SPY380.36-1.97 -0.52%
DIA309.45-4.53 -1.44%
IXIC13,192.35+72.96 0.56%

Press Release: Silvercorp Reports Net Income of -2-

· 02/04/2021 17:11
Ying Mining Q4 Nine months ended District Q3 2021 Q2 2021 Q1 2021 2020 Q3 2020 December 31, -------------------- December June March December 31, September 30, 31, 31, 2020 30, 2020 2020 2020 2019 2020 2019 ---------------- Ore Mined (tonne) 182,268 181,020 174,176 69,379 176,149 537,464 528,818 Ore Milled (tonne) 162,905 179,083 177,689 69,188 175,488 519,677 532,317 ---------------- -------- --------- ------- ------ -------- ------- ------- Head Grades Silver (gram/tonne) 297 288 293 297 296 293 311 Lead (%) 4.3 4.4 4.6 4.6 4.6 4.4 4.6 Zinc (%) 0.8 0.7 0.8 1.0 0.9 0.8 0.9 ---------------- -------- --------- ------- ------ -------- ------- ------- Recoveries Silver (%) 93.9 94.4 94.7 95.3 96.1 94.4 96.1 Lead (%) 96.4 96.1 96.2 95.7 96.3 96.2 95.9 Zinc (%) 63.3 57.9 63.8 67.7 70.3 61.7 62.6 ---------------- -------- --------- ------- ------ -------- ------- ------- Metal Sales Silver (in thousands of ounce) 1,446 1,556 1,672 711 1,475 4,674 4,848 Gold (in thousands of ounce) 0.8 1.1 1.1 0.5 0.7 2.9 2.8 Lead (in thousands of pound) 14,207 15,585 17,779 8,322 14,912 47,571 46,137 Zinc (in thousands of pound) 2,241 1,384 2,037 865 2,882 5,662 6,400 ---------------- -------- --------- ------- ------ -------- ------- ------- Cash mining cost ($/tonne) 68.02 67.70 64.12 68.10 64.69 66.67 62.33 Shipping costs ($/tonne) 3.98 3.79 3.64 3.96 3.89 3.80 3.92 Cash milling costs ($/tonne) 11.09 8.50 8.45 11.53 10.99 9.30 9.98 ---------------- -------- --------- ------- ------ -------- ------- ------- Cash production costs ($/tonne) 83.09 80.06 76.21 83.59 79.57 79.77 76.23 All-in sustaining production costs ($/tonne) 133.07 132.36 116.99 195.78 126.43 127.40 124.31 Cash costs per ounce of silver ($) (1.12) (0.14) (0.87) 0.30 (0.72) (0.71) (1.40) All-in sustaining costs per ounce of silver ($) 5.24 6.63 4.14 11.86 5.57 5.31 4.55 ---------------- -------- --------- ------- ------ -------- ------- -------

The consolidated total milling and cash milling costs in Q3 Fiscal 2021 were $13.23 and $11.66 per tonne, down 3% and 3% compared to $13.58 and $12.01 per tonne, respectively, in Q3 Fiscal 2020. The decrease in per tonne cash milling cost was mainly due to a decrease of $0.2 million in mill administration costs.

Correspondingly, the consolidated cash production cost per tonne of ore processed in Q3 Fiscal 2021 was $73.04, up 1% compared to $72.16 in Q3 Fiscal 2020. The consolidated all-in sustaining production cost per tonne of ore processed was $129.09, up 6% compared to $121.49 in Q3 Fiscal 2020, but within the Company's annual cost guidance. The increase in all-in sustaining production cost per tonne was mainly due to an increase of $1.4 million in mine and corporate general and administrative expenses and a $0.3 million increase in sustaining capital expenditures.

In Q3 Fiscal 2021, the consolidated cash cost per ounce of silver, net of by-product credits, was negative $2.76, compared to negative $1.21, in Q3 Fiscal 2020. The decrease in cash cost per ounce of silver, net of by-product credits, was mainly due to an increase of $2.1 million in by-product sales, offset by an increase of 1% in per tonne production costs.

In Q3 Fiscal 2021, the consolidated all-in sustaining cost per ounce of silver, net of by-product credits, was $6.92 compared to $7.21 in Q3 Fiscal 2020. The decrease was mainly due to the decrease in cash cost per ounce of silver, net of by-product credits as discussed above offset by an increase of $0.3 million in sustaining capital expenditures.

In Q3 Fiscal 2021, on a consolidated basis, approximately 74,070 metres or $1.8 million worth of diamond drilling (Q3 Fiscal 2020 -- 32,948 metres or $1.1 million) and 10,624 metres or $3.8 million worth of preparation tunnelling (Q3 Fiscal 2020 -- 11,656 metres or $3.1 million) were completed and expensed as mining preparation costs. In addition, approximately 24,916 metres or $1.0 million of surface diamond drilling (Q3 Fiscal 2020 -- nil) and 21,829 metres or $9.4 million worth of horizontal tunnels, raises, ramps and declines (Q3 Fiscal 2020 -- 20,107 metres or $7.1 million) were completed and capitalized.

(ii) Nine months ended December 31, 2020 vs. nine months ended December 31, 2019

For the nine months ended December 31, 2020, on a consolidated basis, the Company mined 801,853 tonnes of ore, up 3% or 22,618 tonnes, compared to 779,235 tonnes mined in the same prior year period. Ore milled was 786,907 tonnes, a slight decrease of 2,777 tonnes, compared to 789,684 tonnes in the same prior year period.

The Company sold approximately 5.3 million ounces of silver, 4,100 ounces of gold, 56.2 million pounds of lead, and 23.3 million pounds of zinc, an increase of 46%, 1%, and 4% in gold, lead, and zinc sold, and a decrease of 4% in silver sold, compared to 5.5 million ounces of silver, 2,800 ounces of gold, 55.7 million pounds of lead, and 22.3 million pounds of zinc sold in the same prior year period.

For the nine months ended December 31, 2020, the consolidated total mining costs and cash mining costs were $76.66 and $57.18 per tonne, respectively, compared to $76.31 and $55.13 per tonne in the same prior year period. The increase in per tonne cash mining cost was mainly due to i) an increase of $0.4 million in labour costs, ii) an increase of $0.6 million in raw material costs and iii) an increase of $1.3 million in mining contractor costs.

For the nine months ended December 31, 2020, the consolidated total milling cost and cash milling cost were $11.79 and $10.29, respectively, compared to $12.85 and $11.14 per tonne in the same prior year period.

Correspondingly, the consolidated cash production cost per tonne of ore processed for the nine months ended December 31, 2020 was $70.02, up 2% compared to $68.93 in the same prior year period. The all-in sustaining production cost per tonne of ore processed was $122.02, up 4% compared to $117.12 in the same prior year period. The increase was mainly due to the increase in per tonne cash mining costs as discussed above and an increase of $1.0 million in sustaining capital expenditures.

For the nine months ended December 31, 2020, the consolidated cash cost per ounce of silver, net of by-product credits, was negative $2.08, compared to negative $2.06 in the same prior year period. The consolidated all-in sustaining cost per ounce of silver, net of by-product credits was $6.48 compared to $5.64 in the same prior year period. The increase was mainly due to i) an increase of 2% in per tonne production costs; ii) an increase of $1.0 million in sustaining capital expenditures; and iii) a decrease of 4% in silver sold.

For the nine months ended December 31, 2020, on a consolidated basis, approximately 154,748 metres or $4.2 million worth of diamond drilling (same prior year period -- 93,544 metres or $3.0 million) and 27,622 metres or $7.4 million worth of preparation tunnelling (same prior year period -- 37,224 metres or $9.6 million) were completed and expensed as mining preparation costs. In addition, approximately 63,400 metres or $2.9 million worth of surface diamond drilling (same prior year period -- nil) and 74,418 metres or $26.7 million worth of horizontal tunnels, raises, ramps and declines (same prior year period -- 63,736 metres or $22.0 million) were completed and capitalized.

1. Ying Mining District, Henan Province, China

i) Q3 Fiscal 2021 vs. Q3 Fiscal 2020

In Q3 Fiscal 2021, the total ore mined at the Ying Mining District was 182,268 tonnes, up 3% or 6,119 tonnes compared to 176,149 tonnes in Q3 Fiscal 2020. Ore milled was 162,905 tonnes, a decrease of 7% compared to 175,488 tonnes in Q3 Fiscal 2020. The decrease in ore milled was mainly a result of the milling operations being temporarily suspended for seven days due to power rationing in December 2020 as the local government is subject to an annual environmental emissions KPI assessment.

Head grades were 297 grams per tonne ("g/t") for silver, 4.3% for lead, and 0.8% for zinc, compared to 296 g/t for silver, 4.6% for lead, and 0.9% for zinc in Q3 Fiscal 2020.

In Q3 Fiscal 2021, the Ying Mining District sold approximately 1.4 million ounces of silver, 800 ounces of gold, 14.2 million pounds of lead, and 2.2 million pounds of zinc, compared to 1.5 million ounces of silver, 700 ounces of gold, 14.9 million pounds of lead, and 2.9 million pounds of zinc in Q3 Fiscal 2020.

Total and cash mining costs per tonne at the Ying Mining District in Q3 Fiscal 2021 were $94.03 and $68.02 per tonne, respectively, compared to $91.91 and $64.69 per tonne in Q3 Fiscal 2020. The increase in the per tonne cash mining cost was mainly due to an increase of $0.2 million in labour costs and $0.6 million in mining contractor costs.

(MORE TO FOLLOW) Dow Jones Newswires

February 04, 2021 17:11 ET (22:11 GMT)