U.S. Silver Corp. enjoyed a bountiful 2011, with revenue, net income, and production all increasing, thanks primarily to the rise in the price of silver, while reserves rose for the fifth consecutive year, the company reported on Thursday.
The Toronto-based company reported pretax net income of $21.3 million for the year ended Dec. 31, up from $4.8 million in 2010.
Revenue last year rose to $93.4 million, up 50 percent from $62.4 million the previous year.
A burst in cash flow from operating activities, a 230 percent increase to $29.4 million, saw cash on hand make a similar jump to $27 million from $5.4 million.
U.S. Silver's reserves increased in excess of production again, with proven and probable reserves at 23.2 million ounces of silver, a 1.3 million ounce increase from last year. The Toronto-based company credited exploration at its Galena mine complex in Idaho for the results.
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We are pleased to report solid performance in 2011 with increases in production, revenue, earnings, and cash flow over the previous year, Executive Chairman Gordon Pridham said in a statement. This has allowed us to make significant investments in the mine, including a doubling of our exploration spending to $3.8 million. Production and revenue vary from quarter to quarter due to timing and grade variability.