Jonathan Hackshaw
谢谢主持人，大家早上好。欢迎参加Silvercorp公司2013财年第一季度的分析师电话会议。今天参加会议的有：Silvercorp董事长兼首席执行官Rui Feng博士；Silvercorp总裁兼首席运营官Myles Gao先生；以及Silvercorp首席财务官Maria Tang女士。我们将首先回顾本季度的财务、运营和开发亮点，之后将开放问答环节。此时，我邀请大家跟随演示文稿一起参与，该演示文稿可在网络直播中获取，也可在Silvercorp网站上找到。要翻页，请点击前进箭头。
转到第1页，在今天的电话会议中，我们将做出关于未来生产、开发和勘探、资本支出、业务扩张计划及其他事项的前瞻性陈述。此类前瞻性陈述存在风险和不确定性，其中许多已在我们提交给SEDAR的2012年度信息表中详细说明。无法保证此类前瞻性陈述的准确性，因为实际结果和未来事件可能存在重大差异。
转到第2页，我现在将回顾第一季度财务亮点，所有数据均以美元表示。本季度，公司录得归属于公司权益持有人的净利润为610万美元，或每股0.04美元。调整后净利润为810万美元或每股0.05美元，这已排除了为中国子公司预期股息计提的200万美元预扣税。调整后净利润为1,750万美元，较2012财年第一季度的2,560万美元或每股0.15美元有所下降，主要原因是销售额下降、生产成本上升以及一般及行政费用增加。
转到第3页，2013财年第一季度，经营活动产生的现金流量为1,930万美元或每股0.11美元，而2012财年第一季度为3,390万美元或每股0.19美元。在支付了430万加元股息和2,050万美元资本支出后，公司季度末持有1.423亿美元现金和短期投资，且无债务。
转到第4页及我们第一季度的运营亮点。公司总共生产了120万盎司白银和超过2,600盎司黄金。我们的旗舰生产矿区——银矿山矿区，Silvercorp在本季度开采了超过181,000吨矿石，比2012财年第一季度增加了6%。金属总产量为120万盎司白银、800盎司黄金、1,370万磅铅和300万磅锌，而2012年第一季度为160万盎司白银、800盎司黄金、2,060万磅铅和410万磅锌。品位为每吨227克白银、铅3.6%和锌1.1%，而去年同期为每吨303克白银、铅5.5%和锌1.5%。品位降低和金属产量下降是由于两个因素：首先，因附近高速公路建设需要而导致的电力中断造成了5天的生产中断；其次，去年秋天的'做空并扭曲'攻击导致管理层时间无意但必然地被转移去处理危机，这导致SGX矿某些开发计划的实施延迟，从而在混合来自不同区域、不同品位矿石的开采计划中出现了缺口。我们预计低品位情况将在2013财年第三季度得到改善。然而，由于这些因素，我们已修订了2013财年的生产指引，现在预计总产量为：550万盎司白银、8,300盎司黄金以及8,500万磅铅和锌。2013年第一季度每吨的总现金成本和采矿成本分别为69.02美元和55.47美元，而2012年第一季度分别为60.02美元和48.66美元。现金采矿成本的增加是由于以下原因：公司员工及其采矿承包商劳动力成本增加，约每吨5.40美元；其次，美元兑人民币贬值的影响，约每吨1.40美元。然而，与2012财年第四季度相比，总采矿成本和现金采矿成本分别下降了6%和4%。
转到第5页。本季度，我们综合每盎司白银的现金成本为0.14美元；而2012年第一季度为每盎司白银负6.12美元。如前所述，本季度较高的现金成本是生产成本上升和副产品金属收益减少的结果。本季度，贵金属占销售额的71%，与2012财年第一季度一致。本季度，白银占销售额的63%；黄金占8%；铅占25%；锌占4%。
转到第6页。本季度销售额为4,550万美元，而2012年第一季度为6,970万美元。这一下降是由于白银实现价格降低和金属产量减少。如前所述，白银实现销售价格为每盎司22.97美元，较去年同期的每盎司29.99美元下降了23%。
我现在将提供本季度各项目近期勘探和开发活动的更新。从第7页的银矿山矿区开始。正如我们已经——我们发布了该矿区更新的国家仪器43-101技术报告，报告显示储量和资源量显著增加，再次确认了该矿区作为公司长期资产的价值。矿区2号选厂的新尾矿库已投入运营，将支持未来20年每天3,200吨的生产。SGX矿5,200米进风斜坡道的开发工作继续进行，截至季度末已完成21%。该斜坡道旨在沿S7-1矿脉主矿体延伸，预计将从2014财年第一季度开始提高SGX的生产能力。公司还完成了超过11,000米的水平巷道开发、150米的竖井和15,000米的地下钻探。
在我们的LM矿山，LM矿和LM西矿的开发工作都取得了很大进展。LM矿的900号竖井已投入运营，同时在5个开采水平开始了巷道开发。在LM西矿，969号竖井的建设在本季度完成，达到原计划的369米深度。然而，由于在深部遇到了令人鼓舞的钻探结果，决定将969号竖井再延伸100米。额外工作预计将在2013财年结束前完成。此外，LM西矿4,800米进风斜坡道的建设在本季度继续进行。截至第一季度末，已完成600米斜坡道建设。一旦969号竖井、进风斜坡道和所有开采水平在2014年于LM西矿500米标高完成，两个矿山的综合生产能力预计将达到每年30万吨矿石。
为支持LM矿和LM西矿预期的运营增长，公司已开始建设一座3,000平方米的设施，其中包括办公室和宿舍。本季度，公司还在LM矿和LM西矿开发了超过4,500米的斜坡道和水平巷道，并完成了12,500米的地下钻探。
在TLP和HPG矿山，公司也继续推进开发工作，以继续提高产量并促进进一步的地下钻探。本季度，公司在银矿山矿区的勘探和开发上总共投资了960万美元。
转到第8页我们在广东省的GC项目。我们在将GC项目打造成我们银资产组合中下一个运营矿山方面继续取得良好进展。主进风斜坡道的开发现已完成50%，4,600米勘探斜坡道的开发已开始。一座日处理能力1,600吨的浮选厂的建设也进展顺利，该厂能够生产银、铅、锌和黄铁矿浮选精矿，并可选择生产10%的重选精矿。然而，有两个问题影响了我们GC项目开发计划的完成时间。首先，我们受到现有供电能力的限制。为解决电力限制问题，Silvercorp于7月下旬开始建设一条7公里长的110千伏输电线路和一个变电站，预计将于2012年11月投入运营。本季度，Silvercorp在GC项目上投资了约310万美元的资本支出。其次，广东省安全生产监督管理局出台了一项新规定，要求对尾矿和储存设施的工程设计进行单独的健康和安全审查。因此，公司已暂停干堆尾矿储存设施的建设，直至审查完成，我们预计这将在2013财年第二季度末完成。因此，尾矿储存设施的建设现在预计将在2013财年第三季度末完成。我们现在预计将在2013年1月宣布商业生产，这比原计划晚了约3个月。除此之外，我们仍然对在未来几个季度内将另一个生产矿山纳入我们的资产组合感到非常兴奋。
转到第9页和弱BY矿。本季度也取得了进展，公司完成了265米深竖井中的250米，预计将于2012年12月全面完成。新竖井将有助于开采3号金矿体和5号锌铅矿体。一座日处理能力1,500吨的尾矿回填设施的建设也进展顺利，预计将于2013年1月完成。
转到第10页。我们最近的收购——X矿山。公司通过增加额外的浮选槽和锌浮选回路，完成了XHP项目现有选厂的升级改造。该选厂现在拥有每天1,000吨的处理能力，能够生产金、银、铅和锌精矿。一旦公司获得环境许可证，选厂扩建部分的商业生产将开始。本季度在XBG和XHP项目完成了超过2,000米的巷道掘进和超过9,000米的金刚石钻探。未来两个季度，X矿山的重点将放在矿山开发上，但开发或生产有限。与此同时，选厂将处理现有的60,000吨银、铅、锌矿石库存以产生现金流。这将进一步支持勘探和采矿开发。
最后，转到第11页。在Silvertip项目，我们本季度提交了更新的NI 43-101技术报告，报告了2,500万盎司白银的指示资源量。公司目前正在完成并提交小型采矿许可证申请，该许可证将允许每年生产高达75,000吨矿石。
总结来说，虽然公司本季度面临一些挑战，但我们完成了大量的勘探和开发工作，正是我们资产的持续开发将帮助我们在未来几年提取更多价值。考虑到采矿业目前正在经历的增长成本，重要的是要记住，Silvercorp以不到3亿美元的成本建立了一个拥有长寿命可采储量的资产组合。我们购买具有资源潜力的小型资产并以较低成本开发它们的经验和能力，一直是并将继续是我们的战略优势。展望未来，我们相信公司将继续因这一战略而取得成功。
以上是我们对2013财年第一季度的评论。现在我想开放电话会议进行提问。
Jonathan Hackshaw
Thank you, operator, and good morning, everyone. Welcome to Silvercorp's analyst conference call for the first quarter of fiscal 2013. Joining me today on the call are: Dr. Rui Feng, Silvercorp's Chairman and Chief Executive Officer; Mr. Myles Gao, Silvercorp's President and Chief Operating Officer; and Ms. Maria Tang, Silvercorp's Chief Financial Officer. We will begin the call with a review of our financial, operating and development highlights for the quarter. After this, we will open the call up to questions. At this time, I'd like to invite you to follow along on the accompanying presentation slides, which are available as part of the webcast or on Silvercorp's website. To advance to slides, please click on the forward arrow. Turning to Slide 1, during today's call, forward-looking statements will be made relating to future production, development and exploration, capital expenditures, business expansion plans and other items. Such forward-looking statements are subject to risks and uncertainties, many of which are detailed on our 2012 Annual Information Form filed on SEDAR. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events can differ materially. Turning to Slide 2, I will now review the first quarter financial highlights, which are expressed in U.S. dollars. In this quarter, the company recorded net income attributable to equity holders of the company of $6.1 million or $0.04 per share. Adjusted net income was $8.1 million or $0.05 per share after excluding the withholding tax accrual of $2 million for anticipated dividends from the company's subsidiary in China. Adjusted net income of $17.5 million lower compared to $25.6 million or $0.15 per share in the first quarter of fiscal 2012, primarily due to lower sales, higher production costs and higher general and administrative expenses. Turning to Slide 3, in the first quarter of fiscal 2013, cash flow from operations was $19.3 million or $0.11 per share compared to $33.9 million or $0.19 per share in the first quarter of fiscal 2012. After paying dividends of CAD 4.3 million and capital expenditure of $20.5 million, the company ended the quarter with $142.3 million in cash and short-term investments and no debt. Turning to Slide 4 and our first quarter operational highlights. The company produced, in total, 1.2 million ounces of silver and over 2,600 ounces of gold. And our flagship producer, the Ying Mining District, Silvercorp mined over 181,000 tonnes of ore during the quarter, 6% more than in the first quarter fiscal 2012. Metal production totaled 1.2 million ounces of silver, 800 ounces of gold, 13.7 million pounds of lead and 3 million pounds of zinc, compared to 1.6 million ounces of silver, 800 ounces of gold, 20.6 million pounds of lead and 4.1 million pounds of zinc in the first quarter of 2012. Grades were 227 grams per tonne per silver, 3.6% for lead and 1.1% for zinc compared to 303 grams per tonne for silver, 5.5% for lead and 1.5% for zinc in the same quarter of last year. The lowered grades and the decrease in metal production were due to 2 factors: the first being a 5-day interruption in production because of power interruptions, which were necessary to facilitate nearby highway construction; and secondly, the Short and Distort attack last fall has caused management's time being inadvertently, but necessarily diverted to deal with the crisis, which caused delays implementing certain development plans with the SGX Mine, resulting in a gap in the mining schedule of blending ores from different zones with different grades. We expect the lower grade situation will be improved in Q3 fiscal 2013. However, as a result of these factors, we have revised our production guidance for fiscal 2013 and now expect to produce in total: 5.5 million ounces of silver, 8,300 ounces of gold and 85 million pounds of lead and zinc. Total cash and mining cost per tonne in the first quarter of 2013 were $69.02 and $55.47, respectively, compared to $60.02 and $48.66, respectively, in the first quarter of 2012. This increase in cash mining costs was due to the following: an increase in labor costs for both the company's employees as well as those of its mining contractors of approximately $5.40 per tonne; and secondly, the impact of the U.S. dollar depreciation versus the Chinese RMB of approximately $1.40 per tonne. However, compared to the fourth quarter fiscal 2012, total and cash mining costs decreased by 6% and 4%, respectively. Moving to Slide 5. During the quarter, our consolidated cash cost per ounce in silver was $0.14; while in the first quarter of 2012, it was negative $6.12 per ounce of silver. As already mentioned, the higher cash costs that we saw for the quarter are a function of higher production costs and a decrease in byproduct metal credits. For the quarter, precious metal accounted to 71% of sales, which is consistent with the first quarter of fiscal 2012. This quarter, silver accounted for 63% of sales; gold, 8%; lead, 25%; and zinc, 4%. Turning to Slide 6. Sales for this quarter were $45.5 million compared to $69.7 million in the first quarter of 2012. This decrease was due to a lower realized silver price and lower metal production. As already mentioned, realized selling price for silver was $22.97 per ounce, a decrease of 23% compared to $29.99 per ounce for the same quarter last year. I will now provide an update on the recent exploration and development activity for the quarter at each of our projects. Starting with the Ying Mining District on Slide 7. As already -- we released an updated National Instrument 43-101 technical report for the District reporting a significant gain in the reserves and resources reconfirming the value of the district to the company as a long-life asset. The new tailing sponsor for the number 2 mill in the District became operational and will support production of 3,200 tonnes per day for 20 years. Development work on a 5,200-meter access ramp at the SGX Mine continued and is 21% complete as of the end of the quarter. This ramp is designed to follow the main asset in S7-1 vein and is expected to improve production capacity at SGX starting on the first quarter of fiscal year 2014. The company also completed the development of over 11,000 meters of horizontal tunnels, 150 meters of vertical shafts and 15,000 meters of underground drilling. At our LM Mines, a great deal of progress was made in development work at both the LM Mine and LM Mine West. Shaft 900 at the LM Mine became operational with tunnel development also having commenced at 5 mining levels. At LM Mine West, the construction of Shaft 969 was completed during the quarter to the originally planned depth of 369 meters. However, due to encouraging drill results encountered at depth, the decision was taken to extend the depth of Shaft 969 a further 100 meters. The additional work is expected to be completed before the end of fiscal 2013. In addition, the construction of a 4,800-meter access ramp at LM West continued during the quarter. As of the end of the first quarter, construction of 600 meters of the ramp was complete. Once Shafts 969, the access ramp and all the mining levels are completed down to the 500-meter elevation at LM West in 2014, the combined production capacity of the 2 mines is expected to yield 300,000 tonnes of ore per year. To support the expected growth in operations at the LM Mine and LM West, the company has commenced the construction of a 3,000-square meter facility, which will include offices and a dormitory. During the quarter, the company also developed over 4,500 meters of a decline on horizontal tunnels and completed 12,500 meters of underground drilling at the LM Mine and LM West. At the TLP and HPG Mines, the company also continued to advance development work in order to continue the ramping up of production and facilitate further underground drilling. In total, the company invested $9.6 million in exploration and development for the quarter at the Ying Mining District. Turning to our GC Project in Guangdong Province in Slide 8. We continue to make good progress towards GC becoming our next operating mine in silver portfolio. Development to the main access ramp is now 50% complete, and the development of a 4,600-meter exploration ramp has commenced. The construction of a 1,600 tonne per day floatation mill, capable of producing silver, lead, zinc and pyrite floatation concentrates with an optional 10 gravity concentrate, is also well underway. However, there have been 2 issues that have had an impact to the timing of completion for our development plans for GC. First, we've been constrained by the existing power supply capacity. To resolve the power constraint issue, Silvercorp started the construction of a 7 kilometer, 110 volt -- kilovolt power line and a power substation in late July, which are expected to be operational in November 2012. During the quarter, Silvercorp invested approximately $3.1 million in capital expenditure at the GC project. Secondly, the Guangdong Provincial Safety Production Bureau introduced a new regulation, which requires a separate health and safety review of engineering designs for tailing and storage facilities, specifically. The company has, therefore, suspended construction at dry stack tailings storage facility until this review is completed, which we expect to be by the end of the second quarter of fiscal 2013. Construction of the tailing storage facility is, therefore, now expected to be completed by the end of the third quarter of fiscal 2013. We now expected to declare commercial production in January 2013, which is about 3 months later than originally planned. Otherwise, we are still very excited about having another producing mine to our portfolio within the next couple of quarters. Turning to Slide 9 and the weak BYP Mine. The progress was also made during the quarter, and the company completed 250 meters of a 265 meter deep shaft, which is expected to be fully completed in December 2012. The new shaft will facilitate the mining of the number 3 gold mineralization body and the number 5 zinc and lead ore body. The construction of a 1,500 tonne per day tailing-backfill facility is also well underway and is expected to be completed in January 2013. Turning to Slide 10. Our most recent -- at our most recent additions, the X Mines. The company completed upgrades to the existing mill at the XHP project by adding additional floatation cells and zinc floatation circuits. The mill now has 1,000 tonne per day throughput rate and is able to produce both gold, silver, lead and zinc concentrates. Commercial production of the expanded portion of the mill will commence once the company has been granted an environmental permit. Over 2,000 meters of tunneling and over 9,000 meters of diamond drilling were completed during the quarter at the XBG and XHP projects. For the next 2 quarters, the focus of the X Mines will be on mine development, but limited development or production. In the meantime, the mill will process the existing 60,000 tonnes of silver, lead, zinc ore stockpile to generate cash flows. This further support exploration and mining development. And finally, turning to Slide 11. At Silvertip, we filed an updated NI 43-101 technical report this quarter, reporting an indicated resource of 25 million ounces of silver. The company is currently working on completing and submitting a Small Mining Permit application, which would allow for production of up to 75,000 tonnes per year. To summarize, while the company faced some challenges this quarter, a great deal of exploration and development work was completed, and it is the continuous development of our assets, which will help us to extract further value in the years to come. Keeping in mind the current cost of growth that the mining industry is experiencing, it is important to remember that Silvercorp has built a portfolio of assets with a long-life mineable reserve for less than $300 million. It is our experience and an ability to buy small assets with resource potential and develop them at a lower cost that has been and will continue to be our strategic advantage. As we move forward, we believe that the company will continue to be successful because of this strategy. That concludes our comments on our first quarter of fiscal 2013. And I would now like to open the call up to questions.
