Trading Symbol: TSX/NYSE AMERICAN: SVM
VANCOUVER, BC, Aug. 10, 2026 /PRNewswire/ -- Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) reported its financial and operating results for the three months ("Q1 Fiscal 2027") ended June 30, 2026. All amounts are expressed in US dollars, and figures may not add due to rounding.
HIGHLIGHTS FOR Q1 FISCAL 2027
-- Production results: Produced approximately 1.5 million ounces of silver,
2,536 ounces of gold, or approximately 1.7 million ounces of silver
equivalent1 during the quarter;
-- Strong quarterly revenue: Sold approximately 1.5 million ounces of silver,
2,454 ounces of gold, 13.7 million pounds of lead, and 4.2 million pounds
of zinc, for revenue of $138.7 million, an increase of 70% over the three
months ended June 30, 2025 ("Q1 Fiscal 2026"), mainly driven by a 135%
higher average realized silver price of $69.38 per ounce, with silver
representing 77% of the quarterly revenue;
-- Cash cost per ounce of silver1 (net of by-product credits): $1.33,
compared to $1.11 in Q1 Fiscal 2026;
-- All-in sustaining cost per ounce of silver1 (net of by-product credits):
$18.38, 36% higher than $13.49 in Q1 Fiscal 2026, mainly due to 72%
higher government taxes linked to increased revenue and less metals
produced and sold;
-- Adjusted earnings before interest, income tax, depreciation and
amortization ("EBITDA")1 attributable to equity shareholders of $77.3
million, or $0.35 per share, compared to $35.0 million or $0.16 per share
in Q1 Fiscal 2026;
-- Net income attributable to equity shareholders of $59.4 million, or $0.27
per share;
-- Adjusted earnings1 attributable to equity shareholders of $53.9 million,
or $0.24 per share, after excluding the non-cash or one-time items,
compared to $21.0 million or $0.10 per share in Q1 Fiscal 2026;
-- Robust cash flow from operating activities of $61.7 million, up $13.4
million, compared to $48.3 million in Q1 Fiscal 2026;
-- Mine Development & Construction: spent and capitalized $22.3 million on
exploration, development, and equipment and facilities at the China
operations; $12.9 million at the Ecuador operations mainly for the
development and construction of the El Domo mine; and $2.6 million for
Chaarat ZAAV mine construction;
-- Solid free cash flow1 generated of $28.6 million, up $6.1 million,
compared to $22.5 million in Q1 Fiscal 2026;
-- Strong treasury position: ended the period with cash and cash equivalents
and short-term investments of $387.1 million, a decrease of $35.2 million
from March 31, 2026 after $37.7 million capital expenditures on
development and construction, and $60.0 million payment to close the
acquisition of Chaarat ZAAV. In addition, the portfolio of equity
investments with a total market value of $303.6 million increased by
$29.0 million from March 31, 2026; and
-- Proactive Safety Compliance: Starting mid June, we voluntarily suspended
operations in China to conduct comprehensive self-reviews and complete
the "Six Major Safety Systems" underground upgrades in full compliance
with new Chinese government regulations.
______________________________
(1) Non-GAAP measures, please refer to section 12 for reconciliation.
CONSOLIDATED FINANCIAL AND OPERATING RESULTS
Three months ended June 30,
-------------------------------------------------------------
2026 2025 Changes
------------------ ------------------------- ------------------------- -------
Financial Results
(in thousands of
$, except per
share)
Revenue $ 138,665 $ 81,334 70 %
Mine operating
earnings 84,753 35,823 137 %
Net Income* 59,375 18,126 228 %
Per share - basic 0.27 0.08 223 %
Per share -
Diluted 0.24 0.08 195 %
Adjusted
earnings* 53,926 21,048 156 %
Per share - basic 0.24 0.10 153 %
Per share -
Diluted 0.21 0.10 121 %
EBITDA* 84,473 33,770 150 %
Per share 0.38 0.15 147 %
Adjusted EBITDA* 77,283 34,978 121 %
Per share 0.35 0.16 118 %
Cash flow from
operating
activities 61,682 48,281 28 %
Sustaining
capital
expenditures 10,677 10,837 (1) %
Growth capital
expenditures 19,866 14,930 33 %
Free cash flow 28,604 22,515 27 %
Basic weighted
average shares
outstanding 221,138,685 217,991,115 1 %
------------------ ------------------------- ------------------------- -------
Metals sold
Silver (million
ounces) 1.5 1.8 (16) %
Gold (ounces) 2,454 1,951 26 %
Lead (million
pounds) 13.7 15.2 (10) %
Zinc (million
pounds) 4.2 5.2 (19) %
------------------ ------------------------- ------------------------- -------
Average Selling
Price, Net of
Value Added Tax
and Smelter
Charges
Silver ($/ounce) 69.38 29.54 135 %
Gold ($/ounce) 3,927 2,876 37 %
Lead ($/pound) 0.99 0.96 3 %
Zinc ($/pound) 1.33 0.96 39 %
------------------ ------------------------- ------------------------- -------
Cost Data per
ounce of silver,
net of by-product
credits ($)
Cash cost 1.33 1.11 20 %
All-in sustaining
cost 18.38 13.49 36 %
------------------ ------------------------- ------------------------- -------
Financial Position
(in thousands of
$) as at June 30, 2026 March 31, 2026
------------------------- ------------------------- -------
Cash and cash
equivalents and
short-term
investments $ 387,107 $ 422,335 (8) %
Working capital 293,236 319,461 (8) %
------------------ ------------------------- ------------------------- -------
*Attributable to
equity holders
INDIVIDUAL MINE OPERATING PERFORMANCE
(i) Ying Mining District
The Ying Mining District delivered a stable Q1 Fiscal 2027, with ore mined of 304,466 tonnes, flat with 304,863 tonnes in Q1 Fiscal 2026.
Production was approximately 1.4 million ounces of silver, 2,536 ounces of gold, or approximately 1.6 million ounces of silver equivalent, plus 12.4 million pounds of lead and 1.6 million pounds of zinc, representing a production increase of 24% in gold and decreases of 16% (silver), 17% (silver equivalent), 15% (lead) and 15% (zinc) over Q1 Fiscal 2026. Lower production output was due to lower head grades, as a result of higher dilution associated with shrinkage mining and a production suspension since mid June.
Cash cost per tonne of ore was $87.05 in Q1 Fiscal 2027, up 5% from Q1 Fiscal 2026, mainly due to a 6% appreciation of the RMB against the USD. Cash cost per ounce of silver, net of by-product credits, was $2.45, compared with $1.26 in Q1 Fiscal 2026, mainly due to a decrease of 15% in silver sold which increased the unit cost, coupled with a 6% appreciation of the RMB against the USD, partially offset by an increase of $3.8 million in by-product credits from revenue of non-silver metals.
AISC per tonne was $130.25, relatively flat with $129.83 in Q1 Fiscal 2026. AISC per ounce of silver, net of by-product credits, was $13.94, up 38% from $10.10 in Q1 Fiscal 2026, mainly due to the increase in cash cost per ounce as discussed above, and an increase of 68% in government taxes linked to increased revenue.
Mining Permit Expansion Applications
As of March 31, 2026, the Company has completed the mining permit extension and mining capacity expansion for the four mining permits comprising the Ying Mining District, which are the SGX, TLP-LM, HPG, and DCG mining permits. The total mining capacity allowed by the mining permits is 1.32 million tonnes per year.
Mining SGX TLP-LM HPG DCG Ying total permit ----------- ----------- ----------- ------------ ------------ ----------- Capacity 500,000 600,000 120,000 p.a. 100,000 p.a. 1,320,000 (tonnes) p.a. p.a. p.a. Expiry 9/24/2035 26/02/2041 29/04/2028 16/6/2037 dates
Production Safety License Renewal
Following the grants of the new SGX, TLP-LM, HPG, and DCG mining permits, the company is working on the renewal of the production safety licenses: for SGX, the safety facility design has been approved, and it is currently in the construction phase; For TLP, the safety facility design has been reviewed by the emergency management department of Henan Province, with amendments incorporated for final approval; for HPG, the safety facility design has been approved by the emergency management department and construction commenced; and for DCG, the safety facility design has been completed and submitted to the emergency management department for approval.
Proactive Safety Compliance
Starting mid June, we voluntarily suspended the operations at the Ying Mining District to conduct a comprehensive self-review and complete the "Six Major Safety Systems" underground upgrades in full compliance with new Chinese government regulations. The company has engaged 5 vendors to implement the "Six Major Safety Systems" and the project is progressing as a top priority, with a total budget of approximately $11.5 million. Due to these major safety system improvement activities, production is expected to be affected by 40% to 50% in Q2 Fiscal 2027.
Ying Mining District Three months ended
June 30, March 31, December September June 30,
2026 2026 31, 2025 30, 2025 2025
--------------------- ---------- --------- --------- --------- ----------
Ore processed
(tonnes)
Silver-lead ore 290,064 279,627 299,217 235,168 252,958
Gold ore 33,152 32,050 29,208 29,834 30,397
--------------------- ---------- --------- --------- --------- ----------
323,216 311,677 328,425 265,002 283,355
Average head grades for silver-lead ore
Silver (grams/tonne) 160 161 190 207 217
Lead (%) 2.1 2.2 2.3 2.6 2.8
Zinc (%) 0.4 0.4 0.4 0.4 0.5
Average head grades for gold-ore
Gold (grams/tonne) 1.2 1.1 1.2 1.4 1.5
Silver (grams/tonne) 48 54 57 81 51
Lead (%) 0.9 0.9 1.1 0.9 0.8
Recovery rates
Silver (%) 94.8 95.0 95.3 94.8 94.6
Gold (%)** 90.5 90.8 92.8 94.2 93.4
Lead (%) 92.4 93.2 93.6 93.5 94.1
Zinc (%) 65.2 63.9 63.0 65.8 64.3
--------------------- ---------- --------- --------- --------- ----------
Cash Costs
Cash cost ($/tonne) 87.05 78.27 75.80 82.89 83.08
AISC ($/tonne) 130.25 134.23 134.06 139.22 129.83
Cash cost, net of
by-product credits
($/ounce of
silver) 2.45 (1.03) (1.22) 0.97 1.26
AISC, net of
by-product credits
($/ounce of
silver) 13.94 13.09 11.32 11.75 10.10
--------------------- ---------- --------- --------- --------- ----------
Metal Production
Silver (million
ounces) 1.4 1.4 1.7 1.5 1.7
Gold (ounces) 2,536 2,492 2,096 2,085 2,050
Silver equivalent
(million ounces) 1.6 1.5 1.9 1.7 1.9
Lead (million
pounds) 12.4 12.9 14.7 12.9 14.6
Zinc (million
pounds) 1.6 1.4 1.9 1.4 1.8
--------------------- ---------- --------- --------- --------- ----------
**Gold recovery only refers to the recovery rate for gold ore processed.
(ii) GC Mine
The GC Mine produced approximately 0.1 million ounces of silver, 1.0 million pounds of lead and 2.9 million pounds of zinc, representing decreases of 39% in silver, 12% in lead and 16% in zinc compared to Q1 Fiscal 2026.
Cash cost per tonne was $74.59, up 19% compared to $62.53 in Q1 Fiscal 2026, mainly due to i) higher per tonne fixed costs allocation resulting from a 16% decrease in ore production, ii) a 3% increase in the contractor unit cost upon contract renewal, and a 6% appreciation of the RMB against the USD. The AISC was $115.17, up 15% compared to $99.93 in Q1 Fiscal 2026 mainly due to the increase in cash cost discussed above, partially offset by a decrease of 10% in sustaining capital expenditures.
The cash cost per ounce of silver, net of by-product credits in Q1 Fiscal 2027, was negative $16.90, compared to negative $0.80 in Q1 Fiscal 2026, mainly driven by an increase of $1.5 million in the by-product credits from revenue of non-silver metals. The AISC per ounce of silver, net of by-product credits, was $15.00, down 25% compared to $20.02 in Q1 Fiscal 2026, the decrease mainly due to the decrease in cash cost per ounce of silver and a decrease of 10% in sustaining capital expenditures.
GC Mine Classification Update
The Company has commissioned Changsha Mining Research Institute to prepare the development and utilization plan to change the GC's classification from a lead-zinc mine to a silver mine, which was completed in Q1 Fiscal 2027 and submitted to the Department of Natural Resources of Guangdong Province, and received official approval on August 4, 2026. As the next step following this approval, the Company will proceed with the formal process to change the primary mineral category from lead-zinc to silver.
Proactive Safety Compliance
Starting late June, GC's operations have been temporarily suspended since late June to facilitate the self-review in full compliance with new Chinese government regulations on mine safety nationwide, which has since been completed and was submitted to the Municipal Work Safety Committee for approval on 26 July, 2026, and a third-party government-appointed review is underway. Underground upgrades will proceed upon approval.
GC Mine Three months ended
June 30, March 31, December September June 30,
2026 2026 31, 2025 30, 2025 2025
--------------------- ---------- --------- --------- --------- ----------
Ore Production
(tonne) 63,237 48,840 87,095 76,249 74,869
Head grades
Silver (grams/tonne) 51 52 52 64 69
Lead (%) 0.8 0.9 1.0 0.9 0.8
Zinc (%) 2.3 2.6 2.9 2.8 2.3
--------------------- ---------- --------- --------- --------- ----------
Recovery rates
Silver (%) 84.0 86.3 85.9 85.8 85.3
Lead (%) 92.3 93.5 89.1 89.0 90.1
Zinc (%) 90.6 90.6 92.7 91.1 90.0
--------------------- ---------- --------- --------- --------- ----------
Cash Costs
Cash cost ($/tonne) 74.59 71.12 53.37 58.20 62.53
AISC ($/tonne) 115.17 109.68 68.53 82.63 99.93
Cash cost, net of
by-product credits
($/ounce of
silver) (16.90) (19.93) (29.05) (11.44) (0.80)
AISC, net of
by-product credits
($/ounce of
silver) 15.00 10.22 (15.66) 4.71 20.02
--------------------- ---------- --------- --------- --------- ----------
Metal Production
Silver (million
ounces) 0.1 0.1 0.1 0.1 0.1
Lead (million
pounds) 1.0 1.1 1.7 1.3 1.1
Zinc (million
pounds) 2.9 2.5 5.1 4.2 3.4
--------------------- ---------- --------- --------- --------- ----------
CAPITAL EXPENDITURES AND DEVELOPMENT FOR GROWTH
Total capital expenditures in Q1 Fiscal 2027 were $37.7 million, up 56% compared to $24.2 million in Q1 Fiscal 2026, mainly due to mine construction spending for El Domo, Kuanping and Chaarat ZAAV projects.
-- China Operations:
Capitalized Expenditures
-------------
Ramps and Development Plant and
Tunneling Exploration Tunneling Exploration Drilling Equipment Total
---------------------- ---------------------- ---------------------- ------------ ------------
Capital
Expenditures (Metres) ($ Thousand) (Metres) ($ Thousand) (Metres) ($ Thousand) ($ Thousand) ($ Thousand)
------------- -------- ------------ -------- ------------ -------- ------------ ------------ ------------
Q1 Fiscal 2027
-----------------------------------------------------------------------------------------------------------------
Ying Mining
District 10,235 $ 8,709 17,413 $ 7,085 18,398 $ 642 $ 2,358 $ 18,794
GC Mine 1,192 715 1,336 554 5,119 121 243 1,633
Kuanping 2,155 1,261 1,062 294 3,716 107 172 1,834
------------- -------- ------------ -------- ------------ -------- ------------ ------------ ------------
Subtotal 13,582 10,685 19,811 7,933 27,233 870 2,773 22,261
------------- -------- ------------ -------- ------------ -------- ------------ ------------ ------------
Q1 Fiscal 2026