Benzinga | Jan 13, 2022 05:07PM EST

Silvercorp Metals Q3 Production ~1.8M Oz. Of Silver, Up 8% Year Over Year, 1.1K Oz. Of Gold, Up 38% YoY, 19M Lbs. Of Lead, Up 8% YoY, 8M Lbs. Of Zinc, Up 7% YoY

Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM) (NYSE:SVM) reports production and sales figures for the third quarter ended December 31, 2021 ("Q3 Fiscal 2022"). The Company expects to release its Q3 Fiscal 2022 unaudited financial results along with the annual production guidance for the fiscal year ended March 31, 2023 on Tuesday, February 8, 2022 after market close.

Silvercorp Metals Inc. Logo (CNW Group/Silvercorp Metals Inc)

In Q3 Fiscal 2022, the Company increased production to approximately 1.8 million ounces of silver, 1,100 ounces of gold, 19.0 million pounds of lead, and 8.0 million pounds of zinc, representing increases of 8%, 38%, 8%, and 7%, respectively, in silver, gold, lead and zinc over the second quarter ended September 30, 2021 ("Q2 Fiscal 2022").

For the first nine months of Fiscal 2022, the Company produced approximately 5.0 million ounces of silver, 2,900 ounces of gold, 52.5 million pounds of lead, and 22.7 million pounds of zinc. Recently, strict Covid 19 quarantine policy imposed by local governments where our mines are located has caused uncertainty for workers travelling home and back during Chinese New Year holiday, which may have some impact on production for the fourth quarter.

Q3 FISCAL 2022 OPERATING HIGHLIGHTS

At the Ying Mining District, 200,946 tonnes of ore were mined, up 10% over the same prior year quarter ("Q3 Fiscal 2021"), and 214,982 tonnes of ore were milled, up 32% over Q3 Fiscal 2021. Approximately 1.6 million ounces of silver, 1,100 ounces of gold, 16.4 million pounds of lead, and 2.3 million pounds of zinc were produced, representing increases of 13%, 22%, 14% and 26%, respectively, in silver, gold, lead and zinc over Q3 Fiscal 2021 as the Company increased the milling tonnage, offset by lower head grades experienced at the Ying Mining District. As reported in the Company's news release dated November 4, 2021, the SGX Mine at the Ying Mining District suspended production for ten days as a precautionary measure due to heavy rainfall experienced in the Yellow River region, impacting ore production and head grades in the current quarter. At the GC Mine, 91,126 tonnes of ore were mined, down 6% over Q3 Fiscal 2021, and 89,790 tonnes of ore were milled, down 8% over Q3 Fiscal 2021. Approximately 187 thousand ounces of silver, 2.6 million pounds of lead, and 5.7 million pounds of zinc were produced, representing decreases of 12%, 6% and 17%, respectively, in silver, lead, and zinc over Q3 Fiscal 2021. On a consolidated basis, 292,072 tonnes of ore were mined, up 5% over Q3 Fiscal 2021, and 304,772 tonnes of ore were milled, up 17% over Q3 Fiscal 2021. Approximately 1.8 million ounces of silver, 1,100 ounces of gold, 19.0 million pounds of lead, and 8.0 million pounds of zinc were produced, representing increases of 9%, 22%, and 11%, respectively, in silver, gold and lead, and a decrease of 7% in zinc over Q3 Fiscal 2021. On a consolidated basis, the Company sold approximately 1.7 million ounces of silver, 1,100 ounces of gold, 17.2 million pounds of lead, and 7.6 million pounds of zinc, representing increases of 4%, 38%, and 2%, respectively, in silver, gold and lead sold, and a decrease of 15% in zinc sold over Q3 Fiscal 2021. The consolidated operational results for the past five quarters are summarized as follows:

Consolidated Q3 F2022 Q2 F2022 Q1 F2022 Q4 F2021 Q3 F2021 Nine months ended December 31,

December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 2021 2020

Production Data

Ore Mined (tonne) 292,072 292,468 231,235 163,072 279,445 815,775 801,853

Ore Milled (tonne) 304,772 271,816 243,077 180,674 260,648 819,665 786,907



Head Grades

Silver (gram/tonne) 205 214 207 228 216 208 222

Lead (%) 3.1 3.2 3.2 3.3 3.2 3.2 3.5

Zinc (%) 1.5 1.6 1.7 1.5 1.8 1.6 1.7



Recovery Rates

Silver (%) 93.8 94.1 93.2 92.5 92.3 93.7 92.9

Lead (%) 94.4 94.5 94.6 94.3 95.3 94.5 95.1

Zinc (%) 80.1 79.3 80.7 79.0 82.4 80.0 79.9

Metal production

Silver (in thousands of ounces) 1,834 1,696 1,474 1,195 1,677 5,003 5,136

Gold (in thousands of ounces) 1.1 0.8 1.0 0.3 0.9 2.9 3.2

Lead (in thousands of pounds) 18,978 17,613 15,878 12,156 17,111 52,469 56,274

Zinc (in thousands of pounds) 8,030 7,483 7,198 4,672 8,673 22,711 23,339

Metals sold

Silver (in thousands of ounces) 1,721 1,729 1,642 1,056 1,647 5,092 5,259

Gold (in thousands of ounces) 1.1 0.8 1.0 0.7 0.8 2.9 4.1

Lead (in thousands of pounds) 17,155 17,319 16,810 10,876 16,806 51,284 56,242

Zinc (in thousands of pounds) 7,588 7,626 7,255 4,580 8,965 22,469 23,334

The operational results at the Ying Mining District for the past five quarters are summarized as follows:

Ying Mining District Q3 F2022 Q2 F2022 Q1 F2022 Q4 F2021 Q3 F2021 Nine months ended December 31,

December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 2021 2020

Production Data

Ore Mined (tonne) 200,946 206,933 142,907 112,561 182,268 550,786 537,464

Ore Milled (tonne) 214,982 182,173 155,407 131,725 162,905 552,562 519,677



Head Grades

Silver (gram/tonne) 258 283 279 280 297 272 293

Lead (%) 3.7 4.0 4.2 3.9 4.3 3.9 4.4

Zinc (%) 0.8 0.7 0.8 0.8 0.8 0.8 0.8



Recovery Rates

Silver (%) 95.1 95.4 94.7 93.7 93.9 95.1 94.4

Lead (%) 95.2 95.5 95.7 95.1 96.4 95.5 96.2

Zinc (%) 64.0 56.0 59.7 65.0 63.3 60.3 61.7

Metal production

Silver (in thousands of ounces) 1,647 1,517 1,283 1,083 1,464 4,447 4,532

Gold (in thousands of ounces) 1.1 0.8 1.0 0.3 0.9 2.9 3.2

Lead (in thousands of pounds) 16,392 14,671 13,278 10,504 14,361 44,341 47,382

Zinc (in thousands of pounds) 2,347 1,584 1,519 1,496 1,857 5,450 5,420

Metals sold

Silver (in thousands of ounces) 1,561 1,553 1,447 936 1,446 4,561 4,674

Gold (in thousands of ounces) 1.1 0.8 1.0 0.7 0.8 2.9 2.9

Lead (in thousands of pounds) 15,003 14,436 14,175 9,137 14,207 43,614 47,571

Zinc (in thousands of pounds) 1,947 1,617 1,521 1,306 2,241 5,085 5,662

The operational results at the GC Mine for the past five quarters are summarized as follows:

GC Mine Q3 F2022 Q2 F2022 Q1 F2022 Q4 F2021 Q3 F2021 Nine months ended December 31,

December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 2021 2020

Production Data

Ore Mined (tonne) 91,126 85,535 88,328 50,511 97,177 264,989 264,389

Ore Milled (tonne) 89,790 89,643 87,670 48,949 97,743 267,103 267,230



Head Grades

Silver (gram/tonne) 78 73 80 87 82 77 85

Lead (%) 1.5 1.7 1.5 1.7 1.4 1.5 1.7

Zinc (%) 3.2 3.3 3.3 3.3 3.5 3.3 3.4



Recovery Rates

Silver (%) 83.5 84.4 84.1 81.9 82.6 84.0 82.6

Lead (%) 89.0 89.5 89.3 89.7 89.6 89.3 89.5

Zinc (%) 89.8 89.6 89.3 88.2 89.7 89.6 88.2

Metal production

Silver (in thousands of ounces) 187 179 190 112 213 556 604

Lead (in thousands of pounds) 2,586 2,942 2,600 1,652 2,750 8,128 8,892

Zinc (in thousands of pounds) 5,683 5,899 5,679 3,176 6,816 17,261 17,919

Metals sold

Silver (in thousands of ounces) 160 176 195 120 201 531 585

Lead (in thousands of pounds) 2,152 2,883 2,635 1,739 2,599 7,670 8,671

Zinc (in thousands of pounds) 5,641 6,009 5,734 3,274 6,724 17,384 17,672