Silvercorp Reports Adjusted Net Income of $11.5 Million, $0.06 per Share, and Cash Flow from Operations of $23.6 Million for Q3 Fiscal 2024

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Trading Symbol:  TSX: SVM
NYSE AMERICAN: SVM                                                                                                                 

VANCOUVER, BC, Feb. 8, 2024 /PRNewswire/ – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (NYSE:SVM) reports its financial and operating results for the three months ended December 31, 2023 (“Q3 Fiscal 2024”). All amounts are expressed in US dollars, and figures may not add due to rounding.

HIGHLIGHTS FOR Q3 FISCAL 2024 

Mined 345,273 tonnes of ore, milled 312,500 tonnes of ore, and produced approximately 1,342 ounces of gold, 1.7 million ounces of silver, or approximately 1.8 million ounces of silver equivalent, plus 16.8 million pounds of lead and 7.4 million pounds of zinc;
Sold approximately 1,342 ounces of gold, 1.7 million ounces of silver, 16.2 million pounds of lead, and 7.3 million pounds of zinc, for revenue of $58.5 million;
Reported net income attributable to equity shareholders of $10.5 million, or $0.06 per share;
Realized adjusted earnings attributable to equity shareholders of $11.5 million, or $0.06 per share;
Generated cash flow from operating activities of $23.6 million;
Cash costs per ounce of silver, net of by-product credits, of negative $0.96;
All-in sustaining costs per ounce of silver, net of by-product credits, of $11.33;
Spent and capitalized $1.6 million on exploration drilling, $14.1 million on underground development, and $3.9 million on equipment and facilities, including $1.3 million on construction of the new tailings storage facility;
Entered into a Bid Implementation Deed (“BID”) with OreCorp Limited (ASX: ORR) (“OreCorp”) to launch an off-market takeover to acquire all OreCorp Shares not already owned by Silvercorp for A$0.19 cash plus 0.0967 common shares of Silvercorp per OreCorp Share; and
Strong balance sheet with $198.3 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 $139.5 million as at December 31, 2023.

CONSOLIDATED FINANCIAL RESULTS

Three months ended December 31,

Nine months ended December 31,

2023

2022

Changes

2023

2022

Changes

Financial Results

Revenue (in thousands of $) 

$                      58,508

$                     58,651

0 %

$                    172,506

$          173,982

-1 %

Mine operating earnings (in thousands of $) 

23,307

21,744

7 %

67,551

61,007

11 %

Net income (loss)  attributable to equity holders (in thousands of $) 

10,510

11,916

-12 %

30,777

20,373

51 %

 Earnings (loss) per share – basic ($/share)

0.06

0.07

-14 %

0.17

0.12

42 %

Adjusted earnings attributable to equity holders (in thousands of $) 

11,452

11,775

-3 %

35,498

32,056

11 %

Adjusted earning per share – basic ($/share)

0.06

0.07

-14 %

0.20

0.18

11 %

Net cash generated from operating activities (in thousands of $) 

23,607

25,661

-8 %

81,332

79,901

2 %

Capitalized expenditures (in thousands of $) 

19,635

15,484

27 %

50,609

48,366

5 %

Metals sold

 Gold (ounces) 

1,342

1,100

22 %

5,352

3,400

57 %

 Silver (in thousands of ounces) 

1,703

1,860

-8 %

5,096

5,564

-8 %

 Lead (in thousands of pounds) 

16,248

19,273

-16 %

48,753

55,666

-12 %

 Zinc (in thousands of pounds) 

7,320

7,119

3 %

18,818

19,987

-6 %

 Average Selling Price, Net of Value Added Tax and Smelter Charges 

Gold ($/ounce)

1,718

1,541

11 %

1,754

1,479

19 %

Silver ($/ounce)

20.14

17.17

17 %

19.74

16.91

17 %

Lead ($/pound)

0.87

0.85

2 %

0.86

0.87

-1 %

Zinc ($/pound)

0.82

0.96

-15 %

0.81

1.09

-26 %

 Financial Position as at 

December 31, 2023

September 30, 2023

December 31, 2023

March 31, 2023

Cash and cash equivalents and short-term investments (in thousands of $) 

198,295

189,091

5 %

198,295

203,323

-2 %

Working capital (in thousands of $) 

159,555

154,330

3 %

159,555

177,808

-10 %

Revenue in Q3 Fiscal 2024 was $58.5 million, a slight decrease compared to $58.7 million in Q3 Fiscal 2023. The decrease is mainly due to the decrease in silver and lead sold and a lower zinc price, offset by the increase in the net realized selling prices for gold, silver, and lead.  

Income from mine operations in Q3 Fiscal 2024 was $23.3 million, up 7% compared to $21.7 million in Q3 Fiscal 2023. Income from mine operations at the Ying Mining District was $21.5 million, compared to $19.0 million in Q3 Fiscal 2023. Income from mine operations at the GC Mine was $1.9 million, compared to income of $2.9 million in Q3 Fiscal 2023.

Net income attributable to equity shareholders of the Company in Q3 Fiscal 2024 was $10.5 million or $0.06 per share, compared to net income of $11.9 million or $0.07 per share in Q3 Fiscal 2023.

Compared to Q3 Fiscal 2023, the Company’s consolidated financial results in the current quarter were mainly impacted by i) increases of 11%, 17%, and 2%, respectively, in the realized selling prices for gold, silver, and lead, and a decrease of 15% in the realized selling price for zinc; ii) increases of 22% and 3%, respectively in gold and zinc sold and decreases of 8% and 16%, respectively, in silver and lead sold; iii) a decrease of 4% in per tonne production costs; iv) an improvement of $4.4 million in mark-to-market investments; and v) an increase of $5.0 million in the share of loss in associates.

Cash flow provided by operating activities in Q3 Fiscal 2024 was $23.6 million, down $2.1 million, compared to $25.7 million in Q3 Fiscal 2023. The Company ended the quarter with $198.3 million in cash, cash equivalents and short-term investments, up 5% compared to $189.1 million as at September 30, 2023.

Working capital as at December 31, 2023 was $159.6 million, up 3% compared to $154.3 million as at September 30, 2023.

CONSOLIDATED OPERATIONAL RESULTS

Three months ended December 31,

Nine months ended December 31,

2023

2022

Changes

2023

2022

Changes

Ore Production (tonne)

Ore mined

345,273

296,050

17 %

921,958

887,135

4 %

Ore milled

Gold ore

12,726

100 %

36,419

100 %

Silver ore

299,774

303,442

-1 %

832,283

893,261

-7 %

312,500

303,442

3 %

868,702

893,261

-3 %

Metal Production

 Gold (ounces) 

1,342

1,100

22 %

5,352

3,400

57 %

 Silver (in thousands of ounces) 

1,684

1,853

-9 %

5,054

5,511

-8 %

    Silver equivalent (in thousands of ounces) 

1,795

1,949

-8 %

Full story available on Benzinga.com


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