The China-focused underground mine operator told investors it generated around 1.7 million ounces of silver, 1,100 ounces of gold, 19.1 million pounds of lead, and 7.1 million pounds of zinc in the three months to September 30.
That was a 2% uptick in zinc output but a decrease of 8%, 6%, and 3% in silver, gold, and lead production respectively, compared to the same period last year.
In terms of sales, Silvercorp sold around 1.7 million ounces of silver, 2,200 ounces of gold, 18.6 million pounds of lead, and 7.4 million pounds of zinc in the quarter. That was an increase of 98% and 11% for gold and zinc but a decrease of 8% and 3% in silver and lead sold compared to the same quarter last year.
The figures hail from Silvercorp's flagship Ying project in the Ying mining district, together with its GC mine in the Guangdong province of China.
The firm confirmed in the statement that it was on track to produce between 6.2 and 6.5 million ounces of silver, 66.1 and 68.5 million pounds of lead, and 24.5 to 26.7 million pounds of zinc in its fiscal 2021, which is in line with its annual production guidance reported in February.
At Ying, ore mined was 181,020 tonnes, an increase of 3% compared to 176,085 tonnes in the same quarter last year, while at the GC mine, material mined was 86,833 tonnes, an increase of 4% compared to 83,172 tonnes in Q2 fiscal 2020.
In the period, Silvercorp also said it had sold all remaining gold concentrate inventories that had been produced by its BYP mine before it was placed on care and maintenance.
The miner said it expects to report its unaudited financial and operating results for fiscal 2Q on November 5 this year after the market close.
Roth repeats a 'Buy'
Following the statement, Roth repeated a 'Buy' rating and said the firm's second quarter output had been better than the broker had expected.
"...we believe another strong quarter in Q3 could force management to raise annual guidance," said analyst Joe Reagor.
Roth had expected production in the three months of 1.7 million ounces of silver, 7.1 million pounds of zinc, 18.3 million pounds of lead, and 700 ounces of gold.
The broker also lifted its price target on the stock to US$9.50 from US$9.25 previously, still a good distance from the current price of US$7.81.
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