Silvercorp Metals lifts cashflow from operations and posts net income of US$34.3 million in full-year 2019/20

Silvercorp Metals Inc (NSYEAMERICAN:SVM) (TSX:SVM) has revealed a 10% rise in cash flow from its operations during the financial year to March, 31, 2020, and still posted a healthy net income despite the impact of the coronavirus pandemic. As reported earlier in May, the miner's silver, lead, and zinc output surpassed its guidance for the 12 months to end-March despite the fact that the China operations were suspended for around six weeks in the fourth quarter. However, the amount of ore mined overall in the fiscal year was down 2% to 885,830 tonnes compared to the previous year. READ: Silvercorp Metals strikes amended deal to buy mid-tier producer Guyana Goldfields The group's revenue for the year fell by 7% to US$158.8 million, down from US$170.5 million in fiscal 2019, as Silvercorp sold 6.3 million ounces of silver, 3,300 ounces of gold, 65.3 million pounds of lead, and 25.4 million pounds of zinc. That represented a decrease of 2% and 6% in silver and gold sold and an increase of 1% and 12% in lead and zinc, the company said in its results statement. Net income for the year came in at US$34.3 million, or US$0.20 per share, versus US$39.7 million or US$0.23 per share for the year to end-March, 2019. The group's cash flow from operations for the year was US$77.2 million, up from US$70.4 million for the previous year, while the metals producer paid out US$4.3 million in dividends to shareholders, versus US$4.2 million in the prior year. The company also boasted of a strong balance sheet, with US$142.5 million in cash and cash equivalents at end-March, 2020, up 24% on the US$115.3 million seen at the end of fiscal 2019. In the fourth quarter, Silvercorp posted a net income of US$3.2 million, compared to adjusted net income of US$4.6 million in the prior-year quarter. Earlier this month, Silvercorp reiterated its fiscal 2021 production guidance for between 930,000 and 970,000 tons of ore for the year to end-March, 2021, yielding 6.2 million to 6.5 million ounces of silver, 66.1 million to 68.5 million pounds of lead, and 24.5 million to 26.7 million pounds of zinc At the end of April, Silvercorp said it would acquire gold producer Guyana Goldfields Inc (TSE:GUY), which runs the Aurora gold mine in the South American country. This week, the group announced an amendment to the agreement, valuing Guyana Goldfields at around C$227 million. Under the upgraded terms, each Guyana Goldfields shareholder will now receive C$0.25 in cash and 0.1849 of a Silvercorp share, for a total consideration of C$1.30 per share, based on the volume-weighted average price for Silvercorp shares for the five trading days to May 14. The Vancouver-headquartered group's flagship asset is the Ying project, known as the SGX silver-lead-zinc mine. The firm also operates the GC mine in Guangdong province. Contact the author at giles@proactiveinvestors.com