Silvercorp Metals Inc. (NYSE:SVM) Q3 2024 Earnings Conference Call February 9, 2024 12:00 PM ET

Company Participants

Lon Shaver – President

Conference Call Participants

Lucas Pamatat – Canaccord Genuity

Joseph Reagor – ROTH MKM

Felix Shafigullin – Eight Capital

Operator

Thank you for standing by. Good afternoon. My name is Lesser and I will be your operator for today. At this time, I would like to welcome everyone to Silvercorp's Third Quarter Fiscal 2024 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

I would now like to turn the conference over to Lon Shaver, President of Silvercorp Metals. Please go ahead.

Lon Shaver

Thank you, operator. On behalf of Silvercorp, I'd like to welcome all of you to this call to discuss our third quarter fiscal 2024 financial results. They were released yesterday after market. Copy of the news release, the MD&A and the financial statements for today's call are available on our website and on SEDAR+. Before we get started, I'm required to remind you that certain statements on today's call will contain forward-looking information as it relates to applicable securities laws. Please review the cautionary statements included in our news release and presentation as well as the risk factors described in our most recent 10-Q and Form 40-F and AIF.

So turning to the quarterly financial results. With respect to the quarter, we delivered a strong Q3, good financial results, which were underpinned by revenue of $58.5 million, in line with the prior year quarter. And this number did reflect a number of changes in different parameters. With respect to pricing, we had increases of 11%, 17% and 2% in gold, silver and lead respectively and a decrease of 15% in the realized zinc price. Switching to volume. We had increases of 22% and 3% in gold and zinc sold, respectively, but offset by decreases of 8% and 16% in silver and lead sold. Based on production levels and realized prices this quarter, silver was 59% of revenue on a net realized basis. This is up from 54% in Q3 of fiscal 2023 and almost hit our record in recent years of 60% of revenue.

Third quarter net earnings attributable to equity shareholders were $10.5 million, or $0.06 per share, as compared to $11.9 million, or $0.07, for the same period last year. The main contributors to the slight decrease were the aforementioned factors impacting revenue, an increase of $5 million in the share of loss in associates, an improvement of $4.4 million in mark-to-market – on investments that we hold and a 4% improvement in unit production costs.