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Silvercorp Metals Inc
Symbol SVM
Shares Issued 173,816,834
Close 2020-05-21 C$ 5.86
Recent Sedar Documents

Silvercorp earns $45.2-million (U.S.) in fiscal 2020

2020-05-21 17:14 ET - News Release

Mr. Lon Shaver reports

SILVERCORP REPORTS NET INCOME OF $34.3 MILLION, $0.20 PER SHARE, AND CASH FLOW FROM OPERATIONS OF $77.2 MILLION FOR FISCAL 2020

Silvercorp Metals Inc. has released its financial and operating results for the fourth quarter and 12 months ended March 31, 2020. All amounts are expressed in U.S. dollars.

Despite the extended shutdown during the three months ended March 31, 2020, due to COVID-19, the company was able to achieve its full-year production target, surpassing its fiscal 2020 guidance. As reported in the company's news release dated May 7, 2020, the company's operations were ramped up to full capacity in March, 2020, with no employee infection, and the company is in full compliance with government measures to prevent the spread of COVID-19.

Fiscal year 2020 highlights:

  • Silver, lead and zinc production surpassed annual guidance by 3 per cent, 3 per cent and 17 per cent, respectively;
  • Ore mined down 2 per cent to 885,830 tonnes compared with the prior year;
  • Sold approximately 6.3 million ounces of silver, 3,300 ounces of gold, 65.3 million pounds of lead and 25.4 million pounds of zinc, representing a decrease of 2 per cent and 6 per cent in silver and gold sold and an increase of 1 per cent and 12 per cent in lead and zinc sold compared with the prior year;
  • Revenue of $158.8-million, down 7 per cent, compared with $170.5-million in the prior year;
  • Net income attributable to equity shareholders of $34.3-million, or 20 cents per share, compared with $39.7-million, or 23 cents per share, in the prior year; excluding the impairment reversal of $9.2-million recorded in fiscal 2019, the net income to equity shareholders in fiscal 2020 was up 6 per cent compared with the adjusted net income attributable to equity shareholders (1) of $32.2-million, or 19 cents per share, in the prior year; in fiscal 2020, the company's consolidated financial results were impacted mainly by operations in China being suspended for an extra month in fourth quarter fiscal 2020 due to COVID-19;
  • Cash cost per ounce of silver (1), net of byproduct credits, of negative $1.91 compared with negative $4.29 in the prior year;
  • All-in sustaining cost per ounce of silver (1), net of byproduct credits, of $6.86, compared with $3.52 in the prior year;
  • Cash flow from operations of $77.2-million, up 10 per cent compared with $70.4-million in the prior year;
  • Paid $4.3-million in dividends to the company's shareholders, compared with $4.2-million in the prior year;
  • Invested $7.0-million in New Pacific Metals Corp. (NUAG) to maintain the company's ownership interest at 28.8 per cent;
  • Strong balance sheet with $142.5-million in cash and cash equivalents and short-term investments, an increase of $27.2-million or 24 per cent compared with $115.3-million as at March 31, 2019.

(1) Alternative performance (non-international financial reporting standard) measure. Please refer to Section 13 of management's discussion and analysis for a reconciliation.

Highlights for fourth quarter fiscal 2020:

  • Ore mined down 34 per cent to 106,595 tonnes compared with the prior-year quarter;
  • Sold approximately 800,000 ounces of silver, 500 ounces of gold, 9.7 million pounds of lead and 3.1 million pounds of zinc, down 39 per cent, 29 per cent, 24 per cent and 58 per cent, respectively, compared with approximately 1.3 million ounces of silver, 700 ounces of gold, 12.7 million pounds of lead and 7.3 million pounds of zinc in the prior-year quarter;
  • Revenue of $18.9-million, down 46 per cent compared with $35.0-million in the prior-year quarter;
  • Net income attributable to equity shareholders of $3.2-million, or two cents per share, compared with the adjusted net income attributable to equity shareholders of $4.6-million, or three cents per share, in the prior-year quarter; in fourth quarter fiscal 2020, the company's consolidated financial results were impacted mainly by the decrease in metal prices and operations in China being suspended for an extra month due to COVID-19;
  • Cash cost per ounce of silver, net of byproduct credits, of negative 85 cents compared with negative $3.97 in the prior-year quarter;
  • All-in sustaining cost per ounce of silver, net of byproduct credits, of $15.17, compared with $4.49 in the prior-year quarter;
  • Cash flow from operations of $6.3-million, compared with $8.3-million in the prior-year quarter.

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 under the company's profile and are also available on the company's website.

About Silvercorp Metals Inc.

Silvercorp is a profitable Canadian mining company producing silver, lead and zinc metals in concentrates from mines in China. The company's goal is to continuously create healthy returns to shareholders through efficient management, organic growth and the acquisition of profitable projects. Silvercorp balances profitability, social and environmental relationships, employees' well-being, and sustainable development.

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

                                                                         Three months ended          Year ended 
                                                                               March 31,              March 31,
                                                                            2020       2019       2020       2019

Sales                                                                    $18,859    $34,952   $158,829   $170,519
Cost of mine operations
Production costs                                                           8,344     13,005     62,029     62,461
Depreciation and amortization                                              3,146      4,601     20,715     19,997
Mineral resource taxes                                                       559      1,002      4,540      4,864
Government fees and other taxes                                              238        505      2,115      2,699
General and administrative                                                 3,368      2,277     10,056      9,566
                                                                         -------    -------    -------    -------
                                                                          15,655     21,390     99,455     99,587
                                                                         -------    -------    -------    -------
Income from mine operations                                                3,204     13,562     59,374     70,932

Corporate general and administrative                                       2,590      2,623     10,094      9,475
Property evaluation and business development                                 274        111        679        386
Foreign exchange gain                                                     (5,437)     1,034     (4,103)    (1,361)
(Loss) on disposal of plant and equipment                                     88         13        461        401
Gain on disposal of mineral rights and properties                              -          -     (1,477)         -
Share of (loss) in associate                                                 429        118      1,276        330
Dilution gain on investment in associate                                       -          -       (723)         -
Reclassification of other comprehensive income
upon ownership dilution of investment in associate                             -          -        (21)         -
Impairment reversal of investment in associate                                 -     (1,899)         -     (1,899)
Impairment reversal of mineral rights and properties                           -     (7,279)         -     (7,279)
Other expense                                                                718        130      1,026        806
                                                                         -------    -------    -------    -------
Income before finance items and income taxes                               4,542     18,711     52,162     70,073
Finance income                                                             1,154        874      4,023      3,476
Finance costs                                                             (1,628)      (168)    (2,073)      (631)
                                                                         -------    -------    -------    -------
Income before income taxes                                                 4,068     19,417     54,112     72,918
Income tax expense                                                           543      3,477      8,909     20,871
                                                                         -------    -------    -------    -------
Net income                                                                 3,525     15,940     45,203     52,047
                                                                         -------    -------    -------    -------
Attributable to
Equity holders of the company                                              3,163     12,107     34,274     39,724
Non-controlling interests                                                    362      3,833     10,929     12,323
                                                                         -------    -------    -------    -------
                                                                           3,525     15,940     45,203     52,047
                                                                         -------    -------    -------    -------
Earnings per share attributable to the equity holders of the company
Basic earnings per share                                                    0.02       0.07       0.20       0.24
                                                                         -------    -------    -------    -------
Diluted earnings per share                                                  0.02       0.07       0.20       0.23
                                                                         -------    -------    -------    -------

We seek Safe Harbor.

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