U.S. Markets closed
  • S&P 500

    3,269.96
    -40.15 (-1.21%)
     
  • Dow 30

    26,501.60
    -157.51 (-0.59%)
     
  • Nasdaq

    10,911.59
    -274.00 (-2.45%)
     
  • Russell 2000

    1,538.48
    -23.10 (-1.48%)
     
  • Crude Oil

    35.72
    -0.45 (-1.24%)
     
  • Gold

    1,878.80
    +10.80 (+0.58%)
     
  • Silver

    23.72
    +0.35 (+1.52%)
     
  • EUR/USD

    1.1650
    -0.0029 (-0.2446%)
     
  • 10-Yr Bond

    0.8600
    +0.0250 (+2.99%)
     
  • Vix

    38.02
    +0.43 (+1.14%)
     
  • GBP/USD

    1.2951
    +0.0028 (+0.2163%)
     
  • USD/JPY

    104.6200
    +0.0100 (+0.0096%)
     
  • BTC-USD

    13,509.56
    -25.83 (-0.19%)
     
  • CMC Crypto 200

    265.42
    +1.78 (+0.68%)
     
  • FTSE 100

    5,577.27
    -4.48 (-0.08%)
     
  • Nikkei 225

    22,977.13
    -354.81 (-1.52%)
     

Silvercorp Metals Posts 4th-Quarter Results

GuruFocus.com

- By Alberto Abaterusso

Shares of Silvercorp Metals Inc. (SVM) (SVM.TO) were down 0.48% at $2.06 in after-hours trading on Thursday after releasing fourth-quarter and fiscal 2019 results. The quarter ended March 31.

GAAP earnings of 7 cents per share beat estimates by 3 centst. Non-GAAP earnings of 3 cents per share were in line with expectations.


Despite topping projections by $800,000, fourth-quarter revenue of $34.95 million declined 9.1% year over year. The gross profit margin fell 300 basis points to 47% as a result of lower metal prices and sales volumes of silver and lead.

Silvercorp Metals sold 1.3 million ounces of silver, contributing 47.7% to total sales, and sold 700 ounces of gold, representing 2.3% of total sales. The miner sold 12.7 million pounds of lead and 7.3 million pounds of zinc which, together, made up 50% of total sales.

The Vancouver-based miner has operations in the Ying Mining District in the Henan Province and the GC Mine in the Guangdong Province of China.

As a result of a higher yield at the GC Mine in terms of ore throughput, grades and recoveries, which was reflected in lower production costs, Silvercorp closed the quarter with 37.1% growth in cash on hand to $67.4 million.

As of March 31, the company also has $47.84 million in short-term securities, $10.84 million in stockpiles and $4.475 million in total debt. Thus, the balance sheet appears to be very strong.

The company is also running a profitable business, as indicated by a full fiscal 2019 Ebitda margin of 52.8% compared to the industry median of 24.5%.

The stock closed at $2.1 per share on Thursday with a market capitalization of approximately $354.85 million. For the 52 weeks through May 23, the share price has fallen 29% to below the 200-, 100- and 50-day simple moving average lines. The closing price on Thursday was 14.8% above the 52-week low of $1.83 and 45.2% below the 52-week high of $3.05.

The 14-day relative strength index of 35 is approaching oversold levels.

Wall Street issued a buy recommendation rating with an average price target of $4.70 per share, reflecting 67.3% upside from Thursday's closing price.

Silvercorp Metals also trades on the Toronto Stock Exchange. Shares were trading around 2.81 Canadian dollars ($2.1) at close on Thursday with a market capitalization of about $355.6 million.

The closing price was below the 200-, 100- and 50-day simple moving average lines. The 52-week range is CA$2.43 to CA$3.95.

The 14-day relative strength index is 37.

In addition, the stock has underperformed the VanEck Vectors Junior Gold Miners (GDXJ) exchange-traded fund by about 14% over the past year through May 23.

Disclosure: I have no positions in any securities mentioned.

Read more here:



Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here .

This article first appeared on GuruFocus.