Silvercorp Metals (TSE: SVM) (SVM) engages in the development and exploration of mineral properties. The company recently reported earnings for the fourth quarter and twelve months ended March 31, 2022. Please note that the company reports in U.S. Dollars.
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Revenue for the quarter increased 16% year-over-year to $41.6 million. For the fiscal year, revenue increased 13% to $217.9 million. Adjusted earnings per share for the quarter saw a slight decline, coming in at $0.05 compared to $0.06 a year earlier. However, adjusted earnings improved when looking at the fiscal year, improving from $0.28 to $0.30 per share.
Its all-in sustaining cost per ounce of silver, net of by-product credits, remained relatively steady in the first quarter at $12.60 when compared to $12.55 in the same quarter of 2021.
For the fiscal year, the increase in all-in sustaining costs was more noticeable, as it climbed 17%. Nevertheless, it was significantly lower on an absolute basis at $8.77. Net of value-added tax and smelter charges, the average selling price of silver was US$19.36 for the full fiscal year.
Insider Transactions
Insiders refuse to buy any shares of Silvercorp, as they have only been selling. Although insider selling in itself is not a bad thing, ideally, investors would like to see insiders buy shares because it demonstrates confidence in the business. However, when there are absolutely no buys over the past year, it does raise some red flags.
Analyst Recommendations
Silvercorp Metals has a Moderate Buy consensus rating based on one Buy and two Holds assigned in the past three months. The average Silvercorp price target of C$6.41 implies 77.7% upside potential.
Analyst price targets range from a low of C$6.25 per share to a high of C$6.50 per share.
Final Thoughts
Silvercorp appears to be an efficiently-run company. It has pretty good all-in sustaining costs relative to the selling price of silver. In addition, analysts have a positive view of the company based on their price targets. However, the wave of insider selling is something that investors should take into consideration.
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