Silvercorp Metals Inc.
TSX : SVM
NYSE : SVM

Silvercorp Metals Inc.

February 09, 2010 17:29 ET

Silvercorp Reports Net Income of $12.4 Million and Cash Flow of $15.9 Million in Third Quarter

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 9, 2010) - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)(NYSE:SVM) reports its unaudited financial and operating results for the third quarter ended December 31, 2009. The financial results are expressed in thousands of US dollars (US$) unless stated otherwise and all production figures are approximate.

THIRD QUARTER HIGHLIGHTS

During the quarter ended December 31, 2009 ("Q3 2010"), financial highlights included:

- Net earnings of $12.4 million, compared with a loss of $33.7 million in the same quarter last year, and up 39% compared to $8.9 million in the previous quarter ("Q2 2010");

- Earnings per share of $0.08, compared with a loss of $0.22 per share in the same quarter last year, and $0.02 higher compared to earnings per share of $0.06 in Q2 2010;

- Record silver production of 1.22 million ounces and 16.2 million pounds of lead, representing 12% and 10% increases, respectively, compared to the same quarter last year;

- Total production cost of negative $6.87 per ounce of silver and cash cost of negative $7.73 per ounce of silver, net credit of other metals, making Silvercorp an industry leading low-cost silver producer;

- Cash flows from operating activities of $15.9 million, or $0.10 per share;

- Paid $3.0 million in quarterly dividend payments; and

- Total cash, cash equivalents and short term investments increased to $87.8 million.

FINANCIALS

Sales revenue for the third quarter was $31.3 million, a 106% increase from $15.2 million in the same quarter last year. The increase is due to the partial recovery of commodity prices and an increase in production. For the quarter, a record of 1.22 million ounces of silver, 16.2 million pounds lead and 4.5 million pounds zinc were produced, representing increases of 12%, 10% and 50%, respectively, over the same quarter last year.

During the nine months ended December 31, 2009, the Company recorded sales of $78.9 million, an increase of $12.8 million or 19% compared with the nine months ended December 31, 2008. The quantity of silver, lead and zinc sold in this year period was 12%, 19%, and 26% higher, respectively, than a year ago. The respective silver and zinc selling prices have increased by 6% and 28% while the lead price decreased 3% compared to the prior year period.

Cost of sales for the quarter was $6.0 million, representing a 19% decrease compared to the same quarter last year. During the nine months ended December 31, 2009, cost of sales was $16.2 million, down 30% compared to a year ago. This is despite a greater quantity of metals sold in the quarter.

Gross profit margin this quarter improved to 77% from 35% in the same quarter last year.

Consolidated net income for this quarter was $12.4 million or $0.08 per share, representing an increase of 39% compared to $8.9 million or $0.06 per share in the previous quarter, and an increase of $46.1 million compared to the same quarter last year, as a net loss of $33.7 million was reported in Q3 2009 as a result of $47.4 million impairment charges.

For the nine months ended December 31, 2009 and 2008, gross profit margin was 76% and 56%, respectively.

Net income for the nine months ended December 31, 2009 was $28.8 million or $0.18 per share compared to a net loss of $17.2 million in the same period last year.

Cash and cash equivalents plus short-term investments increased by $22.3 million to $87.8 million since March 31, 2009 of $65.4 million. The 34% increase is mainly due to $42.2 million cash generated by operating activities, offset by $12.4 million of capital expenditures and $8.9 million of cash dividend payments.

OPERATIONS

Silvercorp mined 119,335 tonnes of ore during the third quarter, 2,610 tonnes less than the same quarter last year, as operations at the TLP, LM and HPG mines are still ramping up after being suspended at the end of 2008. The average grades of silver, lead and zinc have improved to 440.8g/t, 8.3% and 3.0% from 323.9g/t, 6.1% and 1.8% in the same period last year, respectively. Silvercorp achieved record silver production of 1.22 million oz.

Consolidated cash cost per ounce of silver for the third quarter improved to negative $7.73, compared with $0.25 per ounce of silver in the same quarter last year and negative $6.33 per ounce in the prior quarter. The improvement in cash cost per ounce of silver was driven by higher realized prices for by-product credits and operational improvements which reduced dilution and improved head grades at the Company's flagship Ying Mine.

During the quarter, production was primarily from the Ying Mine where 86,068 tonnes of ore was mined, an increase of 6% over the same quarter last year. Silver head grades at the Ying Mine improved to 489 g/t from 420 g/t in the prior year period.

The operating results for the past five quarters at the Ying Mine are summarized as follows:



---------------------------------------------------------------------------
Q3 2010 Q2 2010 Q1 2010 Q4 2009 Q3 2009
31-Dec-09 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
---------------------------------------------------------------------------
Ores Mined (tonne)
Direct Smelting Ores
(tonne) 3,357 3,550 3,773 2,610 3,114
Ores to be milled
(tonne) 82,711 79,713 82,475 55,232 77,968
----------------------------------------------------
86,068 83,263 86,248 57,842 81,082
---------------------------------------------------------------------------
Run of Mine Ores
(tonne)
Direct Smelting Ores
(tonne) 3,357 3,550 3,773 2,726 3,114
Ores Milled (tonne) 70,776 80,657 77,330 60,167 70,854
----------------------------------------------------
74,133 84,207 81,103 62,893 73,968
---------------------------------------------------------------------------
Head Grades of Run of
Mine Ores
Silver (gram/tonne) 488.5 452.5 488.1 486.7 420.2
Lead (%) 9.0 8.1 9.1 9.1 7.7
Zinc (%) 3.4 3.0 3.1 3.1 2.6
---------------------------------------------------------------------------
Recovery Rate of the
Run of Mine Ores
Silver (%) 91.0 92.8 93.3 93.1 93.0
Lead (%) 95.8 96.6 96.5 97.2 96.7
Zinc (%) 76.0 71.2 76.3 69.4 78.1
---------------------------------------------------------------------------
Cash Mining Cost
($ per tonne) 45.75 46.16 42.27 45.44 45.10
Total Mining Cost
($ per tonne) 56.90 54.71 52.70 58.71 61.60
Cash Milling Cost
($ per tonne) 10.45 9.19 10.84 10.57 10.32
Total Milling Cost
($ per tonne) 11.48 10.16 11.74 11.76 11.24
---------------------------------------------------------------------------
Production Cost per
Ounce of Silver,
adjusted for
by-product credits (7.47) (5.51) (4.19) (3.24) 0.18

Cash Cost per Ounce
of Silver, adjusted
for by-product credits (8.36) (6.24) (5.00) (3.62) (1.39)
---------------------------------------------------------------------------


NSR PRICES

The Net Smelter Return (NSR) prices (net of smelter charges and 17% value added tax) for the past five quarters are as follows:



----------------------------------------------------------------------------
December September June March December
31, 2009 30, 2009 30, 2009 31, 2009 31, 2008
----------------------------------------------------------------------------
Silver (US$/oz) 12.99 10.99 9.89 8.68 7.34
Gold (US$/oz) 572 627 573 648 449
Lead (US$/lb) 0.76 0.67 0.56 0.52 0.41
Zinc (US$/lb) 0.64 0.53 0.46 0.37 0.28
----------------------------------------------------------------------------


Compared to the quarter ended December 31, 2008, the NSR prices for silver, lead and zinc all increased as a result of improved quoted metal prices and reduced smelter charges. NSR prices of silver and lead were approximately 85% of quoted Shanghai metal prices, excluding a 17% value added tax.

OUTLOOK

The Company will begin production at its new mill within this quarter, which will first process about 50,000 tonnes of stockpiled ores from Ying, HPG, LM, and TLP. Once fully ramped it will process 1,200 to 1,500 tonnes of ore per day. The new mill, together with the existing 1,000 tpd mill, provides sufficient capacity to accommodate anticipated increases in mine production in fiscal 2011 as production from HPG, TLP and LM mines continue to increase as mine development progresses.

For the fiscal year 2011, the Company's production plan is to produce approximate 500,000 tonnes of ore at grades of 360 g/t silver, 8% lead, and 1.2% zinc to yield 5.3 million oz of silver, 83.7 million pounds of lead, and 10.3 million pounds of zinc.

Using the average metal prices in Q3 2010 and the above production projection, the Company's mining operations are projected to generate revenue of $140 million, resulting in expected cash flows from mine operations of $95 million to $100 million. Capital expenditures for fiscal 2011 are budged at $13 million at the Ying Mine Camp, including $7 million for the Ying mine, $4 million for the TLP mine and $2 million for the HPG and LM mines.

At the GC project in Guangdong Province, China, the Company is engaged in the environmental permitting process. The environmental permitting process has taken longer than expected as the environmental authorities in China are drafting new regulations to address heavy metal discharge concerns in response to several environmental accidents in the country. The new regulations are expected to be completed and implemented in the first half of 2010.

In the meantime, the Company is in the process of compiling a feasibility study, which includes detailed mine and mill designs.

Silvercorp continues to pursue future growth opportunities by carrying out an aggressive exploration program within the existing exploration and mining permit areas and seeking out acquisitions projects in China and other jurisdictions.

CONFERENCE CALL AND WEBCAST INFORMATION

A conference call and live audio webcast to discuss these results is scheduled as follows:



Date: Wednesday, February 10, 2010
Time: 9:00 am PT (12:00 noon ET)
Dial-In Number: 1-612-288-0329
Live audio webcast: www.silvercorp.ca (click on the link on the home page)
Playback webcast can be accessed at: www.silvercorp.ca


About Silvercorp Metals Inc.

Silvercorp Metals Inc., China's largest primary silver producer, is engaged in the acquisition, exploration and development of silver related mineral properties located in the People's Republic of China ("China"). Silvercorp Metals Inc. is operating and developing four Silver-Lead-Zinc mines at the highly profitable Ying Mining Camp, Henan Province, China. Silvercorp is also applying for a mining permit at its 95% owned GC & SMT property to profitably mine and produce silver, lead and zinc in Guangdong Province, China. The Company's common shares are included as a component of the S&P/TSX Composite and the S&P/TSX Global Mining Indexes.

CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS

Statements in this press release other than purely historical factual information, including statements relating to mineral resources and reserves, or the Company's future plans and objectives, or expected production levels, exploration, head grades, recovery rates, cash flows, acquisitions, and capital expenditures constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration, development, and mining. Production projections are based not on mineral reserves but on mineral resources which do not have demonstrated economic viability. There can be no assurance that such forward-looking statements, including those in the outlook section, will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on such statements. Except in accordance with applicable securities laws, the Company expressly disclaims any obligation to update any forward-looking statements or forward-looking statements that are incorporated by reference herein.



SILVERCORP METALS INC.
Unaudited Consolidated Balance Sheets
---------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars)

December 31, March 31,
2009 2009
---------------------------------------------------------------------------
---------------------------------------------------------------------------
ASSETS
Current Assets
Cash and cash equivalents $ 53,503 $ 41,470
Short term investments 34,267 23,962
Restricted cash - 732
Accounts receivable, prepaids and deposits 1,829 2,933
Inventories 6,327 1,529
Current portion of future income tax assets - 143
Amounts due from related parties 312 249
---------------------------------------------------------------------------
96,238 71,018

Long term prepaids 669 1,058
Long term investments 14,449 12,186
Restricted cash - 293
Plant and equipment 29,330 29,072
Mineral rights and properties 112,197 89,413
Future income tax assets 1,728 2,162
---------------------------------------------------------------------------
$ 254,611 $ 205,202
---------------------------------------------------------------------------
---------------------------------------------------------------------------

LIABILITIES

Current Liabilities
Accounts payable and accrued liabilities $ 9,747 $ 8,533
Deposits received 1,914 1,290
Bank loan and notes payable 2,930 658
Dividends payable 3,109 2,564
Income tax payable 1,952 3,041
Amounts due to related parties 117 7,353
---------------------------------------------------------------------------
19,769 23,439

Future income tax liabilities 19,470 19,678
Asset retirement obligations 2,124 2,029
---------------------------------------------------------------------------
41,363 45,146

Non-controlling interests 18,413 7,610

SHAREHOLDERS' EQUITY

Share capital 137,044 135,604
Contributed surplus 4,473 3,764
Reserves 31,893 31,893
Accumulated other comprehensive income (loss) 10,184 (10,167)
Retained earnings (Deficit) 11,241 (8,648)
---------------------------------------------------------------------------
194,835 152,446
---------------------------------------------------------------------------

$ 254,611 $ 205,202
---------------------------------------------------------------------------
---------------------------------------------------------------------------



SILVERCORP METALS INC.
Unaudited Consolidated Statement of Operations
---------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars, except for share and per share
figures)

Three months ended Nine months ended
December 31, December 31,
--------------------------------------------------

2009 2008 2009 2008
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Sales $ 31,283 $ 15,168 $ 78,940 $ 66,131
---------------------------------------------------------------------------

Cost of sales 6,010 7,439 16,157 23,046
Amortization and
depletion 1,043 2,489 2,796 6,259
---------------------------------------------------------------------------
7,053 9,928 18,953 29,305
---------------------------------------------------------------------------

Gross profit 24,230 5,240 59,987 36,826
---------------------------------------------------------------------------

Expenses
Accretion of asset
retirement
obligations 32 27 93 87
Amortization 407 354 776 794
Foreign exchange
loss (gain) 791 830 (643) (2,199)
General exploration
and property
investigation
expenses 941 196 4,207 1,825
Impairment charges
and bad debt - 47,433 698 47,800
Investor relations 131 87 312 441
General and
administrative 2,688 2,416 7,221 7,296
Professional fees 201 185 1,439 1,358
---------------------------------------------------------------------------
5,191 51,528 14,103 57,402
---------------------------------------------------------------------------
19,039 (46,288) 45,884 (20,576)

Other income and
expenses
Equity loss in
investment (107) (22) (325) (1,467)
Loss on disposal of
mineral rights and
property - (819) - (819)
Loss on disposal of
plant and equipment (244) (10) (1,371) (19)
Loss on held for
trading securities (10) - (22) -
Interest income 237 246 635 1,266
Other income 72 365 285 481
---------------------------------------------------------------------------
(52) (240) (798) (558)

Income (loss)
before income taxes
and non-controlling
interest 18,987 (46,528) 45,086 (21,134)

Income tax expense
(recovery)
Current 2,556 779 6,074 4,183
Future 125 (7,212) 351 (7,600)
---------------------------------------------------------------------------
2,681 (6,433) 6,425 (3,417)

Income (loss)
before
non-controlling
interests 16,306 (40,095) 38,661 (17,717)

Non-controlling
interests (3,897) 6,400 (9,874) 482
---------------------------------------------------------------------------

Net income (loss) $ 12,409 $ (33,695)$ 28,787 $ (17,235)
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Basic earnings
(loss) per share $ 0.08 $ (0.22)$ 0.18 $ (0.11)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Diluted earnings
(loss) per share $ 0.08 $ (0.22)$ 0.18 $ (0.11)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Weighted Average
Number of Shares
Outstanding - Basic 162,379,441 151,689,501 161,853,198 151,760,854
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Weighted Average
Number of Shares
Outstanding -
Diluted 163,912,759 151,689,501 163,487,318 151,760,854
---------------------------------------------------------------------------
---------------------------------------------------------------------------



SILVERCORP METALS INC.
Unaudited Consolidated Statements of Comprehensive Income
---------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars)


Three months ended Nine months ended
December 31, December 31,
--------------------------------------------------
2009 2008 2009 2008
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net income (loss) $ 12,409 $ (33,695)$ 28,787 $ (17,235)
Other comprehensive
income (loss), net of
taxes:
Unrealized gain (loss)
on available for sale
securities 101 (43) 135 (107)
Reclassification
adjustment for losses
included in income - - 195 -
Unrealized exchange
gain (loss) on
translation of
self-sustaining
foreign operations (624) 9,642 (11,229) 10,191
Unrealized exchange
gain(loss) on
translation of
functional currency
to reporting
currency 3,643 (23,343) 31,250 (29,634)
---------------------------------------------------------------------------
Other comprehensive
income (loss) 3,120 (13,744) 20,351 (19,550)
---------------------------------------------------------------------------
Comprehensive income
(loss) $ 15,529 $ (47,439)$ 49,138 $ (36,785)
---------------------------------------------------------------------------
---------------------------------------------------------------------------



SILVERCORP METALS INC.
Unaudited Consolidated Statements of Cash Flows
---------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars)

Three months ended Nine months ended
December 31, December 31,
---------------------------------------------------------------------------

2009 2008 2009 2008
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Cash provided by (used
for)
Operating activities
Net income (loss) for
the period $ 12,409 $ (33,695)$ 28,787 $ (17,235)
Add (deduct) items not
affecting cash :
Accretion of asset
retirement obligation 32 27 93 87
Amortization 1,450 2,843 3,572 7,053
Equity Investment loss 107 22 325 1,467
Future income tax
expenses (recovery) 125 (7,212) 351 (7,600)
Impairment charges and
bad debt - 47,433 698 47,800
Loss on held for
trading securities 10 - 22 -
Loss on disposal of
mineral property - 819 - 819
Loss on disposal of
plant and equipment 244 10 1,371 19
Non-controlling
interests 3,897 (6,400) 9,874 (482)
Stock-based
compensation 423 727 1,322 1,996
Unrealized foreign
exchange loss (gain) 48 2,523 (970) 3,494
---------------------------------------------------------------------------
18,745 7,097 45,445 37,418

Net change in non-cash
working capital
Accounts receivable and
prepaids 622 2,162 734 2,174
Inventory (2,288) (113) (4,596) (2,532)
Restricted cash - - 732 -
Accounts payable and
accrued liabilities (1,054) (621) 370 899
Income tax payable 1,041 653 (1,084) (61)
Deposits received (1,140) (669) 623 (1,538)
---------------------------------------------------------------------------
Cash provided by
operating activities 15,926 8,509 42,224 36,360
---------------------------------------------------------------------------

Investing activities
Acquisition,
exploration and
development
expenditures (3,290) (996) (11,031) (36,402)
Acquisition of plant
and equipment (574) (2,563) (1,382) (11,173)
Purchase of long term
investments - (145) (1,323) (145)
Decrease (increase) of
short term investments (4,532) (2,458) (5,251) 22,396
Decrease (increase) in
long term prepaids 1,360 (2,429) (638) (1,853)
Proceeds from disposal
of mineral rights and
properties - 814 - 814
Proceeds from disposal
of plant and equipment 14 2 133 2
---------------------------------------------------------------------------
Cash used in investing
activities (7,022) (7,775) (19,492) (26,361)
---------------------------------------------------------------------------

Financing activities
Repayment from (advance
to) related parties 49 (1,101) (56) 188
Bank loan - - 2,927 -
Repayment of bankers
acceptance - - (658) -
Distribution to
non-controlling
interest shareholder (3,898) - (7,191) (11,199)
Non-controlling
interest contribution - 215 - 215
Cash dividends
distributed (3,366) (2,990) (8,898) (2,990)
Share subscriptions for
cash, net of commission
and expenses 770 - 828 21
Repurchase of shares to
treasury for
cancellation - (421) - (9,473)
---------------------------------------------------------------------------
Cash used in financing
activities (6,445) (4,297) (13,048) (23,238)
---------------------------------------------------------------------------

Effect of exchange rate
changes on cash and
cash equivalents 1,228 (4,123) 2,349 (5,046)

Increased (decrease) in
cash and cash
equivalents 3,687 (7,686) 12,033 (18,285)

Cash and cash
equivalents, beginning
of period 49,816 36,494 41,470 47,093
---------------------------------------------------------------------------

Cash and cash
equivalents, end of
period $ 53,503 $ 28,808 $ 53,503 $ 28,808
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Supplemental
information:
Interest paid $ 23 $ - $ 116 $ 30
Income tax paid $ 1,517 $ - $ 7,175 $ 4,149

Non-cash investing
activities:
Common shares issued
for mineral rights
and properties $ - $ - $ - $ 36,485



SILVERCORP METALS INC.
Unaudited Consolidated Statements of Shareholders' Equity
---------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars, except for numbers of shares
figures)

Share capital
--------------------
Accum-
ulated Ret-
other ained
Contri- compre- earn- Total
buted hensive ings share-
Number of sur- Res- income (def- holders'
shares Amount plus erves (loss) icit) equity
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Balance, March
31, 2008 149,416,476 $ 78,334 $1,722 $ 2,078 $14,122 $52,736 $148,992
Options
exercised 4,482 35 (13) - - - 22
Shares issued
for property 4,532,543 36,485 - - - - 36,485
Financing 10,000,000 24,205 - - - - 24,205
Net of share
issuance costs - (1,570) - - - - (1,570)
Cancellation of
shares under
normal course
issuer bid (2,366,500) (1,885) (47) - - (7,542) (9,474)
Stock-based
compensation - - 2,102 - - - 2,102
Unrealized loss
on available
for sale
securities - - - - (155) - (155)
Appropriation
to reserves - - - 29,815 - (29,815) -
Cash dividends
declared and
distributed - - - - - (8,030) (8,030)
Loss of the
period - - - - - (15,997) (15,997)
Unrealized gain
on translation
of self-
sustaining
operation - - - - 11,270 - 11,270
Unrealized loss
on translation
functional
currency to
reporting
currency - - - - (35,404) - (35,404)
---------------------------------------------------------------------------
Balance, March
31, 2009 161,587,001 135,604 3,764 31,893 (10,167) (8,648) 152,446
Options
exercised 1,107,428 1,440 (613) - - - 827
Stock-based
compensation - - 1,322 - - - 1,322
Unrealized gain
on available
for sale
securities - - - - 135 - 135
Reclassification
adjustment for
losses included
in income - - - - 195 - 195
Cash dividends
declared and
distributed - - - - - (8,898) (8,898)
Income of the
period - - - - - 28,787 28,787
Unrealized loss
on translation
of self-
sustaining
operation - - - - (11,229) - (11,229)
Unrealized gain
on translation
functional
currency to
reporting
currency - - - - 31,250 - 31,250
---------------------------------------------------------------------------
Balance,
December 31,
2009 162,694,429 $137,044 $4,473 $31,893 $10,184 $11,241 $194,835
---------------------------------------------------------------------------
---------------------------------------------------------------------------



SILVERCORP METALS INC.
Mining Data
---------------------------------------------------------------------------

The following table summarizes historical operating information for each
mine and consolidated totals for the quarter ended December 31, 2009:

Three months ended December 31, 2009
----------------------------------------------------
Consol-
YING HPG TLP LM idation

Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ores
(tonne) 3,357 72 - - 3,428
Stockpiled Ores
(tonne) 82,711 8,629 15,995 8,571 115,907
---------------------------------------------------
86,068 8,701 15,995 8,571 119,335
----------------------------------------------------

Run of Mine Ore
(tonne)
Direct Smelting Ores
(tonne) 3,357 72 - - 3,428
Stockpiled Ores
Milled (tonne) 70,776 8,734 1,313 6,208 87,032
----------------------------------------------------
74,133 8,807 1,313 6,208 90,460
----------------------------------------------------

Mining cost per
tonne of ore mined
($) 56.90 66.13 60.40 53.70 57.81
Cash mining cost per
tonne of ore mined
($) 45.75 59.16 58.30 53.00 48.93
Non cash mining cost
per tonne of ore
mined ($) 11.15 6.97 2.10 0.70 8.88

Unit shipping costs
($) 3.60 3.90 2.80 2.10 3.38

Milling cost per
tonne of ore milled
($) 11.48 12.41 61.21 11.25 12.28
Cash milling cost
per tonne of ore
milled ($) 10.45 11.36 44.28 10.13 11.01
Non cash milling
cost per tonne of
ore milled ($) 1.02 1.06 16.92 1.12 1.27

Average Production
Cost
Silver ($ per ounce) 2.58 4.35 13.10 7.28 2.93
Gold ($ per ounce) 83.44 234.04 - 246.9 128.91
Lead ($ per pound) 0.15 0.26 0.87 0.35 0.17
Zinc ($ per pound) 0.13 0.19 - - 0.14

Total production
cost per ounce of
Silver ($) (7.47) (17.91) 15.00 5.62 (6.87)
Total cash cost per
ounce of Silver ($) (8.36) (19.11) 14.00 5.38 (7.73)

Total Recovery of
the Run of Mine Ores
Silver (%) 91.0 85.4 86.4 86.4 92.1
Lead (%) 95.8 94.5 90.5 80.9 96.7
Zinc ( %) 76.0 75.0 - - 75.9

Head Grades of Run
of Mine Ores
Silver (gram/tonne) 488.5 179.1 86.9 306.4 440.8
Lead (%) 9.0 7.0 2.7 2.1 8.3
Zinc (%) 3.4 1.5 - - 3.0

Sales Data
Metal Sales
Silver (in thousands
of ounce) 1,086 44 1 89 1,220
Gold (in thousands
of ounce) 0.2 0.3 - 0.0 0.5
Lead (in thousands
of pound) 14,327 1,366 11 508 16,211
Zinc (in thousands
of pound) 4,038 416 - - 4,454

Metal Sales
Silver ($) 14,094 555 11 1,184 15,844
Gold ($) 84 210 - 9 303
Lead ($) 10,917 1,037 8 321 12,283
Zinc ($) 2,618 235 - - 2,853
----------------------------------------------------
27,713 2,037 19 1,514 31,283
----------------------------------------------------
Average Selling
Price, Net of Value
Added Tax and
Smelter Charges
Silver ($ per ounce) 12.98 12.76 11.00 13.27 12.99
Gold ($ per ounce) 420.00 686.27 - 450.00 571.70
Lead ($ per pound) 0.76 0.76 0.73 0.63 0.76
Zinc ($ per pound) 0.65 0.56 - - 0.64



SILVERCORP METALS INC.
Mining Data
---------------------------------------------------------------------------

The following table summarizes historical operating information for each
mine and consolidated totals for the quarter ended December 31, 2008:

Three months ended December 31, 2008
----------------------------------------------------
Consol-
YING HPG TLP LM idation

Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ores
(tonne) 3,114 162 8 4 3,288
Stockpiled Ores
(tonne) 77,968 20,237 10,946 9,506 118,657
----------------------------------------------------
81,082 20,399 10,954 9,510 121,945
----------------------------------------------------

Run of Mine Ore
(tonne)
Direct Smelting Ores
(tonne) 3,114 162 8 4 3,288
Ores Milled (tonne) 70,854 23,692 10,563 10,118 115,227
----------------------------------------------------
73,968 23,854 10,571 10,122 118,515
----------------------------------------------------

Mining cost per
tonne of ore mined
($) 61.60 61.33 62.44 95.96 64.30
Cash mining cost per
tonne of ore mined
($) 45.10 30.44 44.40 44.96 42.57
Non cash mining cost
per tonne of ore
mined ($) 16.50 30.89 18.04 51.00 21.73

Unit shipping costs
($) 3.75 4.03 2.81 4.06 3.73

Milling cost per
tonne of ore milled
($) 11.24 14.49 13.36 18.14 12.70
Cash milling cost
per tonne of ore
milled ($) 10.32 13.40 11.74 18.14 11.76
Non cash milling
cost per tonne of
ore milled ($) 0.92 1.09 1.62 - 0.94

Average Production
Cost
Silver ($ per ounce) 3.49 10.55 8.77 9.81 4.81
Gold ($ per ounce) 161.62 631.58 467.33 726.36 294.24
Lead ($ per pound) 0.20 0.46 0.51 0.96 0.27
Zinc ($ per pound) 0.13 0.43 - - 0.19

Total production
cost per ounce of
Silver ($) 0.18 17.59 10.04 11.13 2.54
Total cash cost per
ounce of Silver ($) (1.39) 8.13 6.14 7.45 0.25

Total Recovery of
the Run of Mine Ores
Silver (%) 93.0 76.5 90.8 87.9 91.4
Lead (%) 96.7 92.6 87.0 86.8 95.4
Zinc ( %) 78.1 74.2 - - 77.6

Head Grades of Run
of Mine Ores
Silver (gram/tonne) 420.2 108.8 181.4 307.3 323.9
Lead (%) 7.7 4.6 2.8 1.9 6.1
Zinc (%) 2.6 1.2 - - 1.8

Sales Data
Metal Sales
Silver (in thousands
of ounce) 880 53 79 78 1,090
Gold (in thousands
of ounce) - 0.6 - - 0.6
Lead (in thousands
of pound) 11,419 2,003 972 398 14,792
Zinc (in thousands
of pound) 2,894 71 - - 2,965

Metal Sales
Silver ($) 6,481 401 555 570 8,007
Gold ($) 3 245 6 15 269
Lead ($) 4,708 659 397 283 6,047
Zinc ($) 823 22 - - 845
----------------------------------------------------
12,015 1,327 958 868 15,168
----------------------------------------------------

Average Selling
Price, Net of Value
Added Tax and
Smelter Charges
Silver ($ per ounce) 7.37 7.50 7.02 7.27 7.34
Gold ($ per ounce) 341.03 449.00 373.94 538.66 449.52
Lead ($ per pound) 0.41 0.33 0.41 0.71 0.41
Zinc ($ per pound) 0.28 0.31 - - 0.28



SILVERCORP METALS INC.
Mining Data
---------------------------------------------------------------------------

The following table summarizes historical operating information for each
mine and consolidated totals for the nine months ended December 31, 2009:

Nine months ended December 31, 2009
----------------------------------------------------
Consol-
YING HPG TLP LM idation

Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ores
(tonne) 10,680 216 8 - 10,904
Stockpiled Ores
(tonne) 244,899 23,100 27,724 19,093 314,816
----------------------------------------------------
255,579 23,316 27,732 19,093 325,720
----------------------------------------------------

Run of Mine Ore
(tonne)
Direct Smelting Ores
(tonne) 10,680 217 8 - 10,904
Ores Milled (tonne) 228,763 24,175 2,844 7,287 263,070
----------------------------------------------------
239,443 24,392 2,852 7,287 273,974
----------------------------------------------------

Mining cost per
tonne of ore mined
($) 54.83 54.68 64.43 59.61 55.91
Cash mining cost per
tonne of ore mined
($) 44.77 51.01 61.53 58.62 47.45
Non cash mining cost
per tonne of ore
mined ($) 10.06 3.67 2.90 0.99 8.46

Unit shipping
costs($) 3.53 3.65 2.88 2.42 3.42

Milling cost per
tonne of ore milled
($) 11.24 12.10 34.40 10.55 11.53
Cash milling cost
per tonne of ore
milled ($) 10.23 11.08 26.01 9.54 10.45
Non cash milling
cost per tonne of
ore milled ($) 1.00 1.03 8.38 1.01 1.08

Average Production
Cost
Silver ($ per ounce) 2.54 4.09 3.16 7.34 2.72
Gold ($ per ounce) 101.90 243.21 - - 140.05
Lead ($ per pound) 0.15 0.24 0.20 0.36 0.16
Zinc ($ per pound) 0.12 0.19 - - 0.13

Total production
cost per ounce of
Silver ($) (5.70) (13.75) (3.00) 5.66 (5.61)
Total cash cost per
ounce of Silver ($) (6.51) (14.52) (3.25) 5.42 (6.40)

Total Recovery of
the Run of Mine Ores
Silver (%) 91.3 85.7 85.4 86.0 92.6
Lead (%) 95.4 93.5 90.1 84.0 96.4
Zinc (%) 75.8 72.3 - - 75.7

Head Grades of Run
of Mine Ores
Silver (gram/tonne) 476.3 151.1 91.7 312.5 439.5
Lead (%) 8.7 6.3 4.8 2.6 8.4
Zinc (%) 3.2 1.2 - - 2.9

Sales Data
Metal Sales
Silver (in thousands
of ounce) 3,327 104 15 99 3,545
Gold (in thousands
of ounce) 0.4 0.7 - 0.0 1.1
Lead (in thousands
of pound) 43,428 3,236 201 588 47,453
Zinc (in thousands
of pound) 11,324 669 - - 11,993

Metal Sales -
Silver ($) 37,500 1,160 160 1,283 40,103
Gold ($) 190 464 1 10 665
Lead ($) 28,952 2,130 134 374 31,590
Zinc ($) 6,244 338 - - 6,582
----------------------------------------------------
72,886 4,092 295 1,667 78,940
----------------------------------------------------

Average Selling
Price, Net of Value
Added Tax and
Smelter Charges
Silver ($ per ounce) 11.27 11.15 10.39 12.96 11.31
Gold ($ per ounce) 452.38 662.86 - 500.00 583.33
Lead ($ per pound) 0.67 0.66 0.67 0.64 0.67
Zinc ($ per pound) 0.55 0.51 - - 0.55



SILVERCORP METALS INC.
Mining Data
---------------------------------------------------------------------------

The following table summarizes historical operating information for each
mine and consolidated totals for the nine months ended December 31, 2008:

Nine months ended December 31, 2008
----------------------------------------------------
Consol-
YING HPG TLP LM idation

Production Data
Mine Data
Ore Mined (tonne)
Direct Smelting Ores
(tonne) 8,572 490 95 71 9,228
Stockpiled Ores
(tonne) 223,920 52,870 58,472 34,844 370,106
----------------------------------------------------
232,492 53,360 58,567 34,915 379,334
----------------------------------------------------

Run of Mine Ore
(tonne)
Direct Smelting Ores
(tonne) 8,572 490 95 71 9,228
Ores Milled (tonne) 215,037 59,334 62,499 30,074 366,944
----------------------------------------------------
223,609 59,824 62,594 30,145 376,172
----------------------------------------------------

Mining cost per
tonne of ore mined
($) 67.95 74.48 56.79 109.45 71.58
Cash mining cost per
tonne of ore mined
($) 52.68 44.75 48.26 68.73 52.81
Non cash mining cost
per tonne of ore
mined ($) 15.27 29.73 8.53 40.72 18.77

Unit shipping costs
($) 3.61 4.03 2.11 4.75 3.54

Milling cost per
tonne of ore milled
($) 11.58 13.10 13.89 17.88 12.67
Cash milling cost
per tonne of ore
milled ($) 10.64 11.97 12.67 17.88 11.73
Non cash milling
cost per tonne of
ore milled ($) 0.94 1.13 1.22 - 0.94

Average Production
Cost
Silver ($ per ounce) 3.62 7.37 9.88 14.44 4.72
Gold ($ per ounce) 129.02 396.82 372.59 728.07 244.28
Lead ($ per pound) 0.24 0.45 0.60 0.92 0.31
Zinc ($ per pound) 0.15 0.27 - - 0.19

Total production
cost per ounce of
Silver ($) (3.21) 0.34 9.31 9.73 (1.02)
Total cash cost per
ounce of Silver ($) (4.45) (6.78) 5.46 6.02 (3.01)

Total Recovery of
the Run of Mine Ores
Silver (%) 90.6 81.6 84.2 88.1 89.0
Lead (%) 95.5 93.2 80.4 86.8 93.7
Zinc ( %) 78.6 71.4 - - 78.0

Head Grades of Run
of Mine Ores
Silver (gram/tonne) 363.4 155.9 162.3 307.2 291.7
Lead (%) 6.3 5.9 2.4 2.0 5.2
Zinc (%) 2.7 0.9 - - 1.8

Sales Data
Metal Sales
Silver (in thousands
of ounce) 2,477 187 246 243 3,153
Gold (in thousands
of ounce) - 1 - - 1
Lead (in thousands
of pound) 30,764 5,338 2,699 1,083 39,884
Zinc (in thousands
of pound) 9,257 227 - - 9,484

Metal Sales
Silver ($) 26,379 1,982 2,630 2,606 33,597
Gold ($) 27 790 33 45 895
Lead ($) 21,593 3,461 1,762 738 27,554
Zinc ($) 3,996 89 - - 4,085
----------------------------------------------------
51,995 6,322 4,425 3,389 66,131
----------------------------------------------------
Average Selling
Price, Net of Value
Added Tax and
Smelter Charges
Silver ($ per ounce) 10.65 10.58 10.71 10.71 10.65
Gold ($ per ounce) 379.67 569.60 403.99 539.93 551.26
Lead ($ per pound) 0.70 0.65 0.65 0.68 0.69
Zinc ($ per pound) 0.43 0.39 - - 0.43


Contact Information

  • Silvercorp Metals Inc.
    Rui Feng
    Chairman & CEO
    (604) 669-9397 or Toll Free: 1 (888) 224-1881
    or
    Silvercorp Metals Inc.
    Lorne Waldman
    Corporate Secretary
    (604) 669-9397 or Toll Free: 1 (888) 224-1881
    (604) 669-9387 (FAX)
    info@silvercorp.ca
    www.silvercorp.ca