Silvercorp posts weaker net profit in fiscal 2022, says its silver and other metals production in China is down and costs are rising

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(Kitco News) – China-focused mining company Silvercorp Metals (TSX: SVM) announced yesterday that it produced 6,149 koz of silver in its 2022 fiscal year ended March 31, 2022, down 3% from the previous 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 thousands of pounds).

In its 2022 fiscal year, 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 declines of 1%, 28%, 5% and 4% in silver, gold, lead and zinc sold, compared to the previous year.

In fiscal 2022, consolidated cash cost of production per tonne of ore processed was $84.85, up 17% from $72.71 in fiscal 2021. The company explained that production costs were mainly affected by an increase in the rate of fees for mining contractors; an annual appreciation of the Chinese yuan against the US dollar; an increase in employee rates of pay; and an annual increase in electricity prices.

The company also reported revenue of $217.9 million, up 13% from $192.1 million a year earlier, adding net income attributable to shareholders was $30.6 million. , or $0.17 per share, compared to $46.4 million, or $0.27 per share last year. year.

Cash provided by operating activities in fiscal 2022 was $107.4 million, up 25% or $21.5 million from $85.9 million during fiscal year 2021.

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, from $199.1 million a year earlier. March 31, 2021.

The company expects to produce between 7.0 and 7.3 million ounces of silver in its 2023 fiscal year.

Silvercorp is a Canadian company operating several silver mines in China. The company also produces gold, lead and zinc.

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