Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX:SVM) (NYSE American: SVM) reported its financial and operating results for the second quarter ended September 30, 2017.  All amounts are expressed in US Dollars.

SECOND QUARTER HIGHLIGHTS

  • Net income attributable to equity shareholders of $11.1 million, or $0.07 per share, compared to net income attributable to equity shareholders of $12.4 million, or $0.07 per share in the prior year quarter;
  • Gross margin of 54% compared with 56% in the prior year quarter;
  • Sales of $47.5 million, up 3% compared to $46.3 million in the prior year quarter;
  • Silver, lead, and zinc metals sold amounted to approximately 1.6 million ounces silver, 16.9 million pounds lead, and 5.6 million pounds zinc, compared to 1.8 million ounces silver, 19.9 million pounds lead, and 5.9 million pounds zinc in the prior year quarter;
  • Head grades were 294 grams per tonne (“g/t”) for silver, 4.3% for lead, and 0.8% for zinc at the Ying Mining District, compared to 302 g/t for silver, 4.9% for lead and 1.1% for zinc in the prior year quarter;
  • Total and cash mining costs per tonne ore1 of $70.58 and $52.77, respectively, compared to $64.67and $43.09 in the prior year quarter;
  • Cash cost per ounce of silver1, net of by-product credits, of negative $5.16, compared to negative $3.05 in the prior year quarter;
  • All-in sustaining cost per ounce of silver1, net of by-product credits, of $2.26, compared to $3.15 in the prior year quarter;
  • Increased ownership in New Pacific Metals Corp. (“NUAG”) from 16.1% to 31.8% for $20.0 million; and,
  • Ended the quarter with $98.6 million in cash and cash equivalents and short-term investments, an increase of $2.2 million or 2% compared to $96.5 million as at March 31, 2017.

FINANCIALS

Net income attributable to equity shareholders of the Company in Q2 Fiscal 2018 was $11.1 million, or $0.07 per share, compared to $12.4 million, or $0.07 per share in Q2 Fiscal 2017.

The Company’s financial results in Q2 Fiscal 2018 were mainly impacted by the following: i) an increase of 48% and 58% in the realized selling prices for lead and zinc, compared to the prior year quarter, ii) a 7% decrease in the realized selling price for silver, iii) less metals sold; iv) higher per tonne production costs, and iv) a $1.1 million foreign exchange loss recorded in the current quarter.

Sales in Q2 Fiscal 2018 were $47.5 million, up 3% compared to $46.3 million in the same quarter last year. Silver and gold sales represented $22.6 million and $0.9 million, respectively, while base metals represented $24.1 million of total sales, compared to silver, gold and base metals sales of $27.0 million, $1.1 million, and $18.2 million, respectively, in the prior year quarter.

Cost of sales in Q2 Fiscal 2018 was $21.9 million compared to $20.5 million in Q2 Fiscal 2017.  The cost of sales included $16.2 million (Q2 Fiscal 2017 – $13.8 million) cash production costs, $1.3 million mineral resources tax (Q2 Fiscal 2017 – $1.0 million), and $4.4 million (Q2 Fiscal 2017 – $5.7 million) depreciation and amortization charges. The increase of cash production costs was mainly due to higher per tonne cash production costs recorded in current quarter while the increase of mi