Silvercorp Metals (TSX: SVM; NYSE-American: SVM) is coming off a stellar 18 months wherein it generated significant shareholder value. The company has leveraged a strategic land position in China’s Ying high grade silver-lead-zinc district, alongside an innovative approach to underground, narrow vein mining, to emerge as one of the highest margin miners in the silver space.
Silvercorp reported net income of US$44 million attributable to equity shareholders over the past fiscal year, and boosted its cash and equivalents by nearly US$35 million to US$97 million from the prior year.
The financial success was largely underpinned by all-in sustaining costs (AISC) of US$3.82 per oz. silver, which positions the company as one of the world’s lowest cost silver producers.
“Our model has always focused on putting high-grade assets into production as quickly as possible,” explains Chairman and CEO Dr. Rui Feng during an interview. “The approach has allowed us to control shareholder dilution and maintain a strong balance sheet by funding our operations through cash flow and earnings.”
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