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SILVERCORP REPORTS ADJUSTED NET INCOME OF $21.0 MILLION, $0.10 PER SHARE, AND CASH FLOW FROM OPERATING ACTIVITIES OF $48.3 MILLION FOR Q1 FISCAL 2026

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SILVERCORP REPORTS ADJUSTED NET INCOME OF $21.0 MILLION, $0.10 PER SHARE, AND CASH FLOW FROM OPERATING ACTIVITIES OF $48.3 MILLION FOR Q1 FISCAL 2026

 

 

 

 

 

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

  • Produced approximately 1.8 million ounces of silver, 2,050 oz of gold, or approximately 2.0 million ounces of silver equivalent1, 15.7 million pounds (“lb”) of lead and 5.2 million lb of zinc;
  • Sold approximately 1.8 million oz of silver, 1,951 oz of gold, 15.2 million lb of lead, and 5.2 million lb of zinc, for revenue of $81.3 million;
  • All-in sustaining cost per oz of silver, net of by-product credits, of $13.49;
  • Net income attributable to equity shareholders of $18.1 million, or $0.08 per share;
  • Adjusted net income attributable to equity shareholders of $21.0 million, or $0.10 per share, after excluding a $4.8 million charge on the fair value of derivative liabilities and warrants and other non-cash or non-routine items;
  • Earnings before interest, income tax, depreciation and amortization (“EBITDA”) attributable to equity shareholders of $33.8 million, or $0.15 per share;
  • Generated cash flow from operating activities of $48.3 million, and free cash flow of $22.5 million;
  • Spent and capitalized $18.8 million on exploration, development, and equipment and facilities for the China operations;
  • Spent and capitalized $5.4 million for the Ecuador operations;
  • Paid cash dividends of $2.7 million to holders of the Company’s common shares; and
  • Ended the period with cash and cash equivalents and short-term investments of $377.1 million, an increase of $8.1 million from the previous quarter, and a portfolio of equity investments with a total market value of $72.2 million. The Company also has a stream financing commitment of $175 million available from Wheaton Precious Metals International Ltd. for the El Domo project construction.
____________________
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.

 

Posted August 8, 2025

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