B2Gold Corp. press release

Silvercorp Reports Adjusted Net Income of $11.5 Million, $0.06 per Share, and Cash Flow from Operations of $23.6 Million for Q3 Fiscal 2024

2024-02-08

TSX - Toronto Stock Exchange · Gold · Canada · Corporate Finance

Canada NewsWire

Trading Symbol: TSX: SVM NYSE AMERICAN: SVM

VANCOUVER, BC , Feb. 8, 2024 /CNW/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX/NYSE American: SVM) reports its financial and operating results for the three months ended December 31, 2023 ("Q3 Fiscal 2024"). All amounts are expressed in US dollars, and figures may not add due to rounding.

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HIGHLIGHTS FOR Q3 FISCAL 2024

Mined 345,273 tonnes of ore, milled 312,500 tonnes of ore, and produced approximately 1,342 ounces of gold, 1.7 million ounces of silver, or approximately 1.8 million ounces of silver equivalent, plus 16.8 million pounds of lead and 7.4 million pounds of zinc; Sold approximately 1,342 ounces of gold, 1.7 million ounces of silver, 16.2 million pounds of lead, and 7.3 million pounds of zinc, for revenue of $58.5 million ; Reported net income attributable to equity shareholders of $10.5 million , or $0.06 per share; Realized adjusted earnings attributable to equity shareholders of $11.5 million , or $0.06 per share; Generated cash flow from operating activities of $23.6 million ; Cash costs per ounce of silver, net of by-product credits, of negative $0.96 ; All-in sustaining costs per ounce of silver, net of by-product credits, of $11.33 ; Spent and capitalized $1.6 million on exploration drilling, $14.1 million on underground development, and $3.9 million on equipment and facilities, including $1.3 million on construction of the new tailings storage facility; Entered into a Bid Implementation Deed ("BID") with OreCorp Limited (ASX: ORR) ("OreCorp") to launch an off-market takeover to acquire all OreCorp Shares not already owned by Silvercorp for A$0.19 cash plus 0.0967 common shares of Silvercorp per OreCorp Share; and Strong balance sheet with $198.3 million in cash and cash equivalents and short-term investments. The Company holds a further equity investment portfolio in associates and other companies with a total market value of $139.5 million as at December 31, 2023 .

CONSOLIDATED FINANCIAL RESULTS

| | Three months ended December 31, | | Nine months ended December 31, | | | | | | | 2023 | 2022 | Changes | | 2023 | 2022 | Changes | | Financial Results | | | | | | | | | Revenue (in thousands of $) | $ 58,508 | $ 58,651 | 0 % | | $ 172,506 | $ 173,982 | -1 % | | Mine operating earnings (in thousands of $) | 23,307 | 21,744 | 7 % | | 67,551 | 61,007 | 11 % | | Net income (loss) attributable to equity holders (in thousands of $) | 10,510 | 11,916 | -12 % | | 30,777 | 20,373 | 51 % | | Earnings (loss) per share - basic ($/share) | 0.06 | 0.07 | -14 % | | 0.17 | 0.12 | 42 % | | Adjusted earnings attributable to equity holders (in thousands of $) | 11,452 | 11,775 | -3 % | | 35,498 | 32,056 | 11 % | | Adjusted earning per share - basic ($/share) | 0.06 | 0.07 | -14 % | | 0.20 | 0.18 | 11 % | | Net cash generated from operating activities (in thousands of $) | 23,607 | 25,661 | -8 % | | 81,332 | 79,901 | 2 % | | Capitalized expenditures (in thousands of $) | 19,635 | 15,484 | 27 % | | 50,609 | 48,366 | 5 % | | Metals sold | | | | | | | | | Gold (ounces) | 1,342 | 1,100 | 22 % | | 5,352 | 3,400 | 57 % | | Silver (in thousands of ounces) | 1,703 | 1,860 | -8 % | | 5,096 | 5,564 | -8 % | | Lead (in thousands of pounds) | 16,248 | 19,273 | -16 % | | 48,753 | 55,666 | -12 % | | Zinc (in thousands of pounds) | 7,320 | 7,119 | 3 % | | 18,818 | 19,987 | -6 % | | Average Selling Price, Net of Value Added Tax and Smelter Charges | | | | | | | | | Gold ($/ounce) | 1,718 | 1,541 | 11 % | | 1,754 | 1,479 | 19 % | | Silver ($/ounce) | 20.14 | 17.17 | 17 % | | 19.74 | 16.91 | 17 % | | Lead ($/pound) | 0.87 | 0.85 | 2 % | | 0.86 | 0.87 | -1 % | | Zinc ($/pound) | 0.82 | 0.96 | -15 % | | 0.81 | 1.09 | -26 % | | Financial Position as at | December 31, 2023 | September 30, 2023 | | | December 31, 2023 | March 31, 2023 | | | Cash and cash equivalents and short-term investments (in thousands of $) | 198,295 | 189,091 | 5 % | | 198,295 | 203,323 | -2 % | | Working capital (in thousands of $) | 159,555 | 154,330 | 3 % | | 159,555 | 177,808 | -10 % |

Revenue in Q3 Fiscal 2024 was $58.5 million , a slight decrease compared to $58.7 million in Q3 Fiscal 2023. The decrease is mainly due to the decrease in silver and lead sold and a lower zinc price, offset by the increase in the net realized selling prices for gold, silver, and lead.

Income from mine operations in Q3 Fiscal 2024 was $23.3 million , up 7% compared to $21.7 million in Q3 Fiscal 2023. Income from mine operations at the Ying Mining District was $21.5 million , compared to $19.0 million in Q3 Fiscal 2023. Income from mine operations at the GC Mine was $1.9 million , compared to income of $2.9 million in Q3 Fiscal 2023.

Net income attributable to equity shareholders of the Company in Q3 Fiscal 2024 was $10.5 million or $0 .06 per share, compared to net income of $11.9 million or $0.07 per share in Q3 Fiscal 2023.

Compared to Q3 Fiscal 2023, the Company's consolidated financial results in the current quarter were mainly impacted by i) increases of 11%, 17%, and 2%, respectively, in the realized selling prices for gold, silver, and lead, and a decrease of 15% in the realized selling price for zinc; ii) increases of 22% and 3%, respectively in gold and zinc sold and decreases of 8% and 16%, respectively, in silver and lead sold; iii) a decrease of 4% in per tonne production costs; iv) an improvement of $4.4 million in mark-to-market investments; and v) an increase of $5.0 million in the share of loss in associates.

Cash flow provided by operating activities in Q3 Fiscal 2024 was $23.6 million , down $2.1 million , compared to $25.7 million in Q3 Fiscal 2023. The Company ended the quarter with $198.3 million in cash, cash equivalents and short-term investments, up 5% compared to $189.1 million as at September 30, 2023 .

Working capital as at December 31, 2023 was $159.6 million , up 3% compared to $154.3 million as at September 30, 2023 .

CONSOLIDATED OPERATIONAL RESULTS

| | Three months ended December 31, | | Nine months ended December 31, | | | | | | | 2023 | 2022 | Changes | | 2023 | 2022 | Changes | | Ore Production (tonne) | | | | | | | | | Ore mined | 345,273 | 296,050 | 17 % | | 921,958 | 887,135 | 4 % | | Ore milled | | | | | | | | | Gold ore | 12,726 | - | 100 % | | 36,419 | - | 100 % | | Silver ore | 299,774 | 303,442 | -1 % | | 832,283 | 893,261 | -7 % | | | 312,500 | 303,442 | 3 % | | 868,702 | 893,261 | -3 % | | Metal Production | | | | | | | | | Gold (ounces) | 1,342 | 1,100 | 22 % | | 5,352 | 3,400 | 57 % | | Silver (in thousands of ounces) | 1,684 | 1,853 | -9 % | | 5,054 | 5,511 | -8 % | | Silver equivalent (in thousands of ounces) | 1,795 | 1,949 | -8 % | | 5,520 | 5,802 | -5 % | | Lead (in thousands of pounds) | 16,763 | 20,059 | -16 % | | 50,644 | 57,130 | -11 % | | Zinc (in thousands of pounds) | 7,404 | 6,974 | 6 % | | 18,826 | 19,886 | -5 % | | Cash Costs | | | | | | | | | Production costs per tonne of ore processed ($) | 74.26 | 77.73 | -4 % | | 77.57 | 82.25 | -6 % | | All-in sustaining costs per tonne of ore processed ($) | 136.86 | 136.90 | 0 % | | 139.79 | 137.33 | 2 % | | Cash costs per ounce of silver, net of by-product credits ($) | (0.96) | (1.15) | 17 % | | (0.74) | (0.68) | -9 % | | All-in sustaining costs per ounce of silver, net of by-product credits ($) | 11.33 | 9.28 | 22 % | | 10.72 | 8.94 | 20 % |

In Q3 Fiscal 2024, the Company mined 345,273 tonnes of ore, up 17% compared to 296,050 tonnes in Q3 Fiscal 2023. Ore milled in Q3 Fiscal 2024 was 312,500 tonnes, up 3% compared to 303,442 tonnes in Q3 Fiscal 2023. A total of 60,095 tonnes of ores were stockpiled at the Ying Mining District and will be processed in the fourth quarter during the Chinese New Year holiday.

In Q3 Fiscal 2024, the Company produced approximately 1,342 ounces of gold, 1.7 million ounces of silver, or approximately 1.8 million ounces of silver equivalent, plus 16.8 million pounds of lead and 7.4 million pounds of zinc, representing increases of 22% and 6%, respectively, in gold and zinc production, and decreases of 9% and 16%, respectively, in silver and lead production over Q3 Fiscal 2023. The decreases in silver and lead production were mainly due to i) lower head grades achieved due to mining sequences; ii) more ores stockpiled to be processed in the fourth quarter during the Chinese New Year holiday; and iii) 12,700 tonnes of gold ore with grades of 1.9 grams per tonne ("g/t") gold, 74 g/t silver, 1.0% lead and 0.1% zinc mined and processed, at the Ying Mining District.

In Q3 Fiscal 2024, the consolidated mining costs were $59.43 per tonne, down 5% compared to $62.69 per tonne in Q3 Fiscal 2023. The consolidated milling costs were $12.44 per tonne, down 1% compared to $12.56 per tonne in Q3 Fiscal 2023. Correspondingly, the consolidated production costs per tonne of ore processed were $74.26 , down 4% compared to $77.73 in Q3 Fiscal 2023. The all-in sustaining production costs per tonne of ore processed in Q3 Fiscal 2024 were $136.89 , a slight decrease compared to $136.90 in Q3 Fiscal 2023. The decrease was mainly attributed to higher ore production resulting in lower unit fixed costs allocation and an approximate 4% depreciation of the Chinese yuan against the US dollar over the same prior year period.

In Q3 Fiscal 2024, the consolidated cash costs per ounce of silver, net of by-product credits, were negative $0.96 , compared to negative $1.15 in the prior year quarter. The consolidated all-in sustaining costs per ounce of silver, net of by-product credits, were $11.33 compared to $9.28 in Q3 Fiscal 2023. The increase was mainly due to i) a decrease of $2.5 million in by-product credits, offset by a decrease of $0.5 million in all-in sustaining costs; and ii) less silver sold resulting in higher unit costs per ounces of silver.

EXPLORATION AND DEVELOPMENT

| | Capitalized Development and Expenditures | Expensed | | | | | | | | | | | Ramp Development | Exploration and Development Tunnels | Drilling | Equipment & Mill and TSF | Total | Mining Preparation Tunnels | Drilling | | | | | | (Metres) | ($ Thousand) | (Metres) | ($ Thousand) | (Metres) | ($ Thousand) | ($ Thousand) | ($ Thousand) | (Metres) | (Metres) | | Q3 Fiscal 2024 | | | | | | | | | | | | Ying Mining District | 3,986 | $ 2,651 | 23,834 | $ 9,612 | 39,085 | $ 1,338 | 3,679 | $ 17,280 | 10,010 | 24,693 | | GC Mine | 81 | 108 | 3,747 | 1,688 | 10,912 | 250 | 218 | 2,264 | 2,145 | 12,327 | | Corporate and other | - | - | - | - | - | 82 | 9 | 91 | - | - | | Consolidated | 4,067 | $ 2,759 | 27,581 | $ 11,300 | 49,997 | $ 1,670 | $ 3,906 | $ 19,635 | 12,155 | 37,020 | | | | | | | | | | | | | | Q3 Fiscal 2023 | | | | | | | | | | | | Ying Mining District | 1,776 | $ 1,294 | 15,527 | $ 6,549 | 27,066 | $ 895 | 3,250 | $ 11,988 | 7,933 | 25,270 | | GC Mine | - | - | 3,642 | 1,133 | 4,444 | 204 | 1,951 | 3,288 | 1,786 | 12,470 | | Corporate and other | - | - | - | - | 978 | 268 | 95 | 363 | - | - | | Consolidated | 1,776 | $ 1,294 | 19,169 | $ 7,682 | 32,488 | $ 1,367 | $ 5,296 | $ 15,639 | 9,719 | 37,740 |

Total capital expenditures in Q3 Fiscal 2024 were $19.6 million , up 26% compared to $15.6 million in Q3 Fiscal 2023. The increase is mainly due to more tunneling development and exploration activities conducted in Q3 Fiscal 2024.

In Q3 Fiscal 2024, on a consolidated basis, a total of 87,017 metres or $2.4 million worth of diamond drilling were completed (Q3 Fiscal 2023 – 70,228 metres or $2.5 million ), of which approximately 37,020 metres or $0.7 million worth of underground drilling were expensed as part of mining costs (Q3 Fiscal 2023 – 37,740 metres or $1.1 million ) and approximately 49,997 metres or $1.6 million worth of drilling were capitalized (Q3 Fiscal 2023 – 32,448 metres or $1.4 million ). In addition, approximately 12,155 metres or $4.5 million worth of preparation tunnelling were completed and expensed as part of mining costs (Q3 Fiscal 2023 – 9,719 metres or $3.8 million ), and approximately 31,648 metres or $14.1 million worth of tunnels, raises, ramps and declines were completed and capitalized (Q3 Fiscal 2023 – 20,945 metres or $9.0 million ).

INDIVIDUAL MINE OPERATING PERFORMANCE

The table below summarizes the operating results at the Ying Mining District for the past five quarters and for the nine months ended December 31, 2023 and 2022.

| Ying Mining District | Q3 F2024 | Q2 F2024 | Q1 F2024 | Q4 F2023 | Q3 F2023 | | Nine months ended December 31, | | | | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | | 2023 | 2022 | | Ore Production (tonne) | | | | | | | | | | Ore mined | 245,606 | 220,636 | 213,748 | 132,205 | 206,854 | | 679,990 | 636,819 | | Ore milled | | | | | | | | | | Gold ore | 12,726 | 12,800 | 10,893 | - | - | | 36,419 | - | | Silver ore | 201,475 | 200,068 | 197,916 | 130,910 | 213,830 | | 599,459 | 642,147 | | | 214,201 | 212,868 | 208,809 | 130,910 | 213,830 | | 635,878 | 642,147 | | Head grades | | | | | | | | | | Silver (grams/tonne) | 235 | 235 | 254 | 255 | 262 | | 241 | 262 | | Lead (%) | 3.5 | 3.5 | 3.6 | 3.6 | 4.0 | | 3.5 | 3.9 | | Zinc (%) | 0.7 | 0.7 | 0.7 | 0.6 | 0.7 | | 0.7 | 0.7 | | Recovery rates | | | | | | | | | | Silver (%) | 94.9 | 95.0 | 95.1 | 95.2 | 95.7 | | 95.0 | 95.7 | | Lead (%) | 94.8 | 95.0 | 95.5 | 95.3 | 95.4 | | 95.1 | 95.0 | | Zinc (%) | 71.4 | 71.1 | 69.6 | 68.3 | 66.4 | | 70.7 | 62.3 | | Cash Costs | | | | | | | | | | Cash production cost per tonne of ore processed ($) | 84.01 | 102.42 | 88.66 | 95.23 | 93.04 | | 84.33 | 92.35 | | All-in sustaining cost per tonne of ore processed ($) | 143.80 | 170.69 | 141.21 | 127.89 | 156.07 | | 140.20 | 141.66 | | Cash cost per ounce of Silver, net of by-product credits ($) | (0.09) | 1.37 | 0.24 | 1.86 | 0.28 | | (0.38) | 0.78 | | All-in sustaining cost per ounce of silver, net of by-product credits ($) | 8.99 | 11.33 | 7.66 | 6.82 | 8.60 | | 8.04 | 7.71 | | Metal Production | | | | | | | | | | Gold ( ounces) | 1,342 | 1,552 | 1,000 | 1,100 | 1,200 | | 5,352 | 3,400 | | Silver (in thousands of ounces) | 1,511 | 1,597 | 997 | 1,674 | 1,657 | | 4,665 | 5,083 | | Lead (in thousands of pounds) | 14,552 | 15,382 | 9,688 | 17,647 | 16,201 | | 43,471 | 49,316 | | Zinc (in thousands of pounds) | 2,153 | 2,113 | 1,164 | 2,082 | 1,976 | | 6,510 | 6,060 |

The table below summarizes the operating results at the GC Mine for the past five quarters and for the nine months ended December 31, 2023 and 2022.

| GC Mine | Q3 F2024 | Q2 F2024 | Q1 F2024 | Q4 F2023 | Q3 F2023 | | Nine months ended December 31, | | | | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | | 2023 | 2022 | | Ore Production (tonne) | | | | | | | | | | Ore mined | 99,667 | 89,472 | 49,643 | 89,196 | 75,054 | | 241,968 | 250,316 | | Ore milled | 98,299 | 86,286 | 48,483 | 89,612 | 75,381 | | 232,824 | 251,114 | | Head grades | | | | | | | | | | Silver (grams/tonne) | 68 | 80 | 88 | 75 | 72 | | 72 | 73 | | Lead (%) | 1.1 | 1.4 | 1.3 | 1.4 | 1.2 | | 1.2 | 1.3 | | Zinc (%) | 2.7 | 2.7 | 2.5 | 2.8 | 2.7 | | 2.7 | 2.8 | | Recovery rates | | | | | | | | | | Silver (%) | 80.3 | 82.7 | 78.9 | 83.0 | 81.0 | | 81.8 | 82.5 | | Lead (%) | 90.9 | 90.7 | 90.9 | 90.3 | 88.5 | | 90.7 | 89.6 | | Zinc (%) | 90.1 | 90.4 | 89.3 | 90.1 | 89.6 | | 90.2 | 90.1 | | Cash Costs | | | | | | | | | | Cash production cost per tonne of ore processed ($) | 50.38 | 67.34 | 52.35 | 59.84 | 57.92 | | 58.50 | 56.51 | | All-in sustaining cost per tonne of ore processed ($) | 76.84 | 84.79 | 88.26 | 78.31 | 81.68 | | 86.93 | 83.02 | | Cash cost per ounce of Silver, net of by-product credits ($) | (8.95) | (3.10) | (13.72) | (12.13) | (22.42) | | (4.69) | (16.08) | | All-in sustaining cost per ounce of silver, net of by-product credits ($) | 8.01 | 5.93 | 5.02 | (0.73) | (7.48) | | 11.98 | (0.71) | | Metal Production | | | | | | | | | | Silver (in thousands of ounces) | 173 | 183 | 109 | 179 | 141 | | 431 | 481 | | Lead (in thousands of pounds) | 2,211 | 2,434 | 1,250 | 2,412 | 1,782 | | 5,282 | 6,350 | | Zinc (in thousands of pounds) | 5,251 | 4,708 | 2,413 | 4,892 | 4,010 | | 12,308 | 13,927 |

OPERATING OUTLOOK

The Company is currently refining the mine plan and expects to provide Fiscal 2025 guidance along with the release of Fiscal 2024 production results in April 2024 .

In the fourth quarter of Fiscal 2024, the Company expects to process 215,000 to 240,000 tonnes of ore to produce approximately 1,200 to 1,300 ounces of gold, 1.1 to 1.3 million ounces of silver, 11.5 to 13.5 million pounds of lead, and 4.5 to 5.0 million pounds of zinc, representing production increases of 11% to 30% in ore, 20% to 30% in gold, 0% to 17% in silver, 5% to 20% in lead, and 26% to 40% in zinc compared to the production results in the same quarter last year.

CONFERENCE CALL DETAILS

A conference call to discuss these results will be held tomorrow, Friday, February 9 , at 9:00 am PDT ( 12:00 pm EDT ). To participate in the conference call, please dial the numbers below.

Canada / USA TF: 888-664-6383

International/Local Toll: 416-764-8650

Conference ID: 84281283

Participants should dial-in 10 – 15 minutes prior to the start time. A replay of the conference call and transcript will be available on the Company's website at www.silvercorpmetals.com

Mr. Guoliang Ma , P.Geo., Manager of Exploration and Resources of the Company, is the Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and given consent to the technical information contained in this news release.

About Silvercorp

Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company's strategy is to create shareholder value by 1) focusing on generating free cashflow from long life mines; 2) organic growth through extensive drilling for discovery; 3) ongoing merger and acquisition efforts to unlock value; and 4) long term commitment to responsible mining and sound Environmental, Social, and Governance ("ESG") practices. For more information, please visit our website at www.silvercorpmetals.com .

For further information Silvercorp Metals Inc. Lon Shaver President Phone: (604) 669-9397 Toll Free 1(888) 224-1881 Email: investor@silvercorp.ca Website: www.silvercorpmetals.com

ALTERNATIVE PERFORMANCE (NON-IFRS) MEASURES

This news release should be read in conjunction with the Company's Management Discussion & Analysis ("MD&A"), the unaudited condensed interim consolidated financial statements and related notes contains therein for the three and nine months ended December 31, 2023 , which have been posted on SEDAR+ under the Company's profile at www.sedarplus.ca and on EDGAR at www.sec.gov , and are also available on the Company's website at www.silvercorpmetals.com under the Investor section. This news release refers to various alternative performance (non-IFRS) measures, such as adjusted earnings and adjusted earnings per share, cash costs and all-in sustaining costs per ounce of silver, net of by-product credits, production costs and all-in sustaining production costs per tonne of ore processed, silver equivalent, and working capital. These measures are widely used in the mining industry as a benchmark for performance, but do not have standardized meanings under IFRS as an indicator of performance and may differ from methods used by other companies with similar description. The detailed description and reconciliation of these alternative performance (non-IFRS) measures have been incorporated by reference and can be found on page 32, section 11 – Alternative Performance (Non-IFRS) Measures in the MD&A for the three and nine months ended December 31, 2023 filled on SEDAR at www.sedarplus.ca and EDGAR at www.sec.gov and which is incorporated by reference here in.