Silvercorp Reports Record Silver Production of 5.6 Million Ounces, Record Revenue of $238.0 Million, Record Net Income of $73.8 Million, & Record Cash Flows of $123.8 Million for Fiscal Year 2012
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/17/12 -- Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM)(NYSE: SVM) reported today its financial and operating results for the fourth quarter and fiscal year ended March 31, 2012. The following financial results are expressed in US dollars (US$) unless stated otherwise.
FISCAL 2012 YEAR HIGHLIGHTS
For the year ended March 31, 2012 ("fiscal 2012"), highlights included:
-- Record net income attributable to equity holders of the Company of $73.8
million, or $0.43 per share, an increase of 9% compared to net income of
$67.7 million, or $0.40 per share, in year ended March 31, 2011 ("fiscal
2011");
-- Record revenue of $238.0 million, an increase of 42% compared to $167.3
million in fiscal 2011;
-- Record cash flows from operations, excluding non-cash working capital,
of $123.8 million or $0.72 per share, an increase of 34%, compared to
$92.2 million or $0.55 per share in fiscal 2011;
-- Record production of 5.6 million ounces of silver, or 6.06 million
ounces of silver equivalent (including 8,800 ounces of gold), being the
sixth consecutive year of production growth with an increase of 6% in
silver production compared to 5.3 million ounces in fiscal 2011;
-- Total production costs of negative $3.25 per ounce of silver and cash
costs of negative $5.13 per ounce of silver;
-- Commenced mine development and mill construction at the GC mine. In
fiscal 2012, 717 metres ("m") of the 2,210m main access ramp, 42m of the
618m main shaft and 400m of a 3.7m by 4m water diversion tunnel were
completed. The construction of mill, office building and lab facilities
are also well underway;
-- Completed XBG and XHP project acquisitions, further consolidating mines
in the high-grade silver, gold and base metal belt in the southwest
Luoyang City district region;
-- Increased quarterly dividend by 25% to $0.025 per share, and declared
$15.6 million, or $0.09 per share, of dividends in aggregate; and
-- Repurchased and cancelled 4.5 million shares under a normal course
issuer bid, at an average cost of $7.90 per share, totaling $35.4
million.
FOURTH QUARTER HIGHLIGHTS
Highlights from the fourth quarter ended March 31, 2012 ("Q4 2012") included:
-- Net income attributable to equity holders of the Company of $9.7
million, or $0.06 per share, compared to net income of $12.0 million, or
$0.07 per share, in the fourth quarter of fiscal 2011 ("Q4 2011");
-- As in every fourth quarter, production stopped for 28 days due to the
Chinese New Year holiday;
-- Revenue of $44.3 million, an increase of 4% compared to $42.4 million in
Q4 2011;
-- Quarterly cash flows from operations, excluding non-cash working
capital, of $20.9 million, or $0.12 per share, compared to $20.3
million, or $0.12 per share, in Q4 2011;
-- Produced 1.1 million ounces of silver in the quarter, compared to 1.0
million ounces in Q4 2011;
-- Total production costs of negative $1.84 per ounce of silver and cash
costs of negative $4.22 per ounce of silver; and
-- Payment of $4.2 million, or CAD$0.025 per share, in quarterly dividends
to shareholders.
FINANCIALS
1. Q4 2012 vs. Q4 2011
In Q4 2012, the Company recorded net income attributable to equity holders of the Company of $9.7 million or $0.06 per share, a decrease of 19% compared to net income of $12.0 million or $0.07 per share, in Q4 2011. The lower net income was mainly due to (i) $1.5 million of forensic audit and legal fees incurred to fight short sellers' attack (excluding this item, EPS would be $0.07 per share), (ii) higher production costs, partially offset by higher sales revenue, and (iii) higher general and administrative costs as the Company has three projects under development compared to only one last year.
Sales in Q4 2012 rose to $44.3 million, an increase of 4% compared to $42.4 million in Q4 2011, due to higher silver and gold production and prices, offset by slightly lower base metal production and prices.
Realized selling price is calculated using the Shanghai metal prices, less smelter charges, recovery and a 17% value added tax ("VAT") (except for gold). The following table is a reconciliation of the Company's realized selling prices in Q4 2012 with the Shanghai metal prices, and a comparison to the London Metal Exchange ("LME") prices:
Silver (in Gold (in Lead (in Zinc (in
For Q4 2012 US$/ounce) US$/ounce) US$/pound) US$/pound)
Q4 2012 Q4 2011 Q4 2012 Q4 2011 Q4 2012 Q4 2011 Q4 2012 Q4 2011
Realized
selling
prices $ 25.37 $ 24.72 $ 1,269 $ 974 $ 0.84 $ 0.91 $ 0.67 $ 0.75
Add back:
Value
added
taxes 4.31 4.20 - - 0.14 0.15 0.11 0.13
Add back:
Smelter
charges
and
recovery 3.60 3.55 431 425 0.15 0.14 0.32 0.39
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Shanghai
metal
prices $ 33.28 $ 32.47 $ 1,700 $ 1,399 $ 1.13 $ 1.20 $ 1.10 $ 1.27
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LME $ 32.63 $ 31.86 $ 1,691 $ 1,387 $ 0.95 $ 1.18 $ 0.92 $ 1.08
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Cost of sales in Q4 2012 was $14.3 million, compared to $10.2 million in Q4 2011. The cost of sales included $11.1 million cash costs, representing an increase of 29%, compared to the same quarter last year. The increase of cost of sales was mainly due to more ore being mined and processed, plus the higher per tonne production costs. The ore mined increased by 24% compared to Q4 2011, while the ore milled increased by 18%. Production cost per tonne increased by 19%.
Gross profit margin in Q4 2012 was 68% compared to 76% in Q4 2011.
Excluding non-cash working capital, cash flows from operations in Q4 2012 was $20.9 million or $0.12 per share, compared to $20.3 million, or $0.12 per share, in Q4 2011.
In Q4 2012, general and administrative expense was $8.0 million, up $2.9 million from $5.1 million in Q4 2011 as the Company now has three projects under development compared to only one last year. The increase also includes $1.5 million of forensic audit and legal fees incurred to fight the short sellers' attack.
2. Fiscal 2012 vs. Fiscal 2011
In fiscal 2012, the Company generated record net income of $73.8 million or $0.43 per share, an increase of 9% compared to $67.7 million or $0.40 per share, in fiscal 2011.
In fiscal 2012, the Company reported record sales of $238.0 million, an increase of $70.6 million or 42% compared to fiscal 2011. The increase in sales was mainly attributable to higher metal prices combined with higher quantities of metals sold for the year.
In fiscal 2012, realized selling prices for silver were 54% higher than fiscal 2011, while base metal prices remained consistent. The following table is a reconciliation of the Company's realized selling prices in fiscal 2012 to Shanghai metal prices, and a comparison of London Metal Exchange ("LME") prices:
For fiscal Silver (in Gold (in Lead (in Zinc (in
2012 US$/ounce) US$/ounce) US$/pound) US$/pound)
FY2012 FY2011 FY2012 FY2011 FY2012 FY2011 FY2012 FY2011
Realized
selling
prices $ 27.78 $ 18.08 $ 1,257 $ 909 $ 0.85 $ 0.83 $ 0.68 $ 0.67
Add back:
Value
added
taxes 4.72 3.07 - - 0.14 0.14 0.12 0.11
Add back:
Smelter
charges
and
recovery 3.38 3.29 364 389 0.12 0.14 0.32 0.39
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Shanghai
metal
prices $ 35.88 $ 24.44 $ 1,621 $ 1,298 $ 1.11 $ 1.11 $ 1.12 $ 1.17
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LME $ 35.48 $ 23.80 $ 1,648 $ 1,293 $ 1.03 $ 1.02 $ 0.95 $ 1.03
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In fiscal 2012, cost of sales was $61.1 million, compared to $41.9 million in fiscal 2011. The cost of sales included $48.7 million cash costs in fiscal 2012, representing an increase of 37%, compared to last year. The cost of sales increased primarily because of increased ore production. In fiscal year 2012, ore mined and milled both increased by 28% compared to fiscal 2011.
In fiscal 2012, gross profit margin was 74%, comparable to gross profit margin of 75% in fiscal 2011.
Excluding non-cash working capital, in fiscal 2012, cash flow from operations was $123.8 million or $0.72 per share, an increase of $31.6 million or 34%, from $92.2 million in fiscal 2011. The Company ended fiscal 2012 with $154.5 million of cash and short-term investments on hand.
In fiscal 2012, general and administrative expense was $27.1 million, up $9.7 million, from $17.4 million in fiscal 2011. The increase included $3.9 million of forensic audit and legal fees incurred to fight the short sellers' attack. In addition, we incurred more general and administrative expenses in China as we have operating mines and development projects in three locations this year compared to only one location last year.
OPERATIONS
1. Q4 2012 vs. Q4 2011
The Company mined 155,902 tonnes of ore in Q4 2012, an increase of 24% compared to 125,691 tonnes in Q4 2011. Ore production in Q4 2012 was lower than the past three quarters as the Company's mining operations were closed for 28 days around the time of the Chinese New Year Holiday.
In Q4 2012, the consolidated total and cash mining cost per tonne was $70.24 and $53.40, respectively compared to the total and cash mining cost of $56.55 and $45.54, respectively, in Q4 2011. The increase of cash mining costs was mainly due to (i) higher labour costs for mining contractors and the Company's own employees of approximately $4.00 per tonne and (ii) the impact of US dollar depreciation versus the Chinese RMB of approximately $2.00 per tonne.
In Q4 2012, silver grade at the Ying mine was 402 g/t, 39 g/t lower than 441 g/t in Q4 2011. This corresponded to mining sequence as lower-grade zones were mined during the quarter.
A total of 160,184 tonnes of ore were milled in Q4 2012, up 18% compared to 135,464 tonnes in Q4 2011. Cash milling costs per tonne increased to $16.50 from $15.31 in Q4 2011, mainly due to the depreciation of the US dollar.
A total of 1.1 million ounces of silver were produced in Q4 2012, compared to 1.0 million ounces in Q4 2011.
Consolidated cash cost per ounce of silver in Q4 2012 was negative $4.22 compared to negative $7.61 in Q4 2011, mainly due to lower prices of by-product metals.
2. Fiscal 2012 vs. Fiscal 2011
In fiscal 2012, the Company mined a record of 757,590 tonnes of ore, an increase of 28% compared to 592,330 tonnes in fiscal 2011.
In fiscal 2012, the total and cash mining costs per tonne were $61.51 and $47.40, respectively compared to $53.16 and $43.70, respectively, in fiscal 2011. The increase of cash mining costs was mainly due to (i) higher labour costs for mining contractors and the Company's own employees of approximately $1.80 per tonne and (ii) the impact of US dollar depreciation versus the Chinese RMB of approximately $2.20 per tonne.
In fiscal 2012, the Company milled 762,521 tonnes, an increase of 28% compared to 596,735 tonnes in fiscal 2011.
In fiscal 2012, the Company achieved a new silver production record of 5.6 million ounces up 6% from 5.3 million ounces the prior year. In its Production Guidance for fiscal year 2012, the Company projected to mine 600,000 tonnes of ore at grades of 325 g/t silver, 6% lead and 1.9% zinc, yielding 5.6 million ounces of silver, and 90 million pounds of lead and zinc, at the Ying Mining District. The Company achieved its fiscal 2012 Production Guidance of 5.6 million ounces of silver, and was slightly below guidance for lead and zinc metal production by approximately 3.4 million pounds or 4%.
In its revised fiscal year 2012 Production Guidance for the BYP mine, the Company projected to process 85,000 tonnes of ore, at a grade of 2.5 g/t gold to yield 6,000 ounce of gold. During the year, the Company processed 83,760 tonnes of ore and produced 5,100 ounces of gold.
Consolidated cash cost per ounce of silver for fiscal 2012 was negative $5.13 compared to negative $6.80 last year.
3. Consolidated Operational Results
Silvercorp's consolidated operational results for the past five quarters and full fiscal 2012 and fiscal 2011 are summarized below:
Consolidated
Operational
Results Quarterly Annual
--------------------------------------------------------------
Q4 2012 Q3 2012 Q2 2012 Q1 2012 Q4 2011 FY 2012 FY 2011
31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 31-Mar 31-Mar
-12 -11 -11 -11 -11 -12 -11
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Ore Mined
(tonne)
Direct
Smelting Ore
(tonne) 2,761 4,151 2,579 3,108 2,740 12,599 12,942
Stockpiled
Ore (tonne) 153,141 211,123 204,716 176,011 122,951 744,991 579,388
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155,902 215,274 207,295 179,119 125,691 757,590 592,330
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Run of Mine
Ore (tonne)
Direct
Smelting Ore
(tonne) 2,761 4,151 2,579 3,108 2,740 12,599 12,942
Ore Milled
(tonne) 157,423 215,318 197,399 179,782 132,924 749,922 583,793
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160,184 219,469 199,978 182,890 135,664 762,521 596,735
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Metal Sales
Silver (in
thousands
of ounce) 1,084 1,548 1,396 1,592 1,047 5,618 5,300
Gold (in
thousands
of ounce) 2.0 2.9 2.5 1.4 1.1 8.8 3.2
Lead (in
thousands
of pound) 14,670 20,995 16,520 20,621 14,385 72,804 69,011
Zinc (in
thousands
of pound) 2,890 3,525 3,236 4,102 3,253 13,749 16,343
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Head Grade of
Run of Mine
Ore
Silver
(gram/tonne) 275 296 271 303 290 287 316
Gold
(gram/tonne)
- BYP
mine 2.1 2.3 3.3 - - 2.4 N/A
Lead (%) 5.2 5.5 4.6 5.5 5.6 5.2 5.7
Zinc (%) 1.4 1.4 1.2 1.5 1.8 1.4 1.9
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Recovery Rate
of Run of
Mine Ore
Silver (%) 93.2 93.3 92.1 91.3 91.8 92.9 91.6
Gold (%) -
BYP mine 87.1 91.2 89.1 - - 90.8 N/A
Lead (%) 96.4 96.4 94.7 94.7 95.6 96.0 95.3
Zinc (%) 64.6 67.7 75.1 72.8 67.8 68.0 69.5
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Cash Mining
Cost ($ per
tonne) 53.40 48.92 42.3 48.66 45.54 47.40 43.70
Total Mining
Costs($ per
tonne) 70.24 64.50 55.66 60.07 56.55 61.51 53.16
Cash Milling
Cost ($ per
tonne) 16.50 15.12 12.7 12.42 15.31 14.19 12.46
Total Milling
Cost ($ per
tonne) 18.75 16.64 14.09 13.94 17.26 15.85 14.16
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Total
Production
Cost per
Ounce of
Silver ($) (1.84) (2.58) (2.74) (4.63) (6.06) (3.25) (5.58)
Total Cash
Cost per
Ounce of
Silver ($) (4.22) (4.56) (4.55) (6.12) (7.61) (5.13) (6.80)
BYP
Production
Cost per
Ounce of
Gold ($) 1,378 943 599 277 N/A 844 N/A
BYP Cash Cost
per Ounce of
Gold($) 768 547 276 271 N/A 474 N/A
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4. Operational Results for the Ying Mine
In fiscal 2012, 70% of the Company's record silver production of 5.6 million ounces was from the Ying Mine. The HPG, LM and TLP mines contributed the remaining 30%, compared to 20% in fiscal 2011, as production from these satellite mines continued to grow.
Operational results for the past five quarters and the full fiscal 2012 for the Ying Mine are summarized below:
Ying Mine
Operational
Results Quarterly Annual
--------------------------------------------------------------
Q4 2012 Q3 2012 Q2 2012 Q1 2011 Q4 2011 FY 2012 FY 2011
31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 31-Mar 31-Mar
-12 -11 -11 -11 -11 -12 -11
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Ore Mined
(tonne)
Direct
Smelting Ore
(tonne) 2,726 4,114 2,463 3,062 2,715 12,365 12,711
Stockpiled
Ore (tonne) 61,431 71,596 69,699 78,276 59,650 281,002 303,811
--------------------------------------------------------------
64,157 75,710 72,162 81,338 62,365 293,367 316,522
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Run of Mine
Ore (tonne)
Direct
Smelting Ore
(tonne) 2,726 4,114 2,463 3,062 2,715 12,365 12,711
Ore Milled
(tonne) 61,277 72,288 68,793 79,974 61,173 282,332 304,766
--------------------------------------------------------------
64,003 76,402 71,256 83,036 63,888 294,697 317,477
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Metal Sales
Silver (in
thousands
of ounce) 723 1,136 939 1,146 765 3,944 4,249
Lead (in
thousands
of pound) 10,772 15,171 10,857 15,419 10,359 52,216 52,937
Zinc (in
thousands
of pound) 2,180 2,753 2,311 3,594 2,536 10,834 13,369
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Head Grade of
Run of Mine
Ore
Silver
(gram/tonne) 402 464 437 444 441 440 470
Lead (%) 7.7 8.9 7.6 8.6 8.4 8.3 8.1
Zinc (%) 2.4 2.4 2.2 2.5 2.9 2.4 2.8
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Recovery Rate
of Run of
Mine Ore
Silver (%) 94.3 94.6 92.8 92.1 93.0 94.0 92.4
Lead (%) 97.8 98.0 96.2 96.1 97.0 97.5 96.5
Zinc (%) 63.5 67.6 74.9 74.9 67.7 67.8 69.8
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Cash Mining
Cost ($ per
tonne) 53.52 53.01 47.76 48.27 48.35 50.52 46.05
Total Mining
Costs($ per
tonne) 75.98 74.57 65.44 63.27 63.56 69.50 59.14
Cash Milling
Cost ($ per
tonne) 16.72 13.92 14.31 11.74 15.43 14.01 12.40
Total Milling
Cost ($ per
tonne) 19.36 15.48 16 13.31 17.39 15.84 14.13
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Total
Production
Cost per
Ounce of
Silver ($) (6.49) (5.66) (5.65) (7.81) (8.88) (6.61) (7.20)
Total Cash
Cost per
Ounce of
Silver ($) (8.77) (7.46) (7.14) (9.05) (10.25) (8.27) (8.30)
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ACQUISITION, EXPLORATION AND DEVELOPMENT
1. Ying Mining District, Henan Province, China
As of March 31, 2012, the Company completed 464m of the development of a 5,200m access ramp, with dimensions of 4m by 4.5m, at the Ying mine.
As of March 31, 2012, the Company also completed 339m of the development of a 4,800m access ramp with dimensions of 4m by 4.5m at the southwest corner of the TLP Mining Permit, adjacent to the LM Mining Permit.
A new technical report, being prepared by AMC Consultants of Vancouver, is expected to be released within this quarter.
In Q4 2012, $5.8 million (Q4 2011 - $2.8 million) in exploration and development expenditures were incurred in the Ying Mining District. In fiscal 2012, $28.7 million (fiscal 2011 - $19.6) in exploration and development expenditures were incurred in the Ying Mining District.
2. GC Project, Guangdong Province, China
The Company has been rapidly developing the GC Project. As of March 31, 2012, 717m of the 2,210m main access ramp, 42m of the 618m main shaft and 400m of a 3.7m by 4m water diversion tunnel were completed. In addition, in Q4 2012, development of GC Project commenced a new 3.7m by 4m exploration ramp of approximately 4,500m in length.
The construction of a 1,600 t/d floatation mill that is capable of producing silver, lead, zinc, and pyrite floatation concentrates and an optional tin gravity concentrate is ongoing with completion expected in Q2 fiscal 2013.
In Q4 2012, $3.5 million in exploration and development expenditures were incurred at GC Project. In fiscal 2012, approximately $5.9 million (fiscal 2011 - $0.7 million) in exploration and development expenditures were incurred.
3. BYP Mine, Hunan Province, China
At the BYP mine, the construction of an 800 t/d backfill facility to fill up gold mineralization stopes is underway, which will cost approximately $1.5 million and will be completed in Q2 fiscal 2013. In fiscal 2012, the Company also started to sink a 180m deep, 3.5m diameter shaft from 380m to 200m elevations. The shaft will mainly be utilized to mine the #3 gold mineralization body. The cost of the shaft is approximately $1.0 million and is expected to be completed in October 2012.
In fiscal 2012, approximately $4.0 million in exploration and development expenditures were incurred at the BYP mine, of which $1.2 million was incurred in Q4 2012.
4. XBG Project, Henan Province, China
In August 2011, the Company completed the acquisition of 90% equity interest in Zhongxing Mining Co. Ltd. and Chuanxin Mining Co. Ltd. through its 77.5% owned subsidiary, Henan Found Mining Co. Ltd.
The Company is commencing a comprehensive exploration program that includes surface and underground mapping and sampling, and surface and underground diamond drilling to explore the existing veins and discover additional new veins, with a goal of defining a NI 43-101 compliant mineral resource.
In fiscal 2012, approximately $0.8 million in exploration and development expenditures were incurred at the XBG mine.
5. XHP Project, Henan Province, China
In December 2011, the Company completed the acquisition of 100% equity interest in SX Gold Mining Company through its 77.5% owned subsidiary, Henan Found Mining Co. Ltd.
The Company will carry out an exploration program, including tunneling and surface and underground diamond drilling, with a goal of defining a NI 43-101 compliant mineral resource.
In fiscal 2012, approximately $1.3 million in exploration and development expenditures were incurred at the XHP mine.
6. Silvertip Project, British Columbia, Canada
The Silvertip Project was acquired in February 2010. The Company is nearing completion of it's a Small Mine Permit application which will be submitted to the British Columbia Ministry of Energy and Mines. A Small Mine Permit will allow a 75,000 tonnes per year mining operation.
In fiscal 2012, the Company conducted a drill program. Drilling intersected high grade lower zone mineralization to the north of the Silver Creek zone and indicates that more detailed work may outline additional resources there.
The Company has also retained Golder Associates Limited, who in January 2011 prepared an Economic Assessment on Silvertip to update the Silvertip NI 43-101 technical report. The report is expected within the current quarter.
In fiscal 2012, the Silvertip project incurred approximately $5.2 million in exploration expenditures (fiscal 2011 - $7.2 million).
OUTLOOK FOR FISCAL YEAR 2013
Production Guidance
From the four mines at the Ying Mining District, production is expected to increase to 695,000 tonnes of ore at a grade of 295g/t silver, 0.5g/t gold, 5.1% lead and 1.5% zinc, yielding 5.9 million ounces of silver, 3,350 ounces of gold, and 87 million pounds of lead and zinc. The cash and total production costs are expected to be approximately $68 and $85 per tonne of ore, respectively.
The GC mine in Guangdong Province is expected to commence initial production in the second quarter of fiscal 2013. It is expected to mine 160,000 tonnes and to mill 153,000 tonnes of ore, yielding approximately 630,000 ounces of silver and 12 million pounds of lead and zinc. The cash and total production costs are expected to be approximately $40 and $65 per tonne of ore, respectively.
The BYP mine in Hunan Province is expected to mine and mill 175,000 tonnes of ore, yielding approximately 13,590 ounces of gold at cash and total production costs of $35 and $60 per tonne of ore, respectively.
At the newly-acquired XHP mine and XBG mine, the Company will focus on exploration during fiscal 2013, with only a minimal amount of by-product ore expected to be produced.
For detailed fiscal 2013 production guidance, which remains unchanged, please refer to the Company's news release on February 9, 2012.
Capital Expenditures Budget
The total capital expenditures for fiscal 2013 is estimated at $79.9 million for mine development, mill construction, and other capital items (e.g. surface infrastructures and facilities, land use rights, reporting and permitting), plus exploration expenditures of $9.8 million to complete a 206,000m surface and underground drilling program, for a total of $89.7 million. The budget estimate is based on contracts on hand, designs by qualified Chinese engineering firms, and the Company's past operating experience in China.
Since releasing its detailed fiscal 2013 capital expenditure budget, in the Company's news release dated February 9, 2012, the Company has decided to defer building a new 1,000 t/d mill for the BYP mine. Instead, Silvercorp will expand the existing 500 t/d mill at BYP to 800 t/d, thereby reducing the overall capital expenditure budget for fiscal 2013 by $9.2 million.
Myles Gao, P.Geo., President and Chief Operating Officer of Silvercorp, is a Qualified Person for Silvercorp under NI 43-101 and has reviewed and given consent to the technical information contained in this News Release.
CONFERENCE CALL AND WEBCAST INFORMATION
A conference call and live audio webcast to discuss these results is scheduled as follows:
Date: Friday, May 18, 2012
Time: 8:00 am PT (11:00 am ET)
Dial-In Number: 1-612-332-0342
www.silvercorp.ca (click on the link
Live audio webcast: 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 of the four silver-lead-zinc mines at the Ying Mining District in the Henan Province of China. Silvercorp is currently building the GC silver-lead-zinc project in Guangdong Province as its second China production base and foothold, and this will be followed by the third production foothold at the recently acquired BYP gold-lead-zinc project in Hunan Province. In Canada, Silvercorp is preparing to apply for a Small Mine Permit for the Silvertip high grade silver-lead-zinc mine project in northern British Columbia to provide a further 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 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; 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
----------------------------------------------------------------------
(Expressed in thousands of U.S. dollars)
March 31, 2012 March 31, 2011 April 1, 2010
----------------------------------------------------------------------
ASSETS
Current Assets
Cash and cash
equivalents $ 109,960 $ 147,224 $ 50,618
Short-term investments 44,551 59,037 43,773
Accounts receivable 12,904 1,051 510
Inventories 7,006 3,895 3,175
Due from related parties 679 203 138
Prepaids and deposits 5,210 2,743 1,964
----------------------------------------------------------------------
180,310 214,153 100,178
Non-current Assets
Long term prepaids and
deposits 6,015 893 583
Investment in an
associate 15,872 15,822 6,103
Other investments 45,757 46,286 9,003
Plant and equipment 68,788 36,516 29,011
Mineral rights and
properties 258,521 191,799 114,261
Deferred income tax
assets 171 1,146 1,315
----------------------------------------------------------------------
TOTAL ASSETS $ 575,434 $ 506,615 $ 260,454
----------------------------------------------------------------------
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and
accrued liabilities $ 23,590 $ 12,770 $ 7,504
Deposits received 7,268 13,278 6,737
Bank loan - - 1,465
Current portion of
environmental
rehabilitation - 323 292
Dividends payable 4,271 3,600 3,238
Income tax payable 5,082 3,047 1,658
Due to a related party - 3,447 -
----------------------------------------------------------------------
40,211 36,465 20,894
Non-current Liabilities
Deferred income tax
liabilities 19,991 13,564 -
Environmental
rehabilitation 4,400 2,909 2,357
----------------------------------------------------------------------
Total Liabilities 64,602 52,938 23,251
----------------------------------------------------------------------
Equity
Share capital 232,678 266,081 145,722
Contributed surplus 5,552 3,131 4,620
Reserves 24,717 24,717 24,717
Accumulated other
comprehensive income 25,285 19,362 319
Retained earnings 145,580 87,326 33,099
----------------------------------------------------------------------
Total equity attributable
to the equity holders of
the Company 433,812 400,617 208,477
Non-controlling interests 77,020 53,060 28,726
----------------------------------------------------------------------
Total Equity 510,832 453,677 237,203
----------------------------------------------------------------------
TOTAL LIABILITIES AND
EQUITY $ 575,434 $ 506,615 $ 260,454
----------------------------------------------------------------------
SILVERCORP METALS INC.
Consolidated Statements of Operations
---------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars, except for per share figures)
Three Months Ended March 31, Years Ended March 31,
------------------------------------------------------------
(Unaudited)
2012 2011 2012 2011
---------------------------------------------------------------------------
Sales $ 44,312 $ 42,422 $ 237,962 $ 167,327
Cost of sales 14,329 10,172 61,149 41,884
---------------------------------------------------------------------------
Gross profit 29,983 32,250 176,813 125,443
General and
administrative 8,042 5,058 27,124 17,395
General
exploration
and property
investigation 249 826 3,699 3,319
Other taxes 1,264 1,098 4,394 1,478
Foreign
exchange loss
(gain) (97) 1,744 (406) 2,803
Loss on
disposal of
plant and
equipment 20 27 268 677
Gain on
disposal of
mineral rights
and properties - - - (537)
---------------------------------------------------------------------------
Income from
operations 20,505 23,497 141,734 100,308
Share of gain
(loss) in an
associate (137) 2,175 (182) 6,743
Gain (loss) on
investments (281) (2,323) (567) 1,788
Other income 840 180 2,457 511
---------------------------------------------------------------------------
Income before
finance items
and income
taxes 20,927 23,529 143,442 109,350
Finance income 812 476 3,528 1,461
Finance costs (26) (89) (94) (251)
---------------------------------------------------------------------------
Income before
income taxes 21,713 23,916 146,876 110,560
Income tax
expense 7,657 7,099 45,648 20,843
---------------------------------------------------------------------------
Net income for
the period $ 14,056 $ 16,817 $ 101,228 $ 89,717
---------------------------------------------------------------------------
Attributable
to:
Equity holders
of the
Company $ 9,700 $ 12,019 $ 73,838 $ 67,655
Non-
controlling
interests 4,356 4,798 27,390 22,062
---------------------------------------------------------------------------
$ 14,056 $ 16,817 $ 101,228 $ 89,717
---------------------------------------------------------------------------
Earnings per
share
attributable
to the equity
holders of the
Company
Basic earnings
per share $ 0.06 $ 0.07 $ 0.43 $ 0.40
---------------------------------------------------------------------------
Diluted
earnings per
share $ 0.06 $ 0.07 $ 0.43 $ 0.40
---------------------------------------------------------------------------
Weighted
Average Number
of Shares
Outstanding -
Basic 170,650,904 174,725,616 172,487,486 167,806,101
---------------------------------------------------------------------------
Weighted
Average Number
of Shares
Outstanding -
Diluted 171,162,713 176,223,762 173,214,711 169,192,836
---------------------------------------------------------------------------
SILVERCORP METALS INC.
Consolidated Statements of Cash Flows
---------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars)
Three Months Ended March 31, Year Ended March 31,
------------------------------------------------------------
(Unaudited)
2012 2011 2012 2011
---------------------------------------------------------------------------
Cash provided
by (used in)
Operating
activities
Net income $ 14,056 $ 16,817 $ 101,228 $ 89,717
Add (deduct)
items not
affecting
cash:
Accretion of
environmental
rehabilitation 24 42 94 164
Depreciation,
amortization
and depletion 3,758 1,786 13,704 7,081
Share of loss
(gain) in an
associate 137 (2,175) 182 (6,743)
Deferred
income tax
expense 1,878 974 4,646 1,359
Loss (gain) on
investments 281 2,323 567 (1,788)
Loss on
disposal of
plant and
equipment 20 27 268 677
Gain on
disposal of
mineral
rights and
properties - - - (537)
Stock-based
compensation 708 482 3,094 2,291
Changes in non-
cash operating
working
capital (8,265) 13,778 (10,505) 11,812
---------------------------------------------------------------------------
Net cash
provided by
operating
activities 12,597 34,054 113,278 104,033
---------------------------------------------------------------------------
Investing
activities
Mineral rights
and
properties
Capital
expenditures (11,964) (5,183) (43,426) (25,561)
Proceeds on
disposals - - - 537
Plant and
equipment
Additions (3,984) (3,267) (23,385) (9,477)
Proceeds on
disposals 113 - 113 1
Other
investments
Acquisition (944) (22,485) (1,964) (32,823)
Proceeds on
disposals - 344 - 1,457
Reclamation
expenditures (47) - (47) -
Net
redemptions
(purchases)
of short-term
investments 2,534 (30,612) 15,993 (13,503)
Acquisition of
Yunxiang (net
of cash
acquired,
$nil) - (23,388) - (23,388)
Acquisition of
Zhongxing/
Chuanxin (net
of cash
acquired,
$20) (2,571) - (12,005) -
Acquisition of
SX Gold (net
of cash
acquired,
$554) - - (22,320) -
Prepayments to
acquire
mineral
property,
plant and
equipment (1,094) 1,417 (3,847) (770)
---------------------------------------------------------------------------
Net cash used
in investing
activities (17,957) (83,174) (90,888) (103,527)
---------------------------------------------------------------------------
Financing
activities
Net repayment
from (advance
to) related
parties (60) (146) (4,075) 167
Bank loan
Repayments - - - (1,473)
Non-
controlling
interests
Contribution - - 5,519 -
Distribution - - (13,804) (10,582)
Cash dividends
distributed (4,205) (3,506) (14,891) (13,113)
Share capital
Proceeds from
issuance of
common
shares 308 1,867 1,304 115,818
Normal course
issuer bid - - (35,380) -
---------------------------------------------------------------------------
Net cash
provided by
(used in)
financing
activities (3,957) (1,785) (61,327) 90,817
---------------------------------------------------------------------------
Effect of
exchange rate
changes on
cash and cash
equivalents (1,857) 1,701 1,673 5,283
---------------------------------------------------------------------------
Increase
(decrease) in
cash and cash
equivalents (11,174) (49,204) (37,264) 96,606
Cash and cash
equivalents,
beginning of
the period 121,134 196,428 147,224 50,618
---------------------------------------------------------------------------
Cash and cash
equivalents,
end of the
period $ 109,960 $ 147,224 $ 109,960 $ 147,224
---------------------------------------------------------------------------
SILVERCORP METALS INC.
Mining Data
---------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars, except for mining
data figures)
Q4 2012 Three months ended March 31, 2012
Henan Luoning
YING HPG&LM TLP
Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ore
(tonne) 2,726 35 -
Stockpiled Ore
(tonne) 61,431 18,936 52,620
------------------------------------
64,157 18,970 52,620
------------------------------------
Run of Mine Ore (tonne)
Direct Smelting
Ore(tonne) 2,726 35 -
Ore Milled (tonne) 61,277 19,403 53,168
------------------------------------
64,003 19,438 53,168
------------------------------------
Mining cost per tonne
of ore mined ($) 75.98 88.08 65.27
Cash mining cost per
tonne of ore mined
($) 53.52 73.17 57.01
Non cash mining cost
per tonne of ore
mined ($) 22.46 14.91 8.26
Unit shipping costs($) 4.01 3.55 3.80
Milling cost per tonne
of ore milled ($) 19.36 20.14 19.16
Cash milling cost per
tonne of ore milled
($) 16.72 17.55 16.71
Non cash milling cost
per tonne of ore
milled ($) 2.64 2.59 2.44
Average Production Cost
Silver ($ per ounce) 5.60 9.83 14.99
Gold ($ per ounce) 261 453 -
Lead ($ per pound) 0.19 0.32 0.51
Zinc ($ per pound) 0.15 0.25 0.41
Total production cost
per ounce of Silver
($) (6.49) 3.17 11.02
Total cash cost per
ounce of Silver ($) (8.77) 1.24 7.94
Total production cost
per ounce of Gold ($)
Total cash cost per
ounce of Gold ($)
Total Recovery of the
Run of Mine Ore
Silver (%) 94.3 91.6 89.8
Gold (%)
Lead (%) 97.8 93.8 92.2
Zinc (%) 63.5 69.5 69.6
Head Grades of Run of
Mine Ore
Silver (gram/tonne) 402 225 143
Gold (gram/tonne)
Lead (%) 7.7 4.2 2.5
Zinc (%) 2.4 0.5 1.3
Sales Data
Metal Sales
Silver (in thousands
of ounce) 723 153 208
Gold (in thousands of
ounce) 0.9 0.1 -
Lead (in thousands of
pound) 10,772 1,693 2,205
Zinc (in thousands of
pound) 2,180 148 313
Metal Sales
Silver (in thousands
of $) 18,434 3,921 5,145
Gold (in thousands of
$) 1,003 122 -
Lead (in thousands of
$) 9,080 1,423 1,863
Zinc (in thousands of
$) 1,463 98 212
------------------------------------
29,980 5,564 7,220
------------------------------------
Average Selling Price,
Net of Value Added Tax
and Smelter Charges
Silver($ per ounce) 25.50 25.70 24.78
Gold ($ per ounce) 1,163 1,184 -
Lead ($ per pound) 0.84 0.84 0.85
Zinc ($ per pound) 0.67 0.67 0.68
Q4 2012 Three months ended March 31, 2012
Henan Songxian
XBG XHP BYP Total
Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ore
(tonne) - - - 2,761
Stockpiled Ore
(tonne) - 3,890 16,265 153,141
------------------------------------------------
- 3,890 16,265 155,902
------------------------------------------------
Run of Mine Ore (tonne)
Direct Smelting
Ore(tonne) - - - 2,761
Ore Milled (tonne) - - 23,575 157,423
------------------------------------------------
- - 23,575 160,184
------------------------------------------------
Mining cost per tonne
of ore mined ($) - 68.75 43.22 70.24
Cash mining cost per
tonne of ore mined
($) - 48.81 19.24 53.40
Non cash mining cost
per tonne of ore
mined ($) - 19.95 23.98 16.84
Unit shipping costs($) - 3.92 - 3.46
Milling cost per tonne
of ore milled ($) - - 15.04 18.75
Cash milling cost per
tonne of ore milled
($) - - 14.58 16.50
Non cash milling cost
per tonne of ore
milled ($) - - 0.46 2.25
Average Production Cost
Silver ($ per ounce) - - - 8.34
Gold ($ per ounce) - - 1,377 424
Lead ($ per pound) - - - 0.28
Zinc ($ per pound) - - - 0.22
Total production cost
per ounce of Silver
($) - - (1.84)
Total cash cost per
ounce of Silver ($) - - (4.22)
Total production cost
per ounce of Gold ($) 1,378 1,378
Total cash cost per
ounce of Gold ($) 768 768
Total Recovery of the
Run of Mine Ore
Silver (%) - - 93.2
Gold (%) 87.1 87.1
Lead (%) - - 96.4
Zinc (%) - - 56.2 64.6
Head Grades of Run of
Mine Ore
Silver (gram/tonne) - - 275
Gold (gram/tonne) 2.1 2.1
Lead (%) - - 5.2
Zinc (%) - - 2.6 1.4
Sales Data
Metal Sales
Silver (in thousands
of ounce) - - 1,084
Gold (in thousands of
ounce) - - 1.0 2.0
Lead (in thousands of
pound) - - 14,670
Zinc (in thousands of
pound) - - 249 2,890
Metal Sales
Silver (in thousands
of $) - - 27,500
Gold (in thousands of
$) - - 1,396 2,521
Lead (in thousands of
$) - - 12,366
Zinc (in thousands of
$) - - 152 1,925
------------------------------------------------
- - 1,548 44,312
------------------------------------------------
Average Selling Price,
Net of Value Added Tax
and Smelter Charges
Silver($ per ounce) - - 25.37
Gold ($ per ounce) - - 1,367 1,269
Lead ($ per pound) - - 0.84
Zinc ($ per pound) - - 0.61 0.67
Q4 2011 Three months ended March 31, 2011
Henan Luoning
YING HPG&LM TLP Total
Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ore
(tonne) 2,715 23 2 2,740
Stockpiled Ore (tonne) 59,650 18,013 45,288 122,951
------------------------------------------------
62,365 18,036 45,290 125,691
------------------------------------------------
Run of Mine Ore (tonne)
Direct Smelting Ore
(tonne) 2,715 23 2 2,740
Ore Milled (tonne) 61,173 20,690 50,861 132,724
------------------------------------------------
63,888 20,713 50,863 135,464
------------------------------------------------
Mining cost per tonne of
ore mined ($) 63.56 62.53 44.51 56.55
Cash mining cost per
tonne of ore mined ($) 48.35 51.36 39.35 45.54
Non cash mining cost per
tonne of ore mined ($) 15.21 11.17 5.16 11.01
Unit shipping costs($) 3.91 3.91 3.54 3.78
Milling cost per tonne of
ore milled ($) 17.39 16.01 17.59 17.26
Cash milling cost per
tonne of ore milled ($) 15.43 14.34 15.54 15.31
Non cash milling cost per
tonne of ore milled ($) 1.96 1.67 2.05 1.95
Average Production Cost
Silver($ per ounce) 4.20 8.49 12.25 5.94
Gold ($ per ounce) 163 344 - 234
Lead ($ per pound) 0.15 0.31 0.45 0.22
Zinc ($ per pound) 0.13 0.22 0.59 0.18
Total production cost per
ounce of Silver ($) (8.88) (3.04) 4.84 (6.06)
Total cash cost per ounce
of Silver ($) (10.25) (4.92) 2.70 (7.61)
Total Recovery of the Run
of Mine Ore
Silver (%) 93.0 91.1 87.7 91.8
Lead (%) 97.0 94.7 89.8 95.6
Zinc (%) 67.7 57.5 71.1 67.8
Head Grades of Run of Mine
Ore
Silver (gram/tonne) 441 196 131 290
Lead (%) 8.4 4.3 2.4 5.6
Zinc (%) 2.9 0.6 0.8 1.8
Sales Data
Metal Sales
Silver (in thousands of
ounce) 765 116 166 1,047
Gold (in thousands of
ounce) 0.8 0.3 - 1.1
Lead (in thousands of
pound) 10,359 1,824 2,202 14,385
Zinc (in thousands of
pound) 2,536 109 608 3,253
Metal Sales
Silver ($) 18,896 2,881 4,107 25,884
Gold ($) 715 330 - 1,045
Lead ($) 9,427 1,636 1,996 13,059
Zinc ($) 1,921 70 443 2,434
-----------------------------------------------
30,959 4,917 6,546 42,422
-----------------------------------------------
Average Selling Price,
Net of Value Added Tax
and Smelter Charges
Silver ($ per ounce) 24.71 24.80 24.73 24.72
Gold ($ per ounce) 960 1005 - 974
Lead($ per pound) 0.91 0.90 0.91 0.91
Zinc ($ per pound) 0.76 0.65 0.73 0.75
Fiscal 2012 Year ended March 31, 2012
Henan Luoning
YING HPG&LM TLP
Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ore
(tonne) 12,365 182 52
Stockpiled Ore (tonne) 281,002 93,284 275,687
------------------------------------
293,367 93,466 275,739
------------------------------------
Run of Mine Ore (tonne)
Direct Smelting
Ore(tonne) 12,365 182 52
Ore Milled (tonne) 282,332 93,214 278,949
------------------------------------
294,697 93,396 279,001
------------------------------------
Mining cost per tonne
of ore mined ($) 69.50 75.81 55.82
Cash mining cost per
tonne of ore mined
($) 50.52 63.77 48.62
Non cash mining cost
per tonne of ore
mined ($) 18.98 12.04 7.20
Unit shipping costs($) 3.94 3.54 3.74
Milling cost per tonne
of ore milled ($) 15.84 16.19 15.90
Cash milling cost per
tonne of ore milled
($) 14.01 14.44 14.15
Non cash milling cost
per tonne of ore
milled ($) 1.83 1.75 1.75
Average Production Cost
Silver ($ per ounce) 4.80 9.79 13.00
Gold ($ per ounce) 197 416 -
Lead ($ per pound) 0.15 0.30 0.40
Zinc ($ per pound) 0.11 0.21 0.38
Total production cost
per ounce of Silver
($) (6.61) 2.44 6.38
Total cash cost per
ounce of Silver ($) (8.27) 0.67 3.59
Total production cost
per ounce of Gold ($)
Total cash cost per
ounce of Gold ($)
Total Recovery of the
Run of Mine Ore
Silver (%) 94.0 91.6 89.6
Gold (%)
Lead (%) 97.5 93.6 91.3
Zinc (%) 67.8 60.0 70.6
Head Grades of Run of
Mine Ore
Silver (gram/tonne) 440 227 147
Gold (gram/tonne)
Lead (%) 8.3 3.7 2.5
Zinc (%) 2.4 0.5 1.5
Sales Data
Metal Sales
Silver (in thousands
of ounce) 3,943 635 1,034
Gold (in thousands of
ounce) 2.7 0.9 -
Lead (in thousands of
pound) 52,216 7,004 13,140
Zinc (in thousands of
pound) 10,834 591 2,075
Metal Sales
Silver (in thousands
of $) 109,592 17,500 28,869
Gold (in thousands of
$) 3,077 1,046 -
Lead (in thousands of
$) 44,192 5,830 11,142
Zinc (in thousands of
$) 7,135 353 1,684
------------------------------------
163,996 24,729 41,695
------------------------------------
Average Selling Price,
Net of Value Added Tax
and Smelter Charges
Silver ($ per ounce) 27.79 27.58 27.91
Gold ($ per ounce) 1,139 1,171 -
Lead ($ per pound) 0.85 0.83 0.85
Zinc ($ per pound) 0.66 0.60 0.81
Fiscal 2012 Year ended March 31, 2012
Henan Songxian
XBG XHP BYP Total
Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ore
(tonne) - - - 12,599
Stockpiled Ore (tonne) - 3,890 91,128 744,991
------------------------------------------------
- 3,890 91,128 757,590
------------------------------------------------
Run of Mine Ore (tonne)
Direct Smelting
Ore(tonne) - - - 12,599
Ore Milled (tonne) 11,667 - 83,760 749,922
------------------------------------------------
11,667 - 83,760 762,521
------------------------------------------------
Mining cost per tonne
of ore mined ($) - 68.75 38.00 61.51
Cash mining cost per
tonne of ore mined
($) - 48.81 16.79 47.40
Non cash mining cost
per tonne of ore
mined ($) - 19.95 21.21 14.11
Unit shipping costs($) - 3.92 - 3.34
Milling cost per tonne
of ore milled ($) 22.92 - 14.33 15.85
Cash milling cost per
tonne of ore milled
($) 20.11 - 13.85 14.19
Non cash milling cost
per tonne of ore
milled ($) 2.81 - 0.48 1.66
Average Production Cost
Silver ($ per ounce) 6.17 - 7.14
Gold ($ per ounce) 377 - 854 323
Lead ($ per pound) 0.22 - 0.22
Zinc ($ per pound) - - 0.17
Total production cost
per ounce of Silver
($) (56.67) - (3.25)
Total cash cost per
ounce of Silver ($) (60.33) - (5.13)
Total production cost
per ounce of Gold ($) 844 844
Total cash cost per
ounce of Gold ($) 474 474
Total Recovery of the
Run of Mine Ore
Silver (%) 50.0 - 92.9
Gold (%) 90.8 90.8
Lead (%) 80.6 - 96.0
Zinc (%) - - 56.2 68.0
Head Grades of Run of
Mine Ore
Silver (gram/tonne) 35 - 287
Gold (gram/tonne) 2.4 2.4
Lead (%) 2.5 - 5.2
Zinc (%) - - 2.6 1.4
Sales Data
Metal Sales
Silver (in thousands
of ounce) 6 - 5,618
Gold (in thousands of
ounce) 0.1 - 5.1 8.8
Lead (in thousands of
pound) 444 - 72,804
Zinc (in thousands of
pound) - - 249 13,749
Metal Sales
Silver (in thousands
of $) 124 - 156,085
Gold (in thousands of
$) 155 - 6,749 11,027
Lead (in thousands of
$) 362 - 61,526
Zinc (in thousands of
$) - - 152 9,324
------------------------------------------------
641 - 6,901 237,962
------------------------------------------------
Average Selling Price,
Net of Value Added Tax
and Smelter Charges
Silver ($ per ounce) 22.51 - 27.78
Gold ($ per ounce) 1,376 - 1,333 1,257
Lead ($ per pound) 0.81 - 0.85
Zinc ($ per pound) - - 0.61 0.68
Fiscal 2011 Year ended March 31, 2011
Henan Luoning
YING HPG&LM TLP Total
Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ore
(tonne) 12,711 219 12 12,942
Stockpiled Ore (tonne) 303,811 73,171 202,406 579,388
------------------------------------------------
316,522 73,390 202,418 592,330
------------------------------------------------
Run of Mine Ore (tonne)
Direct Smelting Ore
(tonne) 12,711 219 12 12,942
Ore Milled (tonne) 304,766 74,259 204,768 583,793
------------------------------------------------
317,477 74,478 204,780 596,735
------------------------------------------------
Mining cost per tonne
of ore mined ($) 59.14 63.98 39.89 53.16
Cash mining cost per
tonne of ore mined
($) 46.05 55.67 35.68 43.70
Non cash mining cost
per tonne of ore
mined ($) 13.09 8.31 4.21 9.46
Unit shipping costs($) 3.64 3.40 3.30 3.49
Milling cost per tonne
of ore milled ($) 14.13 13.72 14.37 14.16
Cash milling cost per
tonne of ore milled
($) 12.40 12.24 12.64 12.46
Non cash milling cost
per tonne of ore
milled ($) 1.73 1.48 1.73 1.70
Average Production Cost
Silver ($ per ounce) 3.31 8.16 9.75 4.53
Gold ($ per ounce) 165 404 440 228
Lead ($ per pound) 0.15 0.35 0.44 0.21
Zinc ($ per pound) 0.12 0.26 0.36 0.17
Total production cost
per ounce of Silver
($) (7.20) (1.59) 2.52 (5.58)
Total cash cost per
ounce of Silver ($) (8.30) (3.16) 0.70 (6.80)
Total Recovery of the
Run of Mine Ore
Silver (%) 92.4 91.3 86.3 91.6
Lead (%) 96.5 94.5 89.5 95.3
Zinc (%) 69.8 59.0 70.5 69.5
Head Grades of Run of
Mine Ore
Silver (gram/tonne) 470 185 122 316
Lead (%) 8.1 4.1 2.5 5.7
Zinc (%) 2.8 0.6 0.8 1.9
Sales Data
Metal Sales
Silver (in thousands
of ounce) 4,249 391 660 5,300
Gold (in thousands of
ounce) 1.8 1.2 0.2 3.2
Lead (in thousands of
pound) 52,937 6,247 9,827 69,011
Zinc (in thousands of
pound) 13,369 544 2,430 16,343
Metal Sales
Silver ($) 76,094 7,463 12,277 95,834
Gold ($) 1,615 1,133 159 2,907
Lead ($) 44,218 5,183 8,222 57,623
Zinc ($) 8,982 334 1,647 10,963
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130,909 14,113 22,305 167,327
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Average Selling Price,
Net of Value Added Tax
and Smelter Charges
Silver($ per ounce) 17.91 19.10 18.60 18.08
Gold ($ per ounce) 892 946 839 909
Lead ($ per pound) 0.84 0.83 0.84 0.83
Zinc ($ per pound) 0.67 0.62 0.68 0.67
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