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Silvercorp Metals Inc
Symbol SVM
Shares Issued 169,682,040
Close 2019-05-23 C$ 2.81
Recent Sedar Documents

Silvercorp earns $52.04-million (U.S.) in fiscal 2019

2019-05-23 18:31 ET - News Release

Mr. Lon Shaver reports

SILVERCORP REPORTS NET INCOME OF $39.7 MILLION, $0.23 PER SHARE, AND CASH FLOW FROM OPERATIONS OF $67.8 MILLION, FOR FISCAL 2019

Silvercorp Metals Inc. has released its financial and operating results for the fourth quarter and 12 months ended March 31, 2019. All amounts are expressed in U.S. dollars.

Fiscal year 2019 highlights

  • Ore mined up 5 per cent to 906,794 tonnes compared with the prior year;
  • Metals sold amounted to approximately 6.4 million ounces of silver, 3,500 ounces of gold, 64.8 million pounds of lead and 22.7 million pounds of zinc, up 6 per cent, 13 per cent, 5 per cent and 16 per cent, respectively, compared with the prior year;
  • Sales of $170.5-million, compared with $170.0-million in the prior year;
  • Gross profit margin of 49 per cent, compared with 52 per cent in the prior year, with the decrease mainly due to lower metal prices;
  • Net income attributable to equity shareholders of $39.7-million, or 23 cents per share, compared with $47.0-million, or 27 cents per share, in the prior year; adjusted net income attributable to equity shareholders (1) of $32.2-million, or 19 cents per share, compared with $41.5-million, or 24 cents per share, in the prior year;
  • Cash cost per ounce of silver (1), net of byproduct credits, of negative $4.29, compared with negative $4.73 in the prior year;
  • All-in sustaining cost per ounce of silver (1), net of byproduct credits, of $3.52, compared with $3.27 in the prior year;
  • Cash flow from operations of $67.8-million, compared with $67.9-million in the prior year;
  • Paid $18.2-million of income tax, including $5.2-million of withholding tax, compared with $19.7-million of income tax, including $1.0-million of withholding tax, in the prior year;
  • Paid $4.2-million of dividends to the company's shareholders, compared with $3.4-million in the prior year;
  • Ended the fiscal year with $115.3-million in cash and cash equivalents and short-term investments, an increase of $9.2-million or 9 per cent compared with $106.1-million as at March 31, 2018.

Note:

  1. Non-IFRS (international financial reporting standards) measure.

Highlights for the fourth quarter of fiscal 2019

  • Ore mined up 13 per cent to 161,400 tonnes compared with the prior-year quarter;
  • Metals sold amounted to approximately 1.3 million ounces of silver, 700 ounces of gold, 12.7 million pounds of lead and 7.3 million pounds of zinc, compared with approximately 1.4 million ounces of silver, 700 ounces of gold, 13.3 million pounds of lead and 2.6 million pounds of zinc sold in the prior-year quarter.
  • Sales of $35.0-million, down 9 per cent compared with $38.4-million in the prior-year quarter;
  • Gross profit margin of 47 per cent, compared with 50 per cent in the prior-year quarter;
  • Net income attributable to equity shareholders of $12.1-million, or seven cents per share, compared with $12.2-million, or seven cents per share, in the prior-year quarter; adjusted net income attributable to equity shareholders of $4.6-million, or three cents per share, compared with $7.5-million, or four cents per share, in the prior-year quarter;
  • Cash cost per ounce of silver, net of byproduct credits, of negative $3.97, compared with negative $3.89 in the prior-year quarter;
  • All-in sustaining cost per ounce of silver, net of byproduct credits, of $4.49, compared with $3.04 in the prior-year quarter;
  • Cash flow from operations of $6.0-million, compared with $2.9-million in the prior-year quarter.

Financials

1. Fiscal 2019 compared with fiscal 2018

Net income attributable to equity shareholders of the company in fiscal 2019 was $39.7-million or 23 cents per share, compared with $47.0-million or 27 cents per share in fiscal 2018. The adjusted net income attributable to equity shareholders was $32.2-million or 19 cents per share after the adjustment of impairment reversal, compared with the adjusted net income of $41.5-million or 24 cents per share in fiscal 2018.

Compared with the prior year, the company's consolidated financial results in fiscal 2019 were mainly impacted by: (i) an increase of 6 per cent, 5 per cent and 16 per cent in silver, lead and zinc sold, respectively; (ii) a decrease of 7 per cent, 2 per cent and 17 per cent in the realized selling prices for silver, lead and zinc, respectively; and (iii) a 2-per-cent increase in total production cost.

Sales in fiscal 2019 were $170.5-million, up $500,000 compared with $170.0-million in fiscal 2018. Silver and gold sales represented $80.7-million and $3.6-million, respectively, while base metals represented $86.2-million of the total sales, compared with silver, gold and base metals sales of $82.4-million, $3.2-million and $84.5-million, respectively, in fiscal 2018.

Cost of sales in fiscal 2019 was $87.3-million, compared with $82.2-million in fiscal 2018. The cost of sales included $62.5-million of cash production costs (fiscal 2018 -- $59.1-million), $4.9-million of mineral resources tax (fiscal 2018 -- $4.8-million), and $20.0-million of depreciation, amortization and depletion charges (fiscal 2018 -- $18.2-million). The increases in the cash production costs expensed and amortization charges were mainly due to a 2-per-cent increase in production costs and more metals sold. The increase in mineral resources tax was associated with the increase in revenue. The cash production costs expensed in cost of sales represent approximately 893,000 tonnes of ore processed and expensed at a cost of $69.92 per tonne (fiscal 2018 -- approximately 861,000 tonnes at $68.72 per tonne).

Gross profit margin in fiscal 2019 was 49 per cent, compared with 52 per cent in fiscal 2018. The decrease was mainly due to the decrease in the realized metal selling prices. The Ying mining district's gross profit margin was 52 per cent, compared with 55 per cent in fiscal 2018. The GC mine's gross profit margin was 35 per cent, compared with 36 per cent in fiscal 2018.

General and administrative expenses were $19.4-million in fiscal 2019, an increase of 4 per cent compared with $18.7-million in fiscal 2018. The increase was mainly due to a $300,000 increase in non-cash stock-based compensation expenses and a $1.0-million increase in labour costs, arising primarily from the increase of employees' pay rate as well as an increase in social insurance premiums in China, offset by a $700,000 decrease in discretionary office and administrative expenses.

Income tax expenses in fiscal 2019 were $20.9-million, compared with $18.9-million in fiscal 2018. The income tax expense recorded in fiscal 2019 included a current income tax expense of $17.8-million (fiscal 2018 -- $16.1-million) and a deferred income tax expense of $3.1-million (fiscal 2017 -- $2.8-million). The current income tax included $5.2-million of withholding tax (fiscal 2018 -- $1.0-million), which was paid at a rate of 10 per cent of dividends and interest distributed out of China.

Cash flows provided by operating activities in fiscal 2019 were $67.8-million, slightly lower than $67.9-million in the prior year. The decrease was mainly due to less operating income arising from lower metal prices and the increase in the withholding tax payment.

The company ended the fiscal year with $115.3-million cash and short-term investments, an increase of $9.2-million or 9 per cent compared with $106.1-million as at March 31, 2018.

Working capital as at March 31, 2019, was $96.9-million, an increase of $6.4-million or 7 per cent compared with $90.5-million as at March 31, 2018.

2. Q4 fiscal 2019 compared with Q4 fiscal 2018

Net income attributable to equity shareholders of the company in Q4 fiscal 2019 was $12.1-million or seven cents per share, compared with $12.2-million or seven cents per share in Q4 fiscal 2018. The adjusted net income attributable to equity shareholders was $4.6-million or three cents per share in Q4 fiscal 2019 after adjustments of impairment reversal of $9.2-million (Q4 fiscal 2018 -- $4.7-million), compared with $7.5-million or four cents per share in Q4 fiscal 2018.

Compared with the prior-year quarter, the company's consolidated financial results in Q4 fiscal 2019 were mainly impacted by the following: (i) a decrease of 11 per cent, 3 per cent, 18 per cent and 41 per cent in the net realized selling prices for silver, gold, lead and zinc, respectively; (ii) a 5 per cent decrease in silver and lead sold; (iii) a 184-per-cent increase in zinc sold; and (iv) a 7-per-cent decrease in per-tonne production costs.

Sales were $35.0-million, down 9 per cent, in Q4 fiscal 2019, compared with $38.4-million in Q4 fiscal 2018. The decrease was mainly due to the decrease in net realized selling prices and less silver and lead sold. Silver and gold sales represented $16.7-million and $800,000, respectively, while base metals represented $17.5-million of total sales, compared with silver, gold and base metals of $19.8-million, $800,000 and $17.9-million, respectively, in the prior-year quarter.

Cost of sales was $18.6-million in Q4 fiscal 2019, compared with $19.3-million in Q4 fiscal 2018. The cost of sales included $13.0-million of cash production cost (Q4 fiscal 2018 -- $13.3-million), $1.0-million of mineral resource taxes (Q4 fiscal 2018 -- $1.1-million), and $4.6-million of depreciation, amortization and depletion charges (Q4 fiscal 2018 -- $5.0-million).

Gross profit margin decreased to 47 per cent in Q4 fiscal 2019, compared with 50 per cent in Q4 fiscal 2018.

Cash flows provided by operating activities in Q4 fiscal 2019 were $6.0-million, an increase of $3.1-million compared with $2.9-million in Q4 fiscal 2018.

Operations and development

1. Fiscal 2019 compared with fiscal 2018

In fiscal 2019, on a consolidated basis, the company mined 906,794 tonnes of ore, an increase of 5 per cent or 46,870 tonnes compared with 859,924 tonnes in fiscal 2018. Ore mined at the Ying mining district increased by 1 per cent or 8,435 tonnes, and ore mined at the GC mine increased by 16 per cent or 38,435 tonnes. Ore milled in fiscal 2019 was 908,846 tonnes, an increase of 5 per cent compared with 863,070 tonnes in fiscal 2018.

In fiscal 2019, the company sold approximately 6.4 million ounces of silver, 3,500 ounces of gold, 64.8 million pounds of lead and 22.7 million pounds of zinc, up 6 per cent, 13 per cent, 5 per cent and 16 per cent, respectively, compared with 6.0 million ounces of silver, 3,100 ounces of gold, 61.9 million pounds of lead and 19.6 million pounds of zinc in fiscal 2018.

The consolidated total mining cost and cash mining cost were $74.98 and $55.35 per tonne, up 2 per cent and 1 per cent, respectively, compared with $73.48 and $54.60 per tonne, respectively, in fiscal 2018. The increase in cash mining cost was mainly due to inflation resulting in an increase of: (i) $1.1-million in mining contractor's costs; (ii) $600,000 in raw material costs; and (iii) $600,000 in utility costs.

The consolidated total milling cost and cash milling cost were $13.99 and $11.69 per tonne, up 1 per cent and 4 per cent, respectively, compared with $13.82 and $11.25 per tonne, respectively, in fiscal 2018. The increase in the cash milling cost was mainly due to a $400,000 increase in raw material costs.

The consolidated cash production cost per tonne of ore processed in fiscal 2019 was $69.92, a 2-per-cent increase compared with $68.72 in fiscal 2018, but below the company's annual guidance.

The consolidated total production cost and cash production cost per ounce of silver, net of byproduct credits, were negative $1.16 and negative $4.29, respectively, compared with negative $1.70 and negative $4.73, respectively, in the prior year. The increase was mainly due to a $3.3-million increase in cash production cost expensed, offset by a $2.2-million increase in byproduct credits.

The consolidated all-in sustaining cost per ounce of silver, net of byproduct credits, was $3.52, compared with $3.27 in fiscal 2018. The increase was mainly due to: (i) a $3.4-million increase in cash production cost expensed; (ii) a $700,000 increase in general and administrative expenses; and (iii) a $1.0-million increase in sustaining capital expenditures, offset by a $2.2-million increase in byproduct credits.

2. Q4 fiscal 2019 compared with Q4 fiscal 2018

In Q4 fiscal 2019, the company mined 161,400 tonnes of ore, an increase of 13 per cent compared with 143,262 tonnes in Q4 fiscal 2018. Correspondingly, ore milled in Q4 fiscal 2019 was 159,904 tonnes, an increase of 15 per cent compared with 138,537 tonnes in Q4 fiscal 2018.

In Q4 fiscal 2019, the company sold approximately 1.3 million ounces of silver, 700 ounces of gold, 12.7 million pounds of lead and 7.3 million pounds of zinc, compared with 1.4 million ounces of silver, 700 ounces of gold, 13.3 million pounds of lead and 2.6 million pounds of zinc in Q4 fiscal 2018.

The consolidated total mining cost and cash mining cost were $80.22 and $57.55 per tonne, down 6 per cent and 7 per cent, respectively, compared with $85.55 and $61.78 per tonne in Q4 fiscal 2018. The consolidated total milling cost and cash milling cost in Q4 fiscal 2019 were $17.58 and $14.53 per tonne, down 8 per cent and 3 per cent, respectively, compared with $19.14 and $14.96 per tonne in Q4 fiscal 2018.

The consolidated total production cost and cash production cost per ounce of silver, net of byproduct credits, were negative 47 cents and negative $3.97, respectively, compared with negative 30 cents and negative $3.89 in Q4 fiscal 2018. The improvement was mainly due to the decrease in per-tonne mining and milling cost as discussed above.

The consolidated all-in sustaining cost per ounce of silver, net of byproduct credits, was $4.49, compared with $3.04 in Q4 fiscal 2018. The increase was mainly due to an increase of $1.4-million in sustaining capital expenditures.

3. Ying mining district, Henan province, China

Fiscal 2019 compared with fiscal 2018

In fiscal 2019, the total ore mined at the Ying mining district was 622,576 tonnes, an increase of 1 per cent or 8,435 tonnes compared with 614,141 tonnes mined in fiscal 2018. Ore milled was 619,851 tonnes, an increase of 1,119 tonnes compared with 618,732 tonnes in fiscal 2018.

Head grades of ore milled at the Ying mining district in fiscal 2019 were 311 grams per tonne for silver, 4.4 per cent for lead and 0.9 per cent for zinc, compared with 305 g/t for silver, 4.4 per cent for lead and 0.9 per cent for zinc in fiscal 2018. The company continues to achieve positive dilution control using its "Enterprise Blog" to assist and manage daily operations.

In fiscal 2019, the Ying mining district sold approximately 5.8 million ounces of silver, 3,500 ounces of gold, 56.1 million pounds of lead and 6.6 million pounds of zinc, up 6 per cent, 13 per cent, 2 per cent and 8 per cent, respectively, compared with 5.4 million ounces of silver, 3,100 ounces of gold, 55.2 million pounds of lead and 6.1 million pounds of zinc in fiscal 2018. As at March 31, 2019, the Ying mining district had inventories of 3,150 tonnes of silver-lead concentrate and 250 tonnes of zinc concentrate, compared with 4,050 tonnes of silver-lead concentrate and 350 tonnes of zinc concentrate as at March 31, 2018.

Total mining cost and cash mining cost per tonne at the Ying mining district in fiscal 2019 were $88.19 and $63.39 per tonne, respectively, compared with $84.59 and $61.46 per tonne, respectively, in fiscal 2018. The increase was mainly due to inflation resulting in an increase of: (i) $600,000 in mining contractor's costs; (ii) $400,000 in raw material costs; and (iii) $700,000 in utility costs. Total milling cost and cash milling cost per tonne at the Ying mining district in fiscal 2019 were $12.58 and $10.43, respectively, compared with $11.71 and $9.49, respectively, in fiscal 2018.

Correspondingly, the total production cost and cash production cost per tonne of ore processed in fiscal 2019 at the Ying mining district were $104.99 and $78.04, respectively, compared with $100.31 and $74.96 in fiscal 2018.

Cash cost per ounce of silver, net of byproduct credits, at the Ying mining district in fiscal 2019 was negative $3.35, compared with negative $3.88 in the prior year. The increase in the cash cost per ounce of silver, net of byproduct credits, was mainly due to a $2.4-million increase in cash production cost expensed, offset by a $600,000 increase in byproduct credits.

All-in sustaining cost per ounce of silver, net of byproduct credits, at the Ying mining district in fiscal 2019 was $2.60, compared with $2.04 in the prior year. The increase was mainly due to increases of $2.4-million in cash production costs expensed and $2.2-million in sustaining capital expenditures.

In fiscal 2019, approximately 75,955 metres or $1.8-million worth of underground diamond drilling (fiscal 2018 -- 104,798 metres or $2.3-million) and 18,656 metres or $5.4-million worth of preparation tunnelling (fiscal 2018 -- 19,723 metres or $5.8-million) were completed and expensed as mining preparation costs at the Ying mining district. In addition, approximately 65,653 metres or $23.2-million worth of horizontal tunnels, raises, ramps and declines (fiscal 2018 -- 61,827 metres or $20.1-million) were completed and capitalized.

Q4 fiscal 2019 compared with Q4 fiscal 2018

In Q4 fiscal 2019, a total of 111,032 tonnes of ore were mined at the Ying mining district, a decrease of 2 per cent or 2,788 tonnes compared with 113,820 tonnes in Q4 fiscal 2018. Ore milled was 107,039 tonnes, a decrease of 3 per cent or 5,246 tonnes compared with 112,285 tonnes in Q4 fiscal 2018.

Average head grades of ore processed were 324 g/t for silver, 4.5 per cent for lead and 0.9 per cent for zinc, compared with 309 g/t for silver, 4.3 per cent for lead and 1.0 per cent for zinc in Q4 fiscal 2018.

Metals sold were approximately 1.1 million ounces of silver, 700 ounces of gold, 10.3 million pounds of lead and 2.5 million pounds of zinc, compared with 1.3 million ounces of silver, 700 ounces of gold, 12.6 million pounds of lead and 1.1 million pounds of zinc in Q4 fiscal 2018.

In Q4 fiscal 2019, the cash mining cost at the Ying mining district was $65.24 per tonne, down 1 per cent compared with $65.88 in Q4 fiscal 2018. The cash milling cost was $12.57 per tonne, compared with $12.59 in Q4 fiscal 2018.

In Q4 fiscal 2019, cash cost per ounce of silver and all in sustaining cost per ounce of silver, net of byproduct credits, at the Ying mining district were negative $3.02 and $3.28, respectively, compared with negative $3.41 and $1.39 in Q4 fiscal 2018.

In Q4 fiscal 2019, approximately 6,083 metres or $300,000 worth of underground diamond drilling (Q4 fiscal 2018 -- 18,791 metres or $600,000) and 3,061 metres or $1.0-million worth of preparation tunnelling (Q4 fiscal 2018 -- 2,809 metres or $900,000) were completed and expensed as mining preparation costs at the Ying mining district. In addition, approximately 10,730 metres or $4.0-million worth of horizontal tunnels, raises and declines (Q4 fiscal 2018 -- 9,653 metres or $3.9-million) were completed and capitalized.

4. GC mine, Guangdong province, China

Fiscal 2019 compared with fiscal 2018

In fiscal 2019, the total ore mined at the GC mine was 284,218 tonnes, an increase of 16 per cent or 38,435 tonnes compared with 245,783 tonnes in fiscal 2018, while ore milled was 288,995 tonnes, an increase of 18 per cent or 44,657 tonnes compared with 244,338 tonnes in fiscal 2018.

Average head grades of ore processed at the GC mine were 86 g/t for silver, 1.5 per cent for lead and 3.0 per cent for zinc, compared with 98 g/t for silver, 1.5 per cent for lead and 2.8 per cent for zinc in the prior year. Recovery rates of ore processed at the GC mine were 78.4 per cent for silver, 90.4 per cent for lead and 84.9 per cent for zinc, compared with 76.2 per cent for silver, 85.4 per cent for lead and 81.8 per cent for zinc in fiscal 2018.

In fiscal 2019, the GC mine sold 626,000 ounces of silver, 8.7 million pounds of lead and 16.1 million pounds of zinc, compared with 603,000 ounces of silver, 6.8 million pounds of lead and 13.4 million pounds of zinc in fiscal 2018.

Total mining cost and cash mining cost at the GC mine in fiscal 2019 were $46.04 and $37.73 per tonne, respectively, a slight increase of 1 per cent compared with $45.73 and $37.48 per tonne, respectively, in fiscal 2018. Total milling cost and cash milling cost per tonne at the GC mine were $17.01 and $14.39, respectively, down 11 per cent and 8 per cent, compared with $19.17 and $15.72, respectively, in fiscal 2018.

Correspondingly, total production cost and cash production cost per tonne of ore processed in fiscal 2019 at the GC mine were $63.05 and $52.12, respectively, a decrease of 3 per cent and 2 per cent compared with $64.90 and $53.20, respectively, in fiscal 2018.

Cash cost per ounce of silver, net of byproduct credits, at the GC mine was negative $12.97, compared with negative $12.37 in the prior year. The decrease was mainly due to a 4-per-cent increase in byproduct credits resulting from increases of 28 per cent in lead and 20 per cent in zinc sold, offset by a decrease of 3 per cent and 17 per cent in net realized lead and zinc selling prices at the GC mine.

All-in sustaining cost per ounce of silver, net of byproduct credits, in fiscal 2019 at the GC mine was negative $6.28, compared with negative $3.69 in the prior year. The improvement was mainly due to an increase of $1.6-million in byproduct credits and a decrease of $900,000 in sustaining capital expenditures.

In fiscal 2019, approximately 24,727 metres or $1.3-million worth of underground diamond drilling (fiscal 2018 -- 21,717 metres or $1.1-million) and 19,844 metres or $5.2-million worth of tunnelling (fiscal 2018 -- 15,811 metres or $4.5-million) were completed and expensed as mining preparation costs at the GC mine. In addition, approximately 1,374 metres or $1.0-million of horizontal tunnels, raises and declines (fiscal 2018 -- 320 metres or $300,000) were completed and capitalized.

Q4 fiscal 2019 compared with Q4 fiscal 2018

In Q4 fiscal 2019, a total of 50,368 tonnes of ore were mined and 52,865 tonnes were milled at the GC mine, up 71 per cent and 101 per cent, respectively, compared with 29,442 tonnes mined and 26,252 tonnes milled in Q4 fiscal 2018.

Average head grades of ore milled were 101 g/t for silver, 1.8 per cent for lead and 3.3 per cent for zinc, compared with 96 g/t for silver, 1.3 per cent for lead and 2.9 per cent for zinc in the same prior-year quarter.

Metals sold were approximately 173,000 ounces of silver, 2.4 million pounds of lead and 4.9 million pounds of zinc, compared with 63,000 ounces of silver, 700,000 pounds of lead and 1.5 million pounds of zinc in the same prior-year quarter.

The cash mining cost at the GC mine was $40.58 per tonne, a decrease of 12 per cent compared with $45.92 per tonne in the same prior-year quarter. The cash milling cost was $18.52 per tonne, a decrease of 26 per cent compared with $25.07 in the same prior-year quarter. Correspondingly, the cash production cost per tonne decreased by 17 per cent to $59.10 from $70.99 in the same prior-year quarter. The improvement in production cost was mainly due to higher production output resulting in lower fixed cost allocation.

Cash cost per ounce of silver and all-in sustaining cost per ounce of silver, net of byproduct credits, at the GC mine for Q4 fiscal 2019 were negative $10.23 and negative $4.97, respectively, compared with negative $13.95 and negative $4.57 in the same prior-year quarter.

In Q4 fiscal 2019, approximately 2,864 metres or $300,000 worth of underground diamond drilling (Q4 fiscal 2018 -- 3,464 metres or $200,000) and 3,366 metres or $900,000 of tunnelling (Q4 fiscal 2018 -- 1,526 metres or $700,000) were completed and expensed as mining preparation costs at the GC mine. In addition, approximately 262 metres or $200,000 of horizontal tunnels, raises and declines (Q4 fiscal 2018 -- 40 metres or $100,000) were completed and capitalized.

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.

This earnings release should be read in conjunction with the company's management's discussion and analysis, financial statements, and notes to financial statements for the corresponding period, which have been posted on SEDAR and are also available on the company's website.

                                          CONSOLIDATED STATEMENTS OF INCOME
                               (in thousands of U.S. dollars, except per-share figures)

                                                          Three months ended March 31,             Year ended March 31,
                                                                   2019          2018              2019           2018

Sales                                                        $   34,952    $   38,449       $   170,519    $   170,039
                                                             ----------    ----------       -----------    -----------
Cost of sales
Production costs                                                 13,005        13,305            62,461         59,144
Mineral resource taxes                                            1,002         1,081             4,864          4,764
Depreciation and amortization                                     4,601         4,956            19,997         18,247
                                                                 18,608        19,342            87,322         82,155
                                                             ----------    ----------       -----------    -----------
Gross profit                                                     16,344        19,107            83,197         87,884
                                                             ----------    ----------       -----------    -----------
General and administrative                                        5,011         4,727            19,427         18,685
Government fees and other taxes                                     505           538             2,699          2,971
Foreign exchange loss (gain)                                      1,034         (862)            (1,361)         1,628
Loss on disposal of plant and equipment                              13             5               401            329
Gain on disposal of NSR                                               -             -                 -         (4,320)
Share of (income) loss in associate                                 118           189               330            700
Dilution gain on investment in associate                              -             -                 -           (822)
Reclassification of other comprehensive loss upon
ownership dilution of investment in associate                         -             -                 -             18
Impairment reversal of investment in associate                   (1,899)       (4,714)           (1,899)        (4,714)
Impairment reversal of mineral rights and properties             (7,279)            -            (7,279)             -
Other expense (income)                                              130          (149)              806         (2,016)
Income from operations                                           18,711        19,373            70,073         75,425
                                                             ----------    ----------       -----------    -----------
Finance income                                                      874           793             3,476          2,839
Finance costs                                                      (168)         (120)             (631)          (449)
Income before income taxes                                       19,417        20,046            72,918         77,815
                                                             ----------    ----------       -----------    -----------
Income tax expense                                                3,477         5,333            20,871         18,919
Net income                                                       15,940        14,713            52,047         58,896
                                                             ----------    ----------       -----------    -----------
Attributable to
Equity holders of the company                                    12,107        12,194            39,724         46,994
Non-controlling interests                                         3,833         2,519            12,323         11,902
                                                                 15,940        14,713            52,047         58,896
                                                             ----------    ----------       -----------    -----------
Earnings per share attributable to the equity
holders of the company
Basic earnings per share                                           0.07          0.07              0.24           0.28
Diluted earnings per share                                         0.07          0.07              0.23           0.27
                                                             ==========    ==========       ===========    ===========

About Silvercorp Metals Inc.

Silvercorp is a Canadian low-cost producer of silver, lead and zinc from mines in China. The company delivers shareholder value through efficient management, organic growth, and the acquisition of projects that it can build and operate profitably. Silvercorp's goal is to achieve lasting and sustainable development for all of its stakeholders.

We seek Safe Harbor.

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