Silvercorp (SVM, $5.21) posts fiscal Q1 production figures

Silvercorp Metals Inc. posted production and sales figures for the quarter ended June, 2021.

The company produced approximately 1.5 million ounces of silver, 1,000 ounces of gold, 15.9 million pounds of lead, and 7.2 million pounds of zinc. It sold approximately 1.6 million ounces of silver, 1,000 ounces of gold, 16.8 million pounds of lead, and 7.3 million pounds of zinc, thereby implying year-over-year decreases of -12%, -9%, and -20%, respectively, in silver, gold and lead sold, and an increase of +4% in zinc sold.

The quarter’s production decrease was largely due to Silvercorp’s mining contracts renewal negotiations at the Ying Mining District. On March 31, 2021, the company's two-year mining contracts with the eight mining contractors at the Ying Mining District expired and the parties reached a temporary two-month extension. During negotiations, some contract workers took breaks or left leading to some disruption in mining activity. When the contracts were renewed for an additional two year term in mid May 2021, it took some time for the contractors to boost the operations back up to full capacity.

Nevertheless, Silvercorp. expects to increase production in the remaining three quarters. It projects annual production between 6.3 - 6.6 million ounces of silver, 65.7 – 68.9 million pounds of lead, and 26.9 – 28.5 million pounds of zinc in Fiscal 2022.

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Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.