Canadian miner Silvercorp, which produces silver, gold, lead and zinc from its mines in China, reported income attributable to equity shareholders of $6.3-million, or $0.04 a share for the quarter ended December 31 – the third quarter of its 2020 financial year.
This was lower than income attributable to equity shareholders of $8.7-million, or $0.05 a share, reported for the the third quarter of the prior financial year, mainly as a result of a $1.3-million foreign exchange loss and decreases of 21% and 27% in the average realised selling prices for lead and zinc, respectively. This was offset, to some extent, by increases of 17% and 20% in the average realised selling prices for silver and gold, respectively, and increases of 6% and 103% in the volumes of lead and zinc sold.
Silvercorp's sales increased by 5% year-on-year to $44.5-million for the quarter, with silver sales having contributed $24-million to the total, gold $900 000 and base metals $19.6-million.
Silver sales volumes remained flat at 1.7-million ounces, while lead sales increased by 6% to 18.8-million pounds and zinc sales by 103% to 8.4-million pounds. Gold sales, however, decreased by 36% year-on-year to 700 oz.
The company reported that the ten-day extension of the Chinese New Year holiday shutdown, as a result of the coronavirus outbreak, was not expected to materially impact on the company.
Earlier this month is said it would resume operations on February 10, following the extension.
It warned on Thursday that any further extensions to the industrial shutdown in China could impact on its operations.
Silvercorp on Thursday also advised shareholders that it expects to produce between 6.2-million and 6.5-million ounces of silver, between 66.1-million and 68.5-million pounds of lead and between 24.5-million and 26.7-million pounds of zinc in the 2021 financial year.
That would represent increases of 2% to 7% on the 6.1-million ounces of silver, 2% to 5% on the 65.1-million pounds of lead and 12% to 22% on the 21.8-million pounds of zinc it expects to produce in the 2020 financial year.