Vancouver – Year over year net earnings close to doubled in the second quarter, 2010, to US$8.9 million for Silvercorp Metals (SVM-T, SVM-N). Net earnings were 83% higher than during the same quarter a year previous.
Driving the increase were negative production costs and increased production.
Silver and lead production levels were up 35% and 43% respectively in the second quarter, 2010, as compared to the same quarter a year ago.
Production, about 80% of which was from Silvercorp’s Ming mine, came in at 102,461 tonnes. Ming ore graded 452.5 grams silver per tonne, 8.1% lead and 3% zinc.
Not surprisingly, given the resurgent price of silver over the past few months, cash costs per oz. silver net of lead and zinc credits were negative US$6.24, a record for Silvercorp.
Silvercorp’s cash on hand grew healthily to US$79 million in the latest quarter which ended Sept. 30, 2009.
News of Silvercorp’s strong quarter helped boost the company’s shareprice 17¢ to $6.27. Silvercorp has close to 162 million shares outstanding.
Silvercorp’s four operating mines are in Henan province, central China. It is also developing a fifth mining project in Guangdong province, southern China.
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