Silvercorp Metals

Silvercorp offers a compelling investment opportunity through its unique combination of profitable Chinese operations funding high-growth Ecuadorian assets. The company is projected to generate $354 million in revenue from current mines in FY2026, with revenue potentially growing to $614 million by FY2028 once El Domo begins production. The El Domo copper-gold project, currently under construction with commissioning targeted for late 2026, features a 10-year mine life with average annual payable production of 24 million pounds of copper and 26,000 ounces of gold at an all-in sustaining cost of $1.26 per pound of copper equivalent. 

Silvercorp's Chinese operations demonstrate exceptional cost discipline, maintaining stable all-in sustaining costs per tonne while generating profit on every tonne mined, with EBITDA margins of 53% significantly outperforming the peer average of 37%. The company trades at attractive valuation multiples (9.4x EV/EBITDA versus 18.7x peer median), offering significant upside as near-term catalysts materialize.​

Silvercorp Metals is led by Chairman and CEO Dr. Rui Feng, a successful entrepreneur and mine builder with over 25 years of global mining experience who founded the company in 2003 and pioneered digital information management tools for operational profitability. Dr. Feng holds a Ph.D. in Geological Sciences from the University of Saskatchewan and was instrumental in discovering the CSH Gold Mine in China. 

President Lon Shaver, a CFA charterholder with over 25 years of capital markets and corporate finance experience, previously held investment banking roles with Raymond James and Merrill Lynch and has served as CFO for publicly-listed mining companies. 

Interim CFO Winnie Wang, a CPA Australia designation holder, brings over 15 years of corporate finance leadership, having served as CFO of Silvercorp's China Operations and previously as Head of Finance for Asurion China after beginning her career as an auditor with PricewaterhouseCoopers. 

This executive team is complemented by a Board of Directors comprising industry veterans with extensive mining, finance, and sustainability expertise, positioning Silvercorp strongly for achieving its strategic objectives while maintaining strong community relationships and stakeholder engagement.

Silvercorp is executing a disciplined growth strategy focused on organic expansion in China and strategic development in Ecuador. In China, the company is transitioning to more mechanized mining at the Ying Mining District, investing $25 million in FY2026 to enhance ramp access with trackless systems, while developing the Kuanping satellite mine 33 kilometers north of Ying. 

The El Domo copper-gold project in Ecuador represents the company's most significant near-term growth driver, with $241 million in capex for 2025 funded from cash on hand and a stream payment from Wheaton Precious Metals, targeting commissioning in late 2026. 

For the Condor gold project, Silvercorp is re-thinking the development strategy as a high-grade underground operation, with indicated resources of 0.34 million ounces at 3.32 g/t gold and inferred resources of 1.38 million ounces at 3.55 g/t gold. The company maintains a disciplined approach to acquisitions, having successfully completed the Adventus transaction in July 2024 while walking away from opportunities that did not meet return thresholds.​

Silvercorp maintains a strong financial position with significant cash generation from its profitable Chinese operations funding growth projects without dilutive equity raises. The company has consistently generated positive free cash flow, with adjusted net income of $22.6 million and free cash flow of $20.6 million in the most recent fiscal year. The El Domo project economics demonstrate robust returns with an after-tax NPV of $259 million at 8% discount rate and 32% IRR, based on copper prices of $3.50 per pound and gold at $1,700 per ounce. 

Total capital costs for El Domo are estimated at $240.5 million, with $102 million allocated to FY2026 and $138.4 million to FY2027, fully funded through operational cash flow and strategic stream financing. The company's valuation remains compelling at 10.6x price to operating cash flow versus 20.8x peer median, while maintaining an A-rated ESG profile and strong institutional ownership.​

Silvercorp Metals Inc. represents a unique investment opportunity combining profitable production, near-term growth, and attractive valuation in the precious metals sector. With two profitable mines in China generating substantial free cash flow, the company is self-funding construction of the El Domo copper-gold mine in Ecuador, targeting commissioning in late 2026 and potentially doubling revenue by FY2028. 

The company's disciplined approach to growth, demonstrated by its successful track record of returning $600 million to shareholders while building a diversified asset portfolio, positions it for sustainable long-term value creation. Silvercorp's strong ESG ratings, experienced management team, and significant undervaluation relative to peers (trading at 9.4x EV/EBITDA versus 18.7x peer median) provide multiple catalysts for re-rating as construction milestones are achieved. 

For investors seeking exposure to precious metals with lower risk through profitable operations and clear growth visibility, Silvercorp Metals offers a compelling proposition in a strengthening commodity price environment.