Silvercorp Metals Posts 122% Profit Growth in Q4; Shares Drop 4%

Silvercorp Metals Inc (SVM) reported higher profits and revenues in both the fourth quarter and Fiscal Year 2021. The precious metals company produces silver, zinc, and lead metals in concentrates from mines in China.

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Net income was $7 million ($0.04 per share) in the quarter ended March 31, 2021, up 122% from $3.2 million ($0.02 per share) in the prior-year quarter. Profit was in accordance with the Zacks Consensus Estimate.

Meanwhile, Q4 2021 revenue increased 89% to $35.7 million from $18.9 million the year before. However, revenue missed the Zacks Consensus Estimate by 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 Q4 2021. The sales represent an increase of 32%, 40%, 13%, and 50% respectively from Q4 2020.

For Fiscal 2021, the China-focused miner recorded net income of $46.4 million ($0.27 per share), a 35% increase from $34.3 million ($0.20 per share) in Fiscal 2020. As for revenue, it grew 21% to $192.1 million from $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 FY 2021, up 1%, 42%, 3%, and 10%, respectively, from FY 2020.

For Fiscal 2021, cash flow from operations was $85.9 million, increasing 11% from $77.2 million in 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, shares fell 4% in early trading Friday. (See Silvercorp Metals Inc stock analysis on TipRanks)

Last month, Roth Capital analyst Joseph Reagor reiterated a Buy rating on SVM with an $8.80 (C$10.62) price target providing 46% upside potential.

The rest of the Street is cautiously optimistic on SVM with a Moderate Buy rating based on 2 Buys and 1 Hold. The average analyst price target of C$9.62 implies 33% upside potential from current levels. Shares have fallen approximately 16% year-to-date.

TipRanks’ Smart Score

SVM scores a 3 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock’s returns are likely to underperform the overall market.