Press Release: 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

Dow Jones11-08

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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November 07, 2024 17:05 ET (22:05 GMT)

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