Silvercorp Metals Inc (TSX:SVM, AMEX:SVM) said its fiscal 2022 1Q revenues rose to $58.8 million from $46.7 million during the same period a year prior.
A bulk of that uptick was a result of income from mine operations climbing 32% to $25.5 million, a $6 million increase from fiscal 1Q 2021.
The silver-focused diversified miner also increased its investment in junior mining company Whitehorse Gold Corp. (TSX-V:WHG) A $5 million cash infusion from Silvercorp now increases the company's stake in Whitehorse Gold to 29.5%.
READ: Silvercorp Metals expects to meet annual output guidance for fiscal 2022 despite first-quarter decline
The profitable quarter also enabled the firm to pay $2.2 million of dividends to its shareholders
In the statement, Silvercorp noted the revenue jump was mainly due to: “An increase of $19.3 million arising from the increase in the net realized selling metal prices; an increase of $1.3 million arising from the increase in the quantities of zinc sold; offset by a decrease of $8.5 million arising from the decrease in the quantities of silver, gold, and lead sold.”
The statement added: “Revenues from silver, gold, and base metal were $34 million, $1.5 million, and $23.3 million, respectively, up 30%, 2%, and 22%, respectively, compared to $26.2 million, $1.5 million, and $19.0 million in Q1 fiscal 2021.”
Positivity from its Chinese mining operations translated into increased earnings. Revenue from the Ying Mining District rose to $47.4 million, a 19% uptick compared to $39.7 million the prior year.
The GC Mine recorded profits of $11.4 million, up 62% from fiscal 1Q 2021.
Despite the broad gains, some now resolved renewal negotiations with mining contractors resulted in a slight decrease in mined output for the quarter.
For 1Q 2022, the precious and base metals company mined 231,235 tons of ore and milled 243,077 tons of ore, down 9% and 7% from the previous year.
All in all, Silvercorp produced about 1.5 million ounces of silver, 1,000 ounces of gold, 15.9 million pounds of lead and 7.2 million pounds of zinc, compared to 1.8 million ounces of silver, 1,100 ounces of gold, 20.1 million pounds of lead, and 7.5 million pounds of zinc sold in Q1 Fiscal 2021.
Total cash flow from operations totaled $36.5 million, up 21% or $6.4 million. As of June 30, 2021, working capital rang in at $188.9 million.
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