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VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 14, 2014) - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)(NYSE: SVM) reported its financial and operating results for the first quarter ended June 30, 2014 ("Q1 Fiscal 2015").
The Company is pleased that operational improvements enacted in the prior fiscal year have attributed to favourable results in all aspects of operations. Compared to the same quarter last year, silver head grade improved from 200 grams per tonne ("g/t") to 227 g/t, lead head grade increased from 2.7% to 3.3%, cash mining cost decreased 16% to $42.77 per tonne, and overhead costs decreased by 36% to $4.8 million in Q1 Fiscal 2015. Combined with more efficient capital spending, the Company's cash and short-term investments balance increased to $80.2 million as at the end of the quarter.
FIRST QUARTER HIGHLIGHTS
-- Silver production (excluding GC mine metal production) of 1.1 million
ounces and gold production of 3,461 ounces;
-- Lead production of 11.5 million pounds and zinc production of 1.2
million pounds;
-- Sales of $30.6 million;
-- Gross margin of 51%;
-- Cash flows from operations of $13.8 million, or $0.08 per share;
-- Net income of $2.7 million, or $0.02 per share;
-- Cash cost per ounce of silver, net of by-product credits, of $0.46;
-- All-in sustaining cost per ounce of silver, net of by-product credits,
of $11.62; and
-- Trial mining at the GC mine produced 48,396 tonnes of ore yielding an
additional 145,000 ounces of silver, 1.5 million pounds of lead, and 2.3
million pounds of zinc.
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Quarterly operational results - Ying Mining District
Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014
30-Jun-14 31-Mar-14 31-Dec-13 30-Sep-13 30-Jun-13
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Ore Mined (tonne)
Direct Smelting Ore
(tonne) 928 393 715 503 963
Stockpiled Ore (tonne) 172,557 89,664 148,135 152,599 232,294
--------------------------------------------------
173,485 90,057 148,850 153,102 233,257
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Run of Mine Ore (tonne)
Direct Smelting Ore
(tonne) 928 393 715 503 963
Ore Milled (tonne) 168,552 90,879 149,040 156,790 235,210
--------------------------------------------------
169,480 91,272 149,755 157,293 236,173
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Metal Sales
Silver (in thousands of
ounces) 1,126 582 883 1,021 1,364
Gold (in thousands of
ounces) 0.8 0.4 0.9 0.9 1.3
Lead (in thousands of
pounds) 11,529 5,165 8,814 9,519 13,063
Zinc (in thousands of
pounds) 1,211 883 1,572 2,199 2,926
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Head Grade of Run of Mine
Ore
Silver (gram/tonne) 227 216 202 217 200
Lead (%) 3.3 2.7 2.9 2.9 2.7
Zinc (%) 0.7 0.6 0.7 1.0 0.8
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Recovery Rate of Run of
Mine Ore
Silver (%) 93.6 92.9 93.1 92.7 92.3
Lead (%) 95.8 95.3 95.7 94.8 94.6
Zinc (%) 56.8 62.4 64.2 68.5 68.4
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Cash Mining Cost ($ per
tonne) 46.96 49.04 50.59 45.22 54.95
Total Mining Costs($ per
tonne) 58.35 60.85 60.89 56.08 65.09
Cash Milling Cost ($ per
tonne) 12.16 15.08 16.00 14.89 12.06
Total Milling Cost ($ per
tonne) 14.48 19.93 18.60 17.29 13.62
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Cash Cost per Ounce of
Silver ($) 0.46 2.82 2.00 0.49 3.23
Total Production Cost per
Ounce of Silver ($) 2.92 5.86 4.39 3.41 5.33
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Three months ended
GC Mine June 30, 2014
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Ore mined (tonne) 48,396
Ore milled (tonne) 55,784
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Head Grades
---------------------------------------------------------------------
Silver (gram/tonne) 110
Lead (%) 1.4
Zinc (%) 2.5
Sulphur (%) 9.0
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Metal Production
---------------------------------------------------------------------
Silver ('000 Oz) 145
Lead ('000 Lb) 1,461
Zinc ('000 Lb) 2,314
Sulphur ('000 Lb) 3,626
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Production Cost
---------------------------------------------------------------------
Cash production cost ($/tonne) $ 61.40
Total production cost ($/tonne) $ 90.16
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Financials
---------------------------------------------------------------------
Metal sales ('000s) $ 4,437
Cash production cost ('000s) $ 2,993
Total production cost ('000s) $ 4,376
Cash profit margin (%) 33%
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SILVERCORP METALS INC.
Condensed Consolidated Interim Balance Sheets
--------------------------------------------------------------------------
(Unaudited) (Expressed in thousands of U.S. dollars)
June 30, March 31,
2014 2014
--------------------------------------------------------------------------
ASSETS
Current Assets
Cash and cash equivalents $ 68,813 $ 60,614
Short-term investments 11,422 12,864
Trade and other receivables 3,588 4,004
Inventories 5,433 5,362
Due from related parties 70 68
Prepaids and deposits 7,081 6,165
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96,407 89,077
Non-current Assets
Long-term prepaids and deposits 3,606 4,000
Investment in an associate 3,712 3,715
Other investments 1,590 2,393
Plant and equipment 101,441 101,876
Mineral rights and properties 274,095 266,258
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TOTAL ASSETS $ 480,851 $ 467,319
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--------------------------------------------------------------------------
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities $ 28,155 $ 23,802
Deposits received 7,805 7,031
Dividends payable 800 773
Income tax payable 2,106 515
Due to related parties 286 281
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39,152 32,402
Non-current Liabilities
Deferred income tax liabilities 17,380 16,536
Environmental rehabilitation 5,868 5,819
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Total Liabilities 62,400 54,757
--------------------------------------------------------------------------
Equity
Share capital 233,513 233,513
Share option reserve 10,843 10,492
Reserves 25,409 25,409
Accumulated other comprehensive loss (18,560) (20,141)
Retained earnings 102,937 100,993
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--------------------------------------------------------------------------
Total equity attributable to the equity
holders of the Company 354,142 350,266
Non-controlling interests 64,309 62,296
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Total Equity 418,451 412,562
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TOTAL LIABILITIES AND EQUITY $ 480,851 $ 467,319
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--------------------------------------------------------------------------
SILVERCORP METALS INC.
Condensed Consolidated Interim Statements of Income
--------------------------------------------------------------------------
(Unaudited) (Expressed in thousands of U.S. dollars, except for per share
figures)
Three Months Ended June 30,
-------------------------------
2014 2013
--------------------------------------------------------------------------
Sales $ 30,616 $ 39,835
Cost of sales 14,963 22,482
--------------------------------------------------------------------------
Gross profit 15,653 17,353
General and administrative 4,768 7,501
General exploration and property
investigation 909 1,048
Other taxes 672 595
Foreign exchange loss (gain) 1,125 (1,881)
Loss on disposal of plant and equipment - 28
Share of loss in associate 132 14
Loss on investments 15 574
Other income (156) (115)
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Income from operations 8,188 9,589
Finance income 164 928
Finance costs (32) (33)
--------------------------------------------------------------------------
Income before income taxes 8,320 10,484
Income tax expense 3,685 4,000
--------------------------------------------------------------------------
Net income $ 4,635 $ 6,484
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--------------------------------------------------------------------------
Attributable to:
Equity holders of the Company $ 2,744 $ 4,562
Non-controlling interests 1,891 1,922
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$ 4,635 $ 6,484
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Earnings per share attributable to the
equity holders of the Company
Basic earnings per share $ 0.02 $ 0.03
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Diluted earnings per share $ 0.02 $ 0.03
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Weighted Average Number of Shares
Outstanding - Basic 170,883,808 170,781,058
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Weighted Average Number of Shares
Outstanding - Diluted 170,883,808 170,839,083
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SILVERCORP METALS INC.
Condensed Consolidated Interim Statements of Cash Flow
--------------------------------------------------------------------------
(Unaudited) (Expressed in thousands of U.S. dollars)
Three Months Ended June 30,
-------------------------------
2014 2013
--------------------------------------------------------------------------
Cash provided by
Operating activities
Net (loss) income $ 4,635 $ 6,484
Add (deduct) items not affecting cash:
Unwinding of discount of environmental
rehabilitation 32 33
Depreciation, amortization and depletion 3,423 3,932
Share of loss in associate 132 14
Income tax expense (recovery) 3,685 4,000
Loss on investments 15 574
Loss on disposal of plant and equipment - 28
Share-based compensation 351 715
Income taxes paid (1,296) (3,349)
Changes in non-cash operating working
capital 2,849 5,261
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net cash provided by operating activities 13,826 17,692
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Investing activities
Mineral rights and properties
Capital expenditures (6,305) (13,643)
Plant and equipment
Additions (1,578) (5,553)
Net redemptions of short-term investments 1,731 24,991
Proceeds on sale of a subsidiary (net of
cash disposed, $4) - 1,630
--------------------------------------------------------------------------
Net cash provided by (used in) investing
activities (6,152) 7,425
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Financing activities
Related parties
Payments made - (1,207)
Cash dividends distributed (775) (4,160)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net cash used in financing activities (775) (5,367)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Effect of exchange rate changes on cash and
cash equivalents 1,300 (400)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Increase in cash and cash equivalents 8,199 19,350
Cash and cash equivalents, beginning of the
period 60,614 72,283
Cash and cash equivalents included in
assets held for sale - (52)
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Cash and cash equivalents, end of the
period $ 68,813 $ 91,581
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SILVERCORP METALS INC.
Mining Data
--------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars, except for mining data figures)
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Three months ended June 30, 2014
------------------------------------
Ying Mining
District(1) BYP Total
--------------------------------------------------------------------------
Production Data
Mine Data
Ore Mined (tonne) 173,485 36,203 209,688
Run of Mine Ore (tonne) 169,480 30,548 200,028
Mining cost per tonne of ore mined
($) 58.35 30.61 53.56
Cash mining cost per tonne of ore
mined ($) 46.96 22.70 42.77
Non cash mining cost per tonne of
ore mined ($) 11.39 7.91 10.79
Unit shipping costs ($) 4.77 - 3.95
Milling cost per tonne of ore milled
($) 14.48 14.33 14.46
Cash milling cost per tonne of ore
milled ($) 12.16 13.29 12.33
Non cash milling cost per tonne of
ore milled ($) 2.32 1.04 2.13
Average Production Cost
Silver ($ per ounce) 7.60 - 7.72
Gold ($ per ounce) 434 573 483
Lead ($ per pound) 0.36 - 0.37
Zinc ($ per pound) 0.30 - 0.31
Total production cost per ounce of
Silver ($) 2.92 2.92
Total cash cost per ounce of Silver
($) 0.46 0.46
Total production cost per ounce of
Gold ($) 573 573
Total cash cost per ounce of Gold
($) 455 455
All-in sustaining cost per ounce of
Silver ($)(2) 8.85 15.06 11.62
All-in cost per ounce of Silver
($)(2) 11.03 16.06 14.58
Total Recovery of the Run of Mine
Ore
Silver (%) 93.6 93.6
Gold (%) 89.7 89.7
Lead (%) 95.8 95.8
Zinc (%) 56.8 56.8
Head Grades of Run of Mine Ore
Silver (gram/tonne) 227 227
Gold (gram/tonne) 2.8 2.8
Lead (%) 3.3 3.3
Zinc (%) 0.7 0.7
Sales Data
Metal Sales
Silver (in thousands of ounces) 1,126 - 1,126
Gold (in thousands of ounces) 0.8 2.6 3.5
Lead (in thousands of pounds) 11,529 - 11,529
Zinc (in thousands of pounds) 1,211 - 1,211
Metal Sales
Silver (in thousands of $) 17,778 - 17,778
Gold (in thousands of $) 741 2,681 3,422
Lead (in thousands of $) 8,654 - 8,654
Zinc (in thousands of $) 762 - 762
------------------------------------
------------------------------------
27,935 2,681 30,616
------------------------------------
Average Selling Price, Net of Value
Added Tax and Smelter Charges
Silver ($ per ounce) 15.79 - 15.79
Gold ($ per ounce) 901 1,016 989
Lead ($ per pound) 0.75 - 0.75
Zinc ($ per pound) 0.63 - 0.63
(1) Ying Mining District includes mines: SGX, TLP, HPG&LM
(2) BYP gold ounces converted to silver equivalent using a ratio of 50:1.
SILVERCORP METALS INC.
Mining Data
(Expressed in thousands of U.S. dollars, except for mining data figures)
--------------------------------------------------------------------------
Three months ended June 30, 2013
----------------------------------------------
Ying Mining
District(1) X Mines(2) BYP Total
--------------------------------------------------------------------------
Production Data
Mine Data
Ore Mined (tonne) 233,257 - 29,075 262,332
Run of Mine Ore (tonne) 236,173 6,929(i) 29,975 273,077
Mining cost per tonne of
ore mined ($) 65.09 - 51.17 63.55
Cash mining cost per
tonne of ore mined ($) 54.95 - 21.04 51.19
Non cash mining cost per
tonne of ore mined ($) 10.14 - 30.13 12.35
Unit shipping costs ($) 3.98 - - 3.54
Milling cost per tonne of
ore milled ($) 13.62 - 14.05 13.67
Cash milling cost per
tonne of ore milled ($) 12.06 - 13.06 12.17
Non cash milling cost per
tonne of ore milled ($) 1.56 - 0.99 1.50
Average Production Cost
Silver ($ per ounce) 9.63 - - 9.96
Gold ($ per ounce) 546 - 926 616
Lead ($ per pound) 0.41 - - 0.42
Zinc ($ per pound) 0.34 - 0.44 0.34
Total production cost per
ounce of Silver ($) 5.33 - 5.33
Total cash cost per ounce
of Silver ($) 3.23 - 3.23
Total production cost per
ounce of Gold ($) 913 913
Total cash cost per ounce
of Gold ($) 448 448
All-in sustaining cost per
ounce of Silver ($)(3) 11.36 - 26.78 15.51
All-in cost per ounce of
Silver ($)(3) 15.01 - 28.62 25.73
Total Recovery of the Run
of Mine Ore
Silver (%) 92.3 - 92.3
Gold (%) 92.5 92.5
Lead (%) 94.6 - 94.6
Zinc (%) 68.4 - 68.4
Head Grades of Run of Mine
Ore
Silver (gram/tonne) 200 - 200
Gold (gram/tonne) 2.8 2.8
Lead (%) 2.7 - 2.7
Zinc (%) 0.8 - 0.8
Sales Data
Metal Sales
Silver (in thousands of
ounces) 1,364 10(i) - 1,374
Gold (in thousands of
ounces) 1.3 0.2(i) 2.3 3.8
Lead (in thousands of
pounds) 13,063 405(i) - 13,468
Zinc (in thousands of
pounds) 2,926 484(i) 282 3,692
Metal Sales
Silver (in thousands of $) 24,091 - - 24,091
Gold (in thousands of $) 1,283 - 2,669 3,952
Lead (in thousands of $) 9,833 - - 9,833
Zinc (in thousands of $) 1,806 - 153 1,959
----------------------------------------------
37,013 - 2,822 39,835
----------------------------------------------
----------------------------------------------
Average Selling Price, Net
of Value Added Tax and
Smelter Charges
Silver ($ per ounce) 17.66 - 17.66
Gold ($ per ounce) 1,001 - 1,141 1,092
Lead ($ per pound) 0.75 - 0.75
Zinc ($ per pound) 0.62 - 0.54 0.61
(1) Ying Mining District includes mines: SGX, TLP, HPG&LM.
(2) X Mines includes the XBG project and XHP project.
(3) BYP gold ounces converted to silver equivalent using a ratio of 50:1.
(i) Represents development tunnelling ore at the X mines.