Silvercorp Reports Financial And Operating Results
For The First Quarter Of Fiscal 2013 And Updates Production Guidance
VANCOUVER,
British Columbia � August 2, 2012 � Silvercorp Metals Inc. (�Silvercorp�
or the �Company�) (TSX:SVM) (NYSE: SVM) today reported its unaudited financial and operating results
for the first quarter ended June
30, 2012 (�Q1 2013�). The Company also updated its production guidance for Fiscal Year
2013.
FIRST
QUARTER HIGHLIGHTS
- Silver production of 1.2 million ounces;
- Gold production of 2,653 ounces;
- Sales of $44.5 million, with
an average net realized
silver price of
$22.97 per ounce;
- Adjusted net income of $8.1
million, or $0.05 per share;
- Cash flow from operations
of $19.3 million, or $0.11 per share;
- Total production and cash costs
of $2.49 and $0.16 per ounce of silver, respectively, at the Ying Mining
District;
- Filed an updated NI 43-101 Technical Report for the Ying Mining
District with a 28% increase
in contained silver
in Measured and Indicated
Resources and a 36% gain in contained silver in Proven and Probable Reserves.
Based on the Proven
and Probable reserves, the Ying Mining District is expected to produce, on average, approximately 6
million ounces of silver
per annum for the next
10 years until 2023;
and
- Payment of $4.3 million, or CAD$0.025 per share, in quarterly dividends to shareholders.
Please click here to view the full release including
financial tables
CONFERENCE CALL AND
WEBCAST INFORMATION
A conference call and
live audio webcast to discuss
these results is scheduled as follows:
Date: Friday,
August 3, 2012
Time: 8:00
am PT (11:00 am ET)
Dial-In Number: 1-612-332-0226
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. is engaged in the acquisition, exploration, development and mining of
high-grade silver-related mineral
properties in China and Canada. Silvercorp
is the largest primary silver producer in China through the operation of the four silver-lead-zinc
mines at the Ying Mining
District in the Henan Province of China. Silvercorp
is currently building the
GC silver-lead-zinc project
in Guangdong Province as its second China
production base and foothold, and this will be
followed by the third
production foothold at
the recently acquired BYP
gold-lead-zinc project in Hunan Province. In
Canada, Silvercorp is preparing to apply for a Small
Mine Permit for the Silvertip high grade silver-lead-zinc mine project
in northern British Columbia to provide
a further platform for growth and geographic
diversification. The Company�s shares
are traded on the New York Stock Exchange and
Toronto Stock Exchange and are included as a
component of the S&P/TSX Composite and the S&P/TSX Global Mining Indexes.
For
further information: SILVERCORP
METALS INC., Rui Feng, Chairman & CEO and
Jonathan Hackshaw, Investor
Relations Director, Phone: (604) 669-9397, Fax:
(604) 669-9387, Toll Free 1(888) 224-1881, Email: info@silvercorp.ca, Website:
www.silvercorp.ca.
Myles Gao, P.Geo., President and Chief Operating Officer of Silvercorp, is a Qualified Person for Silvercorp
under NI 43-101 and has reviewed
and given consent to the technical
information contained in this
News Release.
CAUTIONARY
DISCLAIMER - FORWARD LOOKING STATEMENTS
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 licenses; title to properties; First
Nations title claims and rights;
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, 2012
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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