The Vancouver-based company, which is focused on silver-related mineral properties in China, reported an increase of 27%, 20%, and 15%, respectively, in the amount of silver, lead, and zinc metals sold in the period, according to a statement by the firm.
The company said it mined 257,392 tonnes of ore in the first quarter, an increase of 9% as compared to the 236,697 tonnes mined in the same quarter a year earlier. The boost was mainly due to an increase of ore mined at its flagship Ying Mining District, in Henan province, China.
In the first quarter ended June 30, 2019, Silvercorp reported revenue of US$45.6 million, compared to US$45.1 million a year earlier, mostly due to the increase in metals sold. This was against a challenging backdrop, which saw a decrease in the selling price for silver, lead and zinc.
The firm reported net income of US$12.6 million, or US$0.07 per share in 1Q, compared to US$10.9 million or US$0.06 per share in the same period a year earlier.
Silvercorp is the primary silver producer in China, with six silver-lead-zinc mines in the Ying mine district in Henan province, as well the silver-lead-zinc Gaocheng project in Guangdong, China. Silvercorp also holds a stake in New Pacific Metals Corp (CVE:NUAG) (OTCMKTS:NUPMF) which is focused on advancing its Silver Sand project in Bolivia.
Strong cash balance
The firm ended the quarter with US$121 million in cash and cash equivalents and short-term investments, a boost of $5.7 million or 5%, compared to $115.3 million from the previous quarter.
Working capital came in at US$110.8 million, up from US$96.9 million in the prior quarter.
The company ended the period with inventories of 4,247 tonnes of silver-lead concentrate and 285 tonnes of zinc concentrate, compared to 3,248 tonnes of silver-lead concentrate and 368 tonnes of zinc concentrate in the previous quarter.
Silvercorp shares had climbed 4.2% higher to C$4.69 by the close on Thursday, before the company reported. The stock gained 4.7% to US$3.53 in New York.
Contact Katie Lewis at email@example.com