Canada's Silvercorp Q3 revenue jumps 51% yr/yr

Overview

• Canada mining firm's fiscal Q3 revenue rose 51% yr/yr to a record of $126.1 mln

• Adjusted net income for Q3 more than doubled yr/yr to $47.9 mln

• Company reported record cash flow from operations of $132.9 mln, up $88.1 mln yr/yr

Outlook

• Silvercorp expects Ying Mining District mines to close for three weeks in February for the Chinese New Year

• Company plans to process stockpiled ore during Chinese New Year holiday

• Silvercorp anticipates initial ore production from Kuanping in June 2026

Result Drivers

• HIGHER SILVER PRICES - Record revenue driven by an increase in realized silver selling price to $48.97 per ounce, with silver representing 72% of the quarterly revenue

• OPERATIONAL EFFICIENCIES - Improved cash cost per ounce of silver to negative $3.02 due to higher by-product credits and cost-efficient mining methods

• CAPITAL EXPENDITURES - Increased spending on El Domo and Kuanping projects, indicating focus on future production growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-gold precious metals & minerals peer group is "buy"

• Wall Street's median 12-month price target for Silvercorp Metals Inc is C$15.00, about 2.5% above its February 9 closing price of C$14.63

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nCNWj4Xl8a

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