Silvercorp Metals Inc. – Strong Third Quarter Results

Silvercorp Metals Inc. (TSX: SVM | NYSE-A: SVM) reported its third quarter fiscal 2024 results for the three months ended December 31, 2023.

Q3 and YDT Financial Metrics

Third quarter revenue totalled US$58.5 million, which is in line with the US$58.7 million generated during the same period last year. Revenue for the nine months of the fiscal year totalled US$172.5 million, which is down 0.8% compared to the same period last year.

Net income attributable to equity holders of the Company during the third quarter totalled US$10.5 million, down 11.8% on Q3 2023. Earnings per share for the quarter came in at US$0.06, beating the street consensus average of US$0.05. For the nine months of the year to date, net income attributable to equity holders totalled US$30.8 million, up 51% compared to the same period last year, as a result of a US$20.2 million impairment in FY 2023.

Cash generated from operating activities during Q3 2024 totalled US$23.6 million, down 8% on the same period last year. For the first nine months of the financial year, cash generated from operating activities totalled US$81.3 million, up 1.8% on 9m 2023.

Investing in Organic Growth

Silvercorp has continued to invest in the future of its operations during the quarter with US$1.6 million spent on exploration drilling, US$14.1 million on underground development, and US$3.9 million on equipment and facilities, which included US$1.3 million spent on construction of the new tailings storage facility.

Well-funded and Undervalued

Silvercorp finished the quarter with over $198.3 million in cash and cash equivalents and short-term investments. Additionally, it currently holds equity investments in associates and other companies with a total market value of U$$139.5 million.

These combined have a total value of US$337.8 million, and Silvercorp’s current market valuation is US$399.1.

This means its existing operations in China, which have generated an average of US$76.7 million in positive operating cash flow per year for 13 years, are valued at just US$61.3 million by the market. That is not even one year’s operational cash flow.

These mines have reserve bases that could last at least another 15 years, and they are not even being valued at one year's operational cash flow, underscoring Silvercorp’s compelling value proposition.

Guidance for FY 2025

Silvercorp is refining the mine plans for its operations and expects to provide Fiscal 2025 guidance along with the release of Fiscal 2024 production results in April 2024.

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Disclaimer

This newsletter has been published by Mining and Metals Research Corporation (“the Company”). The information used to compile the article has been collected from publicly available sources and the Company cannot guarantee the 100% accuracy of those sources. This communication is intended for information purposes only and does not constitute an offer, recommendation, solicitation, to make any investments.? Nothing in this communication constitutes investment, legal accounting or tax advice, a personal recommendation for any specific investor. The Company do not accept liability for loss arising from the use of this communication. This communication is not directed to any person in any jurisdiction where, by reason of that person's nationality, residence or otherwise, such communications are prohibited.? The Company may derive fees from the production of this newsletter.

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