the realized selling price for silver,
gold, and zinc; offset by iii) a decrease of
$2.8 million
arising from the decrease in the realized selling price for lead. Revenues from silver, gold, and base metals
were
$111.2 million
, 6.7 million, and
$74.2 million
, respectively, up 31%, 72%, and 6%, respectively, compared to
$84.9 million
,
$3.9 million
, and
$70.0 million
in
Fiscal 2020. Revenue from the Ying Mining District was
$157.3 million
, up 20% compared to
$131.4 million
in Fiscal 2020. Revenue from the GC Mine was
$33.3
million
, up 21% compared to
$27.4 million
in Fiscal 2020.
Income from mine operations
in Fiscal 2021 was
$84.2 million
, up 42% compared to
$59.4 million
in Fiscal 2020. Income from mine operations at the Ying
Mining District was
$74.2 million
, up 37% compared to
$54.1 million
in Fiscal 2020. Income from mine operations at the GC Mine was
$9.8 million
, up 72%
compared to
$5.7 million
in Fiscal 2020.
Cash flow provided by operating activities
in Fiscal 2021 was
$85.9 million
, up 11% compared to
$77.2 million
in Fiscal 2020.
The Company ended the fiscal year with
$199.1 million
in cash, cash equivalents and short-term investments, up 40% or
$56.6 million
, compared to
$142.5 million
as at
March 31, 2020
.
Working capital as at
March 31, 2021
was
$184.0 million
, up 41% or
$53.6 million
, compared to
$130.4 million
as at
March 31, 2020
.
2.
Q4 Fiscal 2021 Financial Results
Net income attributable to equity shareholders
of the Company in Q4 Fiscal 2021 was
$7.0 million
, or
$0.04
per share, up 122% or
$3.9 million
, compared to
$3.2 million
, or
$0.02
per share in the three months ended
March 31, 2020
("Q4 Fiscal 2020").
Compared to the prior year quarter, the Company's consolidated financial results in Q4 Fiscal 2021 were mainly impacted by the following: i) an increase of 32%,
40%, 13%, and 50%, respectively, in silver, gold, lead and zinc sold; ii) an increase of 64%, 15%, 21%, and 92%, respectively, in the realized selling prices for
silver, gold, lead, and zinc; offset by iii) a
$0.8 million
foreign exchange loss, and iv) a
$1.1 million
loss on equity investments.
Revenue
in Q4 Fiscal 2021 was
$35.7 million
, up 89% or
$16.8 million
, compared to
$18.9 million
in Q4 Fiscal 2020. The increase was mainly due to i) an
increase of
$7.7 million
arising from the increase in the quantities of metal sold; and ii) an increase of
$9.1 million
arising from the increase in the realized selling
prices. Revenue from silver, gold, and base metals was
$21.2 million
, 1.0 million, and
$13.5 million
, respectively, up 116%, 61%, and 61%, respectively,
compared to
$9.8 million
,
$0.6 million
, and
$8.4 million
in Q4 Fiscal 2020. Revenue from the Ying Mining District was
$29.5 million
, up 88% compared to
$15.7
million
in Q4 Fiscal 2020. Revenue from the GC Mine was
$6.3 million
, up 97% compared to
$3.2 million
in Fiscal 2020.
Income from mine operations
in Q4 Fiscal 2021 was
$13.4 million
, up 319% compared to
$3.2
million in Q4 Fiscal 2020. Income from mine operations at the
Ying Mining District was
$11.8 million
, compared to
$3.0
million in Q4 Fiscal 2020. Income from mine operations at the GC Mine was
$1.6 million
, compared to
$0.2 million
in Q4 Fiscal 2020.
Cash flows provided by operating activities
in Q4 Fiscal 2021 were
$2.2 million
, compared to
$6.3 million
in Q4 Fiscal 2020. The decrease was mainly due to
$9.4 million
use of cash from working capital changes. Before changes in non-cash working capital, cash flows provided by operating activities in the current
quarter were
$11.9 million
, up
$2.7 million
compared to
$9.2 million
in Q4 Fiscal 2020.
CONSOLIDATED
OPERATIONAL RESULTS
Three months ended March 31,
Year ended March 31,
2021
2020
Changes
2021
2020
Changes
Ore Production (tonne)
Ore mined
163,072
106,595
53%
964,925
885,830
9%
Ore milled
180,674
102,431
76%
967,581
892,215
8%
Metal Production
Silver (in thousands of ounces)
1,195
696
72%
6,330
6,291
1%
Gold (in thousands of ounces)
0.3
0.2
50%
3.5
3.3
6%
Lead (in thousands of pounds)
12,156
7,772
56%
68,430
67,373
2%
Zinc (in thousands of pounds)
4,672
3,276
43%
28,012
25,581
10%
Cash Costs
Cash cost per ounce of Silver, net of by-product credits
($)
(0.39)
(0.85)
54%
(1.80)
(1.91)
6%
All-in sustaining cost per ounce of silver, net of by-product credits
($)
12.55
15.17
-17%
7.49
6.86
9%
Cash production cost per tonne of ore processed ($)
85.70
68.93
24%
72.71
68.91
6%
All-in sustaining cost per tonne of ore processed ($)
156.36
188.57
-17%
128.20
125.29
2%
1.
Fiscal 2021 Operational Results
In Fiscal 2021, on a consolidated basis, the Company mined 964,925 tonnes of ore, up 9% or 79,095 tonnes, compared to 885,830 tonnes in Fiscal 2020. Ore
milled in Fiscal 2021 was 967,581 tonnes, up 8% or 75,367 tonnes, compared to 892,215 tonnes in Fiscal 2020.
The Company produced approximately 6.3 million ounces of silver, 3,500 ounces of gold, 68.4 million pounds of lead, and 28.0 million pounds of zinc, up 1%, 6%,
2%, and 10%, respectively, compared to 6.3 million ounces of silver, 3,300 ounces of gold, 67.4 million pounds of lead, and 25.6 million pounds of zinc in Fiscal
2020.
In Fiscal 2021, the consolidated cash production cost per tonne of ore processed in Fiscal 2021 was
$72.71
, up 6% compared to
$68.91
in Fiscal 2020, in line
with the Company's annual guidance. The consolidated all-in sustaining production cost per tonne of ore processed was
$128.20
, an increase of 2% compared to
$125.29
in Fiscal 2020, also in line with the Company's annual guidance.
The consolidated cash cost per ounce of silver, net of by-product credits, was negative
$1.80
, compared to negative
$1.91
in the prior year. The increase was
mainly due to an increase of 6% in cash production cost per tonne of ore processed, offset by an increase of
$0.99
in by-product credits per ounce of silver.
Sales from lead and zinc in Fiscal 2021 amounted to
$72.3 million
, up 7% or
$4.6 million
, compared to
$67.7 million
in Fiscal 2020.
The consolidated all-in sustaining cost per ounce of silver, net of by-product credits, was
$7.49
, compared to
$6.86
in Fiscal 2020. The increase was mainly due
to an increase of 2% in all-in sustaining production cost per tonne of ore processed, offset by an increase of
$0.99
in by-product credits per ounce of silver.
In Fiscal 2021, on a consolidated basis, a total of 254,900 metres or
$8.7 million
worth of diamond drilling were completed (Fiscal 2020 – 108,156 metres or
$3.5
million
), of which approximately 196,320 metres or
$5.0 million
worth of underground drilling were expensed as part of mining costs (Fiscal 2020 – 108,156
metres or
$3.5 million
) and approximately 58,580 metres or
$3.7 million
worth of surface drilling were capitalized (Fiscal 2020 – nil). Mining preparation
tunnelling of 34,637 metres that costed
$8.9
million was completed and expensed as part of mining costs (Fiscal 2020 –
38,403 m
or
$10.3 million
), and 85,221
metres or
$31.5 million
worth of tunnels, raises, ramps and declines (Fiscal 2020 – 73,567 metres or
$26.3 million
) were completed and capitalized.
2.
Q4 Fiscal 2021 Operational Results
In Q4 Fiscal 2021, the Company mined 163,072 tonnes of ore, up 53% or 56,477 tonnes, compared to 106,595 tonnes in Q4 Fiscal 2020. Ore milled in Q4 Fiscal
2021 was 180,674 tonnes, up 76% or 78,243 tonnes, compared to 102,431 tonnes in Q4 Fiscal 2020. The increase was mainly due to an extra month's
operational shutdown due to COVID-19 in Q4 Fiscal 2020.
The Company produced approximately 1.2 million ounces of silver, 300 ounces of gold, 12.2 million pounds of lead, and 4.7 million pounds of zinc, up 72%, 50%,
56%, and 43%, respectively, compared to approximately 0.7 million ounces of silver, 200 ounces of gold, 7.8 million pounds of lead, and 3.3 million pounds of zinc
in Q4 Fiscal 2020.
In Q4 Fiscal 2021, the consolidated cash production cost per tonne of ore processed was
$85.70
, up 24% compared to
$68.93
in Q4 Fiscal 2020. The increase
was mainly due to certain fixed overhead costs related to mining operations expensed directly as mine general and administrative expense during the extra month
operational shut-down in Q4 Fiscal 2020. The consolidated all-in sustaining production cost per tonne was
$156.36
, down 17% compared to
$188.57
in Q4 Fiscal
2020.The decrease was mainly due to higher production resulting in lower per tonne fixed costs allocation.
In Q4 Fiscal 2021, the consolidated cash cost per ounce of silver, net of by-product credits, was negative
$0.39
, compared to negative
$0.85
in Q4 Fiscal 2020.
The increase was mainly due to the increase in per tonne cash production cost as discussed above, offset by an increase of
$2.44
in by-product credits per ounce
of silver.
In Q4 Fiscal 2021, the consolidated all-in sustaining cost per ounce of silver, net of by-product credits, was
$12.55
, compared to
$15.17
in Q4 Fiscal 2020. The
decrease was mainly due to the decrease in per tonne all-in sustaining production cost as discussed above and an increase of
$0.18
in all-in sustaining costs per
ounce of silver.
In Q4 Fiscal 2021, on a consolidated basis, a total of 49,459 metres or
$1.6 million
worth of diamond drilling were completed (Q4 Fiscal 2020 – 14,612 metres or
$0.5 million
), of which approximately 41,572 metres or
$0.8 million
worth of underground drilling were expensed as part of mining costs (Q4 Fiscal 2020 – 14,612
metres or
$0.5 million
), and approximately 7,887 metres or
$0.8 million
worth of surface drilling) were capitalized (Q4 Fiscal 2020 – nil. Mining preparation
tunnelling of 7,015 metres that costed
$1.5 million
was completed and expensed as part of mining costs (Q4 Fiscal 2020 – 2,163 metres or
$0.7 million
), and
10,803 metres or
$4.7 million
worth of tunnels, raises, ramps and declines were completed and capitalized (Q4 Fiscal 2020 – 9,830 metres or
$4.3 million
).
INDIVIDUAL MINE OPERATING PERFORMANCE
Ying Mining District
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Year ended Mar 31,
March 31, 2021
December 31, 2020
September 30, 2020
June 30, 2020
March 31, 2020
2021
2020
Ore Production (tonne)
Ore mined
112,561
182,268
181,020
174,176
69,379
650,025
598,197
Ore milled
131,725
162,905
179,083
177,689
69,188
651,402
601,605
Head grades
Silver (gram/tonne)
280
297
288
293
297
290
309
Lead (%)
3.9
4.3
4.4
4.6
4.6
4.3
4.6
Zinc (%)
0.8
0.8
0.7
0.8
1.0
0.8
0.9
Recovery rates
Silver (%)
93.7
93.9
94.4
94.7
95.3
94.2
96.0
Lead (%)
95.1
96.4
96.1
96.2
95.7
96.0
95.9
Zinc (%)
65.0
63.3
57.9
63.8
67.7
62.4
63.2
Cash Costs
Cash cost per ounce of Silver, net of by-product credits
($)
1.20
(1.12)
(0.14)
(0.87)
0.30
(0.39)
(1.18)
All-in sustaining cost per ounce of silver, net of by-product credits
($)
10.00
5.24
6.63
4.14
11.86
6.09
5.49
Cash production cost per tonne of ore processed ($)
98.13
83.09
80.06
76.21
83.59
83.01
77.08
All-in sustaining cost per tonne of ore processed ($)
155.14
133.07
132.36
116.99
195.78
132.54
132.52
Metal Production
Silver (in thousands of ounces)
1,083
1,464
1,525
1,544
614
5,615
5,592
Gold (in thousands of ounces)
0.3
0.9
1.1
1.2
0.2
3.5
3.3
Lead (in thousands of pounds)
10,504
14,361
16,080
16,941
6,573
57,886
56,436
Zinc (in thousands of pounds)
1,496
1,857
1,643
1,920
999
6,916
7,337
In Fiscal 2021, a total of 208,904 metres or
$6.9 million
worth of diamond drilling (Fiscal 2020 – 85,643 metres or
$2.5 million
) were completed at the Ying Mining
District, of which a total of 150,324 metres or
$3.2 million
worth of underground diamond drilling (Fiscal 2020 – 85,643 or
$2.5 million
) were expensed as part of
mining costs and a total of 58,580 metres or
$3.7 million
worth of surface drilling (Fiscal 2020 – nil) were capitalized. In addition, mining preparation tunnelling of
22,918 metres that costed
$6.7 million
were completed and expensed as mining preparation costs (Fiscal 2020 – 19,088 metres or
$5.7 million
), and
approximately 73,350 metres or
$27.4 million
worth of horizontal tunnels, raises, ramps and declines were completed and capitalized (Fiscal 2020 – 70,240
metres or
$23.9 million
).
GC Mine
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Year ended Mar 31,
March 31, 2021
December 31, 2020
September 30, 2020
June 30, 2020
March 31, 2020
2021
2020
Ore Production (tonne)
Ore mined
50,511
97,177
86,833
80,379
37,216
314,900
287,633
Ore milled
48,949
97,743
84,850
84,637
33,243
316,179
290,610
Head grades
Silver (gram/tonne)
87
82
81
93
94
85
97
Lead (%)
1.7
1.4
1.8
1.9
1.8
1.7
1.9
Zinc (%)
3.3
3.5
3.4
3.4
3.5
3.4
3.3
Recovery rates
Silver (%)
81.9
82.6
82.5
82.8
80.7
82.5
77.4
Lead (%)
89.7
89.6
89.2
89.8
90.4
89.6
89.3
Zinc (%)
88.2
89.7
87.3
87.3
87.7
88.2
86.0
Cash Costs
Cash cost per ounce of Silver, net of by-product credits
($)
(12.80)
(14.43)
(12.70)
(6.59)
(10.03)
(11.48)
(7.65)
All-in sustaining cost per ounce of silver, net of by-product credits
($)
0.52
(1.05)
(1.78)
2.41
8.31
-
0.77
Cash production cost per tonne of ore processed ($)
58.56
54.07
48.47
47.08
41.94
51.44
51.91
All-in sustaining cost per tonne of ore processed ($)
87.69
78.63
69.07
65.84
88.18
74.09
69.33
Metal Production
Silver (in thousands of ounces)
112
212
182
209
82
716
699
Lead (in thousands of pounds)
1,652
2,750
3,006
3,136
1,199
10,544
10,937
Zinc (in thousands of pounds)
3,176
6,816
5,490
5,613
2,277
21,096
18,244
In Fiscal 2021, approximately 45,996 metres or
$1.8 million
worth of underground diamond drilling (Fiscal 2020 – 22,513 metres or
$1.0 million
) and 11,719
metres or
$2.2 million
worth of tunnelling (Fiscal 2020 – 19,315 metres or
$4.6 million
) were completed and expensed as mining preparation costs at the GC
Mine. In addition, approximately 11,871 metres or
$3.9 million
of horizontal tunnels, raises, ramps, and declines (Fiscal 2020 – 3,327 metres or
$2.4 million
) were
completed and capitalized.
U
PDATE ON MINING CONTRACTS RENEWAL AT THE YING MINING DISCTRICT
The Company updates that the Company has successfully negotiated and renewed contracts with all mining contractors at the Ying Mining District, except one
that worked at the LME mine. The renewed contracts with terms of two to three years represent an overall 14.5% increase compared to previous contracts,
reflecting i) increased social welfare contribution for the contractors' workers; ii) increased insurance coverage for contractors' workers; and iii) increases in the
prices per tonne ore mined and per meter of tunneling developed by contractors. Based on the renewed contracts and assuming the same work done in Fiscal
2021, the total annual increase is estimated at
$5.0 million
; however, this is expected to be offset by reduced tunneling going forward as recent drilling activities in
previously mining areas has defined resources that require minimal development.
The previous mining contractor at the LME mine was terminated as no agreement was able to reach. The Company has hired most of the previous workers to
work at the mine as internal contractors.
CONFERENCE CALL DETAILS
A conference call to discuss these results will be held tomorrow,
Friday, May 21
, 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 Toll: 416-764-8650
Conference ID: 57492576
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.
This earnings release should be read in conjunction with the Company's Management Discussion & Analysis ("MD&A"), 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
. This earnings release refers to various alternative performance (non-IFRS) measures, such as cash cost and
all-in sustaining cost per ounce of silver, net of by-product credits, cash production cost and all-in sustaining production cost per tonne of ore processed, and
working capital. These measures are widely used in the mining industry as a benchmark for performance, but do not have standardized meanings under IFRS
as an indicator of performance, and may differ from methods used by other companies with similar description. Accordingly, to facilitate a better understanding
of these measures as calculated by the Company, please refer to section 12 of the corresponding MD&A for detailed description and reconciliation.
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
.
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 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; 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 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 development programs; feasibility and engineering reports; permits and licences; title to properties;
property interests; joint venture partners; acquisition of commercially mineable mineral rights; financing; recent market events and conditions; economic factors
affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions
into the Company's existing operations; competition; operations and political conditions; regulatory environment in
China
and
Canada
; environmental risks; foreign
exchange rate fluctuations; insurance; risks and hazards of mining operations; key 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 limitation, those referred to in the Company's Annual
Information Form under the heading "Risk Factors". 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 obligation 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. For the reasons set forth
above, investors should not place undue reliance on forward-looking statements.
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SOURCE
Silvercorp Metals Inc
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%SEDAR: 00006210E
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
CO: Silvercorp Metals Inc
CNW 17:05e 20-MAY-21