JOHANNESBURG (miningweekly.com) – TSX-listed Silvercorp Metals has reported a first-quarter rise in net income attributable to equity shareholders of 134%, on the back of an increase in metal prices and the gains of the disposal of Silvertip mine's net smelter return.
During the three months to June 30, Silvercorp achieved a net income of $10.9-million, or $0.07 a share – owing to an increase in the realised selling price for silver, lead and zinc of 5%, 35% and 65% respectively, and the recorded $4.3-million gain on disposal. This compared favourably against the $4.7-million, or $0.03 a share, achieved in the first quarter of last year.
The company’s rise in net income was, however, offset by a $1.6-million foreign exchange loss, less metals sold and a 3% increase in per tonne cash production costs.
During the first quarter under review, sales reached $39.7-million, up 13% on the $35.3-million achieved in the corresponding quarter last year.
Silver and gold sales accounted for $20.2-million and $1-million respectively, while base metals represented $18.5-million in total sales for the quarter under review.
During the first quarter, Silvercorp sold 1.5-million ounces of silver, 900 oz of gold, 15.9-million pounds of lead, and five-million pounds of zinc, compared with the 1.6-million ounces of silver, 900 oz of gold, 16.7-million pounds of lead and 5.2-million pounds of zinc sold in the corresponding prior-year quarter.
Silvercorp ended the first quarter of the year with $102.1-million in cash and cash equivalents and short-term investments.