Silvercorp Shares Drop 5.22% as Preliminary Q2 Revenue Falls 13%

Silvercorp Metals Inc. (SVM) shares closed 5.22% lower at $9.26 on Oct. 20 after the Canadian miner posted a 13% decline in preliminary fiscal second-quarter revenue as production fell at its Ying Mining District in China.

Preliminary revenue was $72.1 million for the quarter ended Sept. 30. The stock had closed at $9.77 on Oct. 19.

Silver production at Ying fell 41% to about 900,000 ounces, while gold output declined 34% to 1,371 ounces. The district processed 213,320 metric tons of ore, down 20%, as safety work affected operations.

Higher realized metal prices partly cushioned the effect of lower production on revenue. Silvercorp’s average realized silver price rose 82% to $61.83 an ounce, and its average realized gold price increased 32% to $3,955 an ounce.

The safety upgrades were substantially complete by quarter’s end. After receiving approval to resume work, Ying finished the period with a 90% operating rate. Silvercorp incurred approximately $13.4 million in costs for the improvements during the quarter.

Silvercorp plans to release its unaudited quarterly financial results Nov. 5 after the market closes.