EX-99.2 3 exhibit99-2.htm NEWS RELEASE DATED OCTOBER 14, 2021 - Q2 FY2022 Exhibit 99.2

Exhibit 99.2

 

NEWS RELEASE

Trading Symbol: TSX: SVM
  NYSE AMERICAN: SVM

SILVERCORP REPORTS OPERATIONAL RESULTS AND THE FINANCIAL RESULTS RELEASE DATE FOR THE SECOND QUARTER OF FISCAL 2022

VANCOUVER, British Columbia – October 14, 2021 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX/NYSE American: SVM) reports production and sales figures for the second quarter of fiscal year 2022 ended September 30, 2021 (“Q2 Fiscal 2022”). The Company expects to release its Q2 Fiscal 2022 unaudited financial results on Thursday, November 4, 2021 after market close.

In Q2 Fiscal 2022, the Company increased production to approximately 1.7 million ounces of silver, 800 ounces of gold, 17.6 million pounds of lead, and 7.5 million pounds of zinc, representing increases of 15%, 11%, and 4%, respectively, in silver, lead and zinc, and a decrease of 20% in gold over the first quarter ended June 30, 2021 (“Q1 Fiscal 2022”). At the Ying Mining District, ore mined in Q2 Fiscal 2022 was 206,933 tonnes, up 64,026 tonnes or 45% over Q1 Fiscal 2022. Ore milled was 182,173 tonnes, up 26,766 tonnes or 17% over Q1 Fiscal 2022, but 24,760 tonnes lower than mined as a result of transportation interruptions caused by lengthy heavy rains in Q2 Fiscal 2022. The Company expects to maintain a similar mining production rate and increase the milling tonnage at the Ying Mining District in the next quarter.

For the first six months of Fiscal 2022, the Company produced approximately 3.2 million ounces of silver, 1,800 ounces of gold, 33.5 million pounds of lead, and 14.7 million pounds of zinc. The Company is on track to meet its annual guidance to produce between 6.3 - 6.6 million ounces of silver, 65.7 –68.9 million pounds of lead, and 26.9 – 28.5 million pounds of zinc in Fiscal 2022.

Q2 FISCAL 2022 OPERATING HIGHLIGHTS

  • At the Ying Mining District, ore mined was 206,933 tonnes, up 14% over the same prior year quarter (“Q2 Fiscal 2021”), and ore milled was 182,173 tonnes, up 2% over Q2 Fiscal 2021.
    Approximately 1.5 million ounces of silver, 800 ounces of gold, 14.7 million pounds of lead, and 1.6 million pounds of zinc were produced, representing decreases of 1% in silver, 27% in gold, 9% in lead, and 4% in zinc over Q2 Fiscal 2021 as 24,760 tonnes or 12% of ore mined in the current quarter have yet to be processed due to the heavy rains.

  • At the GC Mine, ore mined was 85,535 tonnes, down 1% over Q2 Fiscal 2021, and ore milled was 89,643 tonnes, up 6% over Q2 Fiscal 2021. Approximately 179 thousand ounces of silver, 2.9 million pounds of lead, and 5.9 million pounds of zinc were produced, representing an increase of 7% in zinc, and decreases of 2% in silver and 2% in lead over Q2 Fiscal 2021.

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  • On a consolidated basis, ore mined was 292,468 tonnes, up 9% over Q2 Fiscal 2021, and ore milled was 271,816 tonnes, up 3% over Q1 Fiscal 2021. Approximately 1.7 million ounces of silver, 800 ounces of gold, 17.6 million pounds of lead, and 7.5 million pounds of zinc were produced, representing decreases of 1%, 27%, and 8%, respectively, in silver, gold and lead, and an increase of 5% in zinc over Q2 Fiscal 2021.

  • On a consolidated basis, the Company sold approximately 1.7 million ounces of silver, 800 ounces of gold, 17.3 million pounds of lead, and 7.6 million pounds of zinc, representing decreases of 1%, 64%, and 7%, respectively, in silver, gold and lead sold, and an increase of 3% in lead sold over Q2 Fiscal 2021. Gold sold in Q2 Fiscal 2021 included 1,200 ounces from the BYP Mine.

The consolidated operational results for the past five quarters are summarized as follows:

Consolidated Q2 F2022   Q1 F2022   Q4 F2021   Q3 F2021   Q2 F2021     Six months ended September 30,
  September 30, 2021   June 30, 2021   March 31, 2021   December 31, 2020   September 30, 2020     2021   2020  
Production Data                              

Ore Mined (tonne)

 292,468   231,235   163,072   279,445   267,853     523,703   522,408  

Ore Milled (tonne)

 271,816   243,077   180,674   260,648   263,933     514,893   526,259  
                               

Head Grades

                              

Silver (gram/tonne)

 214   207   228   216   221     211   225  

Lead (%)

 3.2   3.2   3.3   3.2   3.5     3.2   3.6  

Zinc (%)

 1.6   1.7   1.5   1.8   1.6     1.6   1.6  
                               

Recovery Rates

                              

Silver (%)

 94.1   93.2   92.5   92.3   93.0     93.7   93.1  

Lead (%)

 94.5   94.6   94.3   95.3   94.9     94.5   95.1  

Zinc (%)

 79.3   80.7   79.0   82.4   78.0     79.9   78.9  
                               
Metal production                              

Silver (in thousands of ounces)

 1,696   1,474   1,195   1,676   1,707     3,169   3,459  

Gold (in thousands of ounces)

 0.8   1.0   0.3   0.9   1.1     1.8   2.2  

Lead (in thousands of pounds)

 17,613   15,878   12,156   17,111   19,086     33,491   39,163  

Zinc (in thousands of pounds)

 7,483   7,198   4,672   8,673   7,133     14,681   14,666  
                               
Metals sold                              

Silver (in thousands of ounces)

 1,729   1,642   1,056   1,647   1,740     3,371   3,612  

Gold (in thousands of ounces)

 0.8   1.0   0.7   0.8   2.2     1.8   3.3  

Lead (in thousands of pounds)

 17,319   16,810   10,876   16,806   18,551     34,129   39,436  

Zinc (in thousands of pounds)

 7,626   7,255   4,580   8,965   7,411     14,881   14,369  

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

Ying Mining District Q2 F2022   Q1 F2022   Q4 F2021   Q3 F2021   Q2 F2021     Six months ended September 30,
  September 30, 2021   June 30, 2021   March 31, 2021   December 31, 2020   September 30, 2020     2021   2020  
Production Data                              

Ore Mined (tonne)

 206,933   142,907   112,561   182,268   181,020     349,840   355,196  

Ore Milled (tonne)

 182,173   155,407   131,725   162,905   179,083     337,580   356,772  
                               

Head Grades

                              

Silver (gram/tonne)

 283   279   280   297   288     281   290  

Lead (%)

 4.0   4.2   3.9   4.3   4.4     4.1   4.5  

Zinc (%)

 0.7   0.8   0.8   0.8   0.7     0.8   0.8  
                               

Recovery Rates

                              

Silver (%)

 95.4   94.7   93.7   93.9   94.4     95.1   94.6  

Lead (%)

 95.5   95.7   95.1   96.4   96.1     95.6   96.1  

Zinc (%)

 56.0   59.7   65.0   63.3   57.9     57.8   60.9  
                               
Metal production                              

Silver (in thousands of ounces)

 1,517   1,283   1,083   1,464   1,525     2,800   3,068  

Gold (in thousands of ounces)

 0.8   1.0   0.3   0.9   1.1     1.8   2.2  

Lead (in thousands of pounds)

 14,671   13,278   10,504   14,361   16,080     27,949   33,021  

Zinc (in thousands of pounds)

 1,584   1,519   1,496   1,857   1,643     3,103   3,563  
                               
Metals sold                              

Silver (in thousands of ounces)

 1,553   1,447   936   1,446   1,556     3,000   3,228  

Gold (in thousands of ounces)

 0.8   1.0   0.7   0.8   1.0     1.8   2.1  

Lead (in thousands of pounds)

 14,436   14,175   9,137   14,207   15,585     28,611   33,364  

Zinc (in thousands of pounds)

 1,617   1,521   1,306   2,241   1,384     3,138   3,421  

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

GC Mine Q2 F2022   Q1 F2022   Q4 F2021   Q3 F2021   Q2 F2021     Six months ended September 30,
  September 30, 2021   June 30, 2021   March 31, 2021   December 31, 2020   September 30, 2020     2021   2020  
Production Data                              

Ore Mined (tonne)

 85,535   88,328   50,511   97,177   86,833     173,863   167,212  

Ore Milled (tonne)

 89,643   87,670   48,949   97,743   84,850     177,313   169,487  
                               

Head Grades

                              

Silver (gram/tonne)

 73   80   87   82   81     77   87  

Lead (%)

 1.7   1.5   1.7   1.4   1.8     1.6   1.8  

Zinc (%)

 3.3   3.3   3.3   3.5   3.4     3.3   3.4  
                               

Recovery Rates

                              

Silver (%)

 84.4   84.1   81.9   82.6   82.5     84.2   82.7  

Lead (%)

 89.5   89.3   89.7   89.6   89.2     89.4   89.5  

Zinc (%)

 89.6   89.3   88.2   89.7   87.3     89.5   87.3  
                               
Metal production                              

Silver (in thousands of ounces)

 179   190   112   212   182     369   391  

Lead (in thousands of pounds)

 2,942   2,600   1,652   2,750   3,006     5,542   6,142  

Zinc (in thousands of pounds)

 5,899   5,679   3,176   6,816   5,490     11,578   11,103  
                               
Metals sold                              

Silver (in thousands of ounces)

 176   195   120   201   184     371   384  

Lead (in thousands of pounds)

 2,883   2,635   1,739   2,599   2,966     5,518   6,072  

Zinc (in thousands of pounds)

 6,009   5,734   3,274   6,724   6,027     11,743   10,948  

About Silvercorp

Silvercorp is a profitable Canadian mining company producing silver, lead and zinc metals in concentrates from mines in China. The Company’s goal is to continuously create healthy returns to shareholders through efficient management, organic growth and the acquisition of profitable projects.

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Silvercorp balances profitability, social and environmental relationships, employees’ wellbeing, and sustainable development. For more information, please visit our website at www.silvercorp.ca.

For further information
Silvercorp Metals Inc.
Lon Shaver
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

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 provincial 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.

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: social and economic impacts of COVID-19; 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; legislative and regulatory initiatives addressing global climate change or other environmental concerns; 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”. 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,

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beliefs, expectations or opinions should change, or changes in any other events affecting such statements. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

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