Silvercorp Metals Inc. (Silvercorp) is a Canadian mining company producing silver, gold, lead, zinc, and other metals.
The company’s strategy is to create shareholder value by focusing on generating free cash flow from long-life mines; growth through extensive drilling for discovery; ongoing merger and acquisition efforts to unlock value; and a long-term commitment to responsible mining and sound environmental, social, and governance (‘ESG’). Silvercorp operates several silver-lead-zinc mines a...
Silvercorp Metals Inc. (Silvercorp) is a Canadian mining company producing silver, gold, lead, zinc, and other metals.
The company’s strategy is to create shareholder value by focusing on generating free cash flow from long-life mines; growth through extensive drilling for discovery; ongoing merger and acquisition efforts to unlock value; and a long-term commitment to responsible mining and sound environmental, social, and governance (‘ESG’). Silvercorp operates several silver-lead-zinc mines at the Ying Mining District in Henan Province, China; and the GC silver-lead-zinc mine in Guangdong Province, China.
On April 26, 2024, Silvercorp entered into a definitive arrangement agreement with Adventus Mining Corporation (‘Adventus’) (‘Arrangement Agreement’), pursuant to which Silvercorp agreed to acquire all of the issued and outstanding common shares of Adventus (‘Transaction’) by way of a plan of arrangement.
Concurrent with entering into the Arrangement Agreement, Silvercorp and Adventus entered into an investment agreement pursuant to which Silvercorp subscribed for 67,441,217 Adventus Shares (the “Adventus Placement”). The Adventus Placement was completed on May 1, 2024, and the company holds approximately 15% of the total issued and outstanding shares of Adventus.
Key Developments
Fiscal 2024 (year ended March 31, 2024)
For the year ended March 31, 2024, on a consolidated basis, the company mined 1,117,118 tonnes of ore. Ore milled in Fiscal 2024 was 1,106,195 tonnes of ore. A total of 58,262 tonnes of gold ore was processed in Fiscal 2024.
In Fiscal 2024, the company produced approximately 7,268 ounces of gold, 6.2 million ounces of silver, plus 63.2 million pounds of lead, and 23.4 million pounds of zinc.
The company announced on May 15, 2023, the signing of the non-binding term sheet (‘Term Sheet’) with Celsius Resources Limited (‘Celsius’) regarding a proposed transaction, pursuant to which Silvercorp would acquire all of the issued and outstanding shares of Celsius.
On September 15, 2023, the company announced a normal course issuer bid, which allowed the company to acquire up to 8,487,191 common shares of the company, representing approximately 4.8% of the common shares issued and outstanding as of September 5, 2023 (‘2023 NCIB’).
On August 6, 2023, the company announced the signing of a binding scheme implementation deed, whereby Silvercorp would acquire all of the ordinary shares of OreCorp Limited.
In January 2024, Silvercorp and Tincorp Metals Inc. (‘Tincorp’), a Canadian public company in which the company has 29.7% ownership, entered into an interest-free unsecured credit facility agreement with no conversion features.
Production
Ying Mining District
The Ying Mining District is the company’s primary source of production, and consists of four mining licenses, including the SGX-HZG, HPG, TLP-LME-LMW, and DCG mines.
In Fiscal 2024, a total of 827,112 tonnes of ore was mined at the Ying Mining District, and 816,145 tonnes of ore were milled.
Average head grades of ore processed were 231 g/t for silver, 3.4% for lead, and 0.7% for zinc.
Metals produced at the Ying Mining District were approximately 7,268 ounces of gold, 5.7 million ounces of silver, 56.3 million pounds of lead, and 8.2 million pounds of zinc.
GC Mine
In Fiscal 2024, a total of 290,006 tonnes of ore were mined and 290,050 tonnes were milled at the GC Mine.
Average head grades of ore milled were 69 g/t for silver, 1.2% for lead, and 2.6% for zinc.
Metals produced at the GC Mine were approximately 527 thousand ounces of silver, 6.9 million pounds of lead, and 15.2 million pounds of zinc.
Kuanping Project
Activities at the Kuanping Project in Fiscal 2024 have been focused on completing studies and reports as required to construct the mine. As of March 31, 2024, the company had completed studies on environmental, water, and soil assessments, and all these reports have been submitted to, and approved by, the relevant provincial authorities. An updated mineral resources estimate report, prepared as per Chinese standards, has been reviewed and approved by the relevant provincial authorities. A report, incorporating the mineral resources development and utilization plan, reclamation plan, and environmental rehabilitation plan, was prepared by the company and reviewed and approved by an external expert panel.
International Operations
The company’s principal mining operations and assets are located in China. The company’s operations are exposed to various levels of political, economic, and other risks and uncertainties.
History
The company was formerly known as SKN Resources Ltd. and changed its name to Silvercorp Metals Inc. in 2005.