Silvercorp Metals Inc (TSE:SVM) (NYSEAMERICAN:SVM) (FRA:S9Y), the China-focused miner, posted a 35% increase in net income in its fiscal year to end-March 2021, compared to the year-earlier period, on revenue, which was 21% higher.
The company, whose flagship asset is the Ying project in the Henan province, which comprises six separate mines, recorded net income attributable to shareholders of US$46.4 million in the fiscal year, compared to US$34.3 million in fiscal year 2020.
READ: Silvercorp Metals granted three new exploration permits at Ying project covering areas where 'extensive mineralization' has been hit
Revenue came in at US$192.1 million versus US$158.8 million for the previous year after the company sold around 6.3 million ounces of silver, 4,700 ounces of gold, 67.1 million pounds of lead, and 27.9 million pounds of zinc. That was an increase of 1%, 42%, 3%, and 10%, respectively, compared to fiscal 2020.
In the fourth and final quarter of fiscal 2021, net income was US$7 million, up 122% from the US$3.1 million recorded a year earlier, while revenue was up 89% in the quarter to US$35.7 million.
In 4Q, the company mined 163,072 tonnes of ore and milled 180,674 tonnes of ore, up 53% and 76%, respectively, compared to the prior-year quarter.
The all-in-sustaining-cost (AISC) per ounce of silver metric, net of by-product credits, for the full year came in at US$7.49, a bit higher than the US$6.86 figure seen the previous year, but in the fourth quarter, the figure was US$12.55 per ounce of silver, down from US$15.17 an ounce in the same period a year earlier.
For fiscal 2021, cash flow from operations was US$85.9 million, up 11% or US$8.7 million, compared to US$77.2 million in the prior year.
Among the highlights for Silvercorp in fiscal 2021 was its acquisition of a 43.8% interest in the La Yesca silver project in Mexico through a new corporate structure, New Infini Silver Inc for around US$9.1 million.
In January this year, it also added to its asset portfolio by winning an online auction to acquire the exploration rights to the Zhonghe silver project from the Henan provincial government of China. The mineral rights transfer contract is currently pending national security clearance by related authorities.
The miner ended the year with a strong balance sheet, holding US$199.1 million in cash and equivalents and short-term investments as at March 31.
That is an increase of 40% compared to the figure of US$142.5 million as at March 31, 2020, and does not include US$212.1 million in the total market value of investments in associates and equity investments in other companies.
Silvercorp describes itself as a profitable Canadian mining company, which produces silver, lead and zinc metals in concentrates from mines in China.
Contact the author at giles@proactiveinvestors.com