Silvercorp Reports Q2 Fiscal 2016 Financial and Operating Results

Trading Symbol: TSX: SVM

VANCOUVER, Nov. 12, 2015 /CNW/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) reported its financial and operating results for the second quarter ended September 30, 2015 ("Q2 Fiscal 2016").  All amounts are expressed in US Dollars.

SECOND QUARTER HIGHLIGHTS

  • Cash flows from operations of $4.6 million, or $0.03 per share;
  • Repurchased 1,638,252 common shares of the Company;
  • Ended the quarter with $70.7 million in cash and short term investments;
  • Net income attributable to equity shareholders of $2.2 million, or $0.01 per share;
  • Silver sales of 1.3 million ounces, lead sales of 13.2 million pounds, and zinc sales of 4.6 million pounds, down 7%, 7%, and 11%, respectively, from the prior year quarter;
  • Realized selling price for silver, lead, and zinc at the Ying Mining District dropped by 26%, 8%, and 19%, respectively, compared to the same prior year quarter;
  • Sales of $27.2 million, down 27% from the prior year quarter;
  • Significant increase of silver-lead concentrate inventory from 430 tonnes to 2,228 tonnes (containing approximately 0.2 million ounces of silver and 2.0 million pounds of lead) at the Ying Mining District, compared to the prior year quarter;
  • Gross margin of 32% compared with 49% in the prior year period;
  • Cash cost per ounce of silver, net of by-product credits, of $1.52, compared to negative $0.98 in the prior year quarter; and
  • All-in sustaining cost per ounce of silver, net of by-product credits, of $12.40, compared to $9.68 in the prior year quarter.

FINANCIALS

Net income attributable to the shareholders of the Company in Q2 Fiscal 2016 was $2.2 million, or $0.01 per share compared to $7.2 million, or $0.04 per share for the three months ended September 30, 2014 ("Q2 Fiscal 2015").

In the current quarter, the Company's financial results were mainly impacted by the following: i) lower metal prices, as the realized selling price for silver, lead, and zinc at the Ying Mining District dropped by 26%, 8%, and 19%, respectively, compared to the same prior year quarter, ii) lower gold production and sales as operations at BYP mine have been suspended since August 2014; iii) higher production costs; and iv) lower amount of metals sold as increase in silver-lead and zinc concentrate inventory.

Sales in Q2 Fiscal 2016 were $27.2 million compared to $37.3 million in Q2 Fiscal 2015.  Silver and gold sales represented $14.7 million and $0.5 million, respectively, while base metals represented $12.0 million of total sales in this quarter compared to silver, gold and base metal sales of $21.7 million, $0.7 million, and $14.9 million, respectively, in Q2 Fiscal 2015.

Cost of sales in Q2 Fiscal 2016 was $18.4 million compared to $18.9 million in Q2 Fiscal 2015.  The cost of sales included $14.4 million (Q2 Fiscal 2015 - $14.2 million) cash costs and $4.0 million (Q2 Fiscal 2015 - $4.7 million) depreciation, amortization and depletion charges. The decrease in cost of sales is mainly due to lower amount of metals sold in the quarter, offset by the increase in per tonne mining production costs.

Gross profit margin in Q2 Fiscal 2016 was 32% compared to 49% in Q2 Fiscal 2015.  The decrease in gross profit margin is mainly due to the decline of metal prices, increases in smelter charges, and increased per tonne production costs.

Cash flows provided by operating activities were $4.6 million or $0.03 per share in Q2 Fiscal 2016 compared to $20.1 million or $0.12 per share in Q2 Fiscal 2015. 

OPERATIONS AND DEVELOPMENT

In Q2 Fiscal 2016, the Company sold 1.3 million ounces of silver, 13.2 million pounds of lead, and 4.6 million pounds of zinc, compared to 1.3 million ounces of silver, 14.1 million pounds of lead, and 5.2 million pounds of zinc, respectively, in Q2 Fiscal 2015.  The decrease of metal sales is mainly due to the Company intentionally increasing its inventory of concentrates in reaction to lower metal prices. As at September 30, 2015, the Ying Mining District had 2,228 tonnes of lead concentrates and 260 tonnes of zinc concentrates in inventory, 1,798 and 220 tonnes higher, respectively, compared to 430 tonnes of lead concentrates and 40 tonnes of zinc concentrates in stock as at September 30, 2014. The estimated metals contained in the concentrates inventory as at September 30, 2015, are approximately 0.2 million ounces of silver, 2.0 million pounds of lead, and 0.2 million pounds of zinc higher, respectively, compared to the metals contained in concentrates inventory as at September 30, 2014.

For the six months ended September 30, 2015, the Company sold 2.6 million ounces of silver, 27.5 million pounds of lead, and 9.0 million pounds of zinc, compared to 2.5 million ounces of silver, 25.6 million pounds of lead, and 6.4 million pounds of zinc, respectively, in the same prior year period.

1. Ying Mining District, Henan Province, China

In Q2 Fiscal 2016, the total ore mined at the Ying Mining District was 171,014 tonnes compared to total ore production of 197,135 tonnes in Q2 Fiscal 2015.  Silver and lead head grades improved by 10% and 15%, respectively, to 246 grams per tonne ("g/t") for silver and 3.8% for lead from 223 g/t for silver and 3.3% for lead, respectively, in Q2 Fiscal 2015.

In Q2 Fiscal 2016, the Ying Mining District sold 1.1 million ounces of silver, 700 ounces of gold, 11.5 million pounds of lead, and 1.5 million pounds of zinc, compared to 1.3 million ounces of silver, 788 ounces of gold, 12.7 million pounds of lead, and 1.9 million pounds of zinc in Q2 Fiscal 2015.  The decrease of metal sales is mainly due to the Company intentionally increasing its inventory of concentrates in reaction to the low metal prices.

As disclosed in the prior quarter, the mining contractor changeover disruptions have impacted not only the production but also resulted in additional costs at the SGX mine, including approximately $0.5 million in the current quarter and $1.5 million in total.  In Q2 Fiscal 2016, the cash mining costs at the Ying Mining District were $10.6 million or $62.15 per tonne, compared to $8.6 million or $43.62 per tonne in Q2 Fiscal 2015. The increase in cash mining costs was mainly due to: i) $0.5 million or $2.6 per tonne arising from the mining contractor changeover interruption; ii) $2.1 million or $14.5 per tonne increase in mining preparation costs as approximately 22,846 metres ("m") of underground diamond drilling and 6,507 m of preparation tunnelling were conducted in the current quarter, compared to 7,104 m of underground diamond drilling and 4,503 m of preparation tunnelling expensed in Q2 Fiscal 2015; iii) $0.1 million or $0.8 per tonne increase in mine administration costs; offset by iv) $0.3 million or $0.9 per tonne decrease in labour costs and v) $0.2 million decrease in mining contractors' costs, but lower production output resulting in a higher per tonne costs. 

Compared to the cash mining cost of $9.5 million or $56.65 per tonne in Q1 Fiscal 2016, the cash mining cost increased by $1.1 million or $5.50 per tonne in Q2 Fiscal 2016. Excluding the additional costs arising from the mining contractor interruption, the increase in cash mining costs was mainly due to: i) a $1.4 million increase in mining preparation costs as 22,846 m of underground diamond drilling and 6,507 m of preparation tunnelling were completed, and ii) a $0.2 million or $0.6 increase in mining contractors' costs as more re-suing mining methods were employed.

In Q2 Fiscal 2016, total ore milled at the Ying Mining District was 176,936 tonnes, a decrease of 7% compared to 190,831 tonnes in Q2 Fiscal 2015. Cash milling costs were $2.0 million or $11.55 per tonne, a decrease of $0.4 million or $1.22 per tonne, compared to $2.4 million or $12.77 per tonne in Q2 Fiscal 2015.

All in sustaining costs and all in costs, net of by-product credits, at the Ying Mining District in Q2 2016 was $9.88 and $12.06 per ounce of silver compared to $7.68 and $23.49, respectively, in Q2 Fiscal 2015.

For the six months ended September 30, 2015, the total ore mined at the Ying Mining District was 338,120 tonnes compared to 370,619 tonnes in the same prior year period.  Correspondingly, total ore milled was 337,213 tonnes compared to 360,311 tonnes.  Head grades were 252 g/t for silver and 3.7% for lead compared to 225 g/t for silver and 3.3% for lead, respectively.

During the same time periods, the Ying Mining District sold 2.3 million ounces of silver, 1,500 ounces of gold, 23.5 million pounds of lead, and 2.8 million pounds of zinc, compared to 2.4 million ounces of silver, 1,610 ounces of gold, 24.2 million pounds of lead, and 3.2 million pounds of zinc in the prior year.

For the six months ended September 30, 2015, the cash mining costs at the Ying Mining District were $20.1 million or $59.43 per tonne, compared to $16.7 million or $45.18 per tonne in the same prior year period.  The increase in cash mining costs per tonne was mainly due to: i) a $1.5 million or $4.5 per tonne increase arising from the mining contractor changeover interruption; ii) a $2.4 million or $9.6 per tonne increase in mining preparation costs as approximately 39,212 m of underground diamond drilling and 12,563 m of preparation tunnelling were conducted in the current period, compared to 15,709 m of underground diamond drilling and 9,251 m of preparation tunnelling expensed in the same prior year period, and iii) lower production output resulting in a higher per unit fixed costs allocation. 

All in sustaining costs and all in costs, net of by-product credits, at the Ying Mining District for the six months ended September 30, 2015 was $9.52 and $10.86 per ounce of silver compared to $8.44 and $17.79, respectively, in same prior year period.

In Q2 Fiscal 2016, in additional to approximately 22,846 m of underground diamond drilling and 6,507 m of preparation tunnelling, which were expensed and included in the mining preparation costs, Ying Mining District completed and capitalized approximately 17,271 m of horizontal tunnels, raises and declines. Total exploration and development expenditures capitalized for the Ying Mining District were $5.7 million compared to $9.0 million in Q2 Fiscal 2015.

For the six months ended September 30, 2015, in additional to approximately 39,212 m underground diamond drilling and 12,563 m preparation tunnelling, which were expensed and included in the mining preparation costs, Ying Mining District completed and capitalized approximately 35,790 m of horizontal tunnel, raises, and declines. Total exploration and development expenditures capitalized for the Ying Mining District were $11.8 million in the six months ended September 30, 2015 compared to $17.1 million in the same prior year period.

The operational results at the Ying Mining District for the past five quarters are summarized in the table below:

Operational results - Ying Mining District









Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015



30-Sep-15

30-Jun-15

31-Mar-15

31-Dec-14

30-Sep-14

Ore Mined (tonne)


171,014

167,107

112,327

175,782

197,135

Ore Milled (tonne) 


176,936

160,277

99,478

187,154

190,831

Head Grades 








Silver (gram/tonne)


246

250

268

253

223


Lead (%)


3.8

3.6

3.7

3.6

3.3


Zinc (%)


0.7

0.8

0.8

1.0

0.7

Recovery Rates








Silver (%)


94.8

94.7

94.8

94.7

94.4


Lead (%)


95.0

94.9

95.3

95.9

95.2


Zinc (%)


55.1

53.5

52.4

66.8

56.7

Metal Sales 








Silver (in thousands of ounce)


1,132

1,190

822

1,421

1,251


Gold (in thousands of ounce)


0.7

0.9

0.6

0.9

0.8


Lead (in thousands of pound)


11,529

12,454

8,312

14,168

12,665


Zinc (in thousands of pound)


1,459

1,529

875

2,531

1,944

Cash mining cost ($ per tonne


62.15

56.65

53.25

57.79

43.62

Total mining cost ($ per tonne


86.29

75.00

74.84

73.28

55.41

Cash milling cost ($ per tonne


11.55

12.98

16.20

13.63

12.77

Total milling cost ($ per tonne


13.70

15.40

20.09

15.77

14.85

2.  GC Mine, Guangdong Province, China

Commercial production at GC mine commenced on July 1, 2014, and the trial mining operation results in Q1 Fiscal 2015 have been excluded from the consolidated operation results discussed above and revenue realized from metal sales during the trial period was offset against costs capitalized.

The operational results at the GC mine for the past five quarters are summarized in the table below:

Production results - GC Mine




Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015





30-Sep-15

30-Jun-15

31-Mar-15

31-Dec-14

30-Sep-14










Ore Mined (tonne)




69,546

66,727

46,111

87,916

70,898

Ore Milled (tonne) 




68,465

66,679

46,100

90,287

69,144

Head Grades 










Silver (gram/tonne)




107

93

107

104

107


Lead (%)




1.4

1.7

1.2

1.3

1.4


Zinc (%)




2.8

2.5

2.6

2.6

2.8

Recovery Rates










Silver (%)




77.0

79.3

76.1

75.9

79.4


Lead (%)




89.5

89.7

84.9

85.9

88.1


Zinc (%)




82.7

85.1

80.0

80.6

81.0

Metal Sales 










Silver (in thousands of ounce)




128

181

99

251

97


Lead (in thousands of pound)




1,632

2,420

867

2,500

1,428


Zinc (in thousands of pound)




3,172

3,029

1,668

4,452

3,259

Cash mining cost ($ per tonne) 




36.49

48.74

86.35

33.11

29.25

Total mining cost ($ per tonne) 




44.68

56.83

132.41

55.20

51.69

Cash milling cost ($ per tonne) 




15.81

15.52

42.70

15.82

17.59

Total milling cost ($ per tonne) 




18.05

17.83

58.58

19.88

22.81

Total ore mined at GC mine in Q2 Fiscal 2016 was 69,546 tonnes at a total mining cost and cash mining cost of $44.68 and $36.49, compared to 70,898 tonnes mined in Q2 Fiscal 2015 at a total mining cost and cash mining cost of $51.69 and $29.25. The increase in cash mining cost was mainly due to $0.6 million or $8.5 per tonne increase in mining preparation cost offset by $0.1 million or $1.7 per tonne in mining contractor's cost. 

Total ore milled at GC mine in Q2 Fiscal 2016 was 68,465 at a total milling cost and cash milling cost of $18.05 and $15.81, compared to 69,144 tonnes milled in Q2 Fiscal 2015 at a total milling cost and cash milling cost of $22.81 and $17.59.

The head grades at GC mine were 107 g/t for silver, 1.4% for lead, and 2.8% for zinc in Q2 Fiscal 2016, which are comparable to the head grades in Q2 Fiscal 2015.

Recovery rates at GC mine were 77% for silver, 89.5% for lead, and 82.7% for zinc in Q2 Fiscal 2016 compared to 79.4% for silver, 88.1% for lead, and 81.0% for zinc, respectively in Q2 Fiscal 2015.

In Q2 Fiscal 2016, in additional to approximately 6,882 m of underground diamond drilling and 677 m of preparation tunnelling, which were expensed and included in the mining preparation costs, GC mine completed and capitalized approximately 3,090 m of horizontal tunnels, raises and declines. Total exploration and development expenditures capitalized at the GC mine were $0.3 million compared to $1.9 million in Q2 Fiscal 2015.

For the six months ended September 30, 2015, in additional to approximately 14,298 m of underground diamond drilling and 1,962 m of preparation tunnelling, which were expensed and included in the mining preparation costs, GC mine completed and capitalized approximately 6,459 m of horizontal tunnel, raises, and declines. Total exploration and development expenditures capitalized at the GC mine were $0.5 million in the six months ended September 30, 2015 compared to $2.3 million in the same prior year period.

Alex Zhang, P.Geo., Vice President, Exploration, 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 Discussion & 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.

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", "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 or information.  Forward-looking statements or information 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; 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, uncertainties 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, 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 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, 2015 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 undue reliance on forward-looking statements and information.

SILVERCORP METALS INC.

Condensed Consolidated Interim Balance Sheets

(Unaudited - Expressed in thousands of U.S. dollars)










As at September 30,



As at March 31,




2015



2015

ASSETS







Current Assets








Cash and cash equivalents


$

67,216


$

60,179


Short-term investments



3,439



9,343


Trade and other receivables



1,846



1,278


Inventories



9,928



6,899


Due from related parties



147



33


Prepaids and deposits



6,284



5,745




88,860



83,477








Non-current Assets








Long-term prepaids and deposits



4,670



2,945


Reclamation deposits



2,068



2,112


Investment in an associate



3,362



3,449


Other investments



614



892


Plant and equipment



65,340



64,779


Mineral rights and properties



214,439



214,792

TOTAL ASSETS


$

379,353


$

372,446








LIABILITIES AND EQUITY







Current Liabilities








Accounts payable and accrued liabilities


$

34,256


$

21,768


Mine right fee payable



4,259



4,292


Deposits received



5,783



8,303


Dividends payable



-



674


Income tax payable



673



662




44,971



35,699








Non-current Liabilities








Mine right fee payable



9,650



9,746


Deferred income tax liabilities



22,480



21,592


Environmental rehabilitation



12,821



12,898

Total Liabilities



89,922



79,935








Equity








Share capital



232,246



233,513


Share option reserve



12,249



11,741


Reserves



25,409



25,409


Accumulated other comprehensive loss



(33,989)



(26,697)


Deficit



(1,244)



(5,089)

Total equity attributable to the equity holders of the Company



234,671



238,877








Non-controlling interests



54,760



53,634

Total Equity



289,431



292,511








TOTAL LIABILITIES AND EQUITY


$

379,353


$

372,446

 











SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Income

(Unaudited - Expressed in thousands of U.S. dollars, except for per share figures)













Three Months Ended September 30,

Six Months Ended September 30,




2015


2014


2015


2014











Sales


$

27,213

$

37,333

$

59,433

$

67,949

Cost of sales



18,385


18,894


39,149


33,857

Gross profit



8,828


18,439


20,284


34,092











General and administrative



4,907


6,099


10,251


10,867

Government fees and other taxes



1,847


1,396


3,196


2,977

Foreign exchange gain



(1,984)


(1,594)


(1,397)


(469)

(Gain) loss on disposal of plant and equipment



(22)


14


(15)


14

Share of (gain) loss in associate



(179)


(90)


(101)


42

Loss on investments



-


-


-


15

Other income



(124)


(891)


(114)


(1,047)

Income from operations



4,383


13,505


8,464


21,693











Finance income



264


268


541


432

Finance costs



(139)


(39)


(471)


(71)

Income before income taxes



4,508


13,734


8,534


22,054











Income tax expense



1,529


4,120


1,784


7,805

Net income


$

2,979

$

9,614

$

6,750

$

14,249











Attributable to:











Equity holders of the Company


$

2,234

$

7,228

$

4,530

$

9,972


Non-controlling interests



745


2,386


2,220


4,277



$

2,979

$

9,614

$

6,750

$

14,249











Earnings per share attributable to the equity holders
of the Company










Basic and diluted earnings per share


$

0.01

$

0.04

$

0.03

$

0.06

Weighted Average Number of Shares Outstanding
- Basic and Diluted



170,307,013


170,881,836


170,593,834


170,883,808

 











SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Cash Flow

(Unaudited - Expressed in thousands of U.S. dollars)













Three Months Ended September 30,

Six Months Ended September 30,




2015


2014


2015


2014

Cash provided by










Operating activities











Net income


$

2,979

$

9,614

$

6,750

$

14,249


Add (deduct) items not affecting cash:







-


-



Unwinding of discount of environmental
rehabilitation



124


39


248


71



Depreciation, amortization and depletion



4,400


5,269


9,377


8,692



Share of (gain) loss in associate



(179)


(90)


(101)


42



Income tax expense



1,529


4,120


1,784


7,805



Finance income



(264)


(268)


(541)


(432)



Loss on investments



-


-


-


15



(Gain) loss on disposal of plant and equipment



(22)


14


(15)


14



Share-based compensation



343


445


508


796


Income taxes refund (paid)



56


(2,151)


(303)


(3,447)


Interest received



264


268


541


432


Changes in non-cash operating working capital



(4,599)


2,845


(297)


5,694

Net cash provided by operating activities



4,631


20,105


17,951


33,931











Investing activities











Mineral rights and properties












Capital expenditures



(1,364)


(7,430)


(8,730)


(13,735)


Plant and equipment












Additions



(2,272)


(2,549)


(2,990)


(4,127)



Proceeds on disposals



25


-


30


-


Reclamation deposit paid



-


-


(9)


-


Net redemptions of short-term investments



5,658


(1,850)


5,707


(119)

Net cash provided by (used in) investing activities



2,047


(11,829)


(5,992)


(17,981)











Financing activities











Non-controlling interests












Distribution



-


(2,563)


-


(2,563)


Cash dividends distributed



(638)


(796)


(1,323)


(1,571)


Common shares repurchased as part of normal
course issuer bid



(1,267)


-


(1,267)


-

Net cash used in financing activities



(1,905)


(3,359)


(2,590)


(4,134)











Effect of exchange rate changes on cash and cash
equivalents



(2,990)


(1,056)


(2,332)


244











Increase in cash and cash equivalents



1,783


3,861


7,037


12,060











Cash and cash equivalents, beginning of the period



65,433


68,813


60,179


60,614











Cash and cash equivalents, end of the period


$

67,216

$

72,674

$

67,216

$

72,674

 






SILVERCORP METALS INC.

Mining Data

(Expressed in thousands of U.S. dollars, except for mining data figures)










Three months ended September 30, 2015





Ying Mining
District1

GC2

Total








Production Data






Mine Data







Ore Mined (tonne)


171,014

69,546

240,560



Ore Milled (tonne)


176,936

68,465

245,401









+

Mining cost per tonne of ore mined ($)


86.29

44.68

74.26




Cash mining cost per tonne of ore mined ($) 


62.15

36.49

54.73




Non cash mining cost per tonne of ore mined ($)


24.14

8.19

19.53









+

Unit shipping costs ($)


4.25

-

3.02









+

Milling cost per tonne of ore milled ($) 


13.70

18.05

14.91




Cash milling cost per tonne of ore milled ($) 


11.55

15.81

12.74




Non cash milling cost per tonne of ore milled ($)


2.15

2.24

2.17









+

Average Production Cost








Silver ($ per ounce)


7.77

7.40

7.89




Gold ($ per ounce)


502

654

523




Lead ($ per pound)


0.45

0.54

0.47




Zinc ($ per pound)


0.37

0.47

0.39









+

Total production cost per ounce of Silver ($)


4.86

2.99

4.67


+

Total cash cost per ounce of Silver ($)


1.88

(1.69)

1.52









+

All-in sustaining cost per ounce of Silver ($)


9.88

13.73

12.40


+

All-in cost per ounce of Silver ($)


12.06

14.80

14.47










Recovery Rates








Silver (%)


94.8

77.0

89.8




Lead (%)


95.0

89.5

93.5




Zinc (%)


55.1

82.7

62.8










Head Grades








Silver (gram/tonne)


246

107

207




Lead (%)


3.8

1.4

3.1




Zinc (%)


0.7

2.8

1.3









Concentrate in stock 







Lead concentrate (tonne) 


2,228

728

2,956



Zinc concentate (tonne)


260

456

716








Sales Data 






Metal Sales 







Silver (in thousands of ounces)


1,132

128

1,260



Gold (in thousands of ounces)


0.7

-

0.7



Lead (in thousands of pounds)


11,529

1,632

13,161



Zinc (in thousands of pounds)


1,459

3,172

4,631



Other (in thousands of pound)


-

14,317

14,317
















Metal Sales 







Silver (in thousands of $)


13,561

1,151

14,712



Gold (in thousands of $)  


506

13

519



Lead (in thousands of $) 


8,039

1,083

9,122



Zinc (in thousands of $) 


838

1,820

2,658



Other (in thousands of $) 


-

202

202





22,944

4,269

27,213


Average Selling Price, Net of Value Added Tax and Smelter Charges







Silver ($ per ounce) 


11.98

9.02

11.68



Gold ($ per ounce)


773

797

774



Lead ($ per pound)


0.71

0.66

0.69



Zinc ($ per pound)


0.57

0.57

0.57

1 Ying Mining District includes mines: SGX, TLP, HPG,LM, BCG and HZG.

2GC Silver recovery rate consists of 55.3% from lead concentrates and 21.7% from zinc concentrates. 

2GC Silver sold in zinc concentrates is subjected to higher smelter and refining charges which lower the net silver selling price. 

+Non-IFRS measures.

 






SILVERCORP METALS INC.

Mining Data

(Expressed in thousands of U.S. dollars, except for mining data figures)










Three months ended September 30, 2014





Ying Mining
District1


BYP


GC


Total























Production Data










Mine Data











Ore Mined (tonne)


197,135


10,344


70,898


278,377



Ore Milled (tonne)


190,831


18,296


69,144


278,271













+

Mining cost per tonne of ore mined ($)


55.41


29.93


51.69


53.52




Cash mining cost per tonne of ore mined ($) 


43.62


23.38


29.25


39.21




Non cash mining cost per tonne of ore mined ($)


11.79


6.55


22.44


14.31













+

Unit shipping costs ($)


4.38


-


-


3.10













+

Milling cost per tonne of ore milled ($) 


14.85


11.73


22.81


16.62




Cash milling cost per tonne of ore milled ($) 


12.77


10.56


17.59


13.82




Non cash milling cost per tonne of ore milled ($)


2.08


1.17


5.22


2.80













+

Average Production Cost












Silver ($ per ounce)


7.43


-


12.79


8.16




Gold ($ per ounce)


383


227


-


441




Lead ($ per pound)


0.36


-


0.58


0.39




Zinc ($ per pound)


0.32


-


0.61


0.38













+

Total production cost per ounce of Silver ($)


2.35




4.39


2.50


+

Total cash cost per ounce of Silver ($)


(0.16)




(11.59)


(0.98)













+

Total production cost per ounce of Gold ($)




229




229


+

Total cash cost per ounce of Gold ($)




386




386













+

All-in sustaining cost per ounce of Silver ($)2


7.68


180.25


(4.21)


9.68


+

All-in cost per ounce of Silver ($)2


23.49


205.25


6.65


25.05














Recovery Rates












Silver (%) 3


94.4




79.4


90.4




Gold (%)




89.1




89.1




Lead (%)


95.2




88.1


93.3




Zinc (%)


56.7




81.0


63.2














Head Grades












Silver (gram/tonne)


223




107


192




Gold (gram/tonne)




2.3




2.3




Lead (%)


3.3




1.4


2.8




Zinc (%)


0.7




2.8


1.2













Concentrate in stock 











Lead concentrate (tonne) 


430


-


528


958



Zinc concentate (tonne)


40


-


238


278












Sales Data 










Metal Sales 











Silver (in thousands of ounce)


1,251


-


97


1,348



Gold (in thousands of ounce)


0.8


0.1


-


0.9



Lead (in thousands of pound)


12,665


-


1,428


14,093



Zinc (in thousands of pound)


1,944


-


3,259


5,203



Other (in thousands of pound)


-


-


11,343


11,343













Metal Sales 











Silver (in thousands of $)


20,148


-


1,585


21,733



Gold (in thousands of $)  


655


94


-


749



Lead (in thousands of $) 


9,759


-


1,060


10,819



Zinc (in thousands of $) 


1,364


-


2,538


3,902



Other (in thousands of $) 


-


-


130


130





31,926


94


5,313


37,333


Average Selling Price,Net of Value Added Tax and
Smelter Charges











Silver ($ per ounce) 


16.11


-


16.35


16.12



Gold ($ per ounce)


831


1,313


-


871



Lead ($ per pound)


0.77


-


0.74


0.77



Zinc ($ per pound)


0.70


-


0.78


0.75



Other ($ per pound)


-


-


0.01


0.01

1 Ying Mining District includes mines: SGX, TLP, HPG&LM.

2 BYP gold ounces converted to silver equivalent using a ratio of 50:1.

3 GC silver recovery rate consist of 55.8% from lead concentrate and 23.6% from zinc concentrate.

+ Non-IFRS measures.

 






SILVERCORP METALS INC.

Mining Data

(Expressed in thousands of U.S. dollars, except for mining data figures)










Six months ended September 30, 2015





Ying Mining
District1

GC2

Total








Production Data






Mine Data







Ore Mined (tonne)


338,120

136,273

474,393



Ore Milled (tonne)


337,213

135,145

472,358









+

Mining cost per tonne of ore mined ($)


80.71

50.63

72.06




Cash mining cost per tonne of ore mined ($) 


59.43

42.49

54.56




Non cash mining cost per tonne of ore mined ($)


21.28

8.14

17.50









+

Unit shipping costs ($)


4.15

-

2.96









+

Milling cost per tonne of ore milled ($) 


14.51

17.94

15.49




Cash milling cost per tonne of ore milled ($)


12.23

15.67

13.21




Non cash milling cost per tonne of ore milled ($)


2.28

2.27

2.28









+

Average Production Cost








Silver ($ per ounce)


7.81

8.80

8.17




Gold ($ per ounce)


499

707

535




Lead ($ per pound)


0.44

0.61

0.47




Zinc ($ per pound)


0.39

0.55

0.41









+

Total production cost per ounce of Silver ($)


4.53

5.91

4.69


+

Total cash cost per ounce of Silver ($)


1.44

1.52

1.45









+

All-in sustaining cost per ounce of Silver ($)


9.52

11.04

11.65


+

All-in cost per ounce of Silver ($)


10.86

11.55

12.88










Recovery Rates








Silver (%)


94.7

77.5

89.8




Lead (%)


95.0

88.6

93.1




Zinc (%)


54.1

82.9

62.3










Head Grades








Silver (gram/tonne)


252

107

211




Lead (%)


3.7

1.4

3.0




Zinc (%)


0.8

2.8

1.3









Concentrate in stock 







Lead concentrate (tonne) 


2,228

728

2,956



Zinc concentate (tonne)


260

456

716








Sales Data 






Metal Sales 







Silver (in thousands of ounces)


2,321

309

2,630



Gold (in thousands of ounces)


1.5

-

1.5



Lead (in thousands of pounds)


23,456

4,052

27,508



Zinc (in thousands of pounds)


2,831

6,201

9,032



Other (in thousands of pound)


-

26,532

26,532









Metal Sales 







Silver (in thousands of $)


29,523

3,107

32,630



Gold (in thousands of $) 


1,230

23

1,253



Lead (in thousands of $) 


16,691

2,812

19,503



Zinc (in thousands of $) 


1,775

3,896

5,671



Other (in thousands of $) 


-

376

376





49,219

10,214

59,433


Average Selling Price, Net of Value Added Tax and Smelter Charges







Silver ($ per ounce) 


12.72

10.06

12.41



Gold ($ per ounce)


813

808

813



Lead ($ per pound)


0.71

0.69

0.71



Zinc ($ per pound)


0.63

0.63

0.63

1 Ying Mining District includes mines: SGX, TLP, HPG,LM, BCG and HZG.

2GC Silver recovery rate consists of 55.3% from lead concentrates and 22.2% from zinc concentrates. 

2GC Silver sold in zinc concentrates is subjected to higher smelter and refining charges which lower the net silver selling price. 

+ Non-IFRS measures.

 






SILVERCORP METALS INC.

Mining Data

(Expressed in thousands of U.S. dollars, except for mining data figures)










Six months ended September 30, 2014





Ying Mining
District1


BYP


GC


Total












Production Data










Mine Data











Ore Mined (tonne)


370,619


46,547


70,898


488,064



Ore Milled (tonne)


360,311


48,844


69,144


478,299













+

Mining cost per tonne of ore mined ($)


56.79


30.46


51.69


53.53




Cash mining cost per tonne of ore mined ($) 


45.18


22.85


29.25


40.74




Non cash mining cost per tonne of ore mined ($)


11.61


7.61


22.44


12.80













+

Unit shipping costs ($)


4.56


-


-


3.46













+

Milling cost per tonne of ore milled ($) 


14.69


13.36


22.81


15.72




Cash milling cost per tonne of ore milled ($) 


12.49


12.27


17.59


13.20




Non cash milling cost per tonne of ore milled ($)


2.20


1.09


5.22


2.52













+

Average Production Cost












Silver ($ per ounce)


7.51


-


12.79


7.96




Gold ($ per ounce)


408


564


-


481




Lead ($ per pound)


0.36


-


0.58


0.38




Zinc ($ per pound)


0.32


-


0.61


0.36




Other ($ per pound)


-


-


0.01


0.01













+

Total production cost per ounce of Silver ($)


2.62




4.39


2.69


+

Total cash cost per ounce of Silver ($)


0.14




(11.59)


(0.32)













+

Total production cost per ounce of Gold ($)




565




565


+

Total cash cost per ounce of Gold ($)




454




454













+

All-in sustaining cost per ounce of Silver ($)2


8.44


19.54


(4.22)


10.74


+

All-in cost per ounce of Silver ($)2


17.79


21.24


11.30


20.14














Recovery Rates












Silver (%) 3


94.0




79.4


91.6




Gold (%)




89.5




89.5




Lead (%)


95.5




88.1


94.3




Zinc (%)


56.7




81.0


60.6














Head Grades












Silver (gram/tonne)


225




107


206




Gold (gram/tonne)




2.6




2.6




Lead (%)


3.3




1.4


3.0




Zinc (%)


0.7




2.8


1.0













Concentrate in stock 











Lead concentrate (tonne) 


430


-


528


958



Zinc concentate (tonne)


40


-


238


278












Sales Data 










Metal Sales 











Silver (in thousands of ounce)


2,377


-


97


2,474



Gold (in thousands of ounce)


1.6


2.7


-


4.3



Lead (in thousands of pound)


24,194


-


1,428


25,622



Zinc (in thousands of pound)


3,155


-


3,259


6,414



Other (in thousands of pound)


-


-


11,343


11,343













Metal Sales 











Silver (in thousands of $)


37,927


-


1,585


39,512



Gold (in thousands of $)  


1,396


2,775


-


4,171



Lead (in thousands of $) 


18,412


-


1,060


19,472



Zinc (in thousands of $) 


2,126


-


2,538


4,664



Other (in thousands of $) 


-


-


130


130





59,861


2,775


5,313


67,949


Average Selling Price, Net of Value Added Tax and Smelter Charges











Silver ($ per ounce) 


15.96


-


16.35


15.97



Gold ($ per ounce)


867


1,024


-


965



Lead ($ per pound)


0.76


-


0.74


0.76



Zinc ($ per pound)


0.67


-


0.78


0.73



Other ($ per pound)


-


-


0.01


0.01

1 Ying Mining District includes mines: SGX, TLP, HPG&LM.

2 BYP gold ounces converted to silver equivalent using a ratio of 50:1.

3 GC silver recovery rate consist of 55.8% from lead concentrate and 23.6% from zinc concentrate.

+ Non-IFRS measures.

 

SOURCE Silvercorp Metals Inc

For further information: Silvercorp Metals Inc., Lorne Waldman, Senior Vice President, Phone: (604) 669-9397, Toll Free 1(888) 224-1881, Email: investor@silvercorp.ca, Website: www.silvercorp.ca

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