Silvercorp posts lower net income in fiscal 2022, says its silver and other metals production in China down, costs up
(Kitco News) - China-focused mining company Silvercorp Metals (TSX: SVM) announced yesterday it produced 6,149 koz of silver in its fiscal 2022 year ended March 31, 2022, down 3% compared to the prior year.
The company also produced 3.4 koz of gold (2021: 3.5 koz), 64,431 thousand pounds of lead (2021: 68,430 thousand pounds), and 26,812 thousand pounds of zinc (2021: 28,011 thousand pounds).
In its fiscal 2022, Silvercorp sold approximately 6.3 million ounces of silver, 3,400 ounces of gold, 63.6 million pounds of lead, and 26.8 million pounds of zinc, representing decreases of 1%, 28%, 5% and 4% in silver, gold, lead and zinc sold, compared to the prior year.
In fiscal 2022, the consolidated cash production cost per tonne of ore processed was $84.85, up 17% compared to $72.71 in fiscal 2021. The company explained that production costs were mainly impacted by an increase in mining contractors’ fee rate; an annual appreciation of the Chinese yuan against the US dollar; an increase in employees’ pay rates; and an annual increase in electricity prices.
The company also reported revenue of $217.9 million, up 13% compared to $192.1 million in the prior year, adding that net income attributable to equity holders was $30.6 million, or $0.17 per share, compared to $46.4 million, or $0.27 per share in the prior year.
Cash flow provided by operating activities in fiscal 2022 was $107.4 million, up 25% or $21.5 million, compared to $85.9 million in Fiscal 2021.
|Barrick announces major social, skills and infrastructure investment in Tanzania|
The company said it ended the fiscal year with $212.9 million in cash, cash equivalents and short-term investments, up 7% or $13.8 million, compared to $199.1 million as at March 31, 2021.
The company expects to produce between 7.0 and 7.3 million ounces of silver in its fiscal 2023 year.
Silvercorp is a Canadian company operating several silver mines in China. The company is also producing gold, lead, and zinc.