November 8, 2011 / 10:20 PM / 6 years ago

UPDATE 2-Silvercorp profit rises on stronger bullion prices

* Q2 EPS $0.11 vs $0.08

* Revenue up 71 percent at $62.1 million (In U.S. dollars unless noted)

Nov 8 (Reuters) - China-focused miner Silvercorp (SVM.TO) said on Tuesday its quarterly profit rose 49 percent as the average realized sales price for its silver more than doubled.

The company said net income in its second quarter, ended Sept. 30, was $18.5 million, or 11 cents a share, up from a profit of $12.4 million, or 8 cents a share, a year earlier.

Excluding one-time items, Silvercorp said its earnings in the period were $23.6 million, or 14 cents a share.

Revenue rose 71 percent to $62.1 million.

Silver production was up 4 percent at 1.4 million ounces, while the average realized price more than doubled to $30.48 from $14.63.

Gold production rose to 2,516 ounces, while the average realized gold price rose to $1,313 an ounce.

Vancouver-based Silvercorp is one of several Sino-Canadian companies hurt this year by allegations of fraud. The miner said it spent $1.5 million on costs related to fighting what it called a “short and distort” scheme.

A recent KPMG review of the company’s financials appears to have cleared Silvercorp of most of the anonymous allegations against it. [ID:nN1E79N0A5]

Shares of Silvercorp, which peaked at C$15.60 in April this year and plunged as low as C$5.81 in September, closed Tuesday at C$9.62 on the Toronto Stock Exchange. (Reporting by Euan Rocha and Julie Gordon; editing by Peter Galloway)

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