Silvercorp Metals Inc (OTCMKTS:SVMLF) posted its operating and financial report for the second quarter closed September 30, 2016. Net income came at $12.4 million compared with net earnings of $2.2 million. Lead, zinc and silver sales up 51%, 27% and 44%, correspondingly, from the previous year period, to around silver sales of 1.8 million ounces, lead sales of 19.9 million pounds and that of zinc at 5.9 million pounds.
Silvercorp Metals reported that sales in 2Q2017 jumped 70% to $46.3 million from the comparable quarter in the last year. The head grades of lead, zinc and silver showed jump of 21%, 22% and 16%. Gross margins came at 58% compared to gross margins of 32% in the previous year period. Cash flows from operations came at $27 million, a jump of $22.4 million against $4.6 million in the preceding year period.
Cash production cost came at $55.84 per tonne1 against $70.49 per tonner in the same period, a year earlier. The company closed 2Q2017 with cash/short-term investments of $92.1 million compared to $62 million as at the close of March 31, 2016.
In reported quarter, Silvercorp’s financial performance was mainly impacted by improved head grades that resulted in higher lead, zinc, silver, which were up 51%, 27% and 44%, respectively. The sales were supported by a 14% decline in total production costs of ore processed. Also, there was a jump in the metals prices, as the recorded selling price for lead, zinc and silver, surged by 3%, 22% and 27%, respectively, against the same quarter, a year earlier.
Sales in 2Q2017 came at $46.3 compared to $27.2 million in 2Q2016. Gold and silver sales represented $1.1 million and $27 million, correspondingly, while base metals denoted total sales of $18.2 million in the reported quarter against gold, silver and base metals of $0.5 million, $14.7 million and $12 million, respectively, in 2Q2016.