Trading Symbol: TSX: SVM
NYSE AMERICAN: SVM
Q3 FISCAL 2022 HIGHLIGHTS
- Mined 292,072 tonnes of ore and milled 304,772 tonnes of ore, up 5% and 17% compared to the prior year quarter.
- Sold approximately 1.7 million ounces of silver, 1,100 ounces of gold, 17.2 million pounds of lead, and 7.6 million pounds of zinc, representing increases of 4%, 38%, and 2% in silver, gold and lead sold, and a decrease of 15% in zinc sold, compared to the prior year quarter.
- Revenue of
$59.1 million , up 11% compared to$53.3 million in the prior year quarter. - Net income attributable to equity shareholders of
$5.1 million , or$0.03 per share, compared to$8.4 million , or$0.05 per share in the prior year quarter. The decrease was mainly due to a mark-to market charge of$8.5 million against equity and bond investments in the current quarter. - Adjusted earnings attributable to equity shareholders of
$13.4 million , or$0.08 per share, compared to$13.8 million , or$0.08 per share in the prior year quarter. The adjustments were made to remove impacts from non-recurring items, share-based compensation, foreign exchange gain/loss, impairment adjustments and reversals, gain/loss on equity investments and the share of associates' operating results. - Cash flow from operations of
$28.7 million , up 20% or$4.7 million compared to$23.9 million in the prior year quarter. - Cash cost per ounce of silver, net of by-product credits, of negative
$1.33 compared to negative$2.76 in the prior year quarter. - All-in sustaining cost per ounce of silver, net of by-product credits, of
$8.82 , compared to$6.92 in the prior year quarter. - Strong balance sheet with
$211.6 million in cash and cash equivalents and short-term investments, down$9.5 million or 4% compared to$221.1 million as atSeptember 30, 2021 . This does not include the investments in associates and equity investment in other companies, having a total market value of$156.2 million as atDecember 31, 2021 ($172.8 million as atSeptember 30 , 2021).
FISCAL 2023 PRODUCTION GUIDANCE
- To mine and process approximately 1,040,000 - 1,140,000 tonnes of ores, yielding 6,300 to 7,900 ounces of gold, 7.0 million to 7.3 million ounces of silver, 68.4 million to 71.3 million pounds of lead, and 32.0 million to 34.5 million pounds of zinc.
- The guidance represents a production increase of approximately 9% in ores, 100% in gold, 11% in silver, 3% in lead, and 12% to 21% in zinc compared to the Fiscal 2022 guidance.
- The increased production guidance is made possible by over 629,000 metres of exploration and resource upgrade drilling completed at the mines from 2020 to 2021. During 2021 alone, over 409,000 metres of drilling were completed.
CONSOLIDATED FINANCIAL RESULTS
Three months ended Nine months ended 2021 2020 Changes 2021 2020 Changes Financial Revenue (in thousands of $) $ 59,079 $ 53,296 11% $ 176,333 $ 156,373 13% Mine operating earnings (in thousands of $) 21,476 24,801 -13% 70,592 70,758 0% Net income attributable to equity shareholders 5,063 8,392 -40% 26,668 39,355 -32% Earnings per share - basic ($/share) 0.03 0.05 -40% 0.15 0.23 -35% Adjusted earnings attributable to equity shareholders 13,360 13,846 -4% 42,740 38,838 10% Adjusted earning per share - basic ($/share) 0.08 0.08 0% 0.24 0.22 9% Net cash generated from operating activities (in thousands of $) 28,666 23,938 20% 95,972 83,681 15% Capitalized expenditures (in thousands of $) 18,708 17,242 9% 44,031 38,560 14% Cash and cash equivalents and short-term investments (in thousands of $) 211,614 204,121 4% 211,614 204,121 4% Working capital (in thousands of $) 181,266 168,748 7% 181,266 168,748 7% Metals sold Silver (in thousands of ounces) 1,721 1,647 4% 5,092 5,259 -3% Gold (in thousands of ounces) 1.1 0.8 38% 2.9 4.1 -29% Lead (in thousands of pounds) 17,155 16,806 2% 51,284 56,242 -9% Zinc (in thousands of pounds) 7,588 8,965 -15% 22,469 23,334 -4% Average Selling Price, Net of Value Added Tax and Smelter Charges Silver ($/ounce) 18.44 18.65 -1% 19.35 17.10 13% Gold ($/ounce) 1,367 1,528 -10% 1,448 1,394 4% Lead ($/pound) 0.92 0.76 21% 0.89 0.74 20% Zinc ($/pound) 1.10 0.88 25% 1.05 0.74 42%
Net income attributable to equity shareholders of the Company in Q3 Fiscal 2022 was
Adjusted earnings attributable to equity shareholders of the Company in Q3 Fiscal 2022 was
Compared to Q3 Fiscal 2021, the Company's consolidated financial results in the current quarter were mainly impacted by i) an increase of 21% and 25%, respectively, in the realized selling prices for lead and zinc; and ii) an increase of 4%, 38% and 2%, respectively, in silver, gold and lead sold; offset by iii) an 1% and 10% decrease in the realized selling prices for silver and gold; iv) a 15% decrease in zinc sold; v) a 17% increase in cash production costs per tonne, and vi) a mark to market charge of
Revenue in Q3 Fiscal 2022 was
Income from mine operations in Q3 Fiscal 2022 was
Cash flow provided by operating activities in Q3 Fiscal 2022 was
The Company ended the quarter with
Working capital as at
CONSOLIDATED OPERATIONAL RESULTS
Three months ended Nine months ended 2021 2020 Changes 2021 2020 Changes Ore Production (tonne) Ore mined 292,072 279,445 5% 815,775 801,853 2% Ore milled 304,772 260,648 17% 819,665 786,907 4% Metal Production Silver (in thousands of ounces) 1,834 1,677 9% 5,003 5,136 -3% Gold (in thousands of ounces) 1.1 0.9 22% 2.9 3.2 -9% Lead (in thousands of pounds) 18,978 17,111 11% 52,469 56,274 -7% Zinc (in thousands of pounds) 8,030 8,673 -7% 22,711 23,339 -3% Cash Costs Cash cost per ounce of silver, net of by-product credits($) (1.33) (2.76) 52% (1.47) (2.08) 29% All-in sustaining cost per ounce of silver, net of by-product credits ($) 8.82 6.92 27% 7.88 6.48 22% Cash production cost per tonne of ore processed ($) 85.73 73.04 17% 83.09 70.02 19% All-in sustaining cost per tonne of ore processed ($) 137.04 129.09 6% 134.91 122.02 11%
In Q3 Fiscal 2022, the Company mined 292,072 tonnes of ore, up 5% or 12,627 tonnes, compared to 279,445 tonnes in the three months ended
In Q3 Fiscal 2022, the Company sold approximately 1.7 million ounces of silver, 1,100 ounces of gold, 17.2 million pounds of lead, and 7.6 million pounds of zinc, representing increases of 4%, 38%, and 2% in silver, gold and lead sold, respectively, and a decrease of 15% in zinc sold, compared to approximately 1.6 million ounces of silver, 800 ounces of gold, 16.8 million pounds of lead, and 9.0 million pounds of zinc sold in Q3 Fiscal 2021.
In Q3 Fiscal 2022, the consolidated cash production costs per tonne of ore processed was
In Q3 Fiscal 2022, the consolidated cash cost per ounce of silver, net of by-product credits, was negative
The consolidated all-in sustaining cost per ounce of silver, net of by-product credits, was
In Q3 Fiscal 2022, on a consolidated basis, a total of 127,532 metres or
INDIVIDUAL MINE OPERATING PERFORMANCE
Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Nine months ended December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 2021 2020 Ore Production (tonne) Ore mined 200,946 206,933 142,907 112,561 182,268 550,786 537,464 Ore milled 214,982 182,173 155,407 131,725 162,905 552,562 519,677 Head grades Silver (gram/tonne) 258 283 279 280 297 272 293 Lead (%) 3.7 4.0 4.2 3.9 4.3 3.9 4.4 Zinc (%) 0.8 0.7 0.8 0.8 0.8 0.8 0.8 Recovery rates Silver (%) 95.1 95.4 94.7 93.7 93.9 95.1 94.4 Lead (%) 95.2 95.5 95.7 95.1 96.4 95.5 96.2 Zinc (%) 64.0 56.0 59.7 65.0 63.3 60.3 61.7 Cash Costs Cash cost per ounce of Silver, net of by-product credits($) 1.19 0.71 0.80 1.20 (1.12) 0.90 (0.71) All-in sustaining cost per ounce of silver, net of by-product credits ($) 8.36 6.88 6.54 10.00 5.24 7.27 5.31 Cash production cost per tonne of ore processed ($) 99.24 96.59 92.79 98.13 83.09 96.63 79.77 All-in sustaining cost per tonne of ore processed ($) 143.72 141.26 138.55 155.14 133.07 141.53 127.40 Metal Production Silver (in thousands of ounces) 1,647 1,517 1,283 1,083 1,464 4,447 4,532 Gold (in thousands of ounces) 1.1 0.8 1.0 0.3 0.9 2.9 3.2 Lead (in thousands of pounds) 16,392 14,671 13,278 10,504 14,361 44,341 47,382 Zinc (in thousands of pounds) 2,347 1,584 1,519 1,496 1,857 5,450 5,420
In Q3 Fiscal 2022, a total of 103,891 metres or
Q3 2022 Q2 2022 Q1 2021 Q4 2021 Q3 2021 Nine months ended December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 2021 2020 Ore Production (tonne) Ore mined 91,126 85,535 88,328 50,511 97,177 264,989 264,389 Ore milled 89,790 89,643 87,670 48,949 97,743 267,103 267,230 Head grades Silver (gram/tonne) 78 73 80 87 82 77 85 Lead (%) 1.5 1.7 1.5 1.7 1.4 1.5 1.7 Zinc (%) 3.2 3.3 3.3 3.3 3.5 3.3 3.4 Recovery rates Silver (%) 83.5 84.4 84.1 81.9 82.6 84.0 82.6 Lead (%) 89.0 89.5 89.3 89.7 89.6 89.3 89.5 Zinc (%) 89.8 89.6 89.3 88.2 89.7 89.6 88.2 Cash Costs Cash cost per ounce of Silver, net of by-product credits($) (25.84) (22.51) (17.96) (12.80) (14.43) (21.84) (11.21) All-in sustaining cost per ounce of silver, net of by-product credits ($) (9.81) (11.61) (7.98) 0.52 (1.05) (9.73) (0.10) Cash production cost per tonne of ore processed ($) 56.10 55.81 52.90 58.56 54.07 54.92 50.11 All-in sustaining cost per tonne of ore processed ($) 81.50 73.76 71.67 87.69 78.63 75.65 71.58 Metal Production Silver (in thousands of ounces) 187 179 190 112 212 556 604 Lead (in thousands of pounds) 2,586 2,942 2,600 1,652 2,750 8,128 8,892 Zinc (in thousands of pounds) 5,683 5,899 5,679 3,176 6,816 17,261 17,919
In Q3 Fiscal 2022, a total of 18,183 metres or
FISCAL 2023 PRODUCTION, CASH COST AND CAPITAL EXPENDITURES GUIDANCE
In Fiscal 2023, the Company expects to mine and process approximately 1,040,000 - 1,140,000 tonnes of ore, yielding 6,300 to 7,900 ounces of gold, 7.0 million to 7.3 million ounces of silver, 68.4 million to 71.3 million pounds of lead, and 32.0 million to 34.5 million pounds of zinc. Fiscal 2023 production guidance represents an anticipated increase of approximately 9% in ore, 100% in gold, 11% in silver, 3% in lead, and 12% to 21% in zinc production compared to the Fiscal 2022 guidance.
Ore processed Head grades Metal production Production costs Gold Silver Lead Zinc Gold Silver Lead Zinc Cash cost AISC* (tonnes) (g/t) (g/t) (%) (%) (koz) (Moz) (Mlbs) (Mlbs) ($/t) ($/t) Fiscal 2023 Guidance Gold ore 30,000 - 43,000 3.9 60 0.5 - 3.4 - 4.9 0.1 - 0.1 0.3 - 0.5 - - - Silver ore 710,000 - 731,000 0.1 287 3.9 0.9 2.9 - 3.0 6.2 - 6.4 58.6 - 60.4 8.2 - 8.5 - - Ying Mining District 740,000 - 774,000 0.3 276 3.8 0.9 6.3 - 7.9 6.3 - 6.5 58.9 - 60.9 8.2 - 8.5 92.3 - 93.7 143.5 - 145.7 GC Mine 300,000 - 330,000 - 93 1.6 3.7 - 0.7 - 0.8 9.5 - 10.4 21.8 - 24.0 54.9 - 57.5 86.1 - 92.0 Consolidated 1,040,000 - 1,140,000 0.2 224 3.2 1.7 6.3 - 7.9 7.0 - 7.3 68.4 - 71.3 32.0 - 34.5 83.3 - 85.9 141.6 - 143.5
The increased production guidance is made possible by over 629,000 metres of exploration and resource upgrade drilling completed at the mines from 2020 to 2021. During 2021 alone, over 409,000 metres of drilling were completed. Other benefits of the extensive drilling include: i) slowing down the rate of mining depth increase, and with some mines, average mining depths are becoming shallower; and ii) reducing the amount of tunnel development as more resources and reserves were identified near existing infrastructures.
The table below summarizes the work plan and estimated capital expenditures in Fiscal 2023.
Capitalized Development Work and Expenditures Expensed Ramp Development Exploration and Capitalized Drilling Equipment, Total Mining Underground (Metres) ($ Million) (Metres) ($ Million) (Metres) ($ Million) ($ Million) ($ Million) (Metres) (Metres) Fiscal 2023 Capitalized Work Plan and Capita Expenditure Estimates 4,600 3.2 61,300 26.3 110,700 6.8 44.6 80.9 29,000 135,300 - - 13,200 4.2 14,800 0.4 1.9 6.5 7,600 46,600 Corporate and others - - - - 10,500 0.7 0.5 1.2 - - Consolidated 4,600 3.2 74,500 30.5 136,000 7.9 47.0 88.6 36,600 181,900
Development Tunnels
Mill and TSF
Preparation
Tunnnels
driling
In Fiscal 2023, the Company plans to: i) complete 4,600 metres of 4x4.2 metre tunnels as major access and transportation ramps at estimated capitalized expenditures of
Excluding the capital expenditures to be incurred on the new mill and tailings storage facility, the total capital expenditures are budgeted at
In addition to the capitalized tunneling and drilling work,
(a)
In Fiscal 2023, the Company plans to mine and process 740,000 – 774,000 tonnes of ore at the
The cash production cost is expected to be
In Fiscal 2023, the
Excluding the
In addition to the capitalized tunneling and drilling work, the Company also plans to complete and expense 29,000 metres of mining preparation tunnels and 135,300 metres of underground drilling at the
(b)
In Fiscal 2023, the Company plans to mine and process 300,000 to 330,000 tonnes of ore at the
The cash production cost is expected to be
In Fiscal 2023, the
In addition to the capitalized tunneling and drilling work, the Company also plans to complete and expense 7,600 metres of tunnels and 46,600 metres of underground drilling at the
(c)
Total capital expenditures at the
CONFERENCE CALL DETAILS
A conference call to discuss these results will be held tomorrow,
International Toll: 416-764-8650
Conference ID: 38852202
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.
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 three and nine months ended
About Silvercorp
Silvercorp is a profitable Canadian mining company producing gold, silver, lead and zinc metals in concentrates from mines in
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
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
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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