Silvercorp Metals Inc. (SVM, Financial) recently announced its financial and operational results for the three months ending September 30, 2024. The company reported a robust revenue increase of 26% year-over-year, reaching $68 million for the second quarter of fiscal year 2025.
The operating profit from mining activities for the second quarter soared by 51%, hitting $31.66 million. In terms of net earnings, under GAAP standards, Silvercorp recorded a net profit attributable to shareholders of approximately $17.7 million, illustrating a 60% rise from the previous year, translating to an earnings per share (EPS) of $0.09, up from $0.06. Under non-GAAP standards, adjusted net profit came in at roughly $17.8 million, up 52% year-over-year, with an adjusted EPS of $0.09 compared to $0.07 the prior year.
Cash flow from operations in the second quarter was reported to be around $23.13 million.
Silvercorp specializes in the acquisition, exploration, development, and production of silver, gold, lead, zinc, and other precious metals. The recent strong performance in gold and silver prices has propelled Silvercorp's stock price upwards, seeing an increase of over 23% since August.
Looking ahead, major Wall Street firms like Citigroup, Goldman Sachs, UBS, and Bank of America have reached a consensus that gold prices are likely to rise to $3,000 per ounce next year. Currently, gold futures hover around $2,700, recently breaking a historic high of $2,800. Morgan Stanley is more aggressive with their forecast, projecting gold to reach $3,100 per ounce in the first quarter of next year.
