Silvercorp Metals Inc. (SVM.TO) | Investment Case

1. Company Snapshot

1.a. Company Description

Silvercorp Metals Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and mining of mineral properties in China and Mexico.The company primarily explores for silver, gold, lead, and zinc metals.It holds interests in the Ying project located in the Ying Mining District in Henan Province, China; Gaocheng (GC) mine located in Guangdong Province, China; Kuanping project located in Sanmenxia City, Shanzhou District, Henan Province, China; and La Yesca project located in northwest of Guadalajara, Mexico.

The company was formerly known as SKN Resources Ltd.and changed its name to Silvercorp Metals Inc.in May 2005.

Silvercorp Metals Inc.is headquartered in Vancouver, Canada.

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1.b. Last Insights on SVM

Silvercorp Metals' recent performance was driven by strong revenue growth, strategic investments, and operational progress. The company's Q2 Fiscal 2026 results showed a significant surge in revenue and adjusted net income of $22.6 million. A fresh investment in New Pacific Metals and an expanded share buyback program also contributed positively. Despite a net income loss, the company's robust cash position and progress in key projects were notable. Earnings surprises and operational results ahead of expectations also drew attention.

1.c. Company Highlights

Last Price	10.91
Change Percentage	-0.23%
Open	11.01
Previous Close	10.94
Market Cap ( Millions)	2377
Volume	834169
Year High	11.32
Year Low	4.14
M A 50	9.46
M A 200	6.79

FCF Yield	1.07%
Dividend Yield	0.32%
ROE	7.65%
Debt / Equity	15.37%
Net Debt / EBIDTA	-184.77%
Price To Book	2.36
Price Earnings Ratio	31.59
Price To FCF	93.68
Price To sales	5.57
EV / EBITDA	10.15

2. Silvercorp's Q2 Fiscal 2026 Earnings: A Mixed Bag

Silvercorp reported revenue of $83 million, a 23% increase from the previous year, driven primarily by silver, which contributed approximately 67% of net Q2 revenue. However, net income was negative $11.5 million, down from positive $17.8 million in Q2 of fiscal 2025, primarily due to a $53 million noncash charge on the fair value of derivative liabilities. Adjusted net income for the quarter was $22.6 million or $0.10 a share. The actual EPS came out at -$0.06964, missing estimates of $0.16. Cash flow from operating activities was $39 million, up 69% from last year, and free cash flow for the quarter was $11 million, supporting a strong closing cash position of $382 million.

Publication Date: Nov -23

                                    📋 Highlights
                                    Revenue Growth::
                                                $83 million revenue, 23% YoY increase, with silver contributing 67% of net Q2 revenue.
Operating Cash Flow Surge::
                                                Cash flow from operations rose 69% YoY to $39 million.
Net Loss Impact::
                                                Net loss of $11.5 million (vs. $17.8M profit prior) due to $53 million noncash derivative liability charge.
Adjusted Earnings Strength::
                                                Adjusted net income reached $22.6 million ($0.10/share), reflecting core operational performance.
Free Cash Flow & Liquidity::
                                                Free cash flow of $11 million supported a $382 million closing cash position, ensuring financial flexibility.

                                

Operational Highlights

Silver production was essentially flat, but gold production was up 76%, driven by increased production at the company's mines. Lead production was up 8%, while zinc production was down 3%. Year-to-date, production has increased relative to last year in silver (3%), gold (78%), and lead (4%), but decreased in zinc (11%). As noted by Lon Shaver, "capital expenditures at El Domo were initially slower due to a wetter year than usual, but have since ramped up significantly."

Capital Expenditures and Financing Activities

Capital expenditures for the quarter were $16 million in China and $11 million in Ecuador. The company also participated in New Pacific Metals equity financing and acquired additional shares. Furthermore, Silvercorp made the first draw on its $175.5 million Wheaton Precious Metals streaming facility for the El Domo project, which was contractually agreed upon at the time of the acquisition.

Valuation and Growth Prospects

With a P/S Ratio of 4.44 and an EV/EBITDA of 7.71, the market seems to be pricing in moderate growth expectations. Analysts estimate next year's revenue growth at 19.6%, which could potentially drive the stock higher if achieved. However, the current ROE of 7.65% and ROIC of 6.83% may not be sufficient to justify the current valuation multiples. Investors will need to weigh the company's growth prospects against its valuation to make an informed decision.

3. NewsRoom

Silver surges to record on Fed rate cut optimism

Nov -28

Source: proactiveinvestors.com

Tesla plans modest Robotaxi expansion in Austin

Nov -28

Source: proactiveinvestors.com

SEC reportedly investigating Jefferies over First Brands exposure

Nov -28

Source: proactiveinvestors.com

Roth MKM Reaffirms Buy Rating on Silvercorp Metals (SVM), Sets $8.25 Target

Nov -27

Source:

Silvercorp Metals Inc (SVM) Q2 2026 Earnings Call Highlights: Revenue Surge and Strategic ...

Nov -18

Source:

Earnings Troubles May Signal Larger Issues for Silvercorp Metals (TSE:SVM) Shareholders

Nov -13

Source:

Silvercorp Announces CFO Transition

Nov -12

Source:

Silvercorp Metals Inc. Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

Nov -09

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Mining

Expected Growth: 5.5%

Silvercorp Metals Inc.'s growth is driven by increasing demand for silver and gold, driven by industrial and jewelry applications, as well as growing investment demand. The company's focus on high-grade silver and gold deposits in China, a country with significant mineral resources, positions it for long-term growth.

7. Detailed Products

Silver

Silvercorp Metals Inc. is a significant silver producer, with a focus on mining and exploration of silver deposits in China.

Lead

The company also produces lead as a by-product of its silver mining operations, which is used in batteries, radiation shielding, and pigments.

Zinc

Silvercorp Metals Inc. also produces zinc as a by-product of its mining operations, which is used in galvanizing, die-casting, and as an alloying element.

Gold

The company also produces gold as a by-product of its mining operations, which is used in jewelry, coins, and as a store of value.

Exploration Services

Silvercorp Metals Inc. offers exploration services to identify and develop new mineral deposits, including geological surveys, drilling, and sampling.

8. Silvercorp Metals Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Silvercorp Metals Inc. operates in the mining industry, where substitutes are limited. However, the company's focus on silver, lead, and zinc mining makes it vulnerable to fluctuations in global demand and prices.

Bargaining Power Of Customers

Silvercorp Metals Inc.'s customers are primarily industrial manufacturers and fabricators, who have limited bargaining power due to the company's diversified customer base and long-term contracts.

Bargaining Power Of Suppliers

Silvercorp Metals Inc. relies on suppliers for equipment, materials, and services. While the company has some bargaining power due to its size, suppliers may still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The mining industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and environmental concerns. This limits the threat of new entrants to Silvercorp Metals Inc.'s market.

Intensity Of Rivalry

The mining industry is highly competitive, with many established players competing for market share. Silvercorp Metals Inc. faces intense rivalry from other mining companies, which may lead to pricing pressures and increased competition for resources.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	0.12%
Debt Cost	9.02%
Equity Weight	99.88%
Equity Cost	9.02%
WACC	9.02%
Leverage	0.12%

11. Quality Control: Silvercorp Metals Inc. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Fortuna Silver Mines

A-Score: 5.6/10

Value: 6.3

Growth: 7.8

Quality: 7.1

Yield: 0.0

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

US Lime & Minerals

A-Score: 5.3/10

Value: 1.6

Growth: 8.2

Quality: 8.5

Yield: 0.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

Hawkins

A-Score: 5.2/10

Value: 1.6

Growth: 7.9

Quality: 5.6

Yield: 1.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

Silvercorp Metals

A-Score: 4.6/10

Value: 3.2

Growth: 5.7

Quality: 7.0

Yield: 0.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

First Majestic Silver

A-Score: 2.9/10

Value: 1.5

Growth: 2.1

Quality: 5.0

Yield: 0.0

Momentum: 4.0

Volatility: 5.0

1-Year Total Return ->

Aya Gold & Silver

A-Score: 2.9/10

Value: 4.4

Growth: 3.3

Quality: 3.6

Yield: 0.0

Momentum: 4.0

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

19.38%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.02%

Silvercorp Metals Inc. - CA82835P1036

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SVM

1.c. Company Highlights

Better Quality

Fairly Valued

Medium Volatility

Earnings Beats

Revenues Beats

Stable Momentum

Strong Momentum

Average Growth

Average Yield

Earnings Miss

Average Quality

Expensive

Revenues Miss

2. Silvercorp's Q2 Fiscal 2026 Earnings: A Mixed Bag

Operational Highlights

Capital Expenditures and Financing Activities

Valuation and Growth Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Mining

Expected Growth: 5.5%

7. Detailed Products

Silver

Lead

Zinc

Gold

Exploration Services

8. Silvercorp Metals Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Silvercorp Metals Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.91$

Current Price

10.91$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA