SVM
2010-08-12
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Silvercorp Reports Record Silver Production for Q1 of
Fiscal 2011: Sales Up 63%, Net Income Up 88%, Cash
Flow of $23.2 Million, Up 123%
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 12, 2010) - Silvercorp
Metals Inc. (TSX:SVM)(NYSE:SVM) ("Silvercorp" or the "Company") reported
today its unaudited financial and operating results for the first quarter
ended June 30, 2010 ("Q1 2011"). The following financial results are
expressed in US dollars (US$) unless stated otherwise.
FIRST QUARTER HIGHLIGHTS
/T/
-- Silver production increased 18% to a record 1.4 million ounces, compared
to the first quarter of fiscal year 2010 ("Q1 2010");
-- Net earnings increased 88% to $14.1 million, or $0.09 per share;
-- Sales increased 63% to a record $36.7 million, driven by increased
quantities of silver, lead and zinc sold combined with higher realized
selling prices;
-- Cash flow from operations increased 123% to $23.2 million, or $0.14 per
share;
-- Total production cost of negative $5.21 per ounce of silver and cash
cost of negative $6.31 per ounce of silver positions Silvercorp as an
industry leading low cost silver producer;
-- Received the Environmental Permit for the GC Project from the Department
of Environmental Protection of Guangdong Province, a key requirement for
the mining permit application to the Ministry of Land and Resources of
China;
-- Dividend payment of $3.2 million, or CAD$0.02 per share;
-- Total cash, cash equivalents and short term investments increased to
$106.1 million.
/T/
FINANCIALS
For the first quarter of fiscal 2011, Silvercorp recorded net earnings of
$14.1 million, or $0.09 per share, an increase of 88% over the earnings of
$7.5 million, or $0.05 per share, in the same quarter last year. Net
earnings improved primarily due to higher metal production and higher
realized selling prices.
Sales in the first quarter were a record $36.7 million, an increase of 63%
from $22.6 million in the same quarter last year. The increase was driven
by higher quantities of metals sold and higher realized selling prices. In
Q1 2011, the Company sold a record 1.4 million ounces of silver plus 18.8
million pounds of lead, and 4.4 million pounds of zinc, representing an
increase of 18%, 17%, and 19%, respectively, compared to 1.2 million ounces
of silver, 16.0 million pounds of lead, and 3.7 million pounds of zinc in
Q1 2010. The average realized selling prices for silver, lead, and zinc
increased to $13.92/oz., $0.74/lb., and $0.59/lb., respectively, increasing
41%, 32%, and 28%, respectively, compared with the metal prices realized in
Q1 2010.
Cost of sales for the quarter were $10.2 million, representing a 73%
increase as the Company mined 40% more and milled 66% more ores compared to
the same quarter last year.
Gross profit margin for the quarter was 72%, slightly lower than the margin
of 74% in the same quarter last year. Partially offset by higher realized
selling prices, the decrease of gross margin was mainly due to overall head
grade decreasing to 326.3g/t from 455.8g/t in the same quarter last year,
as production of ores from HPG, LM and TLP mines, which have lower grades
compared to the Ying Mine, increased.
Cash flow from operations for the first quarter was $23.2 million, or $0.14
per share, a 123% increase from $10.4 million in the same quarter last
year. The Company ended the quarter with $106.1 million in cash and short
term investments, up from $94.7 million as at March 31, 2010.
OPERATIONS
Silvercorp mined 144,982 tonnes of ores in the first quarter, a 40%
increase over 103,923 tonnes in the same period last year as production
from the TLP, HPG, and LM mines grew as mine development progressed.
A total of 149,189 tonnes of ores were milled in the quarter, representing
a 66% increase compared to 89,740 tonnes of ore milled in the same quarter
last year. The new mill with 1,500 tpd capacity has been in full production
during the quarter, while the old mill was partially in scheduled
maintenance.
Consolidated total production cost per ounce of silver was negative $5.21
and the cash cost per ounce of silver was negative $6.31, representing a
21% and 24% improvement respectively, compared to the total production cost
and cash production cost per ounce of silver of negative $4.29 and negative
$5.09 respectively in same quarter last year. The improvement was mainly
attributable to the increased by-product credits resulting from higher
realized lead and zinc prices.
For the first quarter of fiscal year 2011, 83% of the Company's silver
production was from the Ying Mine, (97% in Q1 2010) and the operational
results for the past five quarters at the Ying Mine are summarized as
follows:
/T/
Q1 2011 Q4 2010 Q3 2010 Q2 2010 Q1 2010
30-Jun-10 31-Mar-10 31-Dec-09 30-Sep-09 30-Jun-09
Ores Mined (tonne)
Direct Smelting Ores
(tonne) 3,339 2,418 3,357 3,550 3,773
Ores to be milled (tonne) 79,873 54,174 82,711 79,713 82,475
--------------------------------------------------
83,212 56,592 86,068 83,263 86,248
----------------------------------------------------------------------------
Run of Mine Ores (tonne)
Direct Smelting Ores
(tonne) 3,339 2,418 3,357 3,550 3,773
Ores Milled (tonne) 81,898 70,214 70,776 80,657 77,330
--------------------------------------------------
85,237 72,632 74,133 84,207 81,103
----------------------------------------------------------------------------
Mining costs per tonne of
ore mined ($) 55.10 57.50 56.90 54.71 52.70
Cash Mining Cost per
tonne of ore mined ($) 43.83 45.60 45.75 46.16 42.27
Non Cash Mining Cost per
tonne of ore mined ($) 11.27 11.84 11.15 8.55 10.43
Unit Shipping Costs ($) 3.71 3.72 3.60 3.45 3.55
Milling Costs per tonne of
ore milled ($) 13.66 11.63 11.48 10.16 11.74
Cash Milling Cost per
tonne of ore milled ($) 12.03 10.23 10.45 9.19 10.84
Non Cash Milling cost per
tonne of ore milled($) 1.62 1.39 1.02 0.96 0.90
----------------------------------------------------------------------------
Average Production Cost
Silver ($ per ounce) 3.05 3.37 2.58 2.53 2.52
Gold ($ per ounce) 163.66 172.29 83.44 110.57 114.46
Lead ($ per pound) 0.16 0.20 0.15 0.16 0.14
Zinc ($ per pound) 0.13 0.17 0.13 0.12 0.12
----------------------------------------------------------------------------
Total Production Cost per
ounce of Silver ($) (5.83) (6.14) (7.47) (5.51)
(4.19)
----------------------------------------------------------------------------
Total Cash Cost per ounce
of Silver ($) (6.80) (7.26) (8.36) (6.24)
(5.00)
----------------------------------------------------------------------------
Total Recovery of the Run
of Mine Ores
Silver (%) 91.7 91.8 91.0 92.8 93.3
Lead (%) 96.4 96.3 95.8 96.6 96.5
Zinc (%) 69.2 67.5 76.0 71.2 76.3
----------------------------------------------------------------------------
Head Grade of Run of Mine Ores
Silver (gram/tonne) 470.5 429.3 488.5 452.5 488.1
Lead (%) 8.1 7.6 9.0 8.1 9.1
Zinc (%) 2.8 2.8 3.4 3.0 3.1
----------------------------------------------------------------------------
Metal Sales
Silver (in thousands of
ounce) 1,147 836 1,086 1,107 1,134
Gold (in thousands of
ounce) 0.5 0.3 0.2 0.1 0.1
Lead (in thousands of
pound) 14,230 11,097 14,327 14,084 15,017
Zinc (in thousands of
pound) 3,605 2,747 4,038 3,707 3,579
----------------------------------------------------------------------------
Metals Sales
Silver ('000$) 15,956 11,024 14,094 12,178 11,228
Gold ('000$) 373 186 84 48 58
Lead ('000$) 10,583 8,645 10,917 9,546 8,489
Zinc ('000$) 2,098 1,850 2,618 1,974 1,652
--------------------------------------------------
29,010 21,705 27,713 23,746 21,427
----------------------------------------------------------------------------
Average Selling Price, Net
of Value Added Tax and
Smelter Charges
Silver ($ per ounce) 13.91 13.19 12.98 11.00 9.90
Gold ($ per ounce) 745.52 673.91 420.00 480.00 450.03
Lead ($ per pound) 0.74 0.78 0.76 0.68 0.57
Zinc ($ per pound) 0.58 0.67 0.65 0.53 0.46
/T/
OUTLOOK FOR FISCAL YEAR 2011
Ying Mining District, Henan Province, China
As of date of this news release, the recovery work from the July 24, 2010
flood is substantially completed. Mining operations at the Ying Mine
resumed on August 2, 2010. Operations at the TLP and LM mines also resumed
a couple days ago, while HPG mine will resume in one week. Still, due to
the temporary production suspension caused by this flood, Silvercorp
revised its Q2 2011 production estimates to 1.2 million ounces, 10% lower
than previous forecast. The Company, however, maintains its previous
outlook for the overall fiscal year 2011. The production plan for 2011
remains approximately 500,000 tonnes of ore at grades of 360 g/t silver, 8%
lead and 1.2% zinc, yielding 5.3 million ounces of silver, 83.7 million
pounds of lead and 10.3 million pounds of zinc.
Using the average metal prices in Q1 2011 and the above projected
production figures, the Company's mining operations in fiscal 2011 are
expected to generate revenues of over $140 million. Capital expenditures
for fiscal 2011 are budged at $13 million at the Ying Mining District --
including $7 million for the Ying mine, $4 million for the TLP mine and $2
million for the HPG and LM mines.
GC Project, Guangdong Province, China
At the GC Project in Guangdong Province, China, Silvercorp submitted a
mining permit application to MOLAR, which has accepted the application
along with all supporting documents. The Company expects to receive the
mining permit in October, 2010. Once the GC mining permit is granted, the
Company plans to commence the construction phase for a 1,500 tpd mine and
mill operation.
Silvertip Project, British Columbia, Canada
Within the next 12 months, the Company intends to complete the studies
required for the submission of a B.C. Small Mine Permit application for a
mining operation with an annual capacity of up to 75,000 tonnes. The Small
Mine Permit will allow Silvercorp to commence early production, focusing on
higher grade (greater than 1,000 g/t silver equivalent) ore zones that can
be accessed from existing tunnels. Expected cash flows from the small
mining operation will then help finance further exploration to expand both
the resource and future mine operations. This is similar to the method used
to develop the Ying silver camp.
The Company's first step will be to obtain the necessary permits to
de-water the existing underground workings, which is expected to take
approximately six months. Once the necessary permits are obtained, and the
dewatering occurs, an underground exploration program, including bulk
sampling, exploration drilling and a geotechnical assessment will be
carried out.
A surface drill program will be carried out this summer where previous
drill holes have intercepted extensive mineralized zones that were not
included in the 2010 resource estimation as the drill holes were too widely
spaced. Furthermore, several geophysical and geochemical anomalies located
within 5 kilometers of the existing resource areas along the same
shale-limestone contact zone previously identified as hosting high-grade
mineralization will also be drill tested. The total capital expenditure
budget for calendar year 2010 at the Silvertip project will be
approximately $4-5 million.
Future Acquisitions
Silvercorp continues to pursue future growth opportunities by carrying out
aggressive exploration programs within existing exploration and mining
permit areas at its projects in addition to continually seeking out
acquisitions projects in China and other jurisdictions.
CONFERENCE CALL AND WEBCAST INFORMATION
A conference call and live audio webcast to discuss these results is
scheduled as follows:
/T/
Date: Friday, August 13, 2010
Time: 8:00 am PT (11:00 am ET)
Dial-In Number: 1-612-234-9959
Live audio webcast: www.silvercorp.ca (click on the link on the home page)
/T/
Playback webcast can be accessed at: www.silvercorp.ca
FILING OF FINAL BASE SHELF PROSPECTUS
Further to its news release of July 30, 2010, Silvercorp has filed a final
short form base shelf prospectus with the securities commissions in each of
the provinces of Canada, except Quebec, and a corresponding amendment to
its registration statement with the United States Securities and Exchange
Commission. These filings will allow the Company to make offerings of debt
securities ("Debt Securities"), common shares ("Common Shares"), warrants
to purchase Common Shares and warrants to purchase Debt Securities (the
"Warrants"), or subscription receipts which entitle the holder to receive
upon satisfaction of certain release conditions, and for no additional
consideration, Common Shares, Warrants or Debt Securities of the Company or
any combination thereof ("Subscription Receipts"), (all of the foregoing,
collectively, the "Securities") or any combination thereof up to an
aggregate initial offering price of US$120,000,000 during the 25-month
period that the final short form base shelf prospectus, including any
amendments thereto, remains effective. Securities may be offered separately
or together, in amounts, at prices and on terms to be determined based on
market conditions at the time of sale and set forth in an accompanying
shelf prospectus supplement and, subject to applicable regulations, may
include 'at-the- market' transactions, private placements, public offerings
or strategic investments.
Unless otherwise specified in a prospectus supplement, the net proceeds
from the sale of the Securities will be used for general corporate
purposes, including funding potential future acquisitions and capital
expenditures. Each prospectus supplement will contain specific information
concerning the use of proceeds from that sale of Securities.
A registration statement relating to these Securities has also been filed
with the United States Securities and Exchange Commission but has not yet
become effective. These Securities may not be sold nor may offers to buy be
accepted prior to the time the registration statement becomes effective.
This news release shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of these Securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to the registration or qualification under the securities laws of any
such jurisdiction.
A copy of the final short form base shelf prospectus may be obtained from
the Company's Corporate Secretary by emailing investor@silvercorp.ca or
directing a request to Silvercorp at Suite 1376 - 200 Granville Street,
Vancouver, British Columbia, Canada, V6C 1S4, Telephone 1-888-224-1881,
Attn: Corporate Secretary, or can be found on SEDAR at www.sedar.com and
EDGAR at www.sec.gov.
About Silvercorp Metals Inc.
Silvercorp Metals Inc. is engaged in the acquisition, exploration,
development and mining of high-grade silver-related mineral properties in
China and Canada. Silvercorp is the largest primary silver producer in
China through the operation and development of four silver-lead-zinc mines
at the highly profitable Ying Mining Camp in the Henan Province of China.
The company is also applying for a mining permit at the GC property in the
Guangdong Province to establish a second base for production in China.
Additionally, Silvercorp recently acquired the Silvertip project in
northern British Columbia, Canada, as an additional platform for growth and
geographic diversification. The Company's shares are traded on the New York
Stock Exchange and Toronto Stock Exchange and are included as a component
of the S&P/TSX Composite and the S&P/TSX Global Mining Indexes.
CAUTIONARY DISCLAIMER -- FORWARD LOOKING STATEMENTS
Certain of the statements and information in this press release constitute
"forward-looking statements" within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and "forward-looking
information" within the meaning of applicable Canadian provincial
securities laws. Any statements or information that express or involve
discussions with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions or future events or performance
(often, but not always, using words or phrases such as "expects", "is
expected", "anticipates", "believes", "plans", "projects", "estimates",
"assumes", "intends", "strategies", "targets", "goals", "forecasts",
"objectives", "budgets", "schedules", "potential" or variations thereof or
stating that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved, or the negative of any of
these terms and similar expressions) are not statements of historical fact
and may be forward-looking statements or information. Forward-looking
statements or information relate to, among other things: the price of
silver and other metals; the accuracy of mineral resource and mineral
reserve estimates at the Company's material properties; the sufficiency of
the Company's capital to finance the Company's operations; estimates of the
Company's revenues and capital expenditures; estimated production from the
Company's mines in the Ying Mining District; timing of receipt of permits
and regulatory approvals; availability of funds from production to finance
the Company's operations; and access to and availability of funding for
future construction, use of proceeds form any financing and development of
the Company's properties.
Forward-looking statements or information are subject to a variety of known
and unknown risks, uncertainties and other factors that could cause actual
events or results to differ from those reflected in the forward-looking
statements or information, including, without limitation, risks relating
to: fluctuating commodity prices; calculation of resources, reserves and
mineralization and precious and base metal recovery; interpretations and
assumptions of mineral resource and mineral reserve estimates; exploration
and development programs; feasibility and engineering reports; permits and
licences; title to properties; First Nations title claims and rights;
property interests; joint venture partners; acquisition of commercially
mineable mineral rights; financing; recent market events and conditions;
economic factors affecting the Company; timing, estimated amount, capital
and operating expenditures and economic returns of future production;
integration of future acquisitions into the Company's existing operations;
competition; operations and political conditions; regulatory environment in
China and Canada; environmental risks; foreign exchange rate fluctuations;
insurance; risks and hazards of mining operations; key personnel; conflicts
of interest; dependence on management; internal control over financial
reporting as per the requirements of the Sarbanes-Oxley Act; and bringing
actions and enforcing judgments under U.S. securities laws.
This list is not exhaustive of the factors that may affect any of the
Company's forward-looking statements or information. Forward-looking
statements or information are statements about the future and are
inherently uncertain, and actual achievements of the Company or other
future events or conditions may differ materially from those reflected in
the forward-looking statements or information due to a variety of risks,
uncertainties and other factors, including, without limitation, those
referred to in the Company's Annual Information Form for the year ended
March 31, 2010 under the heading "Risk Factors". Although the Company has
attempted to identify important factors that could cause actual results to
differ materially, there may be other factors that cause results not to be
as anticipated, estimated, described or intended. Accordingly, readers
should not place undue reliance on forward-looking statements or
information.
The Company's forward-looking statements and information are based on the
assumptions, beliefs, expectations and opinions of management as of the
date of this press release, and other than as required by applicable
securities laws, the Company does not assume any obligation to update
forward-looking statements and information if circumstances or management's
assumptions, beliefs, expectations or opinions should change, or changes in
any other events affecting such statements or information. For the reasons
set forth above, investors should not place undue reliance on forward-
looking statements and information.
/T/
SILVERCORP METALS INC.
Consolidated Balance Sheets - Unaudited
(Expressed in thousands of U.S. dollars)
--------------------------------------------------------------------------
June 30, 2010 March 31, 2010
--------------------------------------------------------------------------
ASSETS
Current Assets
Cash and cash equivalents $ 47,496 $ 50,618
Short term investments 58,590 44,041
Amounts receivable, prepaids and deposits 2,404 2,474
Inventories 2,714 3,175
Current portion of future income tax assets 96 112
Amounts due from related parties 149 138
--------------------------------------------------------------------------
111,449 100,558
Long term prepaids and deposits 830 505
Long term investments 14,224 14,838
Restricted cash 75 78
Plant and equipment 29,295 29,024
Mineral rights and properties 135,075 133,248
Future income tax assets 690 1,203
--------------------------------------------------------------------------
$ 291,638 $ 279,454
--------------------------------------------------------------------------
--------------------------------------------------------------------------
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities $ 11,478 $ 7,504
Deposits received 3,370 6,737
Bank loan and notes payable - 1,465
Current portion of asset retirement
obligations 298 292
Dividends payable 3,109 3,238
Income tax payable 2,030 1,658
--------------------------------------------------------------------------
20,285 20,894
Future income tax liabilities 19,602 19,475
Asset retirement obligations 2,408 2,357
--------------------------------------------------------------------------
42,295 42,726
Non-controlling interest 26,460 21,738
SHAREHOLDERS' EQUITY
Share capital 148,805 145,722
Contributed surplus 4,559 4,702
Reserves 31,893 31,893
Accumulated other comprehensive income 8,871 14,910
Retained earnings 28,755 17,763
--------------------------------------------------------------------------
222,883 214,990
--------------------------------------------------------------------------
$ 291,638 $ 279,454
--------------------------------------------------------------------------
--------------------------------------------------------------------------
SILVERCORP METALS INC.
Consolidated Statements of Operations - Unaudited
(Expressed in thousands of U.S. dollars, except for per share figures)
Three months ended June 30,
--------------------------------
2010 2009
--------------------------------------------------------------------------
Sales $ 36,729 $ 22,571
--------------------------------------------------------------------------
Cost of sales 8,664 4,972
Amortization and depletion 1,527 929
--------------------------------------------------------------------------
10,191 5,901
--------------------------------------------------------------------------
Gross profit 26,538 16,670
--------------------------------------------------------------------------
Expenses
Accretion of asset retirement obligations 40 30
Amortization 144 202
Foreign exchange gain (544) (1,516)
General exploration and property
investigation expenses 1,325 2,307
Impairment charges and bad debt - 777
Investor relations 85 71
General and administrative 4,224 2,725
Professional fees 237 575
--------------------------------------------------------------------------
5,511 5,171
--------------------------------------------------------------------------
21,027 11,499
Other income and expenses
Equity loss on investment in NUX (38) (82)
Gain on disposal of mineral rights and
properties 537 -
Loss on disposal of plant and equipment - (256)
Interest expenses (20) (7)
Loss on held-for-trading securities (49) -
Interest income 265 245
Other income 112 160
--------------------------------------------------------------------------
807 60
Income before income taxes and non-
controlling interest 21,834 11,559
Income tax expense (recovery)
Current 2,717 1,578
Future 535 (186)
--------------------------------------------------------------------------
3,252 1,392
Income before non-controlling interest 18,582 10,167
Non-controlling interest (4,481) (2,680)
--------------------------------------------------------------------------
Net income $ 14,101 $ 7,487
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Basic earnings per share $ 0.09 $ 0.05
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Diluted earnings per share $ 0.09 $ 0.05
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Weighted Average Number of Shares
Outstanding - Basic 164,673,791 161,587,001
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Weighted Average Number of Shares
Outstanding - Diluted 165,563,545 162,915,490
--------------------------------------------------------------------------
--------------------------------------------------------------------------
SILVERCORP METALS INC.
Consolidated Statements of Cash Flows - Unaudited
(Expressed in thousands of U.S. dollars)
Three months ended June 30,
--------------------------------------
2010 2009
---------------------------------------------------------------------------
Cash provided by (used in)
Operating activities
Net income for the period $ 14,101 $ 7,487
Add (deduct) items not affecting cash:
Accretion of asset retirement obligations 40 30
Amortization and depletion 1,671 1,131
Equity investment loss 38 82
Future income tax expenses (recovery) 535 (186)
Impairment charges and bad debt - 777
Loss on held-for-trading securities 49 -
Gain on disposal of mineral properties (537) -
Loss on disposal of plant and equipment - 256
Non-controlling interest 4,481 2,680
Stock-based compensation 780 391
Unrealized foreign exchange loss (gain) 327 (1,516)
Changes in non-cash operating
working capital 1,697 (747)
---------------------------------------------------------------------------
Cash provided by operating activities 23,182 10,385
---------------------------------------------------------------------------
Investing activities
Mineral rights and properties
Acquisition and capital expenditures (5,655) (2,173)
Proceeds on disposals 537 -
Plant and equipment
Acquisition (783) (389)
Net redemption (purchase) of short
term investments (15,375) 4,053
Prepayments to acquire plant and equipment (812) (420)
---------------------------------------------------------------------------
Cash provided by (used in)
investing activities (22,088) 1,071
---------------------------------------------------------------------------
Financing activities
Advance to related parties, net of
repayments received (13) (21)
Bank loan and notes payable
Proceeds - 2,928
Repayments (1,473) (658)
Cash dividends distributed (3,200) (2,770)
Capital stock
Proceeds from issuance of common shares 1,188 -
---------------------------------------------------------------------------
Cash used in financing activities (3,498) (521)
---------------------------------------------------------------------------
Effect of exchange rate changes on
cash and cash equivalents (718) 1,339
Increase (decrease) in cash and
cash equivalents (3,122) 12,274
Cash and cash equivalents, beginning of period 50,618 41,470
---------------------------------------------------------------------------
Cash and cash equivalents, end of period $ 47,496 $ 53,744
---------------------------------------------------------------------------
---------------------------------------------------------------------------
SILVERCORP METALS INC.
Mining Data
(Expressed in thousands of U.S. dollars, except for mining data figures)
Q1 Fiscal 2011 Three months ended June 30, 2010
--------------------------------------
YING HPG & LM TLP Total
Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ores (tonne) 3,339 77 10 3,426
Stockpiled Ores (tonne) 79,873 17,831 43,852 141,556
--------------------------------------
83,212 17,908 43,862 144,982
--------------------------------------
Run of Mine Ore (tonne)
Direct Smelting Ores (tonne) 3,339 77 10 3,426
Ores Milled (tonne) 81,898 18,076 45,789 145,763
--------------------------------------
85,237 18,153 45,799 149,189
--------------------------------------
Mining cost per tonne of
ore mined ($) 55.10 55.23 33.59 48.61
Cash mining cost per tonne
of ore mined ($) 43.83 49.64 29.88 40.33
Non cash mining cost per
tonne of ore mined ($) 11.27 5.59 3.71 8.28
Unit shipping costs($) 3.71 3.44 2.86 3.41
Milling cost per tonne
of ore milled ($) 13.66 12.84 13.88 13.62
Cash milling cost per tonne
of ore milled ($) 12.03 11.49 11.96 11.94
Non cash milling cost per tonne
of ore milled ($) 1.62 1.36 1.92 1.68
Average Production Cost
Silver ($ per ounce) 3.05 5.54 7.81 3.86
Gold ($ per ounce) 163.66 350.15 460.70 223.89
Lead ($ per pound) 0.16 0.29 0.33 0.21
Zinc ($ per pound) 0.13 0.26 0.33 0.16
Total production cost per
ounce of Silver ($) (5.83) (6.12) 0.08 (5.21)
Total cash cost per ounce
of Silver ($) (6.80) (7.56) (1.84) (6.31)
Total Recovery of the Run of Mine Ores
Silver (%) 91.7 89.5 85.1 90.9
Lead (%) 96.4 93.7 89.8 95.2
Zinc (%) 69.2 60.6 74.0 69.5
Head Grades of Run of Mine Ores
Silver (gram/tonne) 470.5 179.1 115.8 326.3
Lead (%) 8.1 4.8 2.7 6.1
Zinc (%) 2.8 0.7 0.9 2.0
Sales Data
Metal Sales
Silver (in thousands of ounce) 1,147 91 149 1,387
Gold (in thousands of ounce) 0.5 0.4 0.2 1.1
Lead (in thousands of pound) 14,230 1,784 2,789 18,803
Zinc (in thousands of pound) 3,605 209 617 4,431
Metal Sales
Silver ($) 15,956 1,272 2,080 19,308
Gold ($) 373 333 157 863
Lead ($) 10,583 1,298 2,078 13,959
Zinc ($) 2,098 138 363 2,599
--------------------------------------
29,010 3,041 4,678 36,729
--------------------------------------
Average Selling Price, Net of Value
Added Tax and Smelter Charges
Silver ($ per ounce) 13.91 13.91 14.00 13.92
Gold ($ per ounce) 745.52 878.63 825.63 806.95
Lead ($ per pound) 0.74 0.73 0.75 0.74
Zinc ($ per pound) 0.58 0.66 0.59 0.59
SILVERCORP METALS INC.
Mining Data
(Expressed in thousands of U.S. dollars, except for mining data figures)
Q1 Fiscal 2010 Three months ended June 30, 2009
--------------------------------------
YING HPG & LM TLP Total
Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ores (tonne) 3,773 107 5 3,885
Stockpiled Ores (tonne) 82,475 13,379 4,184 100,038
--------------------------------------
86,248 13,486 4,189 103,923
--------------------------------------
Run of Mine Ore (tonne)
Direct Smelting Ores (tonne) 3,773 107 5 3,885
Ores Milled (tonne) 77,330 7,880 645 85,855
--------------------------------------
81,103 7,987 650 89,740
--------------------------------------
Mining cost per tonne
of ore mined ($) 52.70 51.89 61.50 52.95
Cash mining cost per tonne
of ore mined ($) 42.27 47.82 57.72 43.61
Non cash mining cost per
tonne of ore mined ($) 10.43 4.07 3.78 9.34
Unit shipping costs 3.55 3.29 2.72 3.49
Milling cost per tonne
of ore milled ($) 11.74 12.66 15.11 12.01
Cash milling cost per tonne
of ore milled ($) 10.84 11.67 14.01 11.09
Non cash milling cost per tonne
of ore milled ($) 0.90 1.00 1.10 0.92
Average Production Cost
Silver ($ per ounce) 2.52 4.16 1.57 2.59
Gold ($ per ounce) 114.46 241.75 - 149.67
Lead ($ per pound) 0.14 0.23 0.10 0.15
Zinc ($ per pound) 0.12 0.20 - 0.12
Total production cost per
ounce of Silver ($) (4.19) (7.53) (4.86) (4.29)
Total cash cost per
ounce of Silver ($) (5.00) (7.85) (5.24) (5.09)
Total Recovery of the Run of Mine Ores
Silver (%) 93.3 88.4 89.9 89.0
Lead (%) 96.5 87.1 94.5 93.5
Zinc (%) 76.3 75.4 - 71.0
Head Grades of Run of Mine Ores
Silver (gram/tonne) 488.1 225.7 78.7 455.8
Lead (%) 9.1 6.6 5.9 8.8
Zinc (%) 3.1 0.9 - 2.9
Sales Data
Metal Sales
Silver (in thousands of ounce) 1,134 34 7 1,175
Gold (in thousands of ounce) 0.1 0.2 - 0.3
Lead (in thousands of pound) 15,017 929 97 16,043
Zinc (in thousands of pound) 3,579 156 - 3,736
Metal Sales
Silver ($) 11,228 330 66 11,624
Gold ($) 58 113 - 171
Lead ($) 8,489 507 55 9,051
Zinc ($) 1,652 73 - 1,725
--------------------------------------
21,427 1,023 121 22,571
--------------------------------------
Average Selling Price, Net of Value
Added Tax and Smelter Charges
Silver ($ per ounce) 9.90 9.71 9.04 9.89
Gold ($ per ounce) 450.03 666.10 - 572.50
Lead ($ per pound) 0.57 0.55 0.57 0.56
Zinc ($ per pound) 0.46 0.47 - 0.46
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Silvercorp Metals Inc.
Rui Feng
Chairman & CEO
(604) 669-9397 or Toll Free 1(888) 224-1881
or
Silvercorp Metals Inc.
Lorne Waldman
Corporate Secretary
(604) 669-9397 or Toll Free 1(888) 224-1881
(604) 669-9387 (FAX)
info@silvercorp.ca
www.silvercorp.ca
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