Silvercorp reports Q3 profit of $11.8 million
Silvercorp Metals Inc. [SVM-TSX, NYSE American], a company with operations in China, has reported its financial and operating results for the quarter ended December 31, 2022 (Q3 fiscal 2023).
The company said it posted an adjusted net profit of $11.8 million or $0.07 per share in Q3 fiscal 2023, compared to net income of $5.1 million or $0.03 per share in the three months ended December 31, 2022.
Revenue in the Q3 fiscal 2023 was $58.7 million, down 1% from $59.1 million in the equivalent period in 2022.
Silvercorp produced approximately 1.9 million ounces of silver, 1,100 ounces of gold, 20.1 million pounds of lead, and 7.0 million pounds of zinc in Q3 fiscal 2023, representing an increase of 1.0%, 0.0%, and 6.0% respectively in silver, gold and lead production, and a decrease of 13% in zinc production compared to Q3 fiscal 2022.
The company said it ended Q3 fiscal 2023 with $210.3 million in cash, cash equivalents and short-term investments, an increase of 5.0% or $9.3 million from $201 million in the year earlier period.
Silvercorp is a Canadian mining company producing silver, lead and zinc metals in concentrates from mines in China.
Silvercorp has said five of its mines in two Chinese provinces have been certified as “green mines.”
A “green mine” is a certification awarded to mines that minimize adverse impacts on the environment and adopt scientific design and measures to ensure sustainable development from mine development to closure.
The company said “green mine” certifications were achieved at the TLP, LME, LMW and HPG mines in Ying Mining District, Henan Province, and the GC mine, Guandong Province.
“Generally, a “green mine” designation allows for a more favourable treatment from different levels of government, including in relation to priority rights to mining resources, improved land security for mine construction, and finance and tax support through coordinated policies,’’ Silvercorp has said.
The company spent approximately $1.8 million to upgrade most roads to concrete and upgrade certain environmental protection facilities in the Ying Mining District as part of a commitment to build and operate green mines.
In December, 2022, Silvercorp said its Kuanping silver-lead-zinc project received a mining license from the Department of Natural Resources, Henan Province. It said the license cover 6.97 square kilometres and is good until March 13, 2029.
Meanwhile, in fiscal 2024, the company said it plans to mine and process 1.1 million to 1.17 million tonnes of ore yielding approximately 4,400 to 5,500 ounces of gold, 6.8 to 7.2 million ounces of silver, 70.7 to 73.8 million pounds of lead and 27.7 to 29.7 million pounds of zinc.
Fiscal 2024 production guidance represents production increases of approximately 3.0% to 8.0% in ores, 1% to 26% in gold, 3.0% to 8.0% in silver, 3.0% to 8.0% in lead and 14% to 23% in zinc compared to expected production in fiscal 2023.
Silvercorp’s financial results were released after the close of trading n February 9, 2023, when the company’s shares closed at $4.15. The shares currently trade in a 52-week range of $5.41 and $2.74.