Silvercorp Metals Inc (SVM) reported higher profits and revenues in the fourth quarter and full year 2021. The precious metals company produces silver, zinc and lead metals in concentrates from mines in China.
Net income was $ 7 million ($ 0.04 per share) for the quarter ended March 31, 2021, up 122% from $ 3.2 million ($ 0.02 per share) in the quarter of the previous fiscal year. The profit was in line with Zacks’ consensus estimate.
Meanwhile, fourth quarter 2021 revenue rose 89% to $ 35.7 million, from $ 18.9 million the year before. However, earnings missed Zacks’ consensus estimate of 1.29%.
Approximately 1.1 million ounces of silver, 700 ounces of gold, 10.9 million pounds of lead and 4.6 million pounds of zinc were sold by the company in the fourth quarter of 2021. Sales represent a significant increase of 32%, 40%, 13% and 50% respectively from Q4 2020.
For fiscal 2021, the China-focused miner reported net profit of $ 46.4 million ($ 0.27 per share), a 35 percent increase from $ 34.3 million ($ 0. 20 dollars per share) in fiscal 2020. As for the turnover, it increased by 21% to 192.1 million dollars against 158.8 million last year.
Approximately 6.3 million ounces of silver, 4,700 ounces of gold, 67.1 million pounds of lead and 27.9 million pounds of zinc were sold by Silvercorp in fiscal 2021, up by 1%, 42%, 3% and 10%, respectively, compared to fiscal 2020.
For fiscal 2021, cash flow from operations was $ 85.9 million, up 11% from $ 77.2 million the previous year. The silver miner ended the year with a strong balance sheet, with $ 199.1 million in cash, cash equivalents and short-term investments.
Despite the good financial results, stocks fell 4% at the start of trading on Friday. (See Silvercorp Metals Inc share analysis on TipRanks)
Roth Capital analyst last month Joseph reagor reiterated a buy note on SVM with a price target of $ 8.80 (C $ 10.62) offering upside potential of 46%.
The rest of the street is cautiously bullish on SVM with a moderate buy rating based on 2 buys and 1 wait. The average analyst target price of C $ 9.62 implies an upside potential of 33% over current levels. Shares have fallen about 16% since the start of the year.
Smart Score from TipRanks
SVM scores 3 out of 10 on TipRanks Smart score rating system, indicating that stock returns are likely to underperform the overall market.
ATS Automation beats on revenue, misses on fourth quarter EPS; Stocks gain 8%
Whitecap Resources Completes Acquisition of Kicking Horse Oil & Gas; Increase dividend 8%
Barrick Gold 1Q Profit Rises 35%, Rising Copper and Gold Prices Boost Revenue
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.