Image source: @Tumisu/Pixabay

Highlights

  • Backed by higher production and improved realized prices, SVM’s revenue surged by 3.4% in FY24 compared to pcp
  • The company’s net income for FY24 surged by a notable 135% compared to pcp
  • SVM has announced a semi-annual dividend of US$0.0125 per share, scheduled to be paid on or before 27 June 2024

Silvercorp Metals Inc. (TSX: SVM) is a Canadian mining firm. It produces silver, lead, gold, and zinc and has a long history of profitability and growth potential. It has a market capitalization of CAD 1.01 billion.

In fiscal year 2024, SVM's revenues reached US$215.1 million, marking a 3.4% increase from the preceding year, attributed to higher production and improved realized prices. Additionally, bolstered by increased income from mine operations and gains on investments, the company reported a substantial rise in operating incometo US$63.9 million compared to US$33.7 million in the previous corresponding period (pcp). Similarly, driven by higher income from operations and finance income, the company’s income before income taxes rose by around 99% compared to pcp. Overall, the company’s net income for the period surged by a notable 135%.  

Moreover, in FY24 the company had a higher EBITDA margin of 40.7% and a higher net margin of 23.1% compared to the industry median of 29% and 5.4%, respectively.

Recent business update

On 27 May 2024, the company announced a semi-annual dividend of USD 0.0125 per share. It will be paid to shareholders recorded at the close of business on 07 June 2024. The dividend is scheduled to be paid on or before 27 June 2024.

Company outlook

SVM has provided higher production guidance for FY25. Compared to the production results in FY24, the company anticipates production increment of around 4%-14% in ores, 9%-17% in silver, 8% to 23% in gold, 2% to 10% in lead, and 16% to 29% in zinc.

Top 10 shareholders

The top 10 shareholders of SVM collectively form around ~26.93% of the total shareholdings in the company. Van Eck Associates Corporation holds maximum number of shares with ~4.93% shareholding, followed by Feng (Rui) with ~3.52% shareholding, as depicted in the chart below:

Stock performance

The stock price of SVM has witnessed an upside of ~4.18% and ~26.54% over the last 1 week and 1 month, respectively. The stock has a 52-week high and 52-week low of CAD 5.98 and CAD 2.88, respectively. It is currently trading higher than the average of its 52-week high low.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 28, 2024. The reference data in this report has been partly sourced from EODHD/Others.