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Silvercorp Metals surpasses fiscal 2020 production guidance despite pandemic shutdown

The miner ramped up operations in March to full capacity with no cases of coronavirus reported among its employees

Silvercorp Metals Inc -
The company reported production figures from its Ying Mining district and GC Mine in China

Silvercorp Metals Inc (TSE:SVM) (NYSEAMERICAN:SVM) hit its full year production guidance despite an extended shutdown in its fourth quarter, the miner reported Thursday.

The achievement comes as operations in China were suspended for around six weeks in light of the global coronavirus pandemic. Once operations reopened in March, production was ramped up to full capacity with no employee infections, Silvercorp said in a statement.

The firm mined a total of 75,199 tons of ore during the month of March, around 95% of its full capacity compared to a fully operational month.

READ: Silvercorp Metals to buy Guyana Goldfields Inc, which runs Aurora gold mine, in C$105M deal

Silver, led, and zinc production surpassed Silvercorp’s fiscal 2020 guidance, according to the output figures released Thursday. The company produced 6.3 million ounces of silver, which was 3% higher than its target, and lead production also came in at 3% higher with 67.4 million pounds produced. Total zinc production was much higher at 17%, with 25.6 million pounds produced.

Fiscal 2020 production at the Ying Mining district was approximately 5.6 million ounces of silver, 56.4 million pounds of lead, and 7.3 million pounds of zinc. The company mined 598,197 tons and milled 601,605 tons at the Ying Mining District, with average head grades of 309 grams per ton silver, 4.6% lead and 0.9% zinc.

At its GC Mine, Silvercorp produced 700,000 ounces of silver, 10.9 million pounds of lead, and 18.2 million pounds of zinc over the 12-month period. Ore mined at GC was 287,633 tons with 290,610 tons milled, containing average head grades of 97 g/t silver, 1.9% lead and 3.3% zinc.

Fourth quarter results

During its fourth quarter ended March 31, 2020, Ying mined 69,379 tons of ore compared to 111,032 tons over the comparable, fully operational period a year earlier. GC production figures came in at 37,216 tons compared to 50,366 tons in the fourth quarter in 2019.

The Vancouver-based company reiterated its fiscal 2021 production guidance of 930,000-970,000 tons of ore, yielding 6.2 million to 6.5 million ounces of silver, 66.1 million to 68.5 million pounds of lead, and 24.5 million to 26.7 million pounds of zinc.

The miner's fiscal 2021 production guidance represents an increase of approximately 2% to 7% in silver production, 2% to 5% in lead production, and 12% to 22% in zinc production compared to the current fiscal 2020 annual guidance.

SIlvercorp is planning to release its audited financial and operating results for fiscal 2020 on May 21.

The company recently announced its plan to acquire gold company Guyana Goldfields in a C$105 million deal.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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TSX:SVM
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