Canaccord Genuity (TSX:CF, LSE:CF) analysts have reiterated their ‘Buy’ rating and C$4 price target for Silvercorp Metals Inc (TSX:SVM, AMEX:SVM) after the China-focused precious metals producer released its operating results for its fiscal third quarter of 2023.
The company said it produced around 1.9 million ounces of silver, 1,100 ounces of gold, 20.1 million pounds of lead, and 7 million pounds of zinc in 3Q 2023 which ended on December 31, 2022.
In a note to clients, the analysts wrote that the operating results were solid, with production and sales of all metals in line with their estimates.
READ: Silvercorp Metals releases its fiscal 3Q production and sales results
"Our C$4 target price remains based on an equal weighting of 4.5x NTM EBITDA and 0.7x NAV, measured as at October 1, 2023," they wrote.
Silvercorp’s Toronto-listed shares are currently trading at C$4.59.
The analysts noted that Silvercorp plans to release its full financial results for fiscal 3Q 2023 after the market closes on February 9.
They said that they have made no change to their guidance but, as they have flagged in previous notes, they believe the company’s full-year guidance could be at risk.
“Year-to-date production through December represents 78% of the low end of the guidance range with the seasonally slow January to March period currently underway, typically less than 19% of full-year production,” Canaccord analysts wrote.
“We currently forecast full-year silver production of 6.7 million ounces, below guidance of 7 million ounces to 7.3 million ounces.”
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