Silvercorp Metals Inc (NSYEAMERICAN:SVM) (TSX:SVM), the underground mine specialist in China, has reported an uplift in net income and revenue and a decrease in production costs in its first quarter to end-June, 2020.
In a statement, the company revealed it had sold 1.9 million ounces of silver, 1,100 ounces of gold, 20.9 million pounds of lead in the three month period, representing increases of 1%, 10% and 17% respectively, compared to the same period in the last fiscal year. It also sold 7 million pounds of zinc in the period, which was down 5% on the first quarter of fiscal 2020.
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That all led to revenue of US$46.7 million, up 2% from the US$45.6 million posted in the same period last year, and net income coming in at US$15.5 million, up from US$12.6 million in the same quarter last year.
The firm paid dividends for the period of US$2.2 million, up marginally from US$2.1 million for the same period last year.
Silvercorp mines from the flagship Ying project, which lies 240 kilometres (km) southwest of Zhengzhou, the capital city of Henan Province in central China and consists of six separate mines which feed two mills. Six smelters lie within 200km. The firm also produces from its GC mine in Guangdong province.
Notably, all-in sustaining costs (AISC) per ounce of silver produced, net of by-product credits, came in at US$5.61, compared to US$5.69 in the prior-year quarter.
Overall, production costs expensed in the quarter represented around 264,680 tonnes of ore processed at a cost of US$67.05 per tonne, compared to around 261,440 tonnes at US$68.85 per tonne in 1Q, fiscal 2020, the firm said.
Cash flow provided by operating activities in the period was US$30.1 million, up 51% from the US$19.9 million in the same quarter last year.
The miner also boasts a strong balance sheet, with US$178.4 million in cash and short-term investments as at June 30, 2020, up 25% from the US$142.5 million it held on March 31 this year.
Contact the author at giles@proactiveinvestors.com