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
Trading Symbol: TSX: SVM NYSE AMERICAN: SVM
VANCOUVER, BC, Nov. 7, 2024 /PRNewswire/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM) (NYSE: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.
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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, 2024
June 30, 2024
September 30, 2024
March 31, 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 September 30,
Six months ended September 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) %
