Silvercorp Metals Inc (TSX:SVM, AMEX:SVM) has reported results for the second quarter ended September 30, 2022, highlighting gains in the production of silver, gold and lead during the period.
The company said it produced around 1.8 million ounces of silver, 1,200 ounces of gold and18.0 million pounds of lead during the period, representing gains of 6%, 50%, and 2% respectively compared to the corresponding year-ago period. Zinc production, however, fell 20%.
In total, the company mined 290,981 tonnes of ore in 2Q, down 1% compared to 292,468 tonnes in the 2Q the previous year but ore milled hit 291,643 tonnes, up 7% compared to 271,816 tonnes in 2Q the previous year.
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The company said revenue for the quarter hit $51.7 million after it sold around 1.8 million ounces of silver, 1,200 ounces of gold, 17.3 million pounds of lead, and 5.9 million pounds of zinc.
Realized adjusted earnings attributable to equity shareholders was $6.8 million in 2Q or $0.04 per share. The adjustments were made to remove impacts from impairment charges, share-based compensation, foreign exchange, mark-to-market equity investments, and the share of associates' operating results.
It reported a net loss attributable to equity shareholders of $1.7 million or $0.01 per share in 2Q, with the loss mainly due to an impairment charge of $20.2 million against the La Yesca Project.
Generated cash flow from operating activities came in at $14.1 million.
The company reported a strong balance sheet with $201.0 million in cash and cash equivalents and short-term investments in 2Q. It holds further equity investment portfolio in associates and other companies with a total market value of $111.0 million as at September 30, 2022.
The company added that mining operations at the GC Mine will return to normal levels for the remainder of the year after it worked on improving ventilation and electric power facilities to comply with several new safety production regulations
A conference call to discuss these results will be held on Friday, November 4, at 9:00 am PDT. To participate in the conference call, the numbers are:
- Canada/USA TF: 888-664-6383
- International Toll: 416-764-8650
- Conference ID: 07271204
A replay of the conference call and transcript will be available on the company's website.
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The company aims to create shareholder value by focusing on generating free cashflow from long-life mines; organic growth through extensive drilling for discovery; ongoing merger and acquisition efforts to unlock value; and long-term commitment to responsible mining and environmental, social, and governance.
Contact the author at jon.hopkins@proactiveinvestors.com