Silvercorp Posts Record Annual Revenue, Net Income, and Operating Cash Flow for Fiscal 2026

• Fiscal 2026 revenue was $438.1 million, up 47% from fiscal 2025, with silver accounting for 72% of total revenue.
• Adjusted net income attributable to equity shareholders was $150.8 million, or $0.69 per share, compared with $75.1 million, or $0.37 per share, in fiscal 2025.
• Cash flow from operating activities was $310.6 million, up $171.9 million from fiscal 2025.
• Cash and cash equivalents and short-term investments were $422.3 million, with equity investments valued at $274.6 million, as of the most recent quarter end.
• Capital expenditures were $124.4 million, up 44% from fiscal 2025, including spending on the El Domo project and the Ying Mining District.

Silvercorp Metals Inc. (TSX/NYSE American: SVM) is a Canada-based mining company producing silver, gold, lead, and zinc. The company's operations are located primarily in China, with development projects in Ecuador. Its stated strategy includes generating free cash flow from long-life mines, organic growth through exploration, acquisitions, and a long-term commitment to responsible mining and environmental, social, and governance (ESG) practices.

Record Annual Revenue and Cash Flow Driven by Higher Realized Silver Prices

The realized silver price for fiscal 2026 was $46.44 per ounce after smelter deductions, up 72% from $26.95 in fiscal 2025. Silver represented 72% of total revenue for the year. Annual revenue reached $438.1 million, an increase of 47% from fiscal 2025.

Cash cost per ounce of silver, net of by-product credits, was negative $0.94 for fiscal 2026, compared with negative $0.54 in fiscal 2025. Adjusted EBITDA attributable to equity shareholders was $238.1 million, or $1.09 per share, compared with $132.2 million, or $0.65 per share, in fiscal 2025. Adjusted net income was $150.8 million, or $0.69 per share, compared with $75.1 million, or $0.37 per share, in the prior year.

Cash flow from operating activities was $310.6 million for fiscal 2026, an increase of $171.9 million from $138.6 million in fiscal 2025. Free cash flow was $181.3 million, up from $58.8 million in fiscal 2025. The company also reported a net loss attributable to equity shareholders of $9.9 million, or $0.05 per share, mainly due to a $178.5 million non-cash charge related to the mark-to-market valuation of derivative liabilities tied to convertible notes.

Treasury Position Following Chaarat Acquisition and Licence Extension

During the fourth quarter, Silvercorp completed the acquisition of a 70% interest in Chaarat ZAAV CJSC, with a $92 million cash payment to Chaarat Gold Holdings Limited. The remaining 30% interest is held by Kyrgyzaltyn, a state-owned company, on a free-carried basis.

Following the end of the quarter, Silvercorp paid $60 million to the Kyrgyz government after it issued a new mining licence to ZAAV, extending the licence's validity by 30 years, from June 25, 2032, to June 25, 2062.

As of the most recent quarter end, Silvercorp held cash and cash equivalents and short-term investments of $422.3 million, a decrease of $40.5 million from the prior quarter, along with equity investments valued at $274.6 million, an increase of $41.4 million from the prior quarter.

Capital Investment in El Domo Construction and Ying Mill Expansion

Total capital expenditures for fiscal 2026 were $124.4 million, up 44% from $86.6 million in fiscal 2025. Spending at the El Domo project in Ecuador was $46.4 million, compared with $7.5 million in fiscal 2025, covering infrastructure including haul roads, an ore stockpile area, a waste dump, and tailings storage facility preparation.

At the Ying Mining District in China, construction began on a new processing facility, designated No. 3 Mill, with a total budget of $31.6 million. The facility is expected to add 3,000 tonnes per day of capacity and be commissioned in the first quarter of fiscal 2028. Following its commissioning, the existing No. 1 Mill will be decommissioned, leaving Ying with a net effective milling capacity of 6,500 tonnes per day.

Construction also began in April 2026 on a new electrical substation and power line at Ying, with completion expected by the end of the second quarter of fiscal 2027.

Milestones and Next Steps

Silvercorp's near-term milestones include commissioning of the No. 3 Mill at Ying by the first quarter of fiscal 2028, completion of the TLP substation project by the end of the second quarter of fiscal 2027, and an application for a small-scale mining environmental licence at the Condor project, targeted for the second quarter of fiscal 2027. The company is scheduled to hold a conference call on May 29, 2026, to discuss its fiscal 2026 results.

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