The Pacific Ring of Fire is home to a 12,000 km trend that contains rich gold and copper deposits. And while various countries located along the Ring of Fire have established mining industries, Fiji remains a hidden gem for the mining industry — one that’s ripe for exploration, development, and production.
Fiji is a country composed of over 300 islands and is best described as a hotbed for seismic activity. Fijian islands like Viti Levu, when combined with historical seismic activity, present favorable conditions for mining. In fact, Viti Levu contains an estimated 5.2 million ounces of gold and 4.9 million tonnes of copper. Plus, Fiji features an 80 year history of mining on the island, possesses an experienced mining workforce, robust infrastructure and a mining friendly government.
Thunderstruck Resources (TSXV:AWE,OTC:THURF) is a Canadian mineral exploration company with a promising portfolio of projects located on Fiji’s main island of Viti Levu. Recent and historical exploration data of these projects has confirmed the presence of zinc, copper and precious metals mineralization. This diversified project portfolio allows investors exposure to each of these markets. Thunderstruck Resources is led by a strong, experienced management team with decades of applicable experience in geology, mining and international finance.
According to Bryce Bradley, Thunderstruck’s CEO, Fiji presents the perfect opportunity for Thunderstruck Resources investors. In an interview with Adelaide Capital, she explains, “Fiji is really underexplored because of its remoteness. People were wondering, why invest in something so remote? Well, it’s precisely because it’s so remote that it has not been picked over and that it’s ripe for exploration. The Vatukoula Gold mine, located near the Thunderstruck projects, has been in operation for over 80 years. This means that there is a skilled labor force, the island is mining-friendly and that there is a fully-developed infrastructure.”
Thunderstruck Resources project portfolio covers approximately 3 percent of Fiji’s main island of Viti Levu. The company’s complete project portfolio consists of underexplored projects that have already indicated the presence of valuable minerals. Liwa Gold, the company’s flagship project has had geochemical and geophysical programs conducted recently, indicating the potential to become a high-grade gold and silver-producing project. A maiden drilling program and further exploration commenced in the fall of 2021.
There have been four priority gold zones identified throughout the Liwa Gold project, over 3km, with each area having promising rock and soil sample results that indicate the presence of high-grade gold and silver. Multiple geochemical and geophysical survey campaigns have provided further evidence of high-grade precious minerals.
This project is located on Fiji’s largest island, Viti Levu. The Liwa project has four high-grade gold prospects within a 3-km structural corridor. Thunderstruck’s recent geochemical and geophysical surveys returned the following:
The project has a five year Special Prospecting License (SPL) and landowner agreements in place, the maximum allowed under Fijian law. The Liwa Gold exploration project is owned 100% by Thunderstruck Resources and is actively being explored.
This 136 square kilometer project contains a high-grade zinc-copper mineralization that was discovered and drilled by Anglo Pacific in 1977. The results indicated the presence of a mineralized zone that contained zinc, copper and silver.
A 2019 drill program comprised 7 drill holes, totaling 904 m, and verified the presence of historically reported zinc-copper massive mineralization, and in select holes more than doubled historically reported results.
Korokayiu Cu-Zn Deposit 2019 Significant Diamond Drill Intercepts
Historical drilling on this copper/gold porphyry was conducted by Anglo Pacific in 1975. Results returned 244m at 0.22 percent copper between six and 250 meters, along with 0.23g/t gold between 6 and 72 meters. Further soil sampling produced similar numbers, 240m average 0.27 percent copper and 0.15 g/t gold.
Thunderstruck Resources recently doubled the copper-gold target to 1.5 kilometers in length by using systematic soil sampling, which led to the discovery of the Senikura gold zone. This new gold zone trenched 0.55 g/t gold over 38m, including 0.96 g/t gold over 11m in a weathered outcrop. Thunderstruck Resources is currently conducting exploration operations into the newly discovered gold zone. This project is 100% owned by Thunderstruck Resources.
This project is characterized by the presence of a zinc-copper volcanogenic massive sulfide deposit. Anglo Pacific previously intersected this deposit and yielded high-grade values, including 12m at 12.7% zinc and 0.3% copper. This project is 100% owned by Thunderstruck Resources. Nakoro shares similar VMS mineralization to the Korokayiu prospect.
Bryce Bradley (CEO/President) With a strong background in Capital Markets and Investment Banking, Ms. Bradley has facilitated the structuring and financing of dozens of private and publicly traded small and micro-cap companies. She founded and served as President of two Canadian merchant banks focused on capital raising and advisory services for mining exploration companies. Ms. Bradley co-founded and financed Thunderstruck Resources and has served as Director, President and CEO since securing its suite of Fijian assets and taking the company public on the Toronto Stock Exchange in 2013.
Wilson Michael is a Fijian national and has acted as CFO for other resource companies in Fiji. He is familiar with industry-specific accounting requirements and brings a sound knowledge of Fijian business practices and regulatory issues. He previously worked in various roles as an accountant, CFO and manager for a variety of companies in the Pacific Islands, including property developers, international shipping operators, mobile phone companies and local municipalities. He is an Associate of the Institute of Chartered Secretaries and Administrators.
Mr. Christl is an early supporter and long-term shareholder of Thunderstruck. In 2015 he completed his Exempt Market Products Course (EMD), raising money for both public and private companies with Robson Capital, of Vancouver Canada. In 2018 Rob joined Thunderstruck as Investor Relations Manager, building the Company’s shareholder base through direct communication and social media platforms. Rob brings a wealth of capital raising and marketing experience to his role at Thunderstruck, with a vested interest in the Company’s success. During the last year, Rob has been steadily growing Thunderstruck’s exposure in the market by engaging and building relationships with brokers, funds, investors and other industry groups. He will continue to do this in his new role, effective February 2021, as VP Business Development and Investor Relations.
Brien Lundin is a co-founder and Director of Thunderstruck Resources, Ltd. His decades-long career has included analyzing and speculating in the metals, mining and technology sectors. Lundin also serves as President and CEO of Jefferson Financial, Inc., a private company that hosts the annual New Orleans Investment Conference, which is now in its 47th year of educating investors. In addition, he edits and publishes Gold Newsletter, which stands as the oldest continuously published precious metals and mining advisory, having served as the cornerstone of the industry since 1971.
Lawrence Roulston is a mining professional with over 35 years of diverse experience as a mining analyst and consultant. He is Managing Director of WestBay Capital Advisors, providing business advisory and capital markets expertise to the junior and mid-tier sectors of the mining industry. Previously, he was the editor of Resource Opportunities, an independent investment publication focused on the mining industry. Roulston holds a B.Sc. in geology. He is Chairman of Metalla Royalty and Streaming Ltd. and an advisor to Metallis Resources Inc.
Linnea von Hessert is a geologist with over 20 years of experience in the mining industry, having worked for majors and juniors as well as the Bureau of Land Management in Nevada. She is an active investor with significant holdings in the mineral exploration industry. She graduated from the University of Montana with a B.S. in geology in 1999.
Tookie Angus has spent the last 40 years focused on the structuring and financing of significant international exploration, development and mining ventures. Angus is the former chairman of the board of B.C. Sugar Refinery Ltd.; he was a director of First Quantum Minerals until June 2005, a director of Canico Resources Corp. until its takeover by CVRD in 2005, and a director of Bema Gold until its takeover by Kinross Gold in 2007. More recently, he was managing director of mergers and acquisitions for Endeavour Financial, a director of Ventana Gold until its takeover by AUX Canada Acquisition in 2011, and a director of Plutonic Power until its merger with Magma Energy in 2011. He was until recently Chairman of Nevsun Resources Ltd. He is currently Chairman of K92 Mining and Sun Summit Minerals.
First Majestic Silver Corp. (NYSE: AG) (TSX: FR) ("First Majestic" or the "Company") is pleased to announce the voting results for its annual general and special meeting held on May 26, 2022.
A total of 125,762,791 shares were represented at the meeting, being 48.09% of the Company's issued and outstanding common shares. Shareholders approved all matters brought before the meeting as follows:
ELECTION OF DIRECTORS
| Director Nominee | Votes For | % For | Votes Withheld | % Withheld |
| Keith Neumeyer | 87,937,413 | 99.35% | 572,531 | 0.65% |
| Marjorie Co | 87,178,202 | 98.50% | 1,331,743 | 1.50% |
| Thomas Fudge, Jr. | 86,268,760 | 97.47% | 2,241,185 | 2.53% |
| Ana Lopez | 86,860,746 | 98.14% | 1,649,199 | 1.86% |
| Raymond Polman | 85,817,751 | 96.96% | 2,692,193 | 3.04% |
| Jean Des Rivières | 87,179,402 | 98.50% | 1,330,543 | 1.50% |
| Colette Rustad | 87,808,249 | 99.21% | 701,695 | 0.79% |
Raymond Polman was newly elected to the board of directors at the meeting. Mr. Polman has over 28 years of public accounting and corporate finance experience in the Canadian and US financial markets and was previously the Chief Financial Officer for the Company between 2007 to 2021. Prior to First Majestic, Mr. Polman had been a Chief Financial Officer for six years with a number of publicly-traded high technology companies, prior to which he served several years as the Director of Finance for Rescan Environmental, a large privately owned company serving the global mining community. Mr. Polman has a Bachelor of Science (Economics) Degree from the University of Victoria and he is a member of the Institute of Chartered Accountants of British Columbia.
LONG-TERM INCENTIVE PLAN
The long-term incentive plan of the Company as outlined in the Circular was approved by a majority vote of shareholders present in person or represented by proxy as follows:
| Votes For | % For | Votes Against | % Against |
| 73,678,247 | 85.02% | 12,984,094 | 14.98% |
SAY ON PAY ADVISORY VOTE
| Votes For | % For | Votes Against | % Against |
| 53,805,870 | 60.79% | 34,704,076 | 39.21% |
In addition, the re-appointment of Deloitte LLP as auditors for the Company and setting the total number of directors to seven, as outlined in the Circular, were also approved by a majority vote of shareholders present in person or represented by proxy. Douglas Penrose was not a nominee for re-election as a director as he has fulfilled his term under the Director Tenure Policy.
ABOUT THE COMPANY
First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States and is aggressively pursuing the development of its existing mineral property assets. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine and the Jerritt Canyon Gold Mine.
First Majestic is proud to offer a portion of its silver production for sale to the public. Bars, ingots, coins and medallions are available for purchase online at its Bullion Store at some of the lowest possible premiums.
FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll-free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/125599
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Trading Symbol TSX: SVM
NYSE AMERICAN: SVM
Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE: SVM) is pleased to announce that its Board of Directors declared a semi-annual dividend of US$0.0125 per share to be paid to all shareholders of record at the close of business on June 6, 2022 with a payment date of the dividend scheduled on or before June 24 2022.
The dividends are considered eligible dividends for Canadian tax purposes.
The declaration and payment of future dividends is at the discretion of the Board of Directors and any future decision to pay dividends will be based on a number of factors including commodity prices, market conditions, financial results, cash flows from operations, expected cash requirements and other relevant factors.
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company's strategy is to create shareholder value by 1) focusing on generating free cashflow from long life mines; 2) organic growth through extensive drilling for discovery; 3) equity investments in potential world class opportunities; 4) ongoing merger and acquisition efforts to unlock value; and 5) long term commitment to responsible mining and ESG. 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
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: global economic and social impact 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 licenses; 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; 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, 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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SOURCE Silvercorp Metals Inc
News Provided by PR Newswire via QuoteMedia
Trading Symbol TSX: SVM
NYSE AMERICAN: SVM
Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE: SVM) is pleased to announce that its Board of Directors declared a semi-annual dividend of US$0.0125 per share to be paid to all shareholders of record at the close of business on June 6, 2022 with a payment date of the dividend scheduled on or before June 24 2022.
The dividends are considered eligible dividends for Canadian tax purposes.
The declaration and payment of future dividends is at the discretion of the Board of Directors and any future decision to pay dividends will be based on a number of factors including commodity prices, market conditions, financial results, cash flows from operations, expected cash requirements and other relevant factors.
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company's strategy is to create shareholder value by 1) focusing on generating free cashflow from long life mines; 2) organic growth through extensive drilling for discovery; 3) equity investments in potential world class opportunities; 4) ongoing merger and acquisition efforts to unlock value; and 5) long term commitment to responsible mining and ESG. 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
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: global economic and social impact 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 licenses; 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; 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, 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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SOURCE Silvercorp Metals Inc
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Trading Symbol: TSX: SVM
NYSE AMERICAN: SVM
Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) reported its financial and operating results for the fourth quarter and twelve months ended March 31, 2022 ("Fiscal 2022"). All amounts are expressed in US Dollars, and figures may not add due to rounding.
FISCAL YEAR 2022 HIGHLIGHTS
HIGHLIGHTS FOR Q4 FISCAL 2022
CONSOLIDATED FINANCIAL RESULTS
| | | | | ||||
| | Three months ended March 31, | | Year ended March 31, | ||||
| | 2022 | 2021 | Changes | | 2022 | 2021 | Changes |
| Financial | | | | | | | |
| Revenue (in thousands of $) | $ 41,590 | $ 35,732 | 16% | | $ 217,923 | $ 192,105 | 13% |
| Mine operating earnings (in thousands of $) | 13,709 | 13,404 | 2% | | 84,301 | 84,162 | 0% |
| Net income attributable to equity holders | 3,966 | 7,021 | -44% | | 30,634 | 46,376 | -34% |
| Earnings per share - basic ($/share) | 0.02 | 0.04 | -50% | | 0.17 | 0.27 | -37% |
| Adjusted earnings attributable to equity holders | 9,496 | 10,960 | -13% | | 52,427 | 49,798 | 5% |
| Adjusted earning per share - basic ($/share) | 0.05 | 0.06 | -17% | | 0.30 | 0.28 | 7% |
| Net cash generated from operating activities (in thousands of $) | 11,406 | 2,231 | 411% | | 107,378 | 85,912 | 25% |
| Capitalized expenditures (in thousands of $) | 9,831 | 6,996 | 41% | | 53,991 | 45,556 | 19% |
| Cash and cash equivalents and short-term investments (in thousands of $) | 212,925 | 199,092 | 7% | | 212,925 | 199,092 | 7% |
| Working capital (in thousands of $) | 186,270 | 184,014 | 1% | | 186,270 | 184,014 | 1% |
| Metals sold | | | | | | | |
| Silver (in thousands of ounces) | 1,173 | 1,056 | 11% | | 6,265 | 6,315 | -1% |
| Gold (in thousands of ounces) | 0.5 | 0.7 | -29% | | 3.4 | 4.7 | -28% |
| Lead (in thousands of pounds) | 12,279 | 10,876 | 13% | | 63,563 | 67,118 | -5% |
| Zinc (in thousands of pounds) | 4,340 | 4,580 | -5% | | 26,809 | 27,914 | -4% |
| Average Selling Price, Net of Value Added Tax and Smelter Charges | | | | | | | |
| Silver ($/ounce) | 19.38 | 20.11 | -4% | | 19.36 | 17.61 | 10% |
| Gold ($/ounce) | 1,475 | 1,437 | 3% | | 1,495 | 1,430 | 5% |
| Lead ($/pound) | 0.93 | 0.81 | 15% | | 0.90 | 0.75 | 20% |
| Zinc ($/pound) | 1.22 | 0.98 | 24% | | 1.08 | 0.78 | 38% |
1. Fiscal 2022 Financial Results
Net income attributable to equity holders of the Company in Fiscal 2022 was $30.6 million or $0 .17 per share, compared to $46.4 million or $0 .27 per share in the year ended March 31, 2021 ("Fiscal 2021").
In Fiscal 2022, the Company's consolidated financial results were mainly impacted by i) an increase of 10%, 5%, 20% and 38%, respectively, in the realized selling prices for silver, gold, lead and zinc; offset by ii) a 1%, 28%, 5% and 4% decrease in silver, gold, lead and zinc sold; iii) a 17% increase in cash production costs per tonne, and iv) an impairment charge of $10.6 million against bond investments and a $3.5 million loss on equity investments in Fiscal 2022 while an impairment charge of $1.4 million against bond investments and a gain of $7.7 million on equity investments was recorded in Fiscal 2021.
Revenue in Fiscal 2022 was $217.9 million , up 13% or $25.8 million compared to $192.1 million in Fiscal 2021. The increase was mainly due to an increase of $29.9 million arising from the increase in the net realized silver, gold, lead and zinc selling prices; offset by a decrease of $7.8 million arising from the decrease in the quantities of silver, gold, lead and zinc sold. Revenues from silver, gold, and base metals were $121.3 million , $5.1 million , and $91.6 million , respectively, compared to $111.2 million , $6.7 million , and $74.2 million in Fiscal 2021. Revenue from the Ying Mining District was $176.8 million , up 12% compared to $157.3 million in Fiscal 2021. Revenue from the GC Mine was $41.2 million , up 24% compared to $33.3 million in Fiscal 2021. Gold sales in Fiscal 2021 included $1.5 million from sales of remaining gold concentrate inventory at the BYP mine before it was placed on care and maintenance in 2014.
Income from mine operations in Fiscal 2022 was $84.3 million , compared to $84.2 million in Fiscal 2021. Income from mine operations at the Ying Mining District was $70.0 million , down 6% compared to $74.2 million in Fiscal 2021. Income from mine operations at the GC Mine was $14.8 million , up 52% compared to $9.8 million in Fiscal 2021.
Cash flow provided by operating activities in Fiscal 2022 was $107.4 million , up 25% or $21.5 million , compared to $85.9 million in Fiscal 2021.
The Company ended the fiscal year with $212.9 million in cash, cash equivalents and short-term investments, up 7% or $13.8 million , compared to $199.1 million as at March 31, 2021 .
Working capital as at March 31, 2022 was $186.3 million , up 1% or $2.3 million , compared to $184.0 million as at March 31, 2021 .
2. Q4 Fiscal 2022 Financial Results
Net income attributable to equity holders of the Company in Q4 Fiscal 2022 was $4.0 million or $0.2 per share, compared to $7.0 million or $0.04 per share in the three months ended March 31, 2021 ("Q4 Fiscal 2021").
Compared to the prior year quarter, the Company's consolidated financial results in Q4 Fiscal 2022 were mainly impacted by i) an increase of 3%, 15%, and 24%, respectively, in the realized selling prices for gold, lead and zinc; ii) an 11% and 13% increase in silver and lead sold; offset by iii) a 4% decrease in the realized selling price for silver; iv) a 29% and 5% decrease in gold and zinc sold; v) an 8% increase in cash production costs per tonne; and vi) a foreign exchange loss of $3.2 million .
Revenue in Q4 Fiscal 2022 was $41.6 million , up 16% or $5.7 million , compared to $35.9 million in the same prior year period. The increase was mainly due to i) an increase of $3.5 million arising from more silver and lead sold; and ii) an increase of $2.4 million arising from the increase in the net realized selling price for lead and zinc. Silver, gold and base metals sales represented $22.7 million , $0.9 million , and $18.0 million , respectively, compared to silver, gold and base metals sales of $21.2 million , $1.0 million and $13.6 million , respectively, in the same prior year period.
Income from mine operations in Q4 Fiscal 2022 was $13.7 million , up 2% compared to $13.4 million in Q4 Fiscal 2021. Income from mine operations at the Ying Mining District was $11.9 million , compared to $11.9 million in Q4 Fiscal 2021, while GC Mine was $2.0 million , up 16% compared to $1.7 million in Q4 Fiscal 2021.
Cash flows provided by operating activities in Q4 Fiscal 2022 were $11.4 million , compared to $2.2 million in Q4 Fiscal 2021. Before changes in non-cash operating working capital, cash flow provided by operating activities In Q4 Fiscal 2022 was $14.0 million , compared to $11.9 million in Q4 Fiscal 2021.
CONSOLIDATED OPERATIONAL RESULTS
| | | | | ||||
| | Three months ended March 31, | | Year ended March 31, | ||||
| | 2022 | 2021 | Changes | | 2022 | 2021 | Changes |
| Ore Production (tonne) | | | | | | | |
| Ore mined | 180,505 | 163,072 | 11% | | 996,280 | 964,925 | 3% |
| Ore milled | 182,670 | 180,674 | 1% | | 1,002,335 | 967,581 | 4% |
| Metal Production | | | | | | | |
| Silver (in thousands of ounces) | 1,146 | 1,195 | -4% | | 6,149 | 6,331 | -3% |
| Gold (in thousands of ounces) | 0.5 | 0.3 | 67% | | 3.4 | 3.5 | -3% |
| Lead (in thousands of pounds) | 11,962 | 12,156 | -2% | | 64,431 | 68,430 | -6% |
| Zinc (in thousands of pounds) | 4,101 | 4,672 | -12% | | 26,812 | 28,011 | -4% |
| Cash Costs | | | | | | | |
| Cash cost per ounce of silver, net of by-product credits ($) | (0.54) | (0.39) | -38% | | (1.29) | (1.80) | 28% |
| All-in sustaining cost per ounce of silver, net of by-product credits ($) | 12.60 | 12.55 | 0% | | 8.77 | 7.49 | 17% |
| Cash production cost per tonne of ore processed ($) | 92.78 | 85.70 | 8% | | 84.85 | 72.71 | 17% |
| All-in sustaining cost per tonne of ore processed ($) | 171.56 | 156.36 | 10% | | 141.54 | 128.20 | 10% |
1. Fiscal 2022 Operational Results
In Fiscal 2022, on a consolidated basis, the Company mined 996,280 tonnes of ore, up 3% or 31,355 tonnes, compared to 964,925 tonnes in Fiscal 2021. Ore milled in Fiscal 2022 was 1,002,335 tonnes, up 4% or 34,754 tonnes, compared to 967,581 tonnes in Fiscal 2021.
In Fiscal 2022, the Company sold approximately 6.3 million ounces of silver, 3,400 ounces of gold, 63.6 million pounds of lead, and 26.8 million pounds of zinc, representing decreases of 1%, 28%, 5% and 4% respectively, in silver, gold, lead and zinc sold. Gold sold in Fiscal 2021 included one-time sales of 1,200 ounces from pre 2014 concentrate inventories at the BYP Mine.
Compared to Fiscal 2021, the Company's production costs in Fiscal 2022 were mainly impacted by i) an overall 14.5% increase in mining contractors' fee rate at the Ying Mining District; ii) an annual average 5% appreciation of the Chinese yuan against the US dollar, resulting in higher costs presented in US dollars; iii) an average 7% increase in employees' pay rates; iv) an annual average 12% increase in electricity prices; and iv) the contribution rate paid for employees' social welfare funds in China returning to the normal rate from a reduced rate granted by the Chinese government in Fiscal 2021 due to Covid-19.
In Fiscal 2022, the consolidated cash production cost per tonne of ore processed was $84.85 , up 17% compared to $72.71 in Fiscal 2021. The consolidated cash mining cost was $68.90 per tonne, up 16% compared to $59.44 in Fiscal 2021. The consolidated cash milling cost was $13.43 per tonne, up 25% compared to $10.73 in Fiscal 2021.
In Fiscal 2022, the consolidated all-in sustaining production cost per tonne of ore processed was $141.54 , up 10% compared to $128.20 in Fiscal 2021, but within the Company's annual guidance.
In Fiscal 2022, the consolidated cash cost per ounce of silver, net of by-product credits, was negative $1.29 , compared to negative $1.80 in Fiscal 2021. The increase was mainly due to the increase in per tonne cash production costs, offset by an increase of $2.61 in by-product credits per ounce of silver. The consolidated all-in sustaining cost per ounce of silver, net of by-product credits, was $8.77 , compared to $7.49 in Fiscal 2021.
In Fiscal 2022, on a consolidated basis, a total of 426,128 metres or $20.7 million worth of diamond drilling were completed (Fiscal 2021 – 254,900 metres or $8.7 million ), of which approximately 276,450 metres or $7.2 million worth of underground drilling were expensed as part of mining costs (Fiscal 2021 – 196,320 metres or $5.0 million ) and approximately 149,678 metres or $13.5 million worth of drilling were capitalized (Fiscal 2021 – 58,580 metres or $3.7 million ). In addition, approximately 31,301 metres or $11.6 million worth of preparation tunnelling were completed and expensed as part of mining costs (Fiscal 2021 – 34,637 metres or $8.9 million ), and approximately 74,062 metres or $31.0 million worth of tunnels, raises, ramps and declines were completed and capitalized (Fiscal 2021 – 85,221metres or $31.5 million ).
2. Q4 Fiscal 2022 Operational Results
In Q4 Fiscal 2022, the Company mined 180,505 tonnes of ore, up 11% or 17,433 tonnes, compared to 163,072 tonnes in Q4 Fiscal 2021. Ore milled in Q4 Fiscal 2022 was 182,670 tonnes, up 1% or 1,996 tonnes, compared to 180,674 tonnes in Q4 Fiscal 2021.
In Q4 Fiscal 2022, the Company sold approximately 1.2 million ounces of silver, 500 ounces of gold, 12.3 million pounds of lead, and 4.3 million pounds of zinc, representing increases of 11% and 13%, respectively, in silver and lead sold, and decreases of 29% and 5%, respectively, in gold and zinc sold, compared to approximately 1.1 million ounces of silver, 700 ounces of gold, 10.9 million pounds of lead, and 4.6 million pounds of zinc sold in Q4 Fiscal 2021.
In Q4 Fiscal 2022, the consolidated cash mining cost was $73.52 per tonne, compared to $70.56 in Q4 Fiscal 2021. The consolidated cash milling cost was $16.45 per tonne, compared to $12.66 per tonne in Q4 Fiscal 2021. The increase was mainly due to the same factors for the annual results.
Correspondingly, the consolidated cash production cost per tonne of ore processed for Q4 Fiscal 2022 was $92.78 , up 8% compared to $85.70 in Q4 Fiscal 2021. The all-in sustaining production cost per tonne of ore processed was $171.56 , up 10% compared to $156.36 in Q4 Fiscal 2021.
In Q4 Fiscal 2022, the consolidated cash cost per ounce of silver, net of by-product credits, was negative $0.54 , compared to negative $0.39 in Q4 Fiscal 2021. The consolidated all-in sustaining cost per ounce of silver, net of by-product credits was $12.60 compared to $12.55 in Q4 Fiscal 2021.
In Q4 Fiscal 2022, on a consolidated basis, approximately 66,139 metres or $2.4 million worth of diamond drilling (Q4 Fiscal 2021– 49,459 metres or $1.6 million ) were completed, of which approximately 50,384 metres or $1.2 million worth of underground drilling were expensed as part of mining costs (Q4 Fiscal 2021– 41,752 metres or $0.8 million ) and approximately 15,755 metres or $1.3 million worth of drilling were capitalized (Q4 Fiscal 2021– 7,887 metres or $0.8 million ). In addition, approximately 5,688 metres or $2.1 million worth of preparation tunnelling were completed and expensed as part of mining costs (Q4 Fiscal 2021– 7,015 metres or $1.5 million ), and approximately 13,340 metres or $5.9 million worth of tunnels, raises, ramps and declines were completed and capitalized (Q4 Fiscal 2021– 10,803 metres or $4.7 million ).
INDIVIDAL MINE OPERATING PERFORMANCE
| | | | | | | | | | |
| Ying Mining District | | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | | Year ended March 31, | |
| | | March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | | 2022 | 2021 |
| Ore Production (tonne) | | | | | | | | | |
| Ore mined | | 130,612 | 200,946 | 206,933 | 142,907 | 112,561 | | 681,398 | 650,025 |
| Ore milled | | 131,731 | 214,982 | 182,173 | 155,407 | 131,725 | | 684,293 | 651,402 |
| Head grades | | | | | | | | | |
| Silver (gram/tonne) | | 271 | 258 | 283 | 279 | 280 | | 272 | 290 |
| Lead (%) | | 3.9 | 3.7 | 4.0 | 4.2 | 3.9 | | 3.9 | 4.3 |
| Zinc (%) | | 0.8 | 0.8 | 0.7 | 0.8 | 0.8 | | 0.8 | 0.8 |
| Recovery rates | | | | | | | | | |
| Silver (%) | | 95.2 | 95.1 | 95.4 | 94.7 | 93.7 | | 95.1 | 94.2 |
| Lead (%) | | 96.1 | 95.2 | 95.5 | 95.7 | 95.1 | | 95.6 | 96.0 |
| Zinc (%) | | 57.4 | 64.0 | 56.0 | 59.7 | 65.0 | | 59.7 | 62.4 |
| Cash Costs | | | | | | | | | |
| Cash cost per ounce of Silver, net of by-product credits ($) | | 1.21 | 1.19 | 0.71 | 0.80 | 1.20 | | 0.96 | (0.39) |
| All-in sustaining cost per ounce of silver, net of by-product credits ($) | | 10.76 | 8.36 | 6.88 | 6.54 | 10.00 | | 7.93 | 6.09 |
| Cash production cost per tonne of ore processed ($) | | 102.49 | 99.24 | 96.59 | 92.79 | 98.13 | | 97.76 | 83.01 |
| All-in sustaining cost per tonne of ore processed ($) | | 172.63 | 143.72 | 141.26 | 138.55 | 155.14 | | 147.52 | 132.54 |
| Metal Production | | | | | | | | | |
| Silver (in thousands of ounces) | | 1,062 | 1,647 | 1,517 | 1,283 | 1,083 | | 5,509 | 5,615 |
| Gold (in thousands of ounces) | | 0.5 | 1.1 | 0.8 | 1.0 | 0.3 | | 3.4 | 3.5 |
| Lead (in thousands of pounds) | | 10,542 | 16,392 | 14,671 | 13,278 | 10,504 | | 54,883 | 57,886 |
| Zinc (in thousands of pounds) | | 1,317 | 2,347 | 1,584 | 1,519 | 1,496 | | 6,767 | 6,916 |
In Fiscal 2022, a total of 351,458 metres or $15.6 million worth of diamond drilling were completed (Fiscal 2021 – 208,904 metres or $6.9 million ), of which approximately 216,068 metres or $5.0 million worth of underground drilling were expensed as part of mining costs (Fiscal 2021 – 150,324 metres or $3.2 million ) and approximately 135,390 metres or $10.6 million worth of drilling were capitalized (Fiscal 2021 – 58,580 metres or $3.7 million ). In addition, approximately 25,134 metres or $9.9 million worth of preparation tunnelling were completed and expensed as part of mining costs (Fiscal 2021 – 22,918 metres or $6.7 million ), and approximately 60,311 metres or $26.7 million worth of horizontal tunnels, raises, ramps, and declines were completed and capitalized (Fiscal 2021 – 73,350 metres or $27.4 million ).
| | | | | | | | | | |
| GC Mine | | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2021 | Q4 2021 | | Year ended March 31, | |
| | | March 31, 2021 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | | 2022 | 2021 |
| Ore Production (tonne) | | | | | | | | | |
| Ore mined | | 49,893 | 91,126 | 85,535 | 88,328 | 50,511 | | 314,882 | 314,900 |
| Ore milled | | 50,939 | 89,790 | 89,643 | 87,670 | 48,949 | | 318,042 | 316,179 |
| Head grades | | | | | | | | | |
| Silver (gram/tonne) | | 62 | 78 | 73 | 80 | 87 | | 75 | 85 |
| Lead (%) | | 1.4 | 1.5 | 1.7 | 1.5 | 1.7 | | 1.5 | 1.7 |
| Zinc (%) | | 2.8 | 3.2 | 3.3 | 3.3 | 3.3 | | 3.2 | 3.4 |
| Recovery rates | | | | | | | | | |
| Silver (%) | | 82.4 | 83.5 | 84.4 | 84.1 | 81.9 | | 83.8 | 82.5 |
| Lead (%) | | 88.7 | 89.0 | 89.5 | 89.3 | 89.7 | | 89.2 | 89.6 |
| Zinc (%) | | 89.8 | 89.8 | 89.6 | 89.3 | 88.2 | | 89.6 | 88.2 |
| Cash Costs | | | | | | | | | |
| Cash cost per ounce of Silver, net of by-product credits ($) | | (16.59) | (25.84) | (22.51) | (17.96) | (12.80) | | (20.91) | (11.48) |
| All-in sustaining cost per ounce of silver, net of by-product credits ($) | | (0.39) | (9.81) | (11.61) | (7.98) | 0.52 | | (8.07) | - |
| Cash production cost per tonne of ore processed ($) | | 67.33 | 56.10 | 55.81 | 52.90 | 58.56 | | 56.90 | 51.44 |
| All-in sustaining cost per tonne of ore processed ($) | | 100.13 | 81.50 | 73.76 | 71.67 | 87.69 | | 79.56 | 74.09 |
| Metal Production | | | | | | | | | |
| Silver (in thousands of ounces) | | 84 | 187 | 179 | 190 | 112 | | 640 | 716 |
| Lead (in thousands of pounds) | | 1,420 | 2,586 | 2,942 | 2,600 | 1,652 | | 9,548 | 10,544 |
| Zinc (in thousands of pounds) | | 2,784 | 5,683 | 5,899 | 5,679 | 3,176 | | 20,045 | 21,095 |
In Fiscal 2022, a total of 66,699 metres or $2.5 million worth of diamond drilling were completed (Fiscal 2021 – 45,996 metres or $1.8 million ), of which approximately 60,382 metres or $2.2 million worth of underground drilling were expensed as part of mining costs (Fiscal 2021 – 45,996 metres or $1.8 million ) and approximately 6,317 metres or $0.3 million worth of drilling were capitalized (Fiscal 2021 – nil). In addition, approximately 6,167 metres or $1.7 million worth of preparation tunnelling were completed and expensed as part of mining costs (Fiscal 2021 – 11,719 metres or $2.2 million ), and approximately 13,751 metres or $4.3 million worth of horizontal tunnels, raises, ramps, and declines were completed and capitalized (Fiscal 2021 – 11,871 metres or $3.9 million ).
CONFERENCE CALL DETAILS
A conference call to discuss these results will be held tomorrow, Friday, May 27 , at 9:00 am PDT ( 12:00 pm EDT ). To participate in the conference call, please dial the numbers below.
Canada / USA TF: 888-664-6383
International Toll: 416-764-8650
Conference ID: 70727987
Participants should dial-in 10 – 15 minutes prior to the start time. A replay of the conference call and transcript will be available on the Company's website at www.silvercorp.ca .
Mr. Guoliang Ma , P.Geo., Manager of Exploration and Resources of the Company, is the Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and given consent to the technical information contained in this news release.
About Silvercorp
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company's strategy is to create shareholder value by 1) focusing on generating free cashflow from long life mines; 2) organic growth through extensive drilling for discovery; 3) equity investments in potential world class opportunities; 4) ongoing merger and acquisition efforts to unlock value; and 5) long term commitment to responsible mining and ESG. 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
ALTERNATIVE PERFORMANCE (NON-IFRS) MEAUSRES
This earnings release should be read in conjunction with the Company's Management Discussion & Analysis ("MD&A"), Financial Statements and Notes to Financial Statements for year ended March 31, 2022 , which have been posted on SEDAR under the Company's profile at www.sedar.com and are also available on the Company's website at www.silvercorp.ca under the Investor section. This earnings release refers to various alternative performance (non-IFRS) measures, such as adjusted earnings and adjusted earnings per share, cash cost and all-in sustaining cost per ounce of silver, net of by-product credits, cash production cost and all-in sustaining production cost per tonne of ore processed and working capital. These measures are widely used in the mining industry as a benchmark for performance, but do not have standardized meanings under IFRS as an indicator of performance and may differ from methods used by other companies with similar description. The detailed description and reconciliation of these alternative performance (non-IFRS) measures have been incorporated by reference and can be found on page 28, section 12 – Alternative Performance (Non-IFRS) Measures in the MD&A for the year ended March 31, 2022 .
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: global economic and social impact 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; 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" and in the Company's Annual Report on Form 40-F, and in the Company's other filings with Canadian and U.S. securities regulators. 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, 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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SOURCE Silvercorp Metals Inc
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TSX: SIL | NYSE American: SILV
SilverCrest Metals Inc. ("SilverCrest" or the "Company") is pleased to announce that Ausenco Engineering Canada Inc. ("Ausenco") has completed construction and handed over the Las Chispas processing plant to SilverCrest, ahead of the Feasibility Study* schedule. Other construction activities handled directly by SilverCrest (road, bridge, dry stack tailings facility, temporary diesel power plant and assay lab) have also been completed.
Processing plant commissioning is now underway with the plant expected to reach commercial production in Q4, 2022. Given the extensive amount of underground development completed to date, there is a significant amount of stockpiled ore on surface to allow for a more measured ramp-up of underground mining over the first few years of production and increased operational flexibility. The Feasibility Study outlined a plan in which the process plant will not be fed exclusively from underground mined material until 2025.
Operations are currently being powered by both the diesel generators and the partially completed power line, which collectively is providing all of the Las Chispas power requirements. SilverCrest anticipates fully transitioning away from the diesel generators in H2, 2022 as CFE (Comision Federal de Electricidad, Mexico's power authority) finalizes its portion of the power line.
While the final capital costs incurred remain to be settled, the capital cost of the Las Chispas Project is anticipated to be below the US$137.7 million budget estimated in the Feasibility Study.
N. Eric Fier , CEO, remarked, "We are extremely proud to achieve this key milestone, ahead of schedule and under budget. I commend all who have been involved in the project to date and thank our stakeholders, including local communities, for their continued support. Completing construction marks a significant de-risking step as we move towards becoming a high-grade precious metal producer. With our skilled and experienced team in place, we are well positioned to work through commissioning and ramp-up to achieve commercial production in Q4, 2022. While doing so, we will continue with exploration, advancing ongoing projects in the nearby communities, and looking at ways to add further value for our shareholders."
Pierre Beaudoin , COO, commented, "I would like to thank the combined team of Ausenco and SilverCrest for their continued efforts over the past 17 months. Completing construction during the COVID-19 pandemic has tested everyone's resilience and it is with great satisfaction that I congratulate them for accomplishing an incredible trio of successes: No major accidents, below budget and ahead of schedule. I am convinced that this will be amongst the highlights of their respective careers. With handover now complete, we are excited to take the project forward into production. It is also with great pleasure to announce that we have opened a new assay lab in the nearby community of Arizpe ( Sonora, Mexico ), which has created a significant number of new local jobs that may be sustained beyond the mine life of Las Chispas."
* NI 43-101 Technical Report & Feasibility Study on the Las Chispas Project dated January 4, 2021 ("Feasibility Study").
ABOUT SILVERCREST METALS INC.
SilverCrest is a Canadian precious metals exploration and development company headquartered in Vancouver, BC , that is focused on new discoveries, value-added acquisitions and near-term production in Mexico's historic precious metal districts. The Company's top priority is on the high-grade, historic Las Chispas mining district in Sonora, Mexico , where it has completed construction of its Las Chispas Project and is proceeding with commissioning. SilverCrest is the first company to successfully drill-test the historic Las Chispas Property resulting in numerous high-grade precious metal discoveries. The Company is led by a proven management team in all aspects of the precious metal mining sector, including taking projects through discovery, finance, on time and on budget construction, and production.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" and "forward-looking information" (collectively "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation. These include, without limitation, statements with respect to: the timing and expectations of the Company completing commissioning and ramp up and achieving commercial production in Q4, 2022, connection to the power grid in H2, 2022, and underground development to reach full capacity in 2025. Such forward-looking statements or information are based on a number of assumptions, which may prove to be incorrect. Assumptions have been made regarding, among other things: impact of the COVID-19 pandemic; the reliability of mineralization estimates, mining and development costs, the conditions in general economic and financial markets; availability of skilled labour; timing and amount of expenditures related to rehabilitation and drilling programs; and effects of regulation by governmental agencies. The actual results could differ materially from those anticipated in these forward-looking statements as a result of risk factors including: uncertainty as to the impact and duration of the COVID-19 pandemic; the timing and content of work programs; results of exploration activities; the interpretation of drilling results and other geological data; receipt, maintenance and security of permits and mineral property titles; environmental and other regulatory risks; project cost overruns or unanticipated costs and expenses; and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made. The Company undertakes no obligation to update or revise any forward-looking statements included in this news release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
N. Eric Fier , CPG, P.Eng
Chief Executive Officer
SilverCrest Metals Inc.
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First Majestic Silver Corp. (NYSE: AG) (TSX: FR) (the "Company" or "First Majestic") is pleased to announce that it has entered into a definitive agreement dated May 24, 2022 to sell its 100% owned past producing La Guitarra Silver Mine located in the Temascaltepec mining district, Mexico State to Sierra Madre Gold & Silver Ltd. ("Sierra Madre") (SM: TSX.V) for total consideration of US$35 million (the "Transaction"). It is a condition to closing of the Transaction that Sierra Madre raise a minimum of CDN$10 million in a private placement concurrent with or prior to closing of the Transaction.
Total consideration consists of 69,063,076 Sierra Madre shares at a deemed price of $0.65 per Sierra Madre Share, having an aggregate value of US$35 million. Upon closing, First Majestic will also be granted a 2% net smelter return royalty ("NSR") on all mineral production from the La Guitarra concessions, with the NSR subject to a 1% buy-back option for US$2 million. The equity component of the consideration will be paid upon closing of the Transaction.
Once closed, First Majestic will hold approximately 47% of the outstanding shares in Sierra Madre, which will be subject to a statutory holding period of four months and one day following the date of closing and contractual resale restrictions. Closing of the Transaction remains subject to the approval of the TSX Venture Exchange and other customary closing conditions and is expected to occur in the second half of the year.
The La Guitarra Silver Mine is a past producing silver and gold operation that was placed under care and maintenance by First Majestic in August 2018. Sierra Madre is a mineral exploration company currently focused on the acquisition, exploration and development of the Tepic and La Tigra Properties in Nayarit, Mexico. Sierra Madre has an experienced management team that had previously operated the La Guitarra mine from 2006 to 2009 and has a proven track record of wealth creation in Mexico through project discovery, advancement, and monetization.
ABOUT FIRST MAJESTIC
First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Jerritt Canyon Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine.
First Majestic is proud to offer a portion of its silver production for sale to the public. Bars, ingots, coins and medallions are available for purchase online at its Bullion Store at some of the lowest possible premiums.
FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll-free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward‐looking information" and "forward-looking statements" under applicable Canadian and U.S. securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "forecast", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward‐looking statements". Forward-looking statements include but are not limited to completion of the Transaction and the timing of closing. These statements are based on the Company's assumptions that all conditions to closing of the Transaction will be satisfied in a timely manner and closing will occur in the second half of 2022. These assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Actual results may vary from forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to risks related to the completion of the Sierra Madre Financing, the risk that the approval of the TSX Venture Exchange will not be obtained and risks related to the parties' ability to satisfy the conditions of closing of the Transaction. Although First Majestic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company believes that the expectations reflected in these forward‐looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking statements included herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.
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