Silvercorp Reports Record Ore Production for Q2 of Fiscal 2011: Sales Up 45%, Net Income Up 40%
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/09/10 -- Silvercorp Metals Inc. ('Silvercorp' or the 'Company') (TSX: SVM)(NYSE: SVM) reported its unaudited financial and operating results for the second quarter ended September 30, 2010 ('Q2 2011'). The following financial results are expressed in US dollars (US$) unless stated otherwise.
SECOND QUARTER HIGHLIGHTS
-- Silvercorp overcame the flood damage at the Ying Mining Camp caused by
the heavy storm in July and achieved record ore production of 154,445
tonnes;
-- Silver production of 1.34 million ounces, a 17% increase compared to
1.15 million ounces in the second quarter of fiscal 2010 ('Q2 2010').
This production number exceeded previous guidance of a 10% reduction in
production for the quarter and is only 3% below the record production of
1.39 million ounces in last quarter;
-- Net income of $12.5 million, or $0.08 per share, a 40% increase from a
year ago. Excluding all non-operational items, adjusted net earnings was
$14.7 million, or $0.09 per share;
-- Sales increased 45% to $36.3 million compared to Q2 2010, driven by
increased quantities of silver, lead and zinc metals sold and higher
realized prices;
-- Cash flow from operations before non-cash working capital changes
increased 21% to $18.8 million;
-- Achieved total production cost of negative $5.17 per ounce of silver and
a cash cost of negative $6.30 per ounce of silver, making Silvercorp an
industry leading low-cost producer;
-- Dividend payment of $3.2 million, or CAD$0.02 per share;
-- Total cash, cash equivalents and short term investments increased to
$110.2 million; and
-- On November 8, 2010, Silvercorp signed agreements to acquire a 70%
interest in the BYP gold- lead-zinc property in Hunan Province, China.
This acquisition marks another significant step for the Company's growth
and allows Silvercorp to establish a third production base in China.
FINANCIALS
For the second quarter of fiscal 2011, Silvercorp recorded net income of $12.5 million, or $0.08 per share, representing a 40% increase compared to the same quarter last year of $8.9 million or $0.06 per share. Net earnings were affected by the following non-operational items: (1) $1.4 million dilution gain on our investment in New Pacific Metals Corp., an affiliate of the Company; (2) $1.8 million Chinese withholding tax payment on dividends received by Silvercorp from its Chinese subsidiary; (3) an additional $1.8 million Chinese withholding tax accrued on dividends to be received in the third quarter of fiscal 2011 by Silvercorp; (4) a loss on plant and equipment of $0.5 million due to the heavy storm in July; and (5) miscellaneous income of $0.5 million. Excluding these items, adjusted net earnings was $14.7 million, or $0.09 per share.
For the six months ended September 30, 2010, net income increased 62% to $26.6 million or $0.16 per share, compared to net income of $16.4 million, or $0.10 per share a year ago. Earnings improved primarily due to higher metal production and higher realized selling prices.
Sales in the second quarter were $36.3 million, an increase of 45% from $25.1 million in the same quarter last year. The increase was attributable to higher quantities of metals sold and higher realized selling prices for all metals produced by the Company. In Q2 2011, the Company sold 1.34 million ounces of silver plus 17.0 million pounds of lead, and 3.9 million pounds of zinc, representing an increase of 17%, 12%, and 2%, respectively, compared to 1.15 million ounces of silver, 15.2 million pounds of lead, and 3.8 million pounds of zinc in Q2 2010. The average realized selling prices for silver, lead, and zinc increased to $14.63/oz., $0.81/lb., and $0.67/lb., respectively, up by 33%, 21%, and 26%, respectively, compared with the metal prices realized in Q2 2010. Higher metal production and realized selling prices also resulted in revenue increasing by 53% to $73.1 million for the six months period ended September 30, 2010.
Cost of sales for the quarter were $9.8 million, representing a 63% increase as the Company mined 51% more and milled 61% more ore compared to the same quarter last year. For the six months period ended September 30, 2010 and 2009, cost of goods sold were $19.9 million and $11.9 million, respectively. The cost of goods sold increased correspondingly with increased sales.
Gross profit margin for the quarter was 73%, slightly lower than the 76% margin in the same quarter last year, which was mainly due to a decrease in overall head grade to 312.0g/t from 421.1g/t in the same quarter last year, as the percentage of ore production from HPG, LM and TLP mines increased. For the six months ended September 30, 2010 and 2009, gross profit margin was 73% and 75%, respectively.
In Q2 2011, the Company generated $18.8 million of cash flows from operating activities before non-cash working capital changes, representing a 21% increase from Q2 2010. For the six months ended September 30, 2010, cash flow from operating activities before changes in non-cash working capital was $40.3 million, a 51% improvement from the same period last year.
The Company ended the quarter with $110.2 million in cash and short term investments, up 16% from $94.7 million as at March 31, 2010.
OPERATIONS
In Q2 2011, Silvercorp not only overcame the flood damage at the Ying Mining Camp caused by the heavy storm in July and eliminated its estimated 10% reduction in production, but also achieved record ore production of 154,445 tonnes, which was 51% more than the ore production in Q2 2010. For the six months ended September 30, 2010, the Company mined 299,427 tonnes of ore, a 45% increase from the same period last year of 206,385 tonnes. The record mine production was contributed by increased production from the TLP, HPG, and LM mines.
A total of 150,553 tonnes of ore was milled in the quarter, representing a 61% increase compared to 93,772 tonnes of ore milled in the same quarter last year. During the six months ended September 30, 2010, 299,742 tonnes of ore was milled, up 63% compared to last year. The increased mill throughput was achieved as the second mill at Ying Mining Camp commenced operations at the beginning of 2010, which results in a total milling capacity of 2,500 tonnes per day, providing room to accommodate future mine production growth.
Consolidated total production cost per ounce of silver was negative $5.17 and the cash cost per ounce of silver was negative $6.30, comparable to the total production costs and cash production costs per ounce of silver of negative $5.61 and negative $6.33 respectively in same quarter last year. During the six months ended September 30, 2010, the consolidated total production cost and cash costs per ounce of silver were negative $5.19 and negative $6.31, respectively, compared to negative $4.94 and negative $5.70, a year ago. The improvement was mainly attributable to the increased by-product credits resulting from higher realized lead and zinc prices.
Silvercorp's total operational results for the past five quarters are summarized at Table 1 below:
Table 1: Total Operational Results
Q2 2011 Q1 2011 Q4 2010 Q3 2010 Q2 2010
30-Sept-10 30-Jun-10 31-Mar-10 31-Dec-09 30-Sep-09
Ore Mined (tonne)
Direct Smelting Ore
(tonne) 3,065 3,426 2,485 3,428 3,589
Ore to be milled
(tonne) 151,380 141,556 78,549 115,907 98,872
------------------------------------------------
154,445 144,982 81,034 119,335 102,461
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Run of Mine Ore (tonne)
Direct Smelting
Ore (tonne) 3,065 3,426 2,485 3,428 3,589
Ore Milled (tonne) 147,488 145,763 131,436 87,032 90,183
------------------------------------------------
150,553 149,189 133,921 90,460 93,772
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Mining costs per
tonne of ore mined ($) 49.12 48.61 57.06 57.81 57.05
Cash Mining Cost
per tonne of
ore mined ($) 40.36 40.33 47.36 48.93 49.48
Non Cash Mining Cost
per tonne of
ore mined ($) 8.76 8.28 9.70 8.88 7.57
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Head Grade of Run of Mine Ore
Silver (gram/tonne) 312.0 326.3 303.8 440.8 421.1
Lead (%) 5.6 6.1 5.7 8.3 7.9
Zinc (%) 1.9 2.0 1.6 3.0 2.8
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Total Production Cost
per ounce of Silver ($) (5.17) (5.21) (4.61) (6.87) (5.61)
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Total Cash Cost
per ounce of Silver ($) (6.30) (6.31) (5.64) (7.73) (6.33)
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Metal Sales
Silver (in thousands
of ounce) 1,343 1,387 1,079 1,220 1,150
Lead (in thousands
of pound) 17,028 18,803 14,921 16,211 15,199
Zinc (in thousands
of pound) 3,869 4,431 2,747 4,454 3,803
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In Q2 2011, 82% of Silvercorp's silver production was from the Ying Mine (96% in Q2 2010). The operational results for the past five quarters at the Ying Mine are summarized at Table 2 below:
Table 2: Ying Mine Operational Results
Q2 2011 Q1 2011 Q4 2010 Q3 2010 Q2 2010
30-Sept-10 30-Jun-10 31-Mar-10 31-Dec-09 30-Sep-09
Ore Mined (tonne)
Direct Smelting
Ore (tonne) 3,017 3,339 2,418 3,357 3,550
Ore to be milled
(tonne) 82,187 79,873 54,174 82,711 79,713
------------------------------------------------
85,204 83,212 56,592 86,068 83,263
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Run of Mine Ore (tonne)
Direct Smelting
Ore (tonne) 3,017 3,339 2,418 3,357 3,550
Ore Milled (tonne) 79,995 81,898 70,214 70,776 80,657
------------------------------------------------
83,012 85,237 72,632 74,133 84,207
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Mining costs per tonne
of ore mined ($) 54.79 55.10 57.50 56.90 54.71
Cash Mining Cost
per tonne of
ore mined ($) 42.66 43.83 45.60 45.75 46.16
Non Cash Mining Cost
per tonne of
ore mined ($) 12.13 11.27 11.84 11.15 8.55
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Head Grade of Run of Mine Ore
Silver (gram/tonne) 461.0 470.5 429.3 488.5 452.5
Lead (%) 7.9 8.1 7.6 9.0 8.1
Zinc (%) 2.8 2.8 2.8 3.4 3.0
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Total Production Cost
per ounce of Silver ($) (6.94) (5.83) (6.14) (7.47) (5.51)
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Total Cash Cost
per ounce of Silver ($) (7.99) (6.80) (7.26) (8.36) (6.24)
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Metal Sales
Silver (in thousands
of ounce) 1,095 1,147 836 1,086 1,107
Lead (in thousands
of pound) 13,486 14,230 11,097 14,327 14,084
Zinc (in thousands
of pound) 3,275 3,605 2,747 4,038 3,707
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EXPLORATION AND PROJECT DEVELOPMENT
Ying Mining Camp, Henan Province, China
In Q2 2011, Ying Mining Camp incurred exploration and development expenditures of $5.5 million. These expenditures were mainly used to delineate and upgrade mineral resources by tunnelling and diamond drilling, and to sink shafts and declines. During the current quarter, a total of 16,636 meters of tunnel, 33,189 meters of diamond drilling and 793 meters of shaft and declines were completed.
Silvertip Project, British Columbia, Canada
In Q2 2011, the surface drill program at the Silvertip Project has drilled 6,063 meters from 20 drill holes. Assay results are pending. Silvercorp has also conducted a 4,113 line kilometers VTEM airborne geophysical survey over an area of 367 square kilometers and completed certain studies and reports required for a B.C. Small Mine Permit application. As of September 30, 2010, $5.4 million was incurred on the Silvertip project, of which $3.6 million was for exploration and permitting and $1.8 million was for camp and infrastructure.
OUTLOOK FOR FISCAL YEAR 2011
Ying Mining Camp, Henan Province, China
As of September 30, 2010, the Company has mined 299,427 tonnes of ore at grades of 319 g/t silver, 5.8% lead and 1.9% zinc. For the whole fiscal year 2011, the Company's production target is to produce approximately 570,000 tonnes of ore at a grade of 320 g/t silver, 6% lead and 2% zinc, yielding 5.3 million ounces of silver, 72 million pounds of lead and 17 million pounds of zinc.
Using the average metal prices in Q2 2011 and the above projected production figures, the Company's mining operations in fiscal 2011 are expected to generate revenues of approximately $150 million, and cash flow from operations of $85 million. Capital expenditures for fiscal 2011 are budgeted at $13 million at the Ying Mining Camp - including $7 million for the Ying Mine, $4 million for the TLP mine and $2 million for the HPG and LM mines.
GC Project, Guangdong Province, China
At the GC Project in Guangdong Province, China, Silvercorp submitted a mining permit application to the Ministry of Land and Resources ('MOLAR'). MOLAR has accepted the application along with all supporting documents. The Company expects to receive the mining permit in the next quarter. Once the GC mining permit is granted, the Company plans to commence the construction of a 1,500 tonnes per day mine and mill operation.
BYP Project, Hunan Province, China
On November 8, 2010, Silvercorp announced that it has signed a share purchase agreement and a Sino- Foreign cooperative joint venture contract to acquire a 70% equity interest in Yunxiang Mining Co. Ltd. ('Yunxiang'), a local private mining company in Hunan Province. Yunxiang's primary asset is the BYP Gold-Lead-Zinc (Au-Pb-Zn) Mine, located 220 km southwest, or a 3 hour drive, from Changsha, Hunan's capital city. The cost of the share purchase and the Joint Venture capital investment is approximately US$33 million for Silvercorp. Full details are in a separate press release issued by the Company on November 8, 2010.
Silvertip Project, British Columbia, Canada
Within the next six months, the Company intends to complete the necessary studies required for the submission of a B.C. Small Mine Permit application for an operation with an annual capacity of up to 75,000 tonnes. The Small Mine Permit will allow Silvercorp to commence early production, focusing on higher grade (greater than 1,000 g/t silver equivalent) ore zones that can be accessed from existing tunnels. Expected cash flows from the small mining operation will then help finance further exploration to expand both the resource and mine operations.
Exploration drilling will continue to mid-December 2010 with a target of 15,000 meters of drilling. The total capital expenditure budget for calendar year 2010 at the Silvertip project will be approximately $7-8 million, including $4-5 million for exploration, and $3 million for permitting, camp facilities, and related infrastructure development.
Future Acquisitions
Silvercorp continues to pursue future growth opportunities by carrying out aggressive exploration programs within existing exploration and mining permit areas at its projects in addition to continually seeking out acquisitions projects in China and other jurisdictions.
CONFERENCE CALL AND WEBCAST INFORMATION
A conference call and live audio webcast to discuss these results is scheduled as follows:
Date: Wednesday, November 10, 2010
Time: 8:00 am PT (11:00 am ET)
Dial-In Number: 1-612-332-0107
Live audio webcast: www.silvercorp.ca (click on the link on the home page)
Playback webcast can be accessed at: www.silvercorp.ca
About Silvercorp Metals Inc.
Silvercorp Metals Inc. is engaged in the acquisition, exploration, development and mining of high-grade silver-related mineral properties in China and Canada. Silvercorp is the largest primary silver producer in China through the operation and development of four silver-lead-zinc mines at the highly profitable Ying Mining Camp in the Henan Province of China. The company is also applying for a mining permit at the GC property in the Guangdong Province to establish a second base for production in China. Additionally, Silvercorp recently acquired the Silvertip project in northern British Columbia, Canada, as an additional platform for growth and geographic diversification. The Company's shares are traded on the New York Stock Exchange and Toronto Stock Exchange and are included as a component of the S&P/TSX Composite and the S&P/TSX Global Mining Indexes.
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 Camp; 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; First Nations title claims and rights; 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, 2010 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.
Consolidated Balance Sheets - Unaudited
(Expressed in thousands of U.S. dollars)
September 30, March 31,
2010 2010
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ASSETS
Current Assets
Cash and cash equivalents $ 66,263 $ 50,618
Short term investments 43,926 44,041
Accounts receivable, prepaids and deposits 2,767 2,474
Inventories 3,070 3,175
Current portion of future income tax assets 419 112
Amounts due from related parties 54 138
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116,499 100,558
Long term prepaids and deposits 1,272 505
Long term investments 19,866 14,838
Restricted cash 77 78
Plant and equipment 31,422 29,024
Mineral rights and properties 146,118 133,248
Future income tax assets 1,312 1,203
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$ 316,566 $ 279,454
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LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities $ 13,913 $ 7,504
Deposits received 1,688 6,737
Bank loan and notes payable - 1,465
Current portion of asset retirement obligations 306 292
Dividends payable 3,207 3,238
Income tax payable 1,208 1,658
Current portion of future income tax liabilities 1,781 -
Amounts due to related parties 5,380 -
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27,483 20,894
Future income tax liabilities 19,865 19,475
Asset retirement obligations 2,477 2,357
-------------------------------------------------------------------------
49,825 42,726
Non-controlling interests 26,422 21,738
SHAREHOLDERS' EQUITY
Share capital 150,465 145,722
Contributed surplus 4,826 4,702
Reserves 31,893 31,893
Accumulated other comprehensive income 15,136 14,910
Retained earnings 37,999 17,763
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240,319 214,990
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$ 316,566 $ 279,454
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SILVERCORP METALS INC.
Consolidated Statements of Operations - Unaudited
(Expressed in thousands of U.S. dollars, except for per share figures)
Three months ended Six months ended
September 30, September 30,
-------------------------------------------------------------------------
2010 2009 2010 2009
-------------------------------------------------------------------------
Sales $ 36,338 $ 25,085 $ 73,067 $ 47,657
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Cost of sales 8,235 5,173 16,899 10,145
Amortization and depletion 1,522 824 3,049 1,753
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9,757 5,997 19,948 11,898
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Gross profit 26,581 19,088 53,119 35,759
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Expenses
Accretion of asset
retirement obligations 40 31 80 62
Amortization 159 168 303 370
Foreign exchange loss (gain) 376 82 (168) (1,434)
General exploration
and property
investigation expenses 1,110 959 2,435 3,266
Impairment charges
and bad debt - (79) - 698
Investor relations 86 110 171 181
General and administrative 3,273 1,807 7,498 4,532
Professional fees 337 663 574 1,238
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5,381 3,741 10,893 8,913
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21,200 15,347 42,226 26,846
Other income and (expenses)
Equity loss on
investment in NUX (58) (136) (96) (218)
Dilution gain on
investment in NUX 1,394 - 1,394 -
Gain on disposal
of mineral rights
and properties - - 537 -
Loss on disposal of
plant and equipment (449) (871) (449) (1,127)
Unrealized gain (loss) on
held-for-trading securities 126 (11) 77 (11)
Interest expenses (10) - (30) -
Interest income 326 160 591 398
Other income 84 53 196 213
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1,413 (805) 2,220 (745)
Income before
income taxes and
non-controlling interests 22,613 14,542 44,446 26,101
Income tax expense
Current 4,807 1,940 7,524 3,518
Future 807 412 1,341 226
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5,614 2,352 8,865 3,744
Income before
non-controlling interests 16,999 12,190 35,581 22,357
Non-controlling interests (4,548) (3,297) (9,029) (5,977)
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Net income 12,451 8,893 $ 26,552 $ 16,380
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Basic earnings per share $ 0.08 $ 0.06 $ 0.16 $ 0.10
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Diluted earnings per share $ 0.08 $ 0.05 $ 0.16 $ 0.10
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Weighted Average
Number of Shares
Outstanding - Basic 164,934,678 161,590,262 164,825,570 161,588,640
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Weighted Average
Number of Shares
Outstanding - Diluted 165,703,536 163,359,824 165,642,570 62,923,835
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SILVERCORP METALS INC.
Consolidated Statements of Cash Flows - Unaudited
(Expressed in thousands of U.S. dollars)
Three months ended Six months ended
September 30, September 30,
-------------------------------------------------------------------------
2010 2009 2010 2009
-------------------------------------------------------------------------
Cash provided by (used in)
Operating activities
Net income for
the period $ 12,451 $ 8,893 $ 26,552 $ 16,380
Add (deduct) items
not affecting cash:
Accretion of asset
retirement obligations 40 31 80 62
Amortization and depletion 1,681 992 3,352 2,123
Equity loss on
investment in NUX 58 136 96 218
Dilution gain on
investment in NUX (1,394) - (1,394) -
Future income tax expenses 807 412 1,341 226
Impairment charges
and bad debt - (79) - 698
Unrealized loss (gain) on
held-for-trading
securities (126) 11 (77) 11
Gain on disposal
of mineral rights
and properties - - (537) -
Loss on disposal of
plant and equipment 449 871 449 1,127
Non-controlling interests 4,548 3,297 9,029 5,977
Stock-based compensation 447 509 1,227 899
Unrealized foreign
exchange loss (gain) (135) 498 193 (1,018)
Changes in non-cash
operating working capital (4,131) 345 (2,434) (403)
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Cash provided by
operating activities 14,695 15,916 37,877 26,300
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Investing activities
Mineral rights and properties
Acquisition and
capital expenditures (6,263) (5,568) (11,918) (7,740)
Proceeds on disposals - - 537 -
Plant and equipment
Acquisition (2,624) (419) (3,407) (808)
Proceeds on disposals 1 119 1 120
Long-term investments
Acquisition (2,019) (1,323) (2,019) (1,323)
Net redemption
(purchase) of
short term investments 15,585 (4,772) 209 (720)
Prepayments to acquire
plant and equipment (421) (1,579) (1,232) (1,999)
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Cash provided by (used in)
investing activities 4,259 (13,542) (17,829) (12,470)
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Financing activities
Advance to related
parties, net of
repayments received 318 (84) 305 (104)
Bank loan and notes payable
Proceeds - - - 2,927
Repayments - - (1,473) (658)
Non-controlling interests
Distribution - (3,293) - (3,293)
Cash dividends distributed (3,174) (2,762) (6,374) (5,532)
Capital stock
Proceeds from issuance
of common shares 829 57 2,017 57
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Cash used in
financing activities (2,027) (6,082) (5,525) (6,603)
-------------------------------------------------------------------------
Effect of exchange rate
changes on cash and
cash equivalents 1,840 (220) 1,122 1,119
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Increase (decrease) in
cash and cash equivalents 18,767 (3,928) 15,645 8,346
Cash and cash equivalents,
beginning of period 47,496 53,744 50,618 41,470
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Cash and cash equivalents,
end of period $ 66,263 $ 49,816 $ 66,263 $ 49,816
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SILVERCORP METALS INC.
Mining Data
(Expressed in thousands of U.S. dollars, except for mining data figures)
Q2 Fiscal 2011 Three months ended September 30, 2010
YING HPG & LM TLP Total
Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ore (tonne) 3,017 48 - 3,065
Stockpiled Ore (tonne) 82,187 15,112 54,081 151,380
--------------------------------------
85,204 15,160 54,081 154,445
--------------------------------------
Run of Mine Ore (tonne)
Direct Smelting Ore (tonne) 3,017 48 - 3,065
Ore Milled (tonne) 79,995 15,848 51,645 147,488
--------------------------------------
83,012 15,896 51,645 150,553
--------------------------------------
Mining cost per tonne
of ore mined ($) 54.79 71.46 33.92 49.12
Cash mining cost per
tonne of ore mined ($) 42.66 64.21 30.04 40.36
Non cash mining cost per
tonne of ore mined ($) 12.13 7.25 3.88 8.76
Unit shipping costs($) 3.50 2.98 3.03 3.28
Milling cost per tonne
of ore milled ($) 13.36 13.33 12.50 13.06
Cash milling cost per
tonne of ore milled ($) 11.51 11.85 10.99 11.36
Non cash milling cost per
tonne of ore milled ($) 1.86 1.48 1.51 1.69
Average Production Cost
Silver ($ per ounce) 2.84 10.04 7.83 3.93
Gold ($ per ounce) 156.87 604.63 - 225.85
Lead ($ per pound) 0.16 0.56 0.44 0.22
Zinc ($ per pound) 0.13 0.45 0.34 0.18
Production Cost and Cash Cost
Per Ounce of Silver
Total production cost
per ounce of Silver ($) (6.94) 6.09 1.05 (5.17)
Total cash cost per
ounce of Silver ($) (7.99) 5.05 (0.61) (6.30)
Total Recovery of the
Run of Mine Ore
Silver (%) 92.3 91.8 86.9 91.6
Lead (%) 96.3 93.9 89.9 95.1
Zinc ( %) 71.5 44.9 65.9 70.1
Head Grades of Run of Mine Ore
Silver (gram/tonne) 461.0 178.0 114.0 312.0
Lead (%) 7.9 3.2 2.6 5.6
Zinc (%) 2.8 0.4 0.8 1.9
Sales Data
Metal Sales
Silver (in thousands of ounce) 1,095 79 168 1,343
Gold (in thousands of ounce) 0.2 0.1 - 0.3
Lead (in thousands of pound) 13,486 1,020 2,522 17,028
Zinc (in thousands of pound) 3,275 60 534 3,869
Metal Sales
Silver ($) 15,993 1,168 2,481 19,642
Gold ($) 135 111 - 246
Lead ($) 10,945 831 2,077 13,853
Zinc ($) 2,213 40 344 2,596
--------------------------------------
29,287 2,150 4,902 36,338
--------------------------------------
Average Selling Price,
Net of Value Added Tax
and Smelter Charges
Silver ($ per ounce) 14.60 14.73 14.79 14.63
Gold ($ per ounce) 806.78 887.41 - 841.19
Lead ($ per pound) 0.81 0.81 0.82 0.81
Zinc ($ per pound) 0.68 0.66 0.64 0.67
SILVERCORP METALS INC.
Mining Data
(Expressed in thousands of U.S. dollars, except for mining data figures)
Q2 Fiscal 2010 Three months ended September 30, 2009
YING HPG & LM TLP Total
Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ore (tonne) 3,550 37 2 3,589
Stockpiled Ore (tonne) 79,713 11,614 7,545 98,872
--------------------------------------
83,263 11,651 7,547 102,461
--------------------------------------
Run of Mine Ore (tonne)
Direct Smelting Ore (tonne) 3,550 37 2 3,589
Ore Milled (tonne) 80,657 8,640 886 90,183
--------------------------------------
84,207 8,677 888 93,772
--------------------------------------
Mining cost per tonne
of ore mined ($) 54.71 84.53 74.56 57.05
Cash mining cost per
tonne of ore mined ($) 46.16 77.69 70.46 49.48
Non cash mining cost per
tonne of ore mined ($) 8.55 6.85 4.10 7.57
Unit shipping costs($) 3.45 3.09 3.16 3.39
Milling cost per tonne
of ore milled ($) 10.16 13.89 8.71 10.06
Cash milling cost per
tonne of ore milled ($) 9.19 12.92 7.68 9.09
Non cash milling cost per
tonne of ore milled ($) 0.96 0.97 1.02 0.97
Average Production Cost
Silver ($ per ounce) 2.53 4.55 3.46 2.63
Gold ($ per ounce) 110.57 268.51 - 149.85
Lead ($ per pound) 0.16 0.25 0.23 0.16
Zinc ($ per pound) 0.12 0.11 - 0.13
Total production cost
per ounce of Silver ($) (5.51) (9.17) (3.43) (5.61)
Total cash cost per
ounce of Silver ($) (6.24) (9.63) (3.64) (6.33)
Total Recovery of the
Run of Mine Ore
Silver (%) 92.8 86.4 81.7 92.6
Lead (%) 96.6 89.1 85.6 96.1
Zinc ( %) 71.2 59.0 - 70.9
Head Grades of Run of Mine Ore
Silver (gram/tonne) 452.5 217.7 107.7 421.1
Lead (%) 8.1 4.8 4.9 7.9
Zinc (%) 3.0 0.4 - 2.8
Sales Data
Metal Sales
Silver (in thousands of ounce) 1,107 36 7 1,150
Gold (in thousands of ounce) 0.1 0.2 - 0.3
Lead (in thousands of pound) 14,084 1,022 93 15,199
Zinc (in thousands of pound) 3,707 96 - 3,803
Metal Sales
Silver ($) 12,178 374 83 12,635
Gold ($) 48 140 - 188
Lead ($) 9,546 641 72 10,259
Zinc ($) 1,974 29 - 2,003
--------------------------------------
23,746 1,184 155 25,085
--------------------------------------
Average Selling Price,
Net of Value Added Tax
and Smelter Charges
Silver ($ per ounce) 11.00 10.39 11.68 10.99
Gold ($ per ounce) 480.00 700.00 - 626.67
Lead ($ per pound) 0.68 0.63 0.78 0.67
Zinc ($ per pound) 0.53 0.30 - 0.53
SILVERCORP METALS INC.
Mining Data
(Expressed in thousands of U.S. dollars, except for mining data figures)
Q2 Fiscal 2011 Six months ended September 30, 2010
YING HPG & LM TLP Total
Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ore (tonne) 6,356 125 10 6,491
Stockpiled Ore (tonne) 162,060 32,943 97,933 292,936
--------------------------------------
168,416 33,068 97,943 299,427
--------------------------------------
Run of Mine Ore (tonne)
Direct Smelting Ore (tonne) 6,356 125 10 6,491
Ore Milled (tonne) 161,893 33,924 97,434 293,251
--------------------------------------
168,249 34,049 97,444 299,742
--------------------------------------
Mining cost per tonne
of ore mined ($) 54.97 62.69 33.77 48.89
Cash mining cost per
tonne of ore mined ($) 43.27 56.34 29.97 40.36
Non cash mining cost per
tonne of ore mined ($) 11.71 6.35 3.80 8.53
Unit shipping costs($) 3.56 3.38 3.22 3.43
Milling cost per tonne
of ore milled ($) 13.52 12.67 13.16 13.30
Cash milling cost per
tonne of ore milled ($) 11.78 11.25 11.45 11.61
Non cash milling cost per
tonne of ore milled ($) 1.74 1.42 1.70 1.69
Average Production Cost
Silver ($ per ounce) 2.95 7.44 7.80 3.90
Gold ($ per ounce) 169.13 456.28 449.11 230.11
Lead ($ per pound) 0.16 0.39 0.42 0.21
Zinc ($ per pound) 0.13 0.28 0.35 0.17
Production Cost and Cash Cost
Per Ounce of Silver
Total production cost
per ounce of Silver ($) (6.37) (0.26) 0.50 (5.19)
Total cash cost
per ounce of Silver ($) (7.38) (1.51) (1.28) (6.31)
Total Recovery of the
Run of Mine Ore
Silver (%) 92.0 90.7 86.0 91.2
Lead (%) 96.3 93.8 89.8 95.2
Zinc ( %) 70.4 52.7 69.9 69.8
Head Grades of Run of Mine Ore
Silver (gram/tonne) 465.4 178.5 114.9 318.8
Lead (%) 8.0 4.1 2.6 5.8
Zinc (%) 2.8 0.6 0.8 1.9
Sales Data
Metal Sales
Silver (in thousands of ounce) 2,243 170 317 2,730
Gold (in thousands of ounce) 0.6 0.5 0.2 1.3
Lead (in thousands of pound) 27,716 2,805 5,311 35,831
Zinc (in thousands of pound) 6,880 268 1,151 8,299
Metal Sales
Silver ($) 31,949 2,440 4,561 38,950
Gold ($) 508 444 158 1,110
Lead ($) 21,528 2,129 4,155 27,812
Zinc ($) 4,311 147 737 5,195
--------------------------------------
58,296 5,160 9,611 73,067
--------------------------------------
Average Selling Price,
Net of Value Added Tax
and Smelter Charges
Silver ($ per ounce) 14.24 14.35 14.39 14.27
Gold ($ per ounce) 816.52 879.67 831.41 842.88
Lead ($ per pound) 0.78 0.76 0.78 0.78
Zinc ($ per pound) 0.63 0.55 0.64 0.63
SILVERCORP METALS INC.
Mining Data
(Expressed in thousands of U.S. dollars, except for mining data figures)
Q2 Fiscal 2010 Six months ended September 30, 2009
YING HPG& LM TLP Total
Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ore (tonne) 7,323 144 8 7,475
Stockpiled Ore (tonne) 162,188 24,993 11,729 198,910
--------------------------------------
169,511 25,137 11,737 206,385
--------------------------------------
Run of Mine Ore (tonne)
Direct Smelting Ore (tonne) 7,323 144 8 7,475
Ore Milled (tonne) 157,987 16,520 1,531 176,038
--------------------------------------
165,310 16,664 1,539 183,513
-------------------------------------
Mining cost per tonne
of ore mined ($) 53.77 54.79 69.92 54.81
Cash mining cost per
tonne of ore mined ($) 44.26 53.28 65.93 46.59
Non cash mining cost per
tonne of ore mined ($) 9.51 1.51 3.99 8.22
Unit shipping costs($) 3.50 3.21 2.99 3.44
Milling cost per tonne
of ore milled ($) 11.13 12.41 11.41 11.16
Cash milling cost per
tonne of ore milled ($) 10.13 11.40 10.35 10.17
Non cash milling cost per
tonne of ore milled ($) 0.99 1.01 1.05 0.99
Average Production Cost
Silver ($ per ounce) 2.52 4.43 2.51 2.60
Gold ($ per ounce) 116.39 253.50 - 147.21
Lead ($ per pound) 0.15 0.24 0.16 0.15
Zinc ($ per pound) 0.12 0.16 - 0.12
Total production cost per
ounce of Silver ($) (4.84) (8.23) (4.29) (4.94)
Total cash cost per
ounce of Silver ($) (5.61) (8.65) (4.43) (5.70)
Total Recovery of the
Run of Mine Ore
Silver (%) 93.1 86.7 84.6 92.8
Lead (%) 96.5 91.6 89.8 96.2
Zinc (%) 73.7 65.7 - 73.6
Head Grades of Run of Mine Ore
Silver (gram/tonne) 470.0 225.6 95.5 437.9
Lead (%) 8.6 5.8 5.3 8.3
Zinc (%) 3.0 0.6 - 2.8
Sales Data
Metal Sales
Silver (in thousands of ounce) 2,241 71 14 2,326
Gold (in thousands of ounce) 0.2 0 - 0.6
Lead (in thousands of pound) 29,101 1,950 190 31,242
Zinc (in thousands of pound) 7,286 253 - 7,539
Metal Sales
Silver ($) 23,406 704 149 24,259
Gold ($) 106 255 1 362
Lead ($) 18,035 1,146 126 19,307
Zinc ($) 3,626 103 - 3,729
--------------------------------------
45,173 2,208 276 47,657
--------------------------------------
Average Selling Price,
Net of Value Added Tax
and Smelter Charges
Silver ($ per ounce) 10.44 9.92 10.35 10.43
Gold ($ per ounce) 481.82 637.50 - 589.58
Lead ($ per pound) 0.62 0.59 0.66 0.62
Zinc ($ per pound) 0.50 0.41 - 0.49
Contacts:
Silvercorp Metals Inc.
Rui Feng
Chairman & CEO
(604) 669-9397 or Toll Free 1(888) 224-1881
Silvercorp Metals Inc.
Lorne Waldman
Corporate Secretary
(604) 669-9397 or Toll Free 1(888) 224-1881
(604) 669-9387 (FAX)
info@silvercorp.ca
www.silvercorp.ca