SILVERCORP REPORTS ADJUSTED NET INCOME OF $17.8 MILLION, $0.09 PER SHARE, AND CASH FLOW FROM OPERATIONS OF $23.1 MILLION FOR Q2 FISCAL 2025
Canada NewsWire
VANCOUVER, BC, Nov. 7, 2024
Trading Symbol: TSX: SVM
NYSE AMERICAN: SVM
VANCOUVER, BC, Nov. 7, 2024 /CNW/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) reported its financial and operating results for the three months ended September 30, 2024 ("Q2 Fiscal 2025"). All amounts are expressed in US dollars, and figures may not add due to rounding.
HIGHLIGHTS FOR Q2 FISCAL 2025
-- Mined 361,440 tonnes of ore, milled 297,205 tonnes of ore, and produced
approximately 1,183 ounces of gold, 1.7 million ounces of silver, or
approximately 1.8 million ounces of silver equivalent1, plus 13.2 million
pounds of lead and 5.8 million pounds of zinc;
-- Sold approximately 1,239 ounces of gold, 1.6 million ounces of silver,
13.3 million pounds of lead, and 5.9 million pounds of zinc, for revenue
of $68.0 million;
-- Net income attributable to equity shareholders of $17.7 million, or $0.09
per share;
-- Adjusted net income attributable to equity shareholders1 of $17.8 million,
or $0.09 per share;
-- Generated cash flow from operating activities of $23.1 million;
-- Cash cost per ounce of silver, net of by-product credits1, of negative
$0.73;
-- All-in sustaining cost per ounce of silver, net of by-product credits1,
of $11.66;
-- Spent and capitalized $0.5 million on exploration drilling, $14.6 million
on underground exploration and development, and $9.6 million on equipment
and facilities, including the No. 3 tailings storage facility at the Ying
Mining District;
-- Spent and capitalized $181.3 million on the acquisition of Adventus
Mining Corporation, by issuing $150.5 million in shares, making $27.0
million cash investments and advances, and incurring $3.8 million in cash
transaction costs;
-- The Company has $209.5 million in cash and cash equivalents and
short-term investments, and holds a portfolio of equity investment in
associates and other companies with a total market value of $84.4 million
as at September 30, 2024; and
-- Commissioning trial runs of the new 1,500 tonne per day mill commenced on
November 1, 2024. The inventory stockpile of approximately 129,000 tonnes
of ore at the Ying Mining District is expected to be processed over 2-3
months, which will enhance metal production to align with the Company's
Fiscal 2025 annual guidance.
_______________
(1) Non-IFRS measures, please refer to section 12
of the corresponding MD&A for the three and six months
ended September 30, 2024 for reconciliation.
CONSOLIDATED FINANCIAL RESULTS
Three months ended September 30, Six months ended September 30,
2024 2023 Changes 2024 2023 Changes
Financial Results
Revenue (in thousands of
$) $ 68,003 $ 53,992 26 % 140,168 113,998 23 %
Mine operating earnings
(in thousands of $) 31,661 20,943 51 % 68,175 44,244 54 %
Net income (loss)
attributable to equity
holders (in
thousands of $) 17,707 11,050 60 % 39,645 20,267 96 %
Earnings (loss) per
share - basic ($/share) 0.09 0.06 39 % 0.21 0.11 82 %
Adjusted earnings
attributable to equity
holders (in
thousands of $) 17,761 11,677 52 % 38,379 24,046 60 %
Adjusted earning per
share - basic ($/share) 0.09 0.07 32 % 0.20 0.14 48 %
Net cash generated from
operating activities (in
thousands
of $) 23,128 28,844 (20) % 63,083 57,725 9 %
Capitalized expenditures
(in thousands of $) 28,059 15,058 86 % 47,716 30,974 54 %
Metals sold
Gold (ounces) 1,239 2,515 (51) % 2,237 4,010 (44) %
Silver (in thousands of
ounces) 1,641 1,578 4 % 3,380 3,393 -- %
Lead (in thousands of
pounds) 13,258 15,175 (13) % 28,921 32,505 (11) %
Zinc (in thousands of
pounds) 5,892 4,578 29 % 12,376 11,498 8 %
Average Selling Price,
Net of Value Added Tax
and
Smelter Charges
Gold ($/ounce) 2,178 1,815 20 % 2,094 1,766 19 %
Silver ($/ounce) 26.49 19.74 34 % 26.41 19.54 35 %
Lead ($/pound) 1.00 0.87 15 % 1.00 0.85 18 %
Zinc ($/pound) 1.13 0.79 43 % 1.07 0.81 32 %
Financial Position as at September 30, June 30, September 30, March 31,
2024 2024 2024 2024
Cash and cash equivalents
and short-term
investments
(in thousands of $) 209,505 215,739 (3) % $ 209,505 184,891 13 %
Working capital (in
thousands of $) 162,312 178,893 (9) % 162,320 154,744 5 %
Net income attributable to equity shareholders of the Company in Q2 Fiscal 2025 was $17.7 million or $0.09 per share, compared to net income of $11.1 million or $0.06 per share in the three months ended September 30, 2023 ("Q2 Fiscal 2024").
Compared to Q2 Fiscal 2024, the Company's consolidated financial results were mainly impacted by i) increases of 20%, 34%, 15% and 43%, respectively, in the realized selling prices for gold, silver, lead and zinc; ii) increases of 4% and 29%, respectively, in silver and zinc sold; and iii) a $3.8 million in gain on investments, offset by iv) decreases of 51% and 13%, respectively, in gold and lead sold; v) an increase of $2.1 million in mine and corporate administrative expenses; vi) an increase of $1.1 million in business development expenditures; and vii) a negative impact of $2.4 million in foreign exchange.
Excluding certain non-cash, non-recurring, and non-routine items, the adjusted basic earnings to equity shareholders were $17.8 million or $0.09 per share compared to $11.7 million or $0.07 per share in Q2 Fiscal 2024.
Revenue in Q2 Fiscal 2025 was $68.0 million, up 26% compared to $54.0 million in Q2 Fiscal 2024. The increase is mainly due to an increase of $15.2 million arising from the increase in the realized selling prices and an increase of $3.2 million arising from the increase of silver and zinc sold, offset by a decrease of $4.7 million as a result of less gold and lead sold.
Income from mine operations in Q2 Fiscal 2025 was $31.7 million, up 51% compared to $20.9 million in Q2 Fiscal 2024. The increase was mainly due to the increase in revenue arising from the increases in the net realized metal selling prices. Income from mine operations at the Ying Mining District was $29.1 million, compared to $21.8 million in Q2 Fiscal 2024. Income from mine operations at the GC Mine was $3.0 million, compared to a loss of $0.7 million in Q2 Fiscal 2024.
Cash flow provided by operating activities in Q2 Fiscal 2025 was $23.1 million, down $5.7 million, compared to $28.8 million in Q2 Fiscal 2024. The decrease was due to:
-- $27.6 million cash flow from operations before changes in non-cash
operating working capital, up $2.0 million compared to $25.6 million in
Q2 Fiscal 2024; offset by
-- $4.5 million cash used by changes in non-cash working capital, compared
to $3.2 million provided in Q2 Fiscal 2024.
The Company ended the quarter with $209.5 million, up 13% or $24.6 million compared to $184.9 million as at March 31, 2024, but down 3% or $6.2 million compared to $215.7 million as at June 30, 2024. The Company holds a further equity investment portfolio in associates and other companies with a total market value of $84.4 million as at September 30, 2024.
CONSOLIDATED OPERATIONAL RESULTS
Three months ended Six months ended September
September 30, 30,
2024 2023 Changes 2024 2023 Changes
Production Data
Ore Mined (tonnes) 361,440 273,465 32 % 705,287 576,685 22 %
Ore Milled
(tonnes)
Gold Ore 17,075 12,800 33 % 25,551 23,693 8 %
Silver Ore 280,130 248,307 13 % 579,350 532,509 9 %
297,205 261,107 14 % 604,901 556,202 9 %
Metal Production
Gold (ounces) 1,183 2,458 (52) % 2,329 4,010 (42) %
Silver (in
thousands of
ounces) 1,655 1,590 4 % 3,372 3,370 -- %
Silver
equivalent
(in thousands
of ounces) 1,751 1,815 (4) % 3,553 3,725 (5) %
Lead (in
thousands of
pounds) 13,202 16,065 (18) % 28,821 33,881 (15) %
Zinc (in
thousands of
pounds) 5,811 4,601 26 % 12,245 11,422 7 %
Cost Data
Production cost
($/tonne) 82.33 80.53 2 % 81.36 79.53 2 %
All-in sustaining
production cost
($/tonne) 145.53 149.94 (3) % 142.73 141.53 1 %
Cash cost per
ounce of silver,
net of by-product
credits
($) (0.73) (1.00) 26 % (1.21) (0.63) (94) %
All-in sustaining
cost per ounce of
silver, net of
by-product
credits ($) 11.66 11.50 1 % 10.72 10.41 3 %
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