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Silvercorp Metals' second-quarter 2021 earnings surge 27%; on track to meet its annual production and cost guidance

Silvercorp Metals attributed its jump in earnings to higher selling prices for silver, gold and zinc

Silvercorp Metals Inc -
Silvercorp Metals saw a big increase in its 2Q profit as gold sales doubled

Silvercorp Metals Inc (TSE:SVM) (NYSEAMERICAN:SVM) (FRA:S9Y) Friday announced its second-quarter 2021 financial and operating results. 

Silvercorp’s earnings for the quarter climbed 27% to US$15.5 million, or $0.09 per share, compared to US$12.2 million, or $0.07 per share, during the same period last year.  The company attributed these results to higher selling prices for silver, gold and zinc.

Its second-quarter revenue, meanwhile, rose 13% year-over-year to US$56.4 million, while its cash flow from operations increased 13% to US$29.6 million.  

READ: Silvercorp Metals still on track to meet full fiscal year output guidance as it grows resource base

Silvercorp’s cash, equivalents, and short-term investments improved 12% quarter-over-quarter to US$200.1 million as at September 30, 2020.

During the quarter, Silvercorp Metals mined 267,853 tonnes of ore, 3% more than a year ago, and sold around 1.7 million ounces of silver, 2,200 ounces of gold, 18.6 million pounds of lead, and 7.4 million pounds of zinc. The company sold double the amount of gold in 2Q and 11% more zinc compared with the same period a year earlier.

Silvercorp’s cash cost per ounce of silver during the quarter, net of by-product credits, was negative US$2.09, compared to negative US$2.72 in the prior-year period, while all-in sustaining costs per ounce of silver increase to US$6.99 from US$4.15. 

The company added that it is on track to meet its annual production and cost guidance and expects its fiscal 2021 drilling program to exceed its annual guidance.

Silvercorp Metals has been mining silver, lead and zinc in China since 2006. Silvercorp also owns an around 29% interest in New Pacific Metals Corp (CVE:NUAG) (OTCMKTS:NUPMF) (FRA:3N7), which is advancing the Silver Sand project in Bolivia.

Contact Sean at sean@proactiveinvestors.com

Quick facts: Silvercorp Metals Inc

Price: 7.77 CAD

TSX:SVM
Market: TSX
Market Cap: $1.36 billion
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