Mr. Lon Shaver reports

SILVERCORP REPORTS ADJUSTED NET INCOME OF $11.7 MILLION, $0.07 PER SHARE, AND CASH FLOW FROM OPERATIONS OF $28.8 MILLION FOR Q2 FISCAL 2024

Silvercorp Metals Inc. has released its financial and operating results for the three months ended Sept. 30, 2023 (Q2 fiscal 2024). All amounts are expressed in U.S. dollars and figures may not add due to rounding.

Highlights for Q2 fiscal 2024:

• Mined 273,465 tonnes of ore, milled 261,107 tonnes of ore, and produced approximately 2,458 ounces of gold, 1.6 million ounces of silver or approximately 1.8 million ounces of silver equivalent, plus 16.1 million pounds of lead and 4.6 million pounds of zinc;
• Sold approximately 2,515 ounces of gold, 1.6 million ounces of silver, 15.2 million pounds of lead and 4.6 million pounds of zinc, for revenue of $54.0-million;
• Reported net income attributable to equity shareholders of $11.1-million or six cents per share;
• Realized adjusted earnings attributable to equity shareholders of $11.7-million or seven cents per share;
• Generated cash flow from operating activities of $28.8-million;
• Cash costs per ounce of silver, net of byproduct credits, of negative $1;
• All-in sustaining costs per ounce of silver, net of byproduct credits, of $11.50;
• Spent and capitalized $2.0-million on exploration drilling, $10.6-million on underground development, and $2.5-million on equipment and facilities, including $1.7-million on construction of the new tailings storage facility;
• Invested an additional $5.0-million in New Pacific Metals Corp., an associate of the company;
• Entered into a binding agreement to acquire all fully paid ordinary shares of OreCorp Ltd. and thereby its Nyanzaga gold project in Tanzania, and in conjunction therewith invested $18.5-million ($28.0-million (Australian)) in OreCorp to finance continued development. The acquisition has been approved by the Tanzanian government and is subject to final OreCorp shareholder approval expected in early December, 2023;
• Spent $600,000 to buy back 196,554 common shares of the company under its normal course issuer bid;
• Strong balance sheet with $189.1-million in cash and cash equivalents and short-term investments. The company holds a further equity investment portfolio in associates and other companies with a total market value of $124.0-million as at Sept. 30, 2023.

Consolidated financial results

Net income attributable to equity shareholders of the company in Q2 fiscal 2024 was $11.1-million or six cents per share, compared with a net loss of $1.7-million or loss of one cent per share in the three months ended Sept. 30, 2022 (Q2 fiscal 2023).

Compared with Q2 fiscal 2023, the company's consolidated financial results in the current quarter were mainly impacted by: (i) increases of 38 per cent, 27 per cent and 2 per cent, respectively, in the realized selling prices for gold, silver and lead, and a decrease of 27 per cent in the realized selling price for zinc; (ii) an increases of 110 per cent in gold sold and decreases of 12 per cent, 12 per cent and 23 per cent, respectively, in silver, lead and zinc sold; (iii) a dilution gain of $700,000 arising from the investment in NUAG; (iv) a decrease of $1.0-million in the loss on the mark-to-market investments; (v) a decrease of $3.0-million in foreign exchange gain; and (vi) no impairment charges while a total of $20.2-million impairment charges against the mineral rights and properties were recorded in Q2 fiscal 2023.

Revenue in Q2 fiscal 2024 was $54.0-million, up 4 per cent compared with $51.7-million in Q2 fiscal 2023. The increase is mainly due to the increase in net realized selling prices for silver, gold and lead, offset by the decreases in silver, lead and zinc sold.

Income from mine operations in Q2 fiscal 2024 was $20.9-million, up 46 per cent compared with $14.4-million in Q2 fiscal 2023. Income from mine operations at the Ying mining district was $21.8-million, compared with $12.9-million in Q2 fiscal 2023. Loss from mine operations at the GC mine was $700,000, compared with income of $1.5-million in Q2 fiscal 2023.

Cash flow provided by operating activities in Q2 fiscal 2024 was $28.8-million, up $14.7-million compared with $14.1-million in Q2 fiscal 2023.

The company ended the quarter with $189.1-million in cash, cash equivalents and short-term investments, down 6 per cent compared with $200.6-million as at June 30, 2023, which is due to total investments of $23.5-million in NUAG and OreCorp, and payment of $15.4-million on capital expenditures, offset by a $28.8-million in cash generated from operations.

Working capital as at Sept. 30, 2023, was $154.3-million, down 9 per cent compared with $169.5-million as at June 30, 2023.

Consolidated operational results

In Q2 fiscal 2024, the company mined 273,465 tonnes of ore, down 6 per cent compared with 290,981 tonnes in Q2 fiscal 2023. Ore milled in Q2 fiscal 2024 was 261,107 tonnes, down 10 per cent compared with 291,643 tonnes in Q2 fiscal 2023, due to lower production at the GC mine caused by a production disruption of five weeks (refer to the company's news release dated Sept. 5, 2023).

In Q2 fiscal 2024, the company produced approximately 2,458 ounces of gold, 1.6 million ounces of silver or approximately 1.8 million ounces of silver equivalent, plus 16.1 million pounds of lead and 4.6 million pounds of zinc, representing an increase of 105 per cent in gold production, and decreases of 12 per cent, 11 per cent and 13 per cent, respectively, in silver, lead and zinc production over Q2 fiscal 2023. The decreases in silver, lead and zinc production were mainly due to lower production achieved at the GC mine and lower heads grades achieved due to mining sequences and more gold ore mined and processed at the Ying mining district.

In Q2 fiscal 2024, the consolidated mining costs were $64.77 per tonne, down 8 per cent compared with $70.60 per tonne in Q2 fiscal 2023. The consolidated milling costs were $13.10 per tonne, up 4 per cent compared with $12.59 per tonne in Q2 fiscal 2023. Correspondingly, the consolidated production costs per tonne of ore processed were $80.53, down 6 per cent compared with $86.07 in Q2 fiscal 2023. The decrease was attributed to less drilling expensed and approximately 6 per cent depreciation of the Chinese yuan against the U.S. dollar.

The all-in sustaining production costs per tonne of ore processed in Q2 fiscal 2024 were $149.94, up 18 per cent compared with $127.48 in Q2 fiscal 2023. The increase is mainly due to increases of $5.4-million in sustaining capital expenditures and $700,000 in general administrative expenses and government fees and other taxes.

In Q2 fiscal 2024, the consolidated cash costs per ounce of silver, net of byproduct credits, were negative $1, compared with 77 cents in the prior-year quarter. The improvement was mainly due to the decrease in per-tonne production costs contributing to a decrease of $4.1-million in expensed production costs.

The consolidated all-in sustaining costs per ounce of silver, net of byproduct credits, were $11.50, compared with $8.25 in Q2 fiscal 2023. The increase was mainly due to the increase in all-in sustaining production costs per tonne.

Exploration and development

Total capital expenditures in Q2 fiscal 2024 were $15.1-million, down 13 per cent compared with $17.4-million in Q2 fiscal 2023. Capital expenditures incurred to construct the new tailing storage facility (TSF) in Q2 fiscal 2024 were $1.7-million (Q2 fiscal 2023 -- $1.3-million). As of Sept. 30, 2023, total expenditures incurred on the construction of the TSF were approximately $8.9-million and the company remains on track to complete the TSF in 2024.

In Q2 fiscal 2024, on a consolidated basis, a total of 76,184 metres or $2.6-million worth of diamond drilling were completed (Q2 fiscal 2023 -- 88,506 metres or $4.2-million), of which approximately 29,548 metres or $600,000 worth of underground drilling were expensed as part of mining costs (Q2 fiscal 2023 -- 45,365 metres or $1.3-million) and approximately 46,636 metres or $2.0-million worth of drilling were capitalized (Q2 fiscal 2023 -- 43,141 metres or $2.9-million). In addition, approximately 10,868 metres or $4.1-million worth of preparation tunnelling were completed and expensed as part of mining costs (Q2 fiscal 2023 -- 10,340 metres or $4.0-million), and approximately 24,727 metres or $10.6-million worth of tunnels, raises, ramps and declines were completed and capitalized (Q2 fiscal 2023 -- 21,187 metres or $9.4-million).

Individual mine operating performance

An attached table summarizes the operating results at the Ying mining district for the past five quarters and for the six months ended Sept. 30, 2023, and Sept. 30, 2022.

An attached table summarizes the operating results at the GC mine for the past five quarters and for the six months ended Sept. 30, 2023, and Sept. 30, 2022.

Conference call details

A conference call to discuss these results will be held tomorrow, Friday, Nov. 10, 2023, at 9 a.m. PDT (12 p.m. EDT). To participate in the conference call, please dial the numbers below.

Canada/United States toll-free:  888-664-6383

International/local toll:  416-764-8650

Conference ID No.:  06660065

Participants should dial in 10 to 15 minutes prior to the start time. A replay of the conference call and transcript will be available on the company's website.

Guoliang Ma, PGeo, manager of exploration and resources of the company, is the qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, and has reviewed and given consent to the technical information contained in this news release.

About Silvercorp Metals Inc.

Silvercorp is a Canadian mining company producing silver, gold, lead and zinc with a long history of profitability and growth potential. The company's strategy is to create shareholder value by: (i) focusing on generating free cash flow from long-life mines; (ii) organic growth through extensive drilling for discovery; (iii) continuing merger and acquisition efforts to unlock value; and (iv) long-term commitment to responsible mining and ESG (environmental, social and governance).

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