Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Silvercorp Metals Inc (SVM, Financial) reported record quarterly revenue of $72 million, a 20% increase from the previous year.
- The company achieved significant improvements in realized metal prices, with silver prices rising by 36%, gold by 18%, lead by 18%, and zinc by 23%.
- Attributable net income for Q1 was $22 million or $0.12 per share, up from $9 million or $0.05 per share in the same quarter last year.
- Cash flow from operating activities increased by 38% year over year, largely due to higher metals prices.
- The company ended the quarter with $216 million in cash, cash equivalents, and short-term investments, an increase of $31 million from the previous quarter.
Negative Points
- Despite higher throughput, production in silver, lead, and zinc decreased by 4%, 12%, and 6%, respectively, due to lower head grades.
- Production costs averaged $80 per tonne, 2% higher than last year's results.
- All-in sustaining costs per ounce of silver increased by 4% year over year to $9.82.
- The company faced higher business expenses related to the Adventus acquisition.
- There is a pending mine safety report approval for the Kuanping Project, which could delay development.
Q & A Highlights
Q: Can you provide a rough timeline for news flow post the Adventus acquisition?
A: We plan to release an update soon regarding the go-forward plan. We are focusing on advancing detailed engineering and project activities for El Domo, including early lead time items necessary for mine construction. - Lon Shaver, President
Q: Will the upcoming Ying technical report show full mill utilization?
A: The report will factor in the ongoing expansion, but I recommend waiting for its release for specific details. The mill expansion is part of a broader program, including shifts in mining methods and permit renewals. - Lon Shaver, President
Q: Should the increase in mining costs this quarter be seen as a one-off?
A: The uptick is not considered hugely material. We are close to releasing a life of mine plan that will provide more long-term averages, which will address this question more comprehensively. - Lon Shaver, President
Q: Why was there a stockpile of 59,000 tonnes of ore this quarter?
A: The stockpile resulted from increased mining activity exceeding mill capacity. This highlights the need for the mill expansion, which will be addressed in the upcoming life of mine plan. - Lon Shaver, President
Q: What is the timeline for the Kuanping project development and first production?
A: We aim to break ground and start building by the end of this fiscal year, with initial production expected early next year. The focus will be on efficient development and early ore extraction. - Lon Shaver, President
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
