Record profits for Canadian silver miner with ops in China
Silvercorp Metals officials said Monday that the Vancouver-based miner is building a solid base in China’s Ying Mining Camp to significantly increase resources and resource production.
Posted: Tuesday , 10 Jun 2008
RENO, NV -
Silvercorp Metals Corporate Secretary Loren Waldmen told analysts and investors Monday that the company is considering a secondary listing on the NYSE after reporting record earnings for the fiscal year ended March 30, 2008.
The Vancouver-based company reported 3,960,189 ounces of silver, 2,152 ounces of gold, 49,623,448 pounds of lead, and 15,911,881 pounds of zinc sold during the past fiscal year. Silvercorp has grown from a single producing mine at the Ying Mining Camp of Henan Province to several mining projects in three silver-polymetallic mining camps in three Chinese provinces.
Silvercorp plans to spend $26 million to increase its mining and milling capacity in fiscal 2009 including:
· $12 million to build a 2,000t/d capacity mill plus tailings dam at the Ying Mining Camp. The new mill is expected to operational by November 2008. Silvercorp is developing four silver-lead-zinc mines at the camp.
· $10 million for developing mining capacity and infrastructure at the TLP and LM Mines, also in the Ying Mining Camp.
· $4 million for further upgrading and mechanization of the Ying and HPG mines at the camp.
The company also plans a $15.5 million drilling and exploration tunneling program at the camp to upgrade resources from inferred to indicated and higher, and to drill and tunnel new targets. Silvercorp is applying for a mining permit for the newly acquired Gaocheng (CG) and Shimentou (SMT) properties in Guangdong Province, and plans a $1.5 million drilling campaign at the properties. Silvercorp also plans an $8.5 million exploration program at its Na Bao project in the Qinghai province in the hope of making a new discovery.
For the fiscal year ended March 31, 2008, Silvercorp reported a net income of US$59.9 million or 41-cents per share, up 172% from $22 million or 15-cents per share for the previous fiscal year ended March 31, 2007.
For the fourth quarter ended March 31, 2008, net income was reported at $10.9 million (7-cents/sh), compared to $6.9 million (5-cents/sh) for fiscal year 2007.
During a conference call to discuss financial results Monday, Waldmen said Silvercorp intends to buy back 3 million shares over the next year.