Canada-based Silvercorp reported a 11pc decline in lead sales and 7pc rise in zinc sales in Q2 (September quarter) from the year prior. Cumulated lead metal sales was reported at 18.5mn lbs and zinc sales at 7.4mn lbs.
The company is on track to meet annual production and cost guidance, stated the company release. The company has undertaken extensive drill programs at the Ying Mining District and GC Mine, both in China.
Both mines produce silver, lead and zinc. Ying Mining District is on track to achieve its annual production guidance, the company claimed.
Ying Mining District reported a drop in sales of both lead and zinc, 5pc and 3pc, respectively, from the year prior. Approximately, 15.5mn lbs of lead and 1.3mn lbs of zinc was sold in Q2. GC Mine sold 2.9mn lbs of lead in Q2, up 11pc from the prior year and 6.02mn lbs of zinc in Q2, up 15pc from the preceding year.
Total ore mined in GC Mine was up 4pc to 86,833mt in Q2 from the prior year while total ore mined at Ying Mining District was 181,020mt up 3pc in Q2 from the previous year.
Production cost in Q2 stood at $19.7mn, up by $2.4mn from the prior year on the back of higher ore processed, approximately 281,980mt at the cost of $69.82/mt compared to 263,050 ore processed at $65.73/mt, the year prior.
The company posted a revenue of $56.4mn, up 13pc from the previous year and net income is up 27pc to $15.5mn in Q2 from the previous year. Revenues increased as a result of increase in net realised selling prices of lead, silver and gold. Also, higher quantities of zinc was sold in Q2 compared to prior year.