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 -3-

· 02/04/2021 17:11
Q1 Q4 Nine months ended GC Mine Q3 2021 Q2 2021 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) 97,177 86,833 80,379 37,216 86,437 264,389 250,417 Ore Milled (tonne) 97,743 84,850 84,637 33,243 89,372 267,230 257,367 ------------------ -------- --------- ------ ------ -------- ------- ------- Head Grades Silver (gram/tonne) 82 81 93 94 96 85 97 Lead (%) 1.4 1.8 1.9 1.8 2.0 1.7 1.9 Zinc (%) 3.5 3.4 3.4 3.5 3.3 3.4 3.3 ------------------ -------- --------- ------ ------ -------- ------- ------- Recovery Rates Silver (%) * 82.6 82.5 82.8 80.7 78.0 82.6 76.9 Lead (%) 89.6 89.2 89.8 90.4 90.4 89.5 89.2 Zinc (%) 89.7 87.3 87.3 87.7 85.5 88.2 85.8 ------------------ -------- --------- ------ ------ -------- ------- ------- Metal Sales Silver (in thousands of ounce) 201 184 200 89 234 585 610 Lead (in thousands of pound) 2,599 2,966 3,106 1,332 3,867 8,671 9,553 Zinc (in thousands of pound) 6,724 6,027 4,921 2,194 5,471 17,672 15,942 ------------------ -------- --------- ------ ------ -------- ------- ------- Cash mining cost ($/tonne) 41.47 36.43 35.13 25.58 42.96 37.89 39.91 Cash milling cost ($/tonne) 12.60 12.04 11.95 16.36 14.01 12.22 13.53 ------------------ -------- --------- ------ ------ -------- ------- ------- Cash production cost ($/tonne) 54.07 48.47 47.08 41.94 56.97 50.11 53.44 All-in sustaining production costs ($/tonne) 78.63 69.07 65.84 88.18 71.03 71.58 67.14 Cash cost per ounce of silver ($) (14.43) (12.70) (6.59) (10.03) (4.33) (11.21) (7.30) All-in sustaining cost per ounce of silver ($) (1.05) (1.78) 2.41 8.31 2.18 (0.10) (0.33) ------------------ -------- --------- ------ ------ -------- ------- ------- * Silver recovery includes silver recovered in lead concentrate and silver recovered in zinc concentrate.

Total and cash milling costs per tonne at the Ying Mining District in Q3 Fiscal 2021 were $12.94 and $11.09, respectively, compared to $12.76 and $10.99 in Q3 Fiscal 2020. The slight increase in per tonne milling costs was mainly due to less ore milled resulting in higher fixed costs allocation.

Correspondingly, the cash production cost per tonne of ore processed in Q3 Fiscal 2021 at the Ying Mining District was $83.09, compared to $79.57 in Q3 Fiscal 2020. The all-in sustaining production cost per tonne of ore processed was $133.07, up 5% compared to $126.43 in Q3 Fiscal 2020, but below the Company's annual cost guidance. The increase was mainly due to the increase in per tonne cash production costs as discussed above.

In Q3 Fiscal 2021, the cash cost per ounce of silver, net of by-product credits, at the Ying Mining District was negative $1.12 compared to negative $0.72 in Q3 Fiscal 2020. All-in sustaining cost per ounce of silver, net of by-product credits, was $5.24 compared to $5.57 in Q3 Fiscal 2020. The decrease was mainly due to an increase of $0.2 million in by-product sales, offset by a decrease of 2% in silver sold.

In Q3 Fiscal 2021, approximately 57,401 metres or $1.2 million worth of diamond drilling (Q3 Fiscal 2020 -- 22,576 metres or $0.7 million) and 6,623 metres or $2.8 million worth of preparation tunnelling (Q3 Fiscal 2020 -- 5,329 metres or $1.8 million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition, approximately 24,916 metres or $1.0 million worth of surface diamond drilling (Q3 Fiscal 2020 -- nil) and 19,014 metres or $8.3 million worth of horizontal tunnels, raises, ramps and declines (Q3 Fiscal 2020 -- 22,105 metres or $10.5 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, a total of 537,464 tonnes of ore were mined at the Ying Mining District, up 2% or 8,646 tonnes compared to 528,818 tonnes in the same prior year period. Ore milled was 519,677 tonnes, down 2% compared to 532,317 tonnes in the same prior year period. Average head grades of ore processed were 293 g/t for silver, 4.4% for lead, and 0.8% for zinc compared to 311 g/t for silver, 4.6% for lead, and 0.9% for zinc, in the same prior year period.

During the same time period, the Ying Mining District sold approximately 4.7 million ounces of silver, 2,900 ounces of gold, 47.6 million pounds of lead, and 5.7 million pounds of zinc, compared to 4.8 million ounces of silver, 2,800 ounces of gold, 46.1 million pounds of lead, and 6.4 million pounds of zinc in the same prior year period.

For the nine months ended December 31, 2020, the cash mining cost at the Ying Mining District was $66.67 per tonne, up 7% compared to $62.33 in the same prior year period. The increase in the per tonne cash mining cost was mainly due to an increase of $1.3 million in mining contractor's costs. The cash milling cost was $9.30 per tonne, a decrease of 7% compared to $9.98 in the same prior year period.

Correspondingly, the cash production cost per tonne of ore processed was $79.77, up 5% compared to $76.23 in the same prior year period. The all-in sustaining cash production cost per tonne of ore processed was $127.40, up 2%, compared to $124.31 in the same prior year period, but below the Company's annual cost guidance.

For the nine months ended December 31, 2020, the cash cost per ounce of silver and all-in sustaining cost per ounce of silver, net of by-product credits, at the Ying Mining District, were negative $0.71 and $5.31 respectively, compared to negative $1.40 and $4.55 in the same prior year period. The increase was mainly due to i) the increase in per tonne production costs as discussed above; ii) a decrease of $1.8 million in by-product credits; and iii) a decrease of 4% in silver sold.

For the nine months ended December 31, 2020, approximately 117,773 metres or $2.5 million worth of underground diamond drilling (same prior year period -- 73,231 metres or $2.1 million) and 17,786 metres or $5.6 million worth of preparation tunnelling (same prior year period -- 17,278 metres or $5.1 million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition, approximately 63,400 metres or $2.9 million worth of surface diamond drilling (same prior year period -- nil) and 63,936 metres or $23.4 million worth of horizontal tunnels, raises, and declines (same prior year period -- 62,661 metres or $24.3 million) were completed and capitalized.

2. GC Mine, Guangdong Province, China

i) Q3 Fiscal 2021 vs. Q3 Fiscal 2020

In Q3 Fiscal 2021, the total ore mined at the GC Mine was 97,177 tonnes, up 12% or 10,740 tonnes, compared to 86,437 tonnes in Q3 Fiscal 2020. Ore milled was 97,743 tonnes, up 9% or 8,371 tonnes, compared to 89,372 tonnes in Q3 Fiscal 2020.

Average head grades of ore processed at the GC Mine were 82 g/t for silver, 1.4% for lead, and 3.5% for zinc, compared to 96 g/t for silver, 2.0% for lead, and 3.3% for zinc in Q3 Fiscal 2020. Recovery rates of ore processed were 82.6% for silver, 89.6% for lead, and 89.7% for zinc, compared to 78.0% for silver, 90.4% for lead, and 85.5% for zinc in Q3 Fiscal 2020.

In Q3 Fiscal 2021, GC Mine sold approximately 201 thousand ounces of silver, 2.6 million pounds of lead, and 6.7 million pounds of zinc, compared to 234 thousand ounces of silver, 3.9 million pounds of lead, and 5.5 million pounds of zinc in Q3 Fiscal 2020.

Total and cash mining costs per tonne at the GC Mine in Q3 Fiscal 2021 were $50.53 and $41.47 per tonne, a decrease of 2% and 3%, respectively, compared to $51.60 and $42.96 per tonne in Q3 Fiscal 2020. The decrease in the cash mining cost was mainly due to a $0.2 million decrease in mining preparation costs. Total and cash milling costs per tonne at the GC Mine in Q3 Fiscal 2021 were $13.72 and $12.60, a decrease of 10% and 10%, respectively, compared to $15.20 and $14.01 in Q3 Fiscal 2020.

Correspondingly, the cash production cost per tonne of ore processed in Q3 Fiscal 2021 at the GC Mine was $54.07, down 5% compared to $56.97 in Q3 Fiscal 2020. The all-in sustaining production cost per tonne of ore processed was $78.63, up 11% compared to $71.03 in Q3 Fiscal 2020. The increase was mainly due to an increase of $1.1 million in sustaining capital expenditures.

In Q3 Fiscal 2021, the cash cost per ounce of silver, net of by-product credits, at the GC Mine was negative $14.43 compared to negative $4.33 in Q3 Fiscal 2020. The decrease was mainly due to the decrease in per tonne production costs as discussed above and an increase of $1.9 million in by-product sales.

In Q3 Fiscal 2021, all-in sustaining cost per ounce of silver, net of by-product credits, at the GC Mine was negative $1.05 compared to $2.18 in Q3 Fiscal 2020. The decrease was mainly due to the decrease in cash cost per ounces of silver offset by an increase of $1.0 million in sustaining capital expenditures.

(MORE TO FOLLOW) Dow Jones Newswires

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