Production at Silvercorp Metals Ying Mining District and GC mine has gradually resumed to normal levels since the end of February when the long Chinese New Year holiday ended.
However, production at the TLP and LM mines in Ying district was interrupted on March 11 due to a power outage. The power line to the mines was interrupted when nine power poles were damaged by a blast from a government crew working on widening the access road in the direction of the TLP mine.
As a result, production at the TLP and LM mines stopped but was expected to resume by March 18. The stoppage was expected to affect about 4300 tonnes of ore production from the mines, representing approximately 4% of total quarterly production from the Ying Mining District.
In the December quarter of 2015 Silvercorp sold 1.4 million ounces of silver, 15.1 million pounds of lead and 4.7 million pounds of zinc, compared to 1.7 million ounces of silver, 16.7 million pounds of lead and 7.0 million pounds of zinc in the corresponding quarter of 2014. The decrease of metal sales is mainly due to less ore milled partially offset by the increase of head grade.
For the nine months ended December 31, 2015, the company sold 4.1 million ounces of silver, 42.6 million pounds of lead and 13.7 million pounds of zinc, compared to 4.2 million ounces of silver, 42.3 million pounds of lead and 13.4 million pounds of zinc, respectively, in the same prior year period.
In reaction to lower metal prices, the company intentionally increased its inventory of concentrates. As at December 31, 2015, the Ying Mining District had 2931 tonnes of lead concentrates and 240 tonnes of zinc concentrates in inventory, 2631 and 90 tonnes higher, respectively, compared to 300 tonnes of lead concentrates and 150 tonnes of zinc concentrates in stock as at December 31, 2014.
In the 2017 financial year, the company expects to produce approximately 860,000 tonnes of ore, yielding 5.1 million ounces of silver, 57.0 million pounds of lead and 19.3 million pounds of zinc. The consolidated all-in sustaining cost is forecasted to be $9.67 per ounce of silver after credits from gold, lead, and zinc.