EX-99.1 2 exhibit99-1.htm NEWS RELEASE DATED NOVEMBER 12, 2015 Exhibit 99.1
Exhibit 99.1



 
NEWS RELEASE  
Trading Symbol: TSX: SVM   

SILVERCORP REPORTS Q2 FISCAL 2016 FINANCIAL AND OPERATING RESULTS

VANCOUVER, British Columbia – November 12, 2015 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX: SVM) reported its financial and operating results for the second quarter ended September 30, 2015 (“Q2 Fiscal 2016”). All amounts are expressed in US Dollars.

SECOND QUARTER HIGHLIGHTS

  • Cash flows from operations of $4.6 million, or $0.03 per share;

  • Repurchased 1,638,252 common shares of the Company;

  • Ended the quarter with $70.7 million in cash and short term investments;

  • Net income attributable to equity shareholders of $2.2 million, or $0.01 per share;

  • Silver sales of 1.3 million ounces, lead sales of 13.2 million pounds, and zinc sales of 4.6 million pounds, down 7%, 7%, and 11%, respectively, from the prior year quarter;

  • Realized selling price for silver, lead, and zinc at the Ying Mining District dropped by 26%, 8%, and 19%, respectively, compared to the same prior year quarter;

  • Sales of $27.2 million, down 27% from the prior year quarter;

  • Significant increase of silver-lead concentrate inventory from 430 tonnes to 2,228 tonnes (containing approximately 0.2 million ounces of silver and 2.0 million pounds of lead) at the Ying Mining District, compared to the prior year quarter;

  • Gross margin of 32% compared with 49% in the prior year period;

  • Cash cost per ounce of silver, net of by-product credits, of $1.52, compared to negative $0.98 in the prior year quarter; and

  • All-in sustaining cost per ounce of silver, net of by-product credits, of $12.40, compared to $9.68 in the prior year quarter.

FINANCIALS

Net income attributable to the shareholders of the Company in Q2 Fiscal 2016 was $2.2 million, or $0.01 per share compared to $7.2 million, or $0.04 per share for the three months ended September 30, 2014 (“Q2 Fiscal 2015”).

In the current quarter, the Company’s financial results were mainly impacted by the following: i) lower metal prices, as the realized selling price for silver, lead, and zinc at the Ying Mining District dropped by 26%, 8%, and 19%, respectively, compared to the same prior year quarter, ii) lower gold production and sales as operations at BYP mine have been suspended since August 2014; iii) higher production costs; and iv) lower amount of metals sold as increase in silver-lead and zinc concentrate inventory.

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    Sales in Q2 Fiscal 2016 were $27.2 million compared to $37.3 million in Q2 Fiscal 2015. Silver and gold sales represented $14.7 million and $0.5 million, respectively, while base metals represented $12.0 million of total sales in this quarter compared to silver, gold and base metal sales of $21.7 million, $0.7 million, and $14.9 million, respectively, in Q2 Fiscal 2015.

    Cost of sales in Q2 Fiscal 2016 was $18.4 million compared to $18.9 million in Q2 Fiscal 2015. The cost of sales included $14.4 million (Q2 Fiscal 2015 - $14.2 million) cash costs and $4.0 million (Q2 Fiscal 2015 - $4.7 million) depreciation, amortization and depletion charges. The decrease in cost of sales is mainly due to lower amount of metals sold in the quarter, offset by the increase in per tonne mining production costs.

    Gross profit margin in Q2 Fiscal 2016 was 32% compared to 49% in Q2 Fiscal 2015. The decrease in gross profit margin is mainly due to the decline of metal prices, increases in smelter charges, and increased per tonne production costs.

    Cash flows provided by operating activities were $4.6 million or $0.03 per share in Q2 Fiscal 2016 compared to $20.1 million or $0.12 per share in Q2 Fiscal 2015.

    OPERATIONS AND DEVELOPMENT

    In Q2 Fiscal 2016, the Company sold 1.3 million ounces of silver, 13.2 million pounds of lead, and 4.6 million pounds of zinc, compared to 1.3 million ounces of silver, 14.1 million pounds of lead, and 5.2 million pounds of zinc, respectively, in Q2 Fiscal 2015. The decrease of metal sales is mainly due to the Company intentionally increasing its inventory of concentrates in reaction to lower metal prices. As at September 30, 2015, the Ying Mining District had 2,228 tonnes of lead concentrates and 260 tonnes of zinc concentrates in inventory, 1,798 and 220 tonnes higher, respectively, compared to 430 tonnes of lead concentrates and 40 tonnes of zinc concentrates in stock as at September 30, 2014. The estimated metals contained in the concentrates inventory as at September 30, 2015, are approximately 0.2 million ounces of silver, 2.0 million pounds of lead, and 0.2 million pounds of zinc higher, respectively, compared to the metals contained in concentrates inventory as at September 30, 2014.

    For the six months ended September 30, 2015, the Company sold 2.6 million ounces of silver, 27.5 million pounds of lead, and 9.0 million pounds of zinc, compared to 2.5 million ounces of silver, 25.6 million pounds of lead, and 6.4 million pounds of zinc, respectively, in the same prior year period.

    1. Ying Mining District, Henan Province, China

    In Q2 Fiscal 2016, the total ore mined at the Ying Mining District was 171,014 tonnes compared to total ore production of 197,135 tonnes in Q2 Fiscal 2015. Silver and lead head grades improved by 10% and 15%, respectively, to 246 grams per tonne (“g/t”) for silver and 3.8% for lead from 223 g/t for silver and 3.3% for lead, respectively, in Q2 Fiscal 2015.

    In Q2 Fiscal 2016, the Ying Mining District sold 1.1 million ounces of silver, 700 ounces of gold, 11.5 million pounds of lead, and 1.5 million pounds of zinc, compared to 1.3 million ounces of silver, 788 ounces of gold, 12.7 million pounds of lead, and 1.9 million pounds of zinc in Q2 Fiscal 2015. The decrease of metal sales is mainly due to the Company intentionally increasing its inventory of concentrates in reaction to the low metal prices.

    As disclosed in the prior quarter, the mining contractor changeover disruptions have impacted not only the production but also resulted in additional costs at the SGX mine, including approximately $0.5 million in the current quarter and $1.5 million in total. In Q2 Fiscal 2016, the cash mining costs at the Ying Mining District were $10.6 million or $62.15 per tonne, compared to $8.6 million or $43.62 per tonne in Q2 Fiscal 2015. The increase in cash mining costs was mainly due to: i) $0.5 million or $2.6 per tonne arising from the mining contractor changeover interruption; ii) $2.1 million or $14.5 per tonne increase in mining preparation costs as approximately 22,846 metres (“m”) of

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    underground diamond drilling and 6,507 m of preparation tunnelling were conducted in the current quarter, compared to 7,104 m of underground diamond drilling and 4,503 m of preparation tunnelling expensed in Q2 Fiscal 2015; iii) $0.1 million or $0.8 per tonne increase in mine administration costs; offset by iv) $0.3 million or $0.9 per tonne decrease in labour costs and v) $0.2 million decrease in mining contractors’ costs, but lower production output resulting in a higher per tonne costs.

    Compared to the cash mining cost of $9.5 million or $56.65 per tonne in Q1 Fiscal 2016, the cash mining cost increased by $1.1 million or $5.50 per tonne in Q2 Fiscal 2016. Excluding the additional costs arising from the mining contractor interruption, the increase in cash mining costs was mainly due to: i) a $1.4 million increase in mining preparation costs as 22,846 m of underground diamond drilling and 6,507 m of preparation tunnelling were completed, and ii) a $0.2 million or $0.6 increase in mining contractors’ costs as more re-suing mining methods were employed.

    In Q2 Fiscal 2016, total ore milled at the Ying Mining District was 176,936 tonnes, a decrease of 7% compared to 190,831 tonnes in Q2 Fiscal 2015. Cash milling costs were $2.0 million or $11.55 per tonne, a decrease of $0.4 million or $1.22 per tonne, compared to $2.4 million or $12.77 per tonne in Q2 Fiscal 2015.

    All in sustaining costs and all in costs, net of by-product credits, at the Ying Mining District in Q2 2016 was $9.88 and $12.06 per ounce of silver compared to $7.68 and $23.49, respectively, in Q2 Fiscal 2015.

    For the six months ended September 30, 2015, the total ore mined at the Ying Mining District was 338,120 tonnes compared to 370,619 tonnes in the same prior year period. Correspondingly, total ore milled was 337,213 tonnes compared to 360,311 tonnes. Head grades were 252 g/t for silver and 3.7% for lead compared to 225 g/t for silver and 3.3% for lead, respectively.

    During the same time periods, the Ying Mining District sold 2.3 million ounces of silver, 1,500 ounces of gold, 23.5 million pounds of lead, and 2.8 million pounds of zinc, compared to 2.4 million ounces of silver, 1,610 ounces of gold, 24.2 million pounds of lead, and 3.2 million pounds of zinc in the prior year.

    For the six months ended September 30, 2015, the cash mining costs at the Ying Mining District were $20.1 million or $59.43 per tonne, compared to $16.7 million or $45.18 per tonne in the same prior year period. The increase in cash mining costs per tonne was mainly due to: i) a $1.5 million or $4.5 per tonne increase arising from the mining contractor changeover interruption; ii) a $2.4 million or $9.6 per tonne increase in mining preparation costs as approximately 39,212 m of underground diamond drilling and 12,563 m of preparation tunnelling were conducted in the current period, compared to 15,709 m of underground diamond drilling and 9,251 m of preparation tunnelling expensed in the same prior year period, and iii) lower production output resulting in a higher per unit fixed costs allocation.

    All in sustaining costs and all in costs, net of by-product credits, at the Ying Mining District for the six months ended September 30, 2015 was $9.52 and $10.86 per ounce of silver compared to $8.44 and $17.79, respectively, in same prior year period.

    In Q2 Fiscal 2016, in additional to approximately 22,846 m of underground diamond drilling and 6,507 m of preparation tunnelling, which were expensed and included in the mining preparation costs, Ying Mining District completed and capitalized approximately 17,271 m of horizontal tunnels, raises and declines. Total exploration and development expenditures capitalized for the Ying Mining District were $5.7 million compared to $9.0 million in Q2 Fiscal 2015.

    For the six months ended September 30, 2015, in additional to approximately 39,212 m underground diamond drilling and 12,563 m preparation tunnelling, which were expensed and included in the mining preparation costs, Ying Mining District completed and capitalized approximately 35,790 m of

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    horizontal tunnel, raises, and declines. Total exploration and development expenditures capitalized for the Ying Mining District were $11.8 million in the six months ended September 30, 2015 compared to $17.1 million in the same prior year period.

    The operational results at the Ying Mining District for the past five quarters are summarized in the table below:

    Operational results - Ying Mining District          
      Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015
      30-Sep-15 30-Jun-15 31-Mar-15 31-Dec-14 30-Sep-14
    Ore Mined (tonne) 171,014 167,107 112,327 175,782 197,135  
    Ore Milled (tonne) 176,936 160,277 99,478 187,154 190,831  
    Head Grades            

    Silver (gram/tonne)

    		 246 250 268 253 223  

    Lead (%)

    		 3.8 3.6 3.7 3.6 3.3  

    Zinc (%)

    		 0.7 0.8 0.8 1.0 0.7  
    Recovery Rates            

    Silver (%)

    		 94.8 94.7 94.8 94.7 94.4  

    Lead (%)

    		 95.0 94.9 95.3 95.9 95.2  

    Zinc (%)

    		 55.1 53.5 52.4 66.8 56.7  
    Metal Sales            

    Silver (in thousands of ounce)

    		 1,132 1,190 822 1,421 1,251  

    Gold (in thousands of ounce)

    		 0.7 0.9 0.6 0.9 0.8  

    Lead (in thousands of pound)

    		 11,529 12,454 8,312 14,168 12,665  

    Zinc (in thousands of pound)

    		 1,459 1,529 875 2,531 1,944  
    Cash mining cost ($ per tonne ) 62.15 56.65 53.25 57.79 43.62  
    Total mining cost ($ per tonne ) 86.29 75.00 74.84 73.28 55.41  
    Cash milling cost ($ per tonne ) 11.55 12.98 16.20 13.63 12.77  
    Total milling cost ($ per tonne ) 13.70 15.40 20.09 15.77 14.85  

     

    2.      GC Mine, Guangdong Province, China

    Commercial production at GC mine commenced on July 1, 2014, and the trial mining operation results in Q1 Fiscal 2015 have been excluded from the consolidated operation results discussed above and revenue realized from metal sales during the trial period was offset against costs capitalized.

    The operational results at the GC mine for the past five quarters are summarized in the table below:

    Production results - GC Mine Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015
      30-Sep-15 30-Jun-15 31-Mar-15 31-Dec-14 30-Sep-14
    Ore Mined (tonne) 69,546 66,727 46,111 87,916 70,898  
    Ore Milled (tonne) 68,465 66,679 46,100 90,287 69,144  
    Head Grades            

    Silver (gram/tonne)

    		 107 93 107 104 107  

    Lead (%)

    		 1.4 1.7 1.2 1.3 1.4  

    Zinc (%)

    		 2.8 2.5 2.6 2.6 2.8  
    Recovery Rates            

    Silver (%)

    		 77.0 79.3 76.1 75.9 79.4  

    Lead (%)

    		 89.5 89.7 84.9 85.9 88.1   

    Zinc (%)

    		 82.7 85.1 80.0 80.6 81.0  
    Metal Sales            

    Silver (in thousands of ounce)

    		 128 181 99 251 97  

    Lead (in thousands of pound)

    		 1,632 2,420 867 2,500 1,428  

    Zinc (in thousands of pound)

    		 3,172 3,029 1,668 4,452 3,259  
    Cash mining cost ($ per tonne) 36.49 48.74 86.35 33.11 29.25  
    Total mining cost ($ per tonne) 44.68 56.83 132.41 55.20 51.69  
    Cash milling cost ($ per tonne) 15.81 15.52 42.70 15.82 17.59  
    Total milling cost ($ per tonne) 18.05 17.83 58.58 19.88 22.81  

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    Total ore mined at GC mine in Q2 Fiscal 2016 was 69,546 tonnes at a total mining cost and cash mining cost of $44.68 and $36.49, compared to 70,898 tonnes mined in Q2 Fiscal 2015 at a total mining cost and cash mining cost of $51.69 and $29.25. The increase in cash mining cost was mainly due to $0.6 million or $8.5 per tonne increase in mining preparation cost offset by $0.1 million or $1.7 per tonne in mining contractor’s cost.

    Total ore milled at GC mine in Q2 Fiscal 2016 was 68,465 at a total milling cost and cash milling cost of $18.05 and $15.81, compared to 69,144 tonnes milled in Q2 Fiscal 2015 at a total milling cost and cash milling cost of $22.81 and $17.59.

    The head grades at GC mine were 107 g/t for silver, 1.4% for lead, and 2.8% for zinc in Q2 Fiscal 2016, which are comparable to the head grades in Q2 Fiscal 2015.

    Recovery rates at GC mine were 77% for silver, 89.5% for lead, and 82.7% for zinc in Q2 Fiscal 2016 compared to 79.4% for silver, 88.1% for lead, and 81.0% for zinc, respectively in Q2 Fiscal 2015.

    In Q2 Fiscal 2016, in additional to approximately 6,882 m of underground diamond drilling and 677 m of preparation tunnelling, which were expensed and included in the mining preparation costs, GC mine completed and capitalized approximately 3,090 m of horizontal tunnels, raises and declines. Total exploration and development expenditures capitalized at the GC mine were $0.3 million compared to $1.9 million in Q2 Fiscal 2015.

    For the six months ended September 30, 2015, in additional to approximately 14,298 m of underground diamond drilling and 1,962 m of preparation tunnelling, which were expensed and included in the mining preparation costs, GC mine completed and capitalized approximately 6,459 m of horizontal tunnel, raises, and declines. Total exploration and development expenditures capitalized at the GC mine were $0.5 million in the six months ended September 30, 2015 compared to $2.3 million in the same prior year period.

    Alex Zhang, P.Geo., Vice President, Exploration, is the Qualified Person for Silvercorp under NI 43-101 and has reviewed and given consent to the technical information contained in this news release.

    This earnings release should be read in conjunction with the Company's Management Discussion & Analysis, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted on SEDAR at www.sedar.com and are also available on the Company's website at www.silvercorp.ca. All figures are in United States dollars unless otherwise stated.

    About Silvercorp

    Silvercorp is a low-cost silver-producing Canadian mining company with multiple mines in China. The Company's vision is to deliver shareholder value by focusing on the acquisition of under developed projects with resource potential and the ability to grow organically. For more information, please visit our website at www.silvercorp.ca.

    For further information
    Silvercorp Metals Inc.
    Lorne Waldman
    Senior Vice President
    Phone: (604) 669-9397
    Toll Free 1(888) 224-1881
    Email: investor@silvercorp.ca
    Website: www.silvercorp.ca

    CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS

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    Certain of the statements and information in this press 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 provincial securities laws. 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 or information. Forward-looking statements or information 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; 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.

    Forward-looking statements or information 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 or information, including, without limitation, risks relating to: 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; foreign exchange rate fluctuations; insurance; risks and hazards of mining operations; key personnel; conflicts of interest; dependence on management; internal control over financial reporting as per the requirements of the Sarbanes-Oxley Act; 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 or information. Forward-looking statements or information 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 or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company’s Annual Information Form for the year ended March 31, 2015 under the heading “Risk Factors”. 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 or information.

    The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information.

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    SILVERCORP METALS INC.            
     
    Condensed Consolidated Interim Balance Sheets          
    (Unaudited - Expressed in thousands of U.S. dollars)            
     
     
        As at September 30,     As at March 31,  
        2015     2015  
    ASSETS            
    Current Assets            

    Cash and cash equivalents

    		 $ 67,216   $ 60,179  

    Short-term investments

    		   3,439     9,343  

    Trade and other receivables

    		   1,846     1,278  

    Inventories

    		   9,928     6,899  

    Due from related parties

    		   147     33  

    Prepaids and deposits

    		   6,284     5,745  
        88,860     83,477  
     
    Non-current Assets            

    Long-term prepaids and deposits

    		   4,670     2,945  

    Reclamation deposits

    		   2,068     2,112  

    Investment in an associate

    		   3,362     3,449  

    Other investments

    		   614     892  

    Plant and equipment

    		   65,340     64,779  

    Mineral rights and properties

    		   214,439     214,792  
    TOTAL ASSETS $ 379,353   $ 372,446  
     
    LIABILITIES AND EQUITY            
    Current Liabilities            

    Accounts payable and accrued liabilities

    		 $ 34,256   $ 21,768  

    Mine right fee payable

    		   4,259     4,292  

    Deposits received

    		   5,783     8,303  

    Dividends payable

    		   -     674  

    Income tax payable

    		   673     662  
        44,971     35,699  
    Non-current Liabilities            

    Mine right fee payable

    		   9,650     9,746  

    Deferred income tax liabilities

    		   22,480     21,592  

    Environmental rehabilitation

    		   12,821     12,898  
    Total Liabilities   89,922     79,935  
    Equity            

    Share capital

    		   232,246     233,513  

    Share option reserve

    		   12,249     11,741  

    Reserves

    		   25,409     25,409  

    Accumulated other comprehensive loss

    		   (33,989 )   (26,697 )

    Deficit

    		   (1,244 )   (5,089 )
    Total equity attributable to the equity holders of the Company   234,671     238,877  
                 
    Non-controlling interests   54,760     53,634  
    Total Equity   289,431     292,511  
     
    TOTAL LIABILITIES AND EQUITY $ 379,353   $ 372,446  

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    SILVERCORP METALS INC.                        
     
    Condensed Consolidated Interim Statements of Income              
    (Unaudited - Expressed in thousands of U.S. dollars, except for per share figures)    
     
     
      Three Months Ended September 30,   Six Months Ended September 30,  
        2015     2014     2015     2014  
     
    Sales $ 27,213   $ 37,333   $ 59,433   $ 67,949  
    Cost of sales   18,385     18,894     39,149     33,857  
    Gross profit   8,828     18,439     20,284     34,092  
     
    General and administrative   4,907     6,099     10,251     10,867  
    Government fees and other taxes   1,847     1,396     3,196     2,977  
    Foreign exchange gain   (1,984 )   (1,594 )   (1,397 )   (469 )
    (Gain) loss on disposal of plant and equipment   (22 )   14     (15 )   14  
    Share of (gain) loss in associate   (179 )   (90 )   (101 )   42  
    Loss on investments   -     -     -     15  
    Other income   (124 )   (891 )   (114 )   (1,047 )
    Income from operations   4,383     13,505     8,464     21,693  
     
    Finance income   264     268     541     432  
    Finance costs   (139 )   (39 )   (471 )   (71 )
    Income before income taxes   4,508     13,734     8,534     22,054  
     
    Income tax expense   1,529     4,120     1,784     7,805  
    Net income $ 2,979   $ 9,614   $ 6,750   $ 14,249  
     
    Attributable to:                        

    Equity holders of the Company

    		 $ 2,234   $ 7,228   $ 4,530   $ 9,972  

    Non-controlling interests

    		   745     2,386     2,220     4,277  
      $ 2,979   $ 9,614   $ 6,750   $ 14,249  
     
    Earnings per share attributable to the equity holders of the Company
    Basic and diluted earnings per share    		 $ 0.01   $ 0.04   $ 0.03   $ 0.06  
    Weighted Average Number of Shares Outstanding - Basic and Diluted   170,307,013     170,881,836     170,593,834     170,883,808  

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    SILVERCORP METALS INC.                        
    Condensed Consolidated Interim Statements of Cash Flow                
    (Unaudited - Expressed in thousands of U.S. dollars)                      
     
      Three Months Ended September 30,       Six Months Ended September 30,  
        2015     2014       2015     2014  
    Cash provided by                          
    Operating activities                          

    Net income

    		 $ 2,979   $ 9,614     $ 6,750   $ 14,249  

    Add (deduct) items not affecting cash:

    		                          

    Unwinding of discount of environmental rehabilitation

    		   124     39       248     71  

    Depreciation, amortization and depletion

    		   4,400     5,269       9,377     8,692  

    Share of (gain) loss in associate

    		   (179 )   (90 )     (101 )   42  

    Income tax expense

    		   1,529     4,120       1,784     7,805  

    Finance income

    		   (264 )   (268 )     (541 )   (432 )

    Loss on investments

    		   -     -       -     15  

    (Gain) loss on disposal of plant and equipment

    		   (22 )   14       (15 )   14  

    Share-based compensation

    		   343     445       508     796  

    Income taxes refund (paid)

    		   56     (2,151 )     (303 )   (3,447 )

    Interest received

    		   264     268       541     432  

    Changes in non-cash operating working capital

    		   (4,599 )   2,845        (297 )   5,694  
    Net cash provided by operating activities   4,631     20,105       17,951     33,931  
     
    Investing activities                          

    Mineral rights and properties

    		                          

    Capital expenditures

    		   (1,364 )   (7,430 )     (8,730 )   (13,735 )

    Plant and equipment

    		                          

    Additions

    		   (2,272 )   (2,549 )     (2,990 )   (4,127 )

    Proceeds on disposals

    		   25     -       30     -  

    Reclamation deposit paid

    		   -     -       (9 )   -  

    Net redemptions of short-term investments

    		   5,658     (1,850 )     5,707     (119 )
    Net cash provided by (used in) investing activities   2,047     (11,829 )     (5,992 )   (17,981 )
     
    Financing activities                          

    Non-controlling interests

    		                          

    Distribution

    		   -     (2,563 )     -     (2,563 )

    Cash dividends distributed

    		   (638 )   (796 )     (1,323 )   (1,571 )

    Common shares repurchased as part of normal course issuer bid

    		   (1,267 )   -       (1,267 )   -  
    Net cash used in financing activities   (1,905 )   (3,359 )      (2,590 )   (4,134 )
    Effect of exchange rate changes on cash and cash equivalents   (2,990 )   (1,056 )     (2,332 )   244  
     
    Increase in cash and cash equivalents   1,783     3,861       7,037     12,060  
    Cash and cash equivalents, beginning of the period   65,433     68,813       60,179     60,614  
    Cash and cash equivalents, end of the period $ 67,216   $ 72,674     $ 67,216   $ 72,674  

    9




    SILVERCORP METALS INC.        
    Mining Data            
    (Expressed in thousands of U.S. dollars, except for mining data figures)    
     
     
      Three months ended September 30, 2015
      Ying Mining      
      District1   GC2   Total
                 
    Production Data          

    Mine Data

    		            

    Ore Mined (tonne)

    		 171,014    69,546   240,560  

    Ore Milled (tonne)

    		 176,936   68,465   245,401  
       

    + Mining cost per tonne of ore mined ($)

    		 86.29 44.68   74.26   

    Cash mining cost per tonne of ore mined ($)

    		 62.15 36.49   54.73  

    Non cash mining cost per tonne of ore mined ($)

    		 24.14   8.19   19.53  
     

    + Unit shipping costs($)

    		 4.25   -   3.02  
       

    + Milling cost per tonne of ore milled ($)

    		 13.70   18.05   14.91  

    Cash milling cost per tonne of ore milled ($)

    		 11.55   15.81   12.74  

    Non cash milling cost per tonne of ore milled ($)

    		 2.15   2.24   2.17  
       

    + Average Production Cost

    		            

    Silver ($ per ounce)

    		 7.77   7.40   7.89  

    Gold ($ per ounce)

    		 502   654   523  

    Lead ($ per pound)

    		 0.45   0.54   0.47  

    Zinc ($ per pound)

    		 0.37   0.47   0.39  
     

    + Total production cost per ounce of Silver ($)

    		 4.86   2.99   4.67

    + Total cash cost per ounce of Silver ($)

    		 1.88   (1.69 ) 1.52
     

    + All-in sustaining cost per ounce of Silver ($)

    		 9.88 13.73   12.40

    + All-in cost per ounce of Silver ($)

    		 12.06 14.80   14.47
     

    Recovery Rates

    		        

    Silver (%)

    94.8

    77.0

    		  

    89.8

    Lead (%)

    95.0

    89.5

    		  

    93.5

    Zinc (%)

    55.1

    82.7

    		  

    62.8
     

    Head Grades

    		        

    Silver (gram/tonne)

    246

    107

    		  

    207

    Lead (%)

    3.8

    1.4

    		  

    3.1

    Zinc (%)

    0.7

    2.8

    		  

    1.3
     

    Concentrate in stock

    		        

    Lead concentrate (tonne)

    2,228

    728

    		  

    2,956

    		  

    Zinc concentate (tonne)

    260

    456

    		  

    716

    		  
       
    Sales Data          

    Metal Sales

    		        

    Silver (in thousands of ounces)

    		 1,132 128   1,260  

    Gold (in thousands of ounces)

    		 0.7 -   0.7  

    Lead (in thousands of pounds)

    		 11,529 1,632   13,161  

    Zinc (in thousands of pounds)

    		 1,459 3,172   4,631  

    Other (in thousands of pound)

    		 - 14,317   14,317  
     

    Metal Sales

    		          

    Silver (in thousands of $)

    		 13,561 1,151   14,712  

    Gold (in thousands of $)

    		 506 13   519  

    Lead (in thousands of $)

    		 8,039 1,083   9,122  

    Zinc (in thousands of $)

    		 838 1,820   2,658  

    Other (in thousands of $)

    		 -   202   202    
      22,944   4,269   27,213    

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

    		          

    Silver ($ per ounce)

    		 11.98 9.02   11.68   

    Gold ($ per ounce)

    		 773 797   774   

    Lead ($ per pound)

    		 0.71 0.66   0.69   

    Zinc ($ per pound)

    		 0.57 0.57   0.57   

    1 Ying Mining District includes mines: SGX, TLP, HPG,LM, BCG and HZG.
    2 GC Silver recovery rate consists of 55.3% from lead concentrates and 21.7% from zinc concentrates.
    2 GC Silver sold in zinc concentrates is subjected to higher smelter and refining charges which lower the net silver selling price.
    +Non-IFRS measures.

    10




    SILVERCORP METALS INC.              
    Mining Data              
    (Expressed in thousands of U.S. dollars, except for mining data figures)      
     
     
        Three months ended September 30, 2014  
        Ying Mining            
        District1   BYP      GC   Total  
     
    Production Data              

    Mine Data

    		              
     

    Ore Mined (tonne)

    		 197,135   10,344 70,898   278,377  
     

    Ore Milled (tonne)

    		 190,831   18,296 69,144   278,271  
     
    + Mining cost per tonne of ore mined ($) 55.41   29.93 51.69   53.52  
     

    Cash mining cost per tonne of ore mined ($)

    		 43.62   23.38 29.25   39.21  
     

    Non cash mining cost per tonne of ore mined ($)

    		 11.79   6.55 22.44   14.31  
     
    + Unit shipping costs($) 4.38   - -   3.10  
     
    + Milling cost per tonne of ore milled ($) 14.85   11.73 22.81   16.62  
     

    Cash milling cost per tonne of ore milled ($)

    		 12.77   10.56 17.59   13.82  
     

    Non cash milling cost per tonne of ore milled ($)

    		 2.08   1.17 5.22   2.80  
     
    + Average Production Cost              
     

    Silver ($ per ounce)

    		 7.43   - 12.79   8.16  
     

    Gold ($ per ounce)

    		 383   227 -   441  
     

    Lead ($ per pound)

    		 0.36   - 0.58   0.39  
     

    Zinc ($ per pound)

    		 0.32   - 0.61   0.38  
     
    + Total production cost per ounce of Silver ($) 2.35     4.39   2.50  
    + Total cash cost per ounce of Silver ($) (0.16 )   (11.59 ) (0.98 )
     
    + Total production cost per ounce of Gold ($)     229     229  
    + Total cash cost per ounce of Gold ($)     386     386  
     
    + All-in sustaining cost per ounce of Silver ($)2 7.68   180.25 (4.21 ) 9.68  
    + All-in cost per ounce of Silver ($)2 23.49   205.25 6.65   25.05  
     
      Recovery Rates              
     

    Silver (%) 3

    		 94.4     79.4   90.4  
     

    Gold (%)

    		     89.1     89.1  
     

    Lead (%)

    		 95.2     88.1   93.3  
     

    Zinc (%)

    		 56.7     81.0   63.2  
     
      Head Grades              
     

    Silver (gram/tonne)

    		 223     107   192  
     

    Gold (gram/tonne)

    		     2.3     2.3  
     

    Lead (%)

    		 3.3     1.4   2.8  
     

    Zinc (%)

    		 0.7     2.8   1.2  
     

    Concentrate in stock

    		              
     

    Lead concentrate (tonne)

    		 430   - 528   958  
     

    Zinc concentate (tonne)

    		 40   - 238   278  
     
    Sales Data              

    Metal Sales

    		              
     

    Silver (in thousands of ounce)

    		 1,251   - 97   1,348  
     

    Gold (in thousands of ounce)

    		 0.8   0.1 -   0.9  
     

    Lead (in thousands of pound)

    		 12,665   - 1,428   14,093  
     

    Zinc (in thousands of pound)

    		 1,944   - 3,259   5,203  
     

    Other (in thousands of pound)

    		 -   - 11,343   11,343  

    Metal Sales

    		              
     

    Silver (in thousands of $)

    		 20,148   - 1,585   21,733  
     

    Gold (in thousands of $)

    		 655   94 -   749  
     

    Lead (in thousands of $)

    		 9,759   - 1,060   10,819  
     

    Zinc (in thousands of $)

    		 1,364   - 2,538   3,902  
     

    Other (in thousands of $)

    		 -   - 130   130  
        31,926   94 5,313   37,333  

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

    		              
     

    Silver ($ per ounce)

    		 16.11   - 16.35   16.12  
     

    Gold ($ per ounce)

    		 831   1,313 -   871  
     

    Lead ($ per pound)

    		 0.77   - 0.74   0.77  
     

    Zinc ($ per pound)

    		 0.70   - 0.78   0.75  
     

    Other ($ per pound)

    		 -   - 0.01   0.01  

    1 Ying Mining District includes mines: SGX, TLP, HPG&LM.
    2 BYP gold ounces converted to silver equivalent using a ratio of 50:1.
    3 GC silver recovery rate consist of 55.8% from lead concentrate and 23.6% from zinc concentrate.
    + Non-IFRS measures.

    11




    SILVERCORP METALS INC.      
    Mining Data            
    (Expressed in thousands of U.S. dollars, except for mining data figures)  
     
     
        Six months ended September 30, 2015
        Ying Mining    
        District1 GC2 Total
    Production Data      

    Mine Data

    		      
     

    Ore Mined (tonne)

    		 338,120 136,273 474,393
     

    Ore Milled (tonne)

    		 337,213 135,145 472,358
     
    + Mining cost per tonne of ore mined ($) 80.71 50.63 72.06
     

    Cash mining cost per tonne of ore mined ($)

    		 59.43 42.49 54.56
     

    Non cash mining cost per tonne of ore mined ($)

    		 21.28 8.14 17.50
     
    + Unit shipping costs($) 4.15 - 2.96
     
    + Milling cost per tonne of ore milled ($) 14.51 17.94 15.49
     

    Cash milling cost per tonne of ore milled ($)

    		 12.23 15.67 13.21
     

    Non cash milling cost per tonne of ore milled ($)

    		 2.28 2.27 2.28
     
    + Average Production Cost      
     

    Silver ($ per ounce)

    		 7.81 8.80 8.17
     

    Gold ($ per ounce)

    		 499 707 535
     

    Lead ($ per pound)

    		 0.44 0.61 0.47
     

    Zinc ($ per pound)

    		 0.39 0.55 0.41
     
    + Total production cost per ounce of Silver ($) 4.53 5.91 4.69
    + Total cash cost per ounce of Silver ($) 1.44 1.52 1.45
     
    + All-in sustaining cost per ounce of Silver ($) 9.52 11.04 11.65
    + All-in cost per ounce of Silver ($) 10.86 11.55 12.88
     
      Recovery Rates      
     

    Silver (%)

    		 94.7 77.5 89.8
     

    Lead (%)

    		 95.0 88.6 93.1
     

    Zinc (%)

    		 54.1 82.9 62.3
     
      Head Grades      
     

    Silver (gram/tonne)

    		 252 107 211
     

    Lead (%)

    		 3.7 1.4 3.0
     

    Zinc (%)

    		 0.8 2.8 1.3
     
    Concentrate in stock      
      Lead concentrate (tonne) 2,228 728 2,956
      Zinc concentate (tonne) 260 456 716
     
    Sales Data      

    Metal Sales

    		      
     

    Silver (in thousands of ounces)

    		 2,321 309 2,630
     

    Gold (in thousands of ounces)

    		 1.5 - 1.5
     

    Lead (in thousands of pounds)

    		 23,456 4,052 27,508
     

    Zinc (in thousands of pounds)

    		 2,831 6,201 9,032
     

    Other (in thousands of pound)

    		 - 26,532 26,532
     

    Metal Sales

    		      
     

    Silver (in thousands of $)

    		 29,523 3,107 32,630
     

    Gold (in thousands of $)

    		 1,230 23 1,253
     

    Lead (in thousands of $)

    		 16,691 2,812 19,503
     

    Zinc (in thousands of $)

    		 1,775 3,896 5,671
     

    Other (in thousands of $)

    		 -   376   376  
        49,219   10,214   59,433  

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

    		      
     

    Silver ($ per ounce)

    		 12.72 10.06 12.41
     

    Gold ($ per ounce)

    		 813 808 813
     

    Lead ($ per pound)

    		 0.71 0.69 0.71
     

    Zinc ($ per pound)

    		 0.63 0.63 0.63

    1 Ying Mining District includes mines: SGX, TLP, HPG,LM, BCG and HZG.
    2 GC Silver recovery rate consists of 55.3% from lead concentrates and 22.2% from zinc concentrates.
    2 GC Silver sold in zinc concentrates is subjected to higher smelter and refining charges which lower the net silver selling price.
    + Non-IFRS measures.

    12




    SILVERCORP METALS INC.            
    Mining Data                
    (Expressed in thousands of U.S. dollars, except for mining data figures)      
     
     
        Six months ended September 30, 2014  
        Ying Mining
    District1    		 BYP GC   Total  
     
    Production Data            

    Mine Data

    		            
     

    Ore Mined (tonne)

    		 370,619 46,547 70,898   488,064  
     

    Ore Milled (tonne)

    		 360,311 48,844 69,144   478,299  

     

    		        
    + Mining cost per tonne of ore mined ($) 56.79 30.46 51.69   53.53  
     

    Cash mining cost per tonne of ore mined ($)

    		 45.18 22.85 29.25   40.74  
     

    Non cash mining cost per tonne of ore mined ($)

    		 11.61 7.61 22.44   12.80  

     

    		        
    + Unit shipping costs($) 4.56 - -   3.46  
             
    + Milling cost per tonne of ore milled ($) 14.69 13.36 22.81   15.72  
     

    Cash milling cost per tonne of ore milled ($)

    		 12.49 12.27 17.59   13.20  
     

    Non cash milling cost per tonne of ore milled ($)

    		 2.20 1.09 5.22   2.52  

     

    		        
    + Average Production Cost            
     

    Silver ($ per ounce)

    		 7.51 - 12.79   7.96  
     

    Gold ($ per ounce)

    		 408 564 -   481  
     

    Lead ($ per pound)

    		 0.36 - 0.58   0.38  
     

    Zinc ($ per pound)

    		 0.32 - 0.61   0.36  
     

    Other ($ per pound)

    		  - - 0.01   0.01  

     

    		      
    + Total production cost per ounce of Silver ($) 2.62   4.39   2.69  
    + Total cash cost per ounce of Silver ($) 0.14   (11.59 ) (0.32 )
             
    + Total production cost per ounce of Gold ($)   565     565  
    + Total cash cost per ounce of Gold ($)   454     454  
             
    + All-in sustaining cost per ounce of Silver ($)2 8.44 19.54 (4.22 ) 10.74  
    + All-in cost per ounce of Silver ($)2 17.79 21.24 11.30   20.14  
             
      Recovery Rates            
     

    Silver (%) 3

    		 94.0   79.4   91.6  
     

    Gold (%)

    		   89.5     89.5  
     

    Lead (%)

    		 95.5   88.1   94.3  
     

    Zinc (%)

    		 56.7   81.0   60.6  

     

    		      
      Head Grades            
     

    Silver (gram/tonne)

    		 225   107   206  
     

    Gold (gram/tonne)

    		   2.6     2.6  
     

    Lead (%)

    		 3.3   1.4   3.0  
     

    Zinc (%)

    		 0.7   2.8   1.0  
     
    Concentrate in stock            
      Lead concentrate (tonne) 430 - 528   958  
      Zinc concentate (tonne) 40 - 238   278  
     
    Sales Data            

    Metal Sales

    		            
     

    Silver (in thousands of ounce)

    		 2,377 - 97   2,474  
     

    Gold (in thousands of ounce)

    		 1.6 2.7 -   4.3  
     

    Lead (in thousands of pound)

    		 24,194 - 1,428   25,622  
     

    Zinc (in thousands of pound)

    		 3,155 - 3,259   6,414  
     

    Other (in thousands of pound)

    		 - - 11,343   11,343  

     

    		        

    Metal Sales

    		            
     

    Silver (in thousands of $)

    		 37,927 - 1,585   39,512  
     

    Gold (in thousands of $)

    		 1,396 2,775 -   4,171  
     

    Lead (in thousands of $)

    		 18,412 - 1,060   19,472  
     

    Zinc (in thousands of $)

    		 2,126 - 2,538   4,664  
     

    Other(in thousands of $)

    		 -   -   130   130  
        59,861   2,775   5,313   67,949  

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

    		            
     

    Silver ($ per ounce)

    		 15.96 - 16.35   15.97  
     

    Gold ($ per ounce)

    		 867 1,024 -   965  
     

    Lead ($ per pound)

    		 0.76 - 0.74   0.76  
     

    Zinc ($ per pound)

    		 0.67 - 0.78   0.73  
     

    Other ($ per pound)

    		 - - 0.01   0.01  

    1 Ying Mining District includes mines: SGX, TLP, HPG&LM.
    2 BYP gold ounces converted to silver equivalent using a ratio of 50:1.
    3 GC silver recovery rate consist of 55.8% from lead concentrate and 23.6% from zinc concentrate.
    + Non-IFRS measures.

    13