Shares declined 0.9% as investors weighed a temporary production slowdown due to safety-related mine upgrades in China and margin pressure despite strong revenue growth, signaling caution around near-term operational headwinds.
- Revenue surged 70% year-over-year to $139 million, driven primarily by a 135% increase in realized silver prices averaging above $69/oz.
- Production fell for key metals: silver down 17%, lead and zinc down 15%, reflecting lower head grades and higher dilution from a shift to shrinkage mining.
- Cash costs per ounce of silver nearly doubled to $2.45, and all-in sustaining costs increased 30% to $13.94/oz, impacted by a stronger RMB and higher government taxes linked to elevated revenue.
- Temporary suspension of operations at two major Chinese mines for safety upgrades is weighing on production, expected to resume with improved safety systems.
- Strong free cash flow of $29 million and $387 million in cash on the balance sheet support ongoing growth projects in China, Ecuador, and Kyrgyzstan.
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