Toronto-based zinc producer Silvermet (CVE:SYI) said Wednesday that it swung to a profit in 2010, as sales more than tripled on increased shipments and higher zinc prices.
Silvermet, which achieved cash flow positive operations in the third quarter of last year, recycles the electric arc furnace dust produced by steel companies as waste products to recover zinc concentrates, which are then sold to zinc smelters worldwide. The company's Waelz kiln recovery facility is located in Iskenderun, Turkey, and has been operational since May 2009.
For the year ending December 31, the company posted an income of 2.05 million, or $0.008 per share, compared to a loss of $0.32 million, or $0.006 per share, in the year-ago period.
Revenue increased 251% to $15.94 million from $4.53 million in 2009. Sales volumes rose to 12,581 dry metric tonnes (DMT) from 3,903 DMT a year earlier, as production climbed 110% to 11,548 DMT.
"Silvermet is now an operationally stable company with significant growth potential through expansion of its operations in Turkey," said chairman, president and CEO Stephen G. Roman.
In 2010, the company signed a joint venture with Befesa Medio Ambiente in Spain, forming Befesa Silvermet Turkey, or BST, which holds 100% of Silvermet's Turkish operations.
The venture, in which Silvermet holds a 49% stake, currently has $5.3 million in cash available, to be used for funding improvements to the company's existing facility, and for building a new kiln for additional capacity.