Strong silver prices helped Canada-based Silvercorp Metals (SVM) boost revenue by 13% on a year-over-year basis in its most recent quarter, observes Brien Lundin, mining sector expert and editor of Gold Newsletter.
The company posted $56.4 million in revenue on the sale of 1.7 million ounces of silver, 2,200 ounces of gold, 18.6 million pounds of lead and 7.4 million pounces of zinc.
Those numbers included an 8% and a 3% decrease, respectively, in silver and lead sales, and a 100% and an 11% increase, respectively, in gold and zinc sales.
Silvercorp generated net income attributable to shareholders during its most recent quarter of $15.5 million, up 27% from the same quarter last year. All-in sustaining costs, net of by-product credits, were $6.99/ounce in the most recent quarter, an increase from $4.15/ounce last year.
The company finished the quarter with $200.1 million in cash and cash equivalents and short-term investments. It declared a semi-annual dividend of $0.0125 per share for shareholders of record as of Nov. 25, 2020.
It also finalized a shelf prospectus that would allow the company to issue a combination of securities equal to $200 million. Management has no immediate plans to tap this financing vehicle.
On the exploration front, Silvercorp’s ongoing exploration of its flagship Ying Mining Complex in China continues to bear fruit.
Also in China, the LME mine generated highlight assays from work over the past year of 0.92 meters of 6,455 g/t silver, 10 g/t gold and 5.28% lead. The LMW mine at Ying produced a highlight gold interval of 37.1 g/t over 1.89 meters.
The steady exploration and development work that Silvercorp does, particularly at Ying, helps the company to extend the overall life of its assets. All those gold, zinc and lead credits give the company one of the lower cost profiles in the silver sector.
Even with the retreat SVM has made in sympathy with the broader markets in recent weeks doesn’t change the fact that this company remains a great way to play silver. It’s a key hold in our portfolio.
