Silvercorp Reports Q2 Results: Net Income of $11.1 Million, $0.07 PER Share
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NEWS RELEASE
Trading Symbol: TSX: SVM
NYSE AMERICAN: SVM
SILVERCORP REPORTS Q2 RESULTS: NET INCOME OF $11.1 MILLION, $0.07 PER SHARE
VANCOUVER, British Columbia – November 8 , 2017 – Silvercorp Metals Inc. (“Silvercorp” or the
“Company”) (TSX: SVM) (NYSE American: SVM) reported its financial and operating results for the second
quarter ended September 30, 2017. All amounts are expressed in US Dollars.
SECOND QUARTER HIGHLIGHTS
Net income attributable to equity shareholders of $1 1.1 million, or $0.07 per share, compared to net
income attributable to equity shareholders of $12.4 million, or $0.07 per share in the prior year
quarter;
Gross margin of 54% compared with 56% in the prior year quarter;
Sales of $47.5 million, up 3% compared to $46.3 million in the prior year quarter;
Silver, lead, and zinc metals sold amounted to approximately 1.6 million ounces silver, 16.9 million
pounds lead, and 5.6 million pounds zinc, compared to 1.8 million ounces silver, 19.9 million pounds
lead, and 5.9 million pounds zinc in the prior year quarter;
Head grades were 294 grams per ton ne (“g/t”) for silver, 4.3% for lead, and 0.8% for zinc at the Ying
Mining District , compared to 302 g/t for silver, 4.9% for lead and 1.1% for zinc in the prior year
quarter;
Total and cash mining costs per tonne ore 1 of $70.58 and $52.77, respectively, compared to $64.67
and $43.09 in the prior year quarter;
Cash cost per ounce of silver 1, net of by -product credits, of negative $5.16, compared to negative
$3.05 in the prior year quarter;
All-in sustaining cost per ounce of silver 1, net of by -product credits, of $2.26, compared to $3.1 5 in
the prior year quarter;
Increased ownership in New Pacific Metals Corp. (“NUAG”) from 16.1% to 31.8% for $20.0 million;
and,
Ended the quarter with $98.6 million in cash and cash equivalents and short -term investments, an
increase of $2.2 million or 2% compared to $96.5 million as at March 31, 2017.
FINANCIALS
Net income attributable to equity shareholders of the Company in Q2 Fiscal 2018 was $11.1 million, or
$0.07 per share, compared to $12.4 million, or $0.07 per share in Q2 Fiscal 2017.
The Company’s financial results in Q2 Fiscal 2018 were mainly impacted by the following: i) an increase of
48% and 58% in the realized selling prices for lead and zinc, compared to the prior year quarter, ii) a 7%
1 Non IFRS measure, see section 10 of the corresponding management’s discussion and analysis for reconciliation
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decrease in the realized selling price for silver, iii) less metals sold; iv) higher per tonne production costs,
and iv) a $1.1 million foreign exchange loss recorded in the current quarter.
Sales in Q2 Fiscal 2018 were $47.5 million, up 3% compared to $46.3 million in the same quarter last year.
Silver and gold sales represented $22.6 million and $0.9 million, respectively, while base metals
represented $24.1 million of total sales, compared to silver, gold and base metals sales of $27.0 million,
$1.1 million, and $18.2 million, respectively, in the prior year quarter.
Cost of sales in Q2 Fiscal 2018 was $21.9 million compared to $20.5 million in Q2 Fiscal 2017. The cost of
sales included $16.2 million (Q2 Fiscal 2017 - $13.8 million) cash production costs, $1.3 million mineral
resources tax (Q2 Fiscal 2017 - $1.0 million), and $4.4 million (Q2 Fiscal 2017 - $5.7 million) depreciation
and amortization charges. The increase of cash production costs was mainly due to higher per tonne cash
production costs recorded in current quarter while the increase of mineral resources tax was due to
higher sales achieved in Q2 Fiscal 2018.
Gross profit margin in Q2 Fiscal 2018 was 54%, compared to 56% in Q2 Fiscal 2017 . Ying Mining District’s
gross margin was 56% compared to a 61% gross profit margin in the prior year quarter . GC Mine’s profit
margin was 40% compared to a 38% gross profit margin in the prior year quarter.
General and administrative expenses in Q 2 Fiscal 2018 were $4 .5 million, an increase of 8% or $0. 4
million, compared to $4.1 million in Q2 Fiscal 2017.
Income tax expenses in Q2 Fiscal 2018 were $5.3 million compared to $5.9 million in Q2 Fiscal 2017. The
income tax expense recorded in Q2 Fiscal 2017 included current income tax expense of $4.5 million (Q2
Fiscal 2016 – $4.9 million) and deferred income tax expense of $0.7 million (Q2 Fiscal 2016 – $1.0 million).
Cash flows provided by operating activities in Q2 Fiscal 2018 were $20.7 million, compared to $27.0
million in the prior year quarter. Before changes in non -cash operating working capital, cash flows
provided by o perating activities in Q2 Fiscal 2018 were $21.7 million, a decrease of $3.2 million or 13%,
compared to $24.9 million in the prior year quarter. Free cash flow in Q2 Fiscal 2018 was $14.2 million,
compared to $20.6 million in the prior year quarter.
For t he six months ended September 30, 2017, net income attributable to the shareholders of the
Company was $22.1 million or $0.13 per share, up 23% compared to $17.1 million or $0.10 per share in
the same prior year period; sales were $87.2 million, up 7% from $81.6 million in the same prior year
period; and cash flow from operating activities and free cash flow were $37.6 million and $23.9 million,
respectively, compared to $47.2 million and $33.4 million in the same prior year period .
Working capital as at September 30, 2017 was $ 77.6 million, an increase of $ 6.9 million or 10%,
compared to $70.7 million working capital as at March 31, 2017.
OPERATIONS AND DEVELOPMENT
In Q2 Fiscal 2018, the Company’s production was affected by power downtime due to power grid
upgrading works, government inspections and explosive supply limitations brought in as a public safety
measure by local governments in advance of the 19 th National Congress of the Communist Party of China
(“CPC”), and the typhoon conditions in South China. On a consolidated basis, the Company mined 239,106
tonnes of ore in Q2 Fiscal 2018 , a decrease of 6% or 14,780 tonnes compared to 253,886 tonnes in Q2
Fiscal 2017. Ore mined at the Ying Mining District decreased by 3% or 5,900 tonnes, and ore mined at the
GC Mine decreased by 12% or 8,880 tonnes.
In Q2 Fiscal 2018, the Company sold approximately 1.6 million ounces of silver, 800 ounces of gold, 16.9
million pounds of lead, and 5.6 million pounds of zinc, compared to 1.8 million ounces of silve r, 1,000
ounces of gold, 19.9 million pounds of lead, and 5.9 million pounds of zinc, respectively, in Q2 Fiscal 2017.
The decrease of metals sold was mainly due to less production and lower head grade achieved at the Ying
Mining District.
In Q2 Fiscal 2 018, the consolidated total mining costs and cash mining costs were $70.58 and $52.77 per
tonne, compared to $64.67 and $43.09 per tonne, respectively, in Q2 Fiscal 2017. The increase in cash
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mining costs were mainly due to i) $0.6 million increase in raw material costs mainly arising from the
increasing prices in copper and steel related material, such as cable, rail and ground support products, ii)
$1.0 million increase in mining preparation costs resulting from more underground drilling and tunnelling
expensed in the current quarter, and iii) lower production output resulting in higher per tonne overhead
costs allocation.
The consolidated total production costs and cash costs per ounce of silver, net of by -product credits, were
negative $2.43 and negativ e $5.16 in Q2 Fiscal 2018 compared to $0.10 and negative $3.05 respectively,
in the prior year quarter. The overall decrease in cash cost per ounce of silver, net of by -product credits,
is mainly due to a 27% increase in by -product credits, mainly arising from 48% and 58% increase in lead
and zinc net realized selling prices, offset by 15% and 5% decrease in lead and zinc metals sold. Sales from
lead and zinc accounted for 50% of the total sales and amounted to $23.9 million, an increase of $5.7
million, compared to $18.2 million in the prior year quarter.
In Q2 Fiscal 2018, the consolidated all -in sustaining costs per ounce of silver, net of by -product credits, is
$2.26 compared to $3.15 in Q2 Fiscal 2017. The decrease was mainly due to an increase of $5.7 million in
by-product credits offset by a $0.6 million increase in sustaining capital expenditures and the increase of
per tonne cash production costs as discussed above.
For the six months ended September 30, 2017, approximately 3.1 million ounces of silver, 1,700 ounces of
gold, 32.8 million pounds of lead, and 10.6 million pounds of zinc were sold compared to 3.5 million
ounces of silver, 2,000 ounces of gold, 36.7 million of lead, and 11.1 million pounds of zinc sol d in the
same prior year period ; the consolidated total min ing and cash mining costs were $69.39 and $51.57 per
tonne, 4% and 14% increase compared to $66.61 and $45.09 per tonne in the same prior year period
while t he consolidated total milling cost s and cash milling cost s reduced by 5% and 6% to $12.45 and
$10.13, respectively, compared to $13.11 and $10.79 per tonne in the same prior year period ; and, the
consolidated cash production costs and all-in sustaining costs per ounce of silver, net of by -product
credits, were negative $4.51 and $3.44 compared to negati ve $1.68 and $5.01, respectively, in the same
prior year period.
1. Ying Mining District, Henan Province, China
In Q2 Fiscal 2018, the total ore mined at the Ying Mining District was 173,294 tonnes, a decrease of 3%,
compared to 179,194 tonnes mined in the prior year quarter. Approximately 2,900 tonnes of ore
production was affected by several days of power downtim e due to power grid upgrade s by State Grid
Corporation, and approximately 3,000 tonnes production was affected by government inspections and
explosive supply limitation brought in as a safety measure by the local government in advance of the 19 th
Operational results - Ying Mining District
Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017
September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 September 30, 2016 2017 2016
Ore Mined (tonne) 173,294 160,408 112,755 171,303 179,194 333,701 352,702
Ore Milled (tonne) 173,946 164,959 108,051 182,259 180,154 338,904 347,901
Head Grades
Silver (gram/tonne) 294 304 298 303 302 299 305
Lead (%) 4.3 4.6 4.8 4.8 4.9 4.4 4.7
Zinc (%) 0.8 0.8 0.8 0.8 1.1 0.8 1.1
Recoveries
Silver (%) 95.6 95.8 96.6 95.1 95.5 95.7 95.6
Lead (%) 96.2 96.3 95.6 96.7 96.3 96.3 96.3
Zinc (%) 50.7 45.8 46.2 47.5 42.9 48.4 45.5
Metal Sales
Silver (in thousands of ounce) 1,472 1,324 1,255 1,555 1,630 2,796 3,120
Gold (in thousands of ounce) 0.8 0.9 0.7 0.7 1.0 1.7 1.9
Lead (in thousands of pound) 15,279 13,765 13,520 17,269 17,768 29,044 32,629
Zinc (in thousands of pound) 2,269 755 1,033 1,210 1,785 3,024 3,605
Cash mining cost ($ per tonne) 59.67 54.78 49.99 55.21 49.13 57.32 50.70
Total mining cost ($ per tonne) 81.20 76.67 53.50 80.53 76.30 79.03 77.44
Cash milling cost ($ per tonne) 8.50 8.07 10.43 9.09 8.85 8.29 9.44
Total milling cost ($ per tonne) 10.45 10.10 13.60 11.03 10.86 10.28 11.53
Cash production cost ($ per tonne) 71.85 66.93 64.34 68.22 61.79 69.47 63.98
Cash cost per ounce of silver ($) (4.27) (2.97) (3.73) (4.60) (2.68) (3.79) (1.44)
All-in sustaining cost per ounce of
silver ($) 1.08 3.66 0.74 1.34 2.33 2.30 3.99
Six months ended September 30,
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CPC National Congress. As a further public safety measure during the 19 th CPC National Congress in
October 2017, mining activities at the Ying Mining District were temporary suspended for five days as
requested by the local government, which has impacted o re production by approximately 10,000 tonnes
in the third quarter of Fiscal 2018.
Correspondingly, ore milled in Q2 Fiscal 2018 decreased by 3% to 173,946 tonnes from 180,154 tonnes in
the prior year quarter. Head grades were 294 grams per ton (“g/t”) for silver, 4.3% for lead, and 0.8% for
zinc, compared to 302 g/t for silver, 4.9% for lead and 1.1% for zinc in the prior year quarter. The decrease
of head grades is mainly due to the average geological grades of ore mined in the current quarter being
lower than the prior year quarter.
In Q2 Fiscal 2018, the Ying Mining District sold approximately 1.5 million ounces silver, 15.3 million
pounds lead, and 2.3 million pounds zinc, compared to 1.6 million ounces silver, 17.8 million pounds lead,
and 1.8 millio n pounds of zinc in the prior year quarter. The decrease of metals sold at the Ying Mining
District was mainly due to a 3% decrease of ore milled and lower head grades achieved in the current
quarter.
Total and cash mining costs per tonne at the Ying Min ing District in Q2 Fiscal 2018 were $81.20 and
$59.67 per tonne, respectively, compared to $76.30 and $49.13 per tonne in the prior year quarter. The
increase in cash mining costs were mainly due to i) $0.6 million increase in raw material costs mainly
arising from the increasing prices in copper and steel related material, ii) $0.7 million increase in mining
preparation costs resulting from more un derground drilling and tunnelling expensed in the current
quarter, and iii) lower production output resulting in higher per tonne overhead costs allocation. Total
and cash milling costs per tonne at the Ying Mining District in Q2 Fiscal 2018 were $10.45 an d $8.50, a
decrease of 4%, compared to $10.86 and $8.85 in Q2 Fiscal 2017.
Cash cost per ounce of silver, net of by -product credits, in Q2 Fiscal 2018 at the Ying Mining District, was
negative $4.27 compared to negative $2.68 in the prior year quarter. Th e improvement was mainly due to
a $4. 2 million or 28% increase in by -product credits offset by the 16% increase in the per tonne cash
production costs.
All in sustaining costs per ounce of silver, net of by -product credits, in Q2 Fiscal 2018 at the Ying M ining
District was $1.08 compared to $2.33 in the prior year quarter. The improvement was mainly due to lower
cash costs per ounce of silver as discussed above.
For the six months ended September 30, 2017, a total of 333,701 tonnes of ore were mined and 338,904
tonnes milled at the Ying Mining District , down by 5% and 3%, compared to 352,702 tonnes mined and
347,901 tonnes milled in the same prior year period. Average head grades were 299 g/t for silver, 4.4% for
lead, and 0.8% for zinc compared to 305 g/t for silver, 4.7% for lead, and 1.1% for zinc, respectively, in the
same prior year period.
During the same time periods, the Ying Mining District sold approximately 2.8 million ounces of silver,
1,700 ounces of gold, 29.0 million pounds of lead, and 3.0 m illion pounds of zinc, compared to 3.1 million
ounces of silver, 1,900 ounces of gold, 32.6 million pounds of lead, and 3.6 million pounds of zinc in prior
year period.
For the six months ended September 30, 2017, the cash mining costs at the Ying Mining D istrict was
$57.32 per tonne, an increase of 13% compared to $50.70 in the same prior year period. The cash milling
costs was $8.29 per tonne, a decrease of 12% compared to $9.44 in the same prior year period.
Cash costs per ounce of silver and all in sust aining costs per ounce of silver, net of by‐product credits, at
the Ying Mining District, for the six months ended September 30, 2017, were negative $3.79 and $2.30
respectively, compared to negative $1.44 and $3.99 in the same prior year period.
In Q2 Fis cal 2018, approximately 29,834 m or $0.6 million of underground diamond drilling (Fiscal Q2
2017 – 22,188 m or $0.5 million) and 6,390 m or $1.9 million of preparation tunnelling (Fiscal Q2 2017 –
5,333 m or $1.4 million) were completed and expensed as min ing preparation costs at the Ying Mining
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District. In addition, approximately 16,958 m or $5.2 million of horizontal tunnel, raises and declines (Q2
Fiscal 2017 – 14,804 m or $4.8 million) were completed and capitalized.
For the six months ended Septemb er 30, 2017, approximately 60,898 m or $1.3 million of underground
diamond drilling (same prior year period – 35,038 m or $0.9 million) and 11,727 or $3.3 million of
preparation tunnelling (same prior year period – 10,169 m or $2.8 million) were completed and expensed
as mining preparation costs at the Ying Mining District. In addition, approximately 35,848 m or $10.2
million of horizontal tunnel, raises, and declines (same prior year period – 32,677 m or $9.7 million) were
completed and capitalized.
2. GC Mine, Guangdong Province, China
In Q2 Fiscal 2018, the total ore mined at the GC Mine was 65,812 tonnes, a decrease of 8,880 tonnes or
12%, compared to 74,692 tonnes mined in Q2 Fiscal 2017, while ore milled decreased by 16% to 63,648
tonnes from 76,100 tonnes in the prior year quarter. The decrease was mainly due to the interruption
arising from the typhoon that impacted South China during the quarter and the regulatory mine
inspection during the normal process to renew the safety production permit at the GC Mine. Head grades
were 102 g/ t for silver, 1.4% for lead, and 2.8% for zinc compared to 96 g/t for silver, 1.6% for lead, and
2.8% for zinc in the prior year quarter.
In Q2 Fiscal 2018, the GC Mine sold 155 thousand ounces of silver, 1.7 million pounds of lead, 3.3 million
pounds of zinc, compared to 183 thousand ounces of silver, 2.2 million pounds of lead, and 4.1 million
pounds of zinc sold in the prior year quarter. The decrease of metal sold at the GC Mine was mainly due
to less ore processed in the current quarter.
Total and cash mining costs per tonne at the GC Mine in Q2 Fiscal 2018 were $42.62 and $34.60 per
tonne, compared to $36.78 and $28.61 per tonne in Q2 Fiscal 2017. The increase in cash mining costs was
mainly due to a $0.3 million increase in mining preparation costs resulting from more underground drilling
and tunnelling expensed in the current quarter and less production output resulting in higher per tonne
overhead costs allocation.
Total and cash milling costs per tonne at the GC Mine in Q2 Fiscal 2018 were $ 17.90 and $14.63,
compared to $15.57 and $12.94, respectively, in Q2 Fiscal 2017. The increase in milling costs was mainly
due to higher per tonne overhead costs allocation resulting from less ore processed.
Cash costs per ounce of silver, net of by -product credits, at the GC Mine, was negative $13.56 compared
to negative $6.39 in the prior year quarter. The decrease was mainly due to $1.1 million or 24% increase
in by -product credits resulting from a 60% and 55% increase in net realized lead and zinc selli ng prices
offset by less lead and zinc metals sold at the GC Mine.
Operational results - GC Mine Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017
September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 September 30, 2016 2017 2016
Ore Mined (tonne) 65,812 64,865 40,224 81,481 74,692 130,677 139,041
Ore Milled (tonne) 63,648 65,944 39,929 81,080 76,100 129,592 139,687
Head Grades
Silver (gram/tonne) 102 98 91 89 96 100 97
Lead (%) 1.4 1.6 1.3 1.4 1.6 1.5 1.5
Zinc (%) 2.8 2.7 2.6 2.8 2.8 2.7 2.9
Recovery Rates
Silver (%) 74.4 81.2 72.8 75.4 76.2 77.8 76.5
Lead (%) 82.8 88.8 82.4 85.5 86.6 86.0 86.7
Zinc (%) 81.6 80.9 74.8 86.5 86.4 81.2 86.1
Metal Sales
Silver (in thousands of ounce) 155 189 53 179 183 344 332
Lead (in thousands of pound) 1,656 2,147 818 2,214 2,163 3,803 4,023
Zinc (in thousands of pound) 3,311 4,244 455 4,478 4,106 7,555 7,513
Cash mining cost ($ per tonne) 34.60 39.20 37.91 31.34 28.61 36.88 30.87
Total mining cost ($ per tonne) 42.62 46.99 45.37 38.90 36.78 44.78 39.15
Cash milling cost ($ per tonne) 14.63 16.73 20.06 13.09 12.94 14.95 14.15
Total milling cost ($ per tonne) 17.90 19.85 24.99 15.50 15.57 18.14 17.05
Cash production cost ($ per tonne) 49.23 55.93 57.97 44.43 41.55 51.83 45.02
Cash cost per ounce of silver ($) (13.56) (7.80) (1.72) (13.11) (6.39) (10.39) (3.94)
All-in sustaining cost per ounce of
silver ($) (3.77) (2.48) 14.55 (6.12) (1.49) (3.06) 1.32
Six months ended September 30,
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All in sustaining costs per ounce of silver, net of by -product credits, in Q2 Fiscal 2018 at the GC Mine was
negative $3.77 compared to negative $1.50 in the prior year quarter. The improvement was mainly due to
lower cash costs per ounce of silver as discussed above.
For the six months ended September 30, 2017, a total of 130,677 tonnes of ore were mined and 129,592
tonnes were milled at the GC Mine compared to 139,041 tonnes mined and 139,687 tonnes milled in the
same prior year period. Average head grades were 100 g/t for silver, 1.5% for lead, and 2.7% for zinc
compared to 97 g/t for silver, 1.5% for lead, and 2.9% for zinc, respectively, in the same prior year
period.
During the same time periods, the GC Mine sold approximately 344 thousand ounces of silver, 3.8 million
pounds of lead, and 7.6 million pounds of zinc, compared to 332 thousand ounces of silver, 4.0 million
pounds of lead, and 7.5 million pounds of zinc in the same prior year period.
For the six months ended September 30, 2017, the cash mining costs at the GC Mine was $36.88 per
tonne, an increase of 19% compared to $30.87 per tonne in the same prior year period. The increase in
cash mining costs was mainly due to a $0.7 million increase in mining preparation as more underground
drilling and tunnelling was expensed in the current period and higher per tonne overhead costs allocation
resulting from less production output. The cash milling cost was $14.95 per tonne, an increase of 6%
compared to $14.15 in the same prior year period.
Cash cost per ounce of silver and all in sustaining costs per ounce of silver, net of by‐product credits, at
the GC Mine, for the six months ended September 30, 2016, were negative $10.39 and negative $3.06
respectively, compared to negative $3.94 and $1.32 in the same prior year period.
In Q2 Fiscal 2018, approximately 5,511 m or $0.2 million of underground diamond drilling (Q2 Fiscal 2017
– 2,245 m or $0.2 million) and 3,940 m or $1.1 mi llion of tunnelling (Q2 Fiscal 2017 – 3,850 m or $1.0
million) were completed and expensed as mining preparation costs at the GC Mine. In addition,
approximately 105 m or $0.1 million of horizontal tunnel, raises and declines (Q2 Fiscal 2017 – 606 m or
$0.2 million) were completed and capitalized.
For the six months ended September 30, 2017, approximately 10,483 m or $0.5 million of underground
diamond drilling (same prior year period – 5,554 m or $0.4 million) and 9,232 m or $2.4 million of
tunnelling (same prior year period – 7,336 m or $1.9 milli on) were completed and expensed as mining
preparation costs at the GC Mine. In addition, approximately 263 m or $0.2 million of horizontal tunnel,
raise, and declines (same prior year period – 1,188 m or $0.4 million) were completed and capitalized.
Alex Zhang, P.Geo., is the Qualified Person for Silvercorp under 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 Discussi on &
Analysis, Financial Statements and Notes to Financial Statements for the corresponding period, which have
been posted on SEDAR at www.sedar.com and are also available on the Company's website
at www.silvercorp.ca. All figures are in United States dollars unless otherwise stated.
About Silvercorp
Silvercorp is a low -cost silver -producing Canadian mining company with multiple mines in China. The
Company's vision is to deliver shareholder value by focusing on the acquisition of under developed
projects with resource potential and the ability to grow organically. For more information, please visit our
website at www.silvercorp.ca.
For further information
Silvercorp Metals Inc.
Lorne Waldman
Senior Vice President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
7
Email: [email protected]
Website: www.silvercorp.ca
CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
Certain of the statements and information in this press 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. 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”, “w ould”, “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 or
information. Forward-looking statements or information r elate 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; 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 or information are subject to a variety of known and unknown risks, uncertaintie s and
other factors that could cause actual events or results to differ from those reflected in the forward -looking
statements or information, including, without limitation, risks relating to: fluctuating commodity prices; calculation of
resources, reserve s 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 properti es; 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 e conomic 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 flu ctuations;
insurance; risks and hazards of mining operations; key personnel; conflicts of interest; dependence on management;
internal control over financial reporting as per the requirements of the Sarbanes -Oxley Act; 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 or
information. Forward -looking statements or information 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 or information due to a variety of risks, uncertainties and other
factors, including, without limitation, those referred to in the Company’s Annual Information Form for the year ended
March 31, 2017 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 or information.
The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and
opinions of management as of the date of this press release, and other than as required by applicable securities laws,
the Company does not assume any obligation to update forward-looking statements and information if circumstances
or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events
affecting such statements or information. For the reasons set forth above, investors should not place un due reliance
on forward-looking statements and information.
SILVERCORP METALS INC.
Consolidated Statements of Financial Position
(Unaudited - Expressed in thousands of U.S. dollars)
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As at September 30, As at March 31,
2017 2017
ASSETS
Current Assets
Cash and cash equivalents 41,369$ 73,003$
Short-term investments 57,255 23,466
Trade and other receivables 1,314 1,311
Inventories 9,922 8,710
Due from a related party 59 92
Prepaids and deposits 4,610 4,250
114,529 110,832
Non-current Assets
Long-term prepaids and deposits 907 959
Reclamation deposits 5,242 5,054
Investment in an associate 29,524 8,517
Other investments 6,489 1,207
Plant and equipment 66,313 65,201
Mineral rights and properties 216,826 206,200
TOTAL ASSETS 439,830$ 397,970$
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities 24,705$ 30,374$
Deposits received 8,891 6,798
Income tax payable 3,289 2,985
36,885 40,157
Non-current Liabilities
Deferred income tax liabilities 30,241 27,692
Environmental rehabilitation 12,827 12,186
Total Liabilities 79,953 80,035
Equity
Share capital 232,386 232,155
Share option reserve 13,948 13,325
Reserves 25,409 25,409
Accumulated other comprehensive loss (37,635) (50,419)
Retained earnings 63,054 42,651
Total equity attributable to the equity holders of the Company 297,162 263,121
Non-controlling interests 62,715 54,814
Total Equity 359,877 317,935
TOTAL LIABILITIES AND EQUITY 439,830$ 397,970$