Silvercorp profit falls as prices dip
Canada-based, China-focused Silvercorp Metals has reported a lower profit margin for the financial year ended March 2019, on the back of lower prices for the precious and base metals that the company produces.
In the reporting period, the company sold about 6.4-million ounces of silver (up 6% year-on-year), 3 500 oz of gold (up 13%), 64.8-million pounds of lead (up 5%) and 22.7-million pounds of zinc (up 16%).
The production backed up adjustable net income attributable to equity shareholders of $32.2-million, or $0.19 apiece, but that is lower than the $41.5-million, or $0.24 apiece in the prior comparable period.
Silvercorp has explained that the results were impacted by a decrease of 7%, 2% and 17% in the realised selling prices of silver, lead and zinc, respectively, and a 2% increase in total production cost.
The company said its cost of sales in the reporting period was $87.3-million, compared with $82.2-million in the prior comparable period, which included $62-million of cash production costs, $4.9-million of mineral resources tax and $20-million of depreciation, amortisation and depletion charges.
The gross profit margin reduced to 49%, from 52% in the prior comparable period, mainly owing to the decrease in realised metal selling prices.
Silvercorp’s total ore mined increased by 5% to 906 794 t. Ore mined at the Ying mining district increased by 8 435 t, or 1%, to 622 576 t, and ore mined at the GC mine increased by 38 435 t, or 16%, to 284 218 t in the reporting period.
Moreover, Silvercorp completed about 76 000 m of underground diamond drilling at the Ying mining district and around 18 700 m worth of preparation tunnelling.
At the GC mine, the company completed about 24 800 m of underground diamond drilling in the reporting period, and 19 900 m worth of preparation tunnelling.
Comments
Latest Multimedia
Latest News
Showroom
For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...
VISIT SHOWROOM
In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
