Silvercorp wins “green mines” label in China
Silvercorp Metals Inc. [SVM-TSX, NYSE American] says 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 have been 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 said in a press release that was issued after the close of trading, November 24, 2020.
However, Silvercorp shares sank 14.1% or $1.23 to $7.46 on volume of almost 1.4 million and now trade in a 52-week range of $11.62 and $2.12.
Silvercorp is a Canadian mining company producing silver, lead and zinc metals in concentrates from mines in China. From April 2006 to September, 2020, the company says its operations produced 73.3 million ounces of silver, 1.03 billion pounds of lead plus zinc, with at least 15 years of remaining mine life.
In fiscal 2021, the company is targeting consolidated production of 930,000-970,000 tonnes of processed ore, containing 6.2-6.5 million ounces of silver, 66.1-68.5 million pounds of lead, 24.5-26.7 million pounds of zinc. That includes 640,000 to 660,000 tonnes from the Ying Mining District and 290,000-310,000 from the GC Mine.
In Q2 of fiscal 2021 ending September 30, 2020, the company said it sold 1.7 million ounces of silver, 2,200 ounces of gold, 18.6 million pounds of lead, and 7.4 million pounds of zinc, generating revenue of US$56.4 million.
The company reported an all-in-sustaining cost per ounce of silver during the quarter (net of by-products) of US$6.99. On Tuesday, spot silver was trading at US$23.19/oz.
Net income attributable to equity shareholders of the company in the quarter was US$15.5 million or $0.09 per share.