
Silvercorp Metals Inc. (TSX: SVM) (NYSE: SVM) reported its financial and operating results for the three months ended June 30, 2025. All amounts are expressed in US dollars, and figures may not add due to rounding.
HIGHLIGHTS FOR Q1 FISCAL 2026
____________________ |
1 The company reports certain alternative performance measures, which include silver equivalent. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under the Company’s financial reporting framework and the methods used by the Company to calculate such measures may differ from methods used by other companies with similar descriptions. See “Alternative Performance (Non-GAAP) Measures” at the end of this news release for further details of these measures. |
CONSOLIDATED FINANCIAL AND OPERATING RESULTS
Three months ended June 30, | |||
2025 | 2024 | Changes | |
Financial Results | |||
Revenue (in thousands of $) | 81,334 | 72,165 | 13 % |
Mine operating earnings (in thousands of $) | 35,823 | 36,514 | (2) % |
Net income (loss) attributable to equity holders (in thousands of $) | 18,126 | 21,938 | (17) % |
Earnings (loss) per share – basic ($/share) | 0.08 | 0.12 | (33) % |
Adjusted earnings attributable to equity holders (in thousands of $) | 21,048 | 20,618 | 2 % |
Adjusted earning per share – basic ($/share) | 0.10 | 0.12 | (17) % |
EBITDA attributable to equity holders (in thousands of $) | 33,770 | 34,352 | (9) % |
EBITDA per share ($/share) | 0.15 | 0.19 | (26) % |
Adjusted EBITDA attributable to equity holders (in thousands of $) | 34,978 | 33,032 | 6 % |
Adjusted EBITDA per share ($/share) | 0.16 | 0.19 | (14) % |
Net cash generated from operating activities (in thousands of $) | 48,281 | 39,955 | 21 % |
Cash spent on capital expenditures (in thousands of $) | (25,766) | (16,385) | 57 % |
Free cash flow (in thousands of $) | 22,514 | 23,570 | (4) % |
Basic weighted average shares outstanding | 217,991,115 | 177,577,667 | 23 % |
Metals sold | |||
Silver (Koz) | 1,829 | 1,739 | 5 % |
Gold (oz) | 1,951 | 998 | 95 % |
Silver equivalent (Koz) | 2,023 | 1,802 | 12 % |
Lead (Klb) | 15,246 | 15,663 | (3) % |
Zinc (Klb) | 5,189 | 6,484 | (20) % |
Average Selling Price, Net of Value Added Tax and Smelter Charges | |||
Silver ($/oz) | 29.54 | 26.34 | 12 % |
Gold ($/oz) | 2,876 | 1,990 | 45 % |
Lead ($/lb) | 0.96 | 0.99 | (3) % |
Zinc ($/lb) | 0.96 | 1.01 | (5) % |
Cost Data | |||
Cash cost per ounce of silver, net of by-product credits ($) | 1.11 | (1.67) | 166 % |
All-in sustaining cost per ounce of silver, net of by-product credits ($) | 13.49 | 9.82 | 37 % |
Financial Position as at | June 30, 2025 | March 31, 2025 | |
Cash and cash equivalents and short-term investments (in thousands of $) | 377,133 | 369,056 | 2 % |
Working capital (in thousands of $) | 309,000 | 310,359 | — % |
CONSOLIDATED FINANCIAL RESULTS
Revenue in Q1 Fiscal 2026 was $81.3 million, up 13% compared to $72.2 million in Q1 Fiscal 2025. The increase is mainly due to 5% more silver and 95% more gold produced and sold ($5.4 million of increased revenue), coupled with increases of 12% and 45% in the selling prices for silver and gold respectively ($5.7 million of increased revenue).
Income from mine operations in Q1 Fiscal 2026 was $35.8 million, down 2% compared to $36.5 million in the three months ended June 30, 2024 (“Q1 Fiscal 2025”). The decrease was mainly due to i) an increase of 16% in tonnes of ore processed, which led to an increase of $5.9 million in production cost; and ii) an increase of $1.5 million in mineral rights royalties, which was implemented in China in the third quarter of Fiscal 2025, partially offset by the increased revenue noted above.
Net income attributable to equity shareholders of the Company in Q1 Fiscal 2026 was $18.1 million or $0.08 per share, compared to net income of $21.9 million or $0.12 per share in Q1 Fiscal 2025. The decrease in net income is mainly due to a $4.8 million charge on the fair value of the derivative liabilities related to the convertible notes issued in November 2024. Lower earnings per share was partially due to an additional 38.8 million shares issued upon the acquisition of Adventus Mining Corporation in July 2024.
The adjusted net income to equity shareholders was $21.0 million or $0.10 per share, after excluding the charge on the fair value of derivative liabilities and other non-cash or non-routine items, compared to $20.6 million or $0.12 per share in Q1 Fiscal 2025. Lower adjusted earnings per share was mainly due to the additional 38.8 million shares issued noted above.
Cash flow provided by operating activities in Q1 Fiscal 2026 was $48.3 million, up $8.3 million, compared to $40.0 million in Q1 Fiscal 2025.
Free cash flow in Q1 Fiscal 2026 was $22.5 million, compared to $23.6 million in Q1 Fiscal 2025 as the Company funded $7.6 million in expenditures to advance construction at the El Domo Project and exploration at the Condor Project in Ecuador.
Cash, cash equivalents and short term investments at the end of the quarter was $377.1 million, up 2% or $8.1 million compared to $369.1 million as at June 30, 2025. The Company holds a further portfolio of equity investments with a total market value of $72.2 million as at June 30, 2025.
CONSOLIDATED OPERATIONAL RESULTS
In Q1 Fiscal 2026, the company produced approximately 1,827 thousand ounces (“Koz”) of silver, 2,050 oz of gold, or approximately 2.0 million oz of silver equivalent, 15,735 thousand pounds (“Klb”) of lead and 5,229 Klb of zinc, representing increases of 6% (silver), 79% (gold), 12% (silver equivalent), and 1% (lead), and a decrease of 19% in zinc over the three months ended June 30, 2024 (“Q1 Fiscal 2025”).
The consolidated production cost per ounce of silver, net of by-product credits, was $1.11, compared to negative $1.67 in Q1 Fiscal 2025. The increase was mainly due to an increase of 16% in ore production, which led to in an increase of $5.9 million in production cost, while silver production increased by only 6%, resulting in a higher cash cost per ounce of silver, partially offset by an increase of $0.9 million in by-product credits as revenue from other metals increased. The consolidated AISC per ounce of silver, net of by-product credits, was $13.49, up 37.4% compared to $9.82 in Q1 Fiscal 2025. The increase is mainly due to i) an increase of $1.0 million in general administrative expenses as a result of the acquisition of Adventus Mining Corporation completed in July 2024; ii) an increase of $1.5 million in mineral rights royalty, implemented in the third quarter of Fiscal 2025; and iii) the increase in cash cost per ounce of silver.
INDIVIDUAL MINE OPERATING PERFORMANCE
Ying Mining District | Q1 F2026 | Q4 F2025 | Q3 F2025 | Q2 F2025 | Q1 F2025 |
June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |
Ore processed (tonnes) | |||||
Silver-lead ore | 252,958 | 265,199 | 255,783 | 193,423 | 212,766 |
Gold ore | 30,397 | 39,025 | 21,912 | 17,075 | 8,476 |
283,355 | 304,224 | 277,695 | 210,498 | 221,242 | |
Average head grades for silver-lead ore | |||||
Silver (grams/tonne) | 217 | 189 | 226 | 254 | 241 |
Lead (%) | 2.8 | 2.9 | 2.9 | 3.0 | 3.2 |
Zinc (%) | 0.5 | 0.5 | 0.6 | 0.6 | 0.7 |
Average head grades for gold-ore | |||||
Gold (grams/tonne) | 1.5 | 1.4 | 2.1 | 1.6 | 1.7 |
Silver (grams/tonne) | 51 | 62 | 67 | 87 | 97 |
Lead (5) | 0.8 | 0.7 | 0.7 | 0.9 | 2.0 |
Recovery rates | |||||
Silver (%) | 94.6 | 94.2 | 94.7 | 94.9 | 95.0 |
Gold (%)** | 93.4 | 91.7 | 94.6 | 92.2 | 93.5 |
Lead (%) | 94.1 | 92.3 | 94.0 | 94.0 | 94.4 |
Zinc (%) | 64.3 | 67.3 | 68.9 | 70.4 | 72.3 |
Cash Costs | |||||
Cash cost ($/tonne) | 83.08 | 84.90 | 84.92 | 92.86 | 90.46 |
AISC ($/tonne) | 129.83 | 120.62 | 150.87 | 146.90 | 140.25 |
Cash cost, net of by-product credits ($/oz of silver) | 1.26 | 3.05 | (0.30) | 0.62 | (0.68) |
AISC, net of by-product credits ($/oz of silver) | 10.10 | 11.35 | 11.05 | 9.05 | 7.14 |
Metal Production | |||||
Silver (Koz) | 1,689 | 1,563 | 1,778 | 1,518 | 1,572 |
Gold (oz) | 2,050 | 3,110 | 2,056 | 1,183 | 1,146 |
Silver equivalent (Koz) | 1,850 | 1,850 | 1,951 | 1,614 | 1,657 |
Lead (Klb) | 14,601 | 15,563 | 15,234 | 11,970 | 14,080 |
Zinc (Klb) | 1,845 | 2,039 | 2,250 | 1,795 | 2,468 |
**Gold recovery only refers to the recovery rate for gold ore processed. |
In Q1 Fiscal 2026, the Ying Mining District produced approximately 1,689 Koz of silver, 2,050 oz of gold, or approximately 1,885 Koz of silver equivalent, plus 14,601 Klb of lead, and 1,845 Klb of zinc, representing production increases of 7% (silver), 79% (gold), 14% (silver equivalent), and 4% (lead), and a decrease of 25% in zinc, compared to Q1 Fiscal 2025.
The Company reports a fatality involving a worker of the mining contractor at the HZG mine of the Ying Mining District. Silvercorp extends its sincere condolences to the family of the deceased worker. The contractor did not disclose the accident to the Company, which only became aware of the incident in mid-July when the government safety production authority initiated an investigation following a whistleblower report. The initial investigation revealed that the worker was killed by a rock fall while on a recruitment tour with the mining contractor. After the accident happened, the mining contractor settled with the family but did not follow appropriate protocols to report it to the relevant authorities nor to the Company. As a full investigation is currently underway, certain mining areas are closed, which will result in a production shortfall estimated at up to 20-25% for the current quarter. Silvercorp is waiting for the final investigation report from government agents for instruction on safety facility improvement, if any. The Company places the safety and well-being of all workers as its highest priority and expresses its disappointment that its safety policies and protocols implemented to minimize the risk of such incidents were not followed by the contractor.
GC Mine | Q1 F2026 | Q4 F2025 | Q3 F2025 | Q2 F2025 | Q1 F2025 |
June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |
Ore processed (tonnes) | 74,869 | 41,760 | 84,115 | 86,707 | 86,454 |
Head grades | |||||
Silver (grams/tonne) | 69 | 61 | 77 | 61 | 64 |
Lead (%) | 0.8 | 0.9 | 1.1 | 0.8 | 0.9 |
Zinc (%) | 2.3 | 2.9 | 2.7 | 2.4 | 2.4 |
Recovery rates | |||||
Silver (%) | 85.3 | 83.7 | 82.8 | 82.2 | 84.1 |
Lead (%) | 90.1 | 87.4 | 90.3 | 87.9 | 90.0 |
Zinc (%) | 90.0 | 90.3 | 90.3 | 90.2 | 90.4 |
Costs | |||||
Cash cost ($/tonne) | 62.53 | 77.46 | 53.69 | 50.08 | 50.49 |
AISC ($/tonne) | 99.93 | 117.83 | 75.55 | 74.53 | 83.42 |
Cash cost, net of by-product credits ($/oz of silver) | (0.80) | (8.53) | (19.14) | (15.67) | (12.19) |
AISC, net of by-product credits ($/oz of silver) | 20.02 | 15.05 | (6.13) | 1.62 | 8.45 |
Metal Production | |||||
Silver (Koz) | 138 | 67 | 168 | 137 | 145 |
Lead (Klb) | 1,134 | 699 | 1,853 | 1,232 | 1,539 |
Zinc (Klb) | 3,384 | 2,365 | 4,418 | 4,016 | 3,966 |
In Q1 Fiscal 2026, metals produced at the GC Mine were approximately 138 Koz of silver, 1,134 Klb of lead, and 3,384 Klb of zinc, representing decreases of 5% (silver), 26% (lead), and 15% (zinc), compared to Q1 Fiscal 2025.
EXPLORATION AND DEVELOPMENT
Capitalized expenditures | Plant and equipment |
Total Capital expenditures |
Expensed | |||||||
Ramp, Development Tunneling, and other |
Exploration Tunneling |
Exploration Drilling |
Mining Preparation Tunnels |
Drilling | ||||||
(Metres) | ($ Thousand) | (Metres) | ($ Thousand) | (Metres) | ($ Thousand) | ($ Thousand) | ($ Thousand) | (Metres) | (Metres) | |
Three months ended June 30, 2025 | ||||||||||
Ying Mining District | 12,289 | $ 7,804 | 17,624 | $ 6,735 | 32,889 | $ 948 | $ 1,217 | $ 16,703 | 17,172 | 33,615 |
GC Mine | 401 | 226 | 2,326 | 859 | 5,731 | 121 | 354 | 1,560 | 3,769 | 9,189 |
El Domo | — | 4,670 | — | — | — | — | 106 | 4,776 | — | — |
Condor | — | 383 | — | — | 2,017 | 273 | — | 656 | — | — |
Kuanping & other | 262 | 300 | 219 | 78 | — | — | 121 | 498 | — | — |
Consolidated | 12,952 | 13,382 | 20,168 | 7,672 | 40,637 | 1,342 | 1,797 | 24,194 | 20,941 | 42,804 |
Three months ended June 30, 2024 | ||||||||||
Ying Mining District | 15,065 | $ 7,681 | 15,090 | $ 4,328 | 21,036 | $ 663 | $ 4,570 | $ 17,242 | 11,830 | 44,823 |
GC Mine | 1,781 | 697 | 3,106 | 1,247 | 15,921 | 345 | 41 | 2,330 | 2,465 | 5,533 |
Other | — | — | — | — | — | 76 | 8 | 84 | — | — |
Consolidated | 16,846 | 8,378 | 18,196 | 5,575 | 36,957 | 1,084 | 4,619 | 19,656 | 14,295 | 50,356 |
Total capital expenditures in Q1 Fiscal 2026 were $24.2 million, up 23% compared to $19.7 million in Q1 Fiscal 2025. Exploration and development continued at the Ying Mining District and the GC Mine, the El Domo Mine construction progressed steadily, and the Kuanping mine construction commenced in Q1 Fiscal 2026.
About Silvercorp
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company’s strategy is to create shareholder value by 1) focusing on generating free cash flow from long life mines; 2) organic growth through extensive drilling for discovery; 3) ongoing merger and acquisition efforts to unlock value; and 4) long term commitment to responsible mining and ESG.
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