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Silvercorp Reports Q1 Results: Net Income up 73%, Cash Flows From Operations up 52% to US$20.2 Million
VANCOUVER, Aug. 11, 2016 /CNW/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) reported its financial and operating results for the first quarter ended June 30, 2016 ("Q1 Fiscal 2017"). All amounts are expressed in US Dollars.
FIRST QUARTER HIGHLIGHTS
_________________________ 1 Non-IFRS measure, see section 9 of the corresponding management's discussion and analysis for reconciliation |
FINANCIALS
Net income attributable to the shareholders of the Company in Q1 Fiscal 2017 was $4.7 million, or $0.03 per share compared to $2.3 million, or $0.01 per share in Q1 Fiscal 2016.
In the current quarter, the Company's financial results were mainly impacted by the following: (i) improved head grades yielded higher silver, lead, zinc sales of 20%, 12% and 15%, respectively; (ii) a 4% decrease in total production costs per tonne of ore processed; offset by (iii) the decline of metals prices, as the realized selling price for silver, lead, and zinc decreased by 3%, 13% and 17%, respectively, compared to the same prior year quarter.
Sales in Q1 Fiscal 2017 were $35.3 million compared to $32.2 million in Q1 Fiscal 2016. Silver and gold sales represented $20.8 million and $0.9 million, respectively, while base metals represented $13.6 million of total sales in this quarter compared to silver, gold and base metals of $17.9 million, $0.7 million, and $13.6 million, respectively, in Q1 Fiscal 2016.
Cost of sales in Q1 Fiscal 2017 was $19.5 million compared to $20.8 million in Q1 Fiscal 2016. The cost of sales included $14.6 million (Q1 Fiscal 2016 - $16.2 million) cash costs and $5.0 million (Q1 Fiscal 2016 - $4.6 million) depreciation, amortization and depletion charges. The decrease of cash cost of sales was mainly due to a 13% decrease in cash production costs per tonne of ore processed. The total per tonne ore production cost in Fiscal Q1 2017 was $85.58, a decrease of 4%, from $88.82 in Q1 Fiscal 2016.
Gross profit margin in Q1 Fiscal 2017 was 45% compared to 36% in Q1 Fiscal 2016. The improvement of gross profit margin was mainly due to the decrease of per tonne ore production costs. Ying Mining District's gross profit margin was 49% compared to a 41% gross profit margin in the same prior year quarter, while GC Mine's profit margin was 17% compared to a 9% gross profit margin in Q1 Fiscal 2016.
Cash flows provided by operating activities were $20.2 million or $0.12 per share in Q1 Fiscal 2017 compared to $13.3 million or $0.08 per share in Q1 Fiscal 2016. Before changes in non-cash operating working capital, cash flows provided by operating activities were $15.5 million, an increase of $6.5 million, compared to $9.0 million in Q1 Fiscal 2016 as a result of the improvement of operating earnings.
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| 10 | 501 | Silvercorp Metals A0EAS0 | Röttgen | egon0711 | 10.03.25 13:17 |