In Q1 Fiscal 2025, the Company mined 343,847 tonnes of ore, up 13% compared to 303,220 tonnes in Q1 Fiscal 2024. Ore milled was 307,696 tonnes, up 4% compared to 295,095 tonnes in Q1 Fiscal 2024. A total of 8,476 tonnes of gold ore were processed in Q1 Fiscal 2025, down 22% compared to 10,893 tonnes in Q1 Fiscal 2024.

 

In Q1 Fiscal 2025, the Company produced approximately 1,146 ounces of gold, 1.7 million ounces of silver, or approximately 1.8 million ounces of silver equivalent, plus 15.6 million pounds of lead and 6.4 million pounds of zinc, representing decreases of 26%, 4%, 6%, 12%, and 6%, respectively, in gold, silver, silver equivalent, lead, and zinc production over Q1 Fiscal 2024. The decrease is mainly due to i) lower head grades realized as per the current mine plan and ii) a total of 59,293 tonnes of stockpile ore not yet processed. The Company expects that the stockpiled ore will be processed in the third and fourth quarter, once the No. 2 mill capacity expansion of 1,500 tonnes per day at the Ying Mining District is achieved in the third quarter of Fiscal 2025.

 

In Q1 Fiscal 2025, the consolidated mining cost was $66.06 per tonne, up 4% compared to $63.74 per tonne in Q1 Fiscal 2024. The increase was mainly due to more mining preparation tunnels and grade control drilling completed and expensed as part of the mining cost in the current quarter. The consolidated milling cost was $11.94 per tonne, down 4% compared to $12.56 per tonne in Q1 Fiscal 2024. Correspondingly, the consolidated production cost per tonne of ore processed was $80.37 per tonne, up 2% compared to $78.63 per tonne in Q1 Fiscal 2024, while the all-in sustaining production cost per tonne ore processed was $139.96 per tonne, up 4% compared to $134.08 per tonne in Q1 Fiscal 2024. The increase was mainly due to i) an increase of $1.3 million in sustaining capital expenditures; ii) an increase of $0.8 million in corporate general administrative and business development expenditures related to the Company's ongoing merger and acquisition ("M&A") activities; and iii) the slight increase in per tonne production cost as discussed above.

 

In Q1 Fiscal 2025, the consolidated cash cost per ounce of silver, net of by-product credits, was negative $1.67, compared to negative $0.31 in Q1 Fiscal 2024. The decrease was mainly due to an increase of $1.5 million in by-product credits. The consolidated all-in sustaining cost per ounce of silver, net of by-product credits, was $9.82, up 10% compared to $9.46 in Q1 Fiscal 2024. The increase was mainly due to the increase in per tonne sustaining production cost, partially offset by the decrease in cash cost per ounce of silver.

 

EXPLORATION AND DEVELOPMENT

 

Total capital expenditures in Q1 Fiscal 2025 were $19.7 million, up 23% compared to $15.9 million in Q1 Fiscal 2024. The increase was mainly due to more ramp and tunnel development as well as the construction of the new tailing storage facility ("TSF"). Total capital expenditures incurred to construct the TSF were approximately $2.8 million in Q1 Fiscal 2025 and $13.6 million since inception.

 

In Q1 Fiscal 2025, on a consolidated basis, a total of 87,313 metres or $2.3 million worth of diamond drilling were completed (Q1 Fiscal 2024 – 84,599 metres or $2.7 million), of which approximately 50,356 metres or $1.2 million worth of diamond drilling were expensed as part of mining costs (Q1 Fiscal 2024 – 43,834 metres or $1.0 million) and approximately 36,957 metres or $1.1 million worth of diamond drilling were capitalized (Q1 Fiscal 2024 – 40,765 metres or $1.7 million). In addition, approximately 14,295 metres or $5.9 million worth of preparation tunneling were completed and expensed as part of mining costs (Q1 Fiscal 2024 – 11,498 metres or $4.0 million), and approximately 35,042 metres or $14.0 million worth of tunnels, raises, ramps and declines were completed and capitalized (Q1 Fiscal 2024 – 26,269 metres or $10.8 million).

 

 

INDIVIDUAL MINE OPERATING PERFORMANCE 

 

In Q1 Fiscal 2025, a total of 256,079 tonnes of ore were mined at the Ying Mining District, up 20% compared to 213,748 tonnes in Q1 Fiscal 2024, and 221,242 tonnes of ore were milled, up 6% compared to 208,809 tonnes in Q1 Fiscal 2024. A total of 8,476 tonnes of gold ore were processed in Q1 Fiscal 2025, down 22% compared to 10,893 tonnes in Q1 Fiscal 2024. Approximately 1,916 ounces of gold, 1.1 million ounces of silver, or approximately  1,146 ounces of gold, 1.6 million ounces of silver, or approximately 1.7 million ounces of silver equivalent, plus 14.1 million pounds of lead, and 2.5 million pounds of zinc were produced, representing an increase of 17% in zinc, and decreases of 26%, 2%, 4% and 8%, in gold, silver, silver equivalent and lead, respectively, compared to 1,552 ounces of gold, 1.6 million ounces of silver, or approximately 1.7 million silver equivalent, plus 15.4 million pounds of lead, and 2.1 million pounds of zinc in Q1 Fiscal 2024. The decrease is mainly due to milling capacity constraints resulting in over 59,000 tonnes of ore stockpiled not yet processed.

 

 

In Q1 Fiscal 2025, a total of 87,768 tonnes of ore were mined at the GC Mine, down 2% compared to 89,472 tonnes in Q1 Fiscal 2024, while 86,454 tonnes were milled, effectively the same compared 86,286 tonnes in Q1 Fiscal 2024. A total of 10,620 tonnes of waste was removed through the XRT Ore Sorting System in Q1 Fiscal 2025.

 

Metals produced at the GC Mine were approximately 145 thousand ounces of silver, 1.6 million pounds of lead, and 4.0 million pounds of zinc, representing decreases of 21%, 37%, and 16%, respectively, in silver, lead and zinc production, respectively, compared to 183 thousand ounces of silver, 2.4 million pounds of lead, and 4.7 million pounds of zinc in Q1 Fiscal 2024. The decrease was mainly due to lower head grades achieved.

 

 

CONFERENCE CALL DETAILS

A conference call to discuss these results will be held tomorrow, Wednesday, August 14, at 9:00 am PDT (12:00 pm EDT). To participate in the conference call, please dial the numbers below.

 

Canada/USA TF: 888-664-6383

International/Local Toll: 416-764-8650

Conference ID: 54868081

Participants should dial-in 10 – 15 minutes prior to the start time.  A replay of the conference call and transcript will be available on the Company’s website at www.silvercorp.ca.

 

Mr. Guoliang Ma, P.Geo., 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 (“NI 43-101”) and has reviewed and given consent to the technical information contained in this news release.

 

 

About Silvercorp

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 1) focusing on generating free cashflow from long life mines; 2) organic growth through extensive drilling for discovery; 3) ongoing merger and acquisition efforts to unlock value; and 4) long term commitment to responsible mining and ESG. For more information, please visit our website at www.silvercorp.ca.

 

For further information

Silvercorp Metals Inc.

Lon Shaver

President

Phone: (604) 669-9397

Toll Free: +1 (888) 224-1881

Email: [email protected]

Website: www.silvercorp.com

 

 

 

ALTERNATIVE PERFORMANCE (NON-IFRS) MEASURES

This news release should be read in conjunction with the Company's Management Discussion & Analysis (“MD&A”), the unaudited condensed interim consolidated financial statements and related notes contains therein for the three months ended June 30, 2024, which have been posted on SEDAR+ under the Company’s profile at www.sedarplus.ca and on EDGAR at www.sec.gov, and are also available on the Company's website at www.silvercorp.ca under the Investor section. This news release refers to various alternative performance (non-IFRS) measures, such as adjusted earnings and adjusted earnings per share, cash cost and all-in sustaining cost per ounce of silver, net of by-product credits, production cost and all-in sustaining production cost per tonne of ore processed, silver equivalent, and working capital. These measures are widely used in the mining industry as a benchmark for performance, but do not have standardized meanings under IFRS as an indicator of performance and may differ from methods used by other companies with similar description.  The detailed description and reconciliation of these alternative performance (non-IFRS) measures have been incorporated by reference and can be found on page 40, section 12 – Alternative Performance (Non-IFRS) Measures in the MD&A for the three months ended June 30, 2024 filled on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov and which is incorporated by reference here in.

 

CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian and US securities laws (collectively, “forward-looking statements”). Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.  Forward-looking statements relate to, among other things: the price of silver and other metals; the accuracy of mineral resource and mineral reserve estimates at the Company’s material properties; the sufficiency of the Company’s capital to finance the Company’s operations; estimates of the Company’s revenues and capital expenditures; estimated production from the Company’s mines in the Ying Mining District and the GC Mine; timing of receipt of permits and regulatory approvals; availability of funds from production to finance the Company’s operations; and access to and availability of funding for future construction, use of proceeds from any financing and development of the Company’s properties.

 

Actual results may vary from forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks relating to: global economic and social impact of public health pandemic; fluctuating commodity prices; calculation of resources, reserves and mineralization and precious and base metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; feasibility and engineering reports; permits and licences; title to properties; property interests; joint venture partners; acquisition of commercially mineable mineral rights; financing; recent market events and conditions; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions into the Company’s existing operations; competition; operations and political conditions; regulatory environment in China and Canada; environmental risks; regulatory investigations, claims and legal proceeding, foreign exchange rate fluctuations; insurance; risks and hazards of mining operations; key personnel; conflicts of interest; dependence on management; internal control over financial reporting; and bringing actions and enforcing judgments under U.S. securities laws.

 

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company’s Annual Information Form under the heading “Risk Factors” and in the Company’s Annual Report on Form 40-F, and in the Company’s other filings with Canadian and U.S. securities regulators.  Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended.  Accordingly, readers should not place undue reliance on forward-looking statements.

 

The Company’s forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, guidance cannot be guaranteed. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.