Trading Symbol: TSX/NYSE American: SVM Silvercorp Reports Adjusted Net Income of $53.9 Million, $0.24 per Share, and Cash Flow from Operating Activities of $61.7 Million FOR Q1 Fiscal 2027
NEWS RELEASE
Trading Symbol: TSX/NYSE AMERICAN: SVM
SILVERCORP REPORTS ADJUSTED NET INCOME OF $53.9 MILLION, $0.24 PER SHARE,
AND CASH FLOW FROM OPERATING ACTIVITIES OF $61.7 MILLION FOR Q1 FISCAL 2027
VANCOUVER, British Columbia – August 10, 2026 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX/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 earnings 1 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 permit SGX TLP-LM HPG DCG Ying total
Capacity (tonnes) 500,000 p.a. 600,000 p.a. 120,000 p.a. 100,000 p.a. 1,320,000 p.a.
Expiry dates 9/24/2035 26/02/2041 29/04/2028 16/6/2037
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 $11.5 million. Due to these major safety system improvement activities, production is expected to
be affected by 40% to 50% in Q2 Fiscal 2027.
Ying Mining District Three months ended
June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
Ore processed (tonnes)
Silver-lead ore 290,064 279,627 299,217 235,168 252,958
Gold ore 33,152 32,050 29,208 29,834 30,397
323,216 311,677 328,425 265,002 283,355
Average head grades for silver-lead ore
Silver (grams/tonne) 160 161 190 207 217
Lead (%) 2.1 2.2 2.3 2.6 2.8
Zinc (%) 0.4 0.4 0.4 0.4 0.5
Average head grades for gold-ore
Gold (grams/tonne) 1.2 1.1 1.2 1.4 1.5
Silver (grams/tonne) 48 54 57 81 51
Lead (%) 0.9 0.9 1.1 0.9 0.8
Recovery rates
Silver (%) 94.8 95.0 95.3 94.8 94.6
Gold (%)** 90.5 90.8 92.8 94.2 93.4
Lead (%) 92.4 93.2 93.6 93.5 94.1
Zinc (%) 65.2 63.9 63.0 65.8 64.3
Cash Costs
Cash cost ($/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 $20.02 in Q1 Fiscal 2026, the decrease mainly
due to the decrease in cash cost per ounce of silver and a decrease of 10% in sustaining capital expenditures.
GC Mine Classification Update
The Company has commissioned Changsha Mining Research Institute to prepare the development and utilization plan to change
the GC’s classification from a lead-zinc mine to a silver mine, which was completed in Q1 Fiscal 2027 and submitted to the
Department of Natural Resources of Guangdong Province, and received official approval on August 4, 2026. As the next step
following this approval, the Company will proceed with the formal process to change the primary mineral category from lead-zinc
to silver.
Proactive Safety Compliance
Starting late June, GC’s operations have been temporarily suspended since late June to facilitate the self-review in full compliance
with new Chinese government regulations on mine safety nationwide, which has since been completed and was submitted to the
Municipal Work Safety Committee for approval on 26 July, 2026, and a third-party government-appointed review is underway.
Underground upgrades will proceed upon approval.
GC Mine Three months ended
June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
Ore Production (tonne) 63,237 48,840 87,095 76,249 74,869
Head grades
Silver (grams/tonne) 51 52 52 64 69
Lead (%) 0.8 0.9 1.0 0.9 0.8
Zinc (%) 2.3 2.6 2.9 2.8 2.3
Recovery rates
Silver (%) 84.0 86.3 85.9 85.8 85.3
Lead (%) 92.3 93.5 89.1 89.0 90.1
Zinc (%) 90.6 90.6 92.7 91.1 90.0
Cash Costs
Cash cost ($/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 $24.2 million in Q1 Fiscal 2026, mainly due to
mine construction spending for El Domo, Kuanping and Chaarat ZAAV projects.
• China Operations:
Capital
Expenditures
Capitalized Expenditures
Ramps and Development
Tunneling Exploration Tunneling Exploration Drilling
Plant and
Equipment Total
(Metres) ($ 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
Ying Mining
District 12,289 $ 7,804 17,624 $ 6,735 32,889 $ 948 $ 1,217 $ 16,703
GC Mine 401 226 2,326 859 5,731 121 354 1,560
Kuanping 262 300 219 78 — — 121 498
Subtotal 12,952 8,330 20,169 7,672 38,620 1,069 1,692 18,761
i) Ying Mining District
Capitalized expenditures for underground ramps, tunnels and drilling amounted to $ 16.4 million, plus $ 2.4 million for plant
and equipment, compared to $15.5 million for underground ramps, tunnels and drilling and $1.2 million for plant and
equipment in Q1 Fiscal 2026. Construction of the No. 3 mill commenced, and total capital expenditures incurred in Q1 Fiscal
2027 were approximately $0.3 million, with the foundation treatment and the elevated water tank currently in progress . The
No. 1 TSF has reached full capacity, and its closure safety facility design has been approved by the Henan Provincial
Department of Emergency Management with an estimated total budget of $ 2.2 million and contractor tendering currently in
progress.
ii) GC Mine
Total capitalized expenditures amounted to $1.6 million, remaining flat with $1.6 million in Q1 Fiscal 2026.
iii) Kuanping Project
In Q1 Fiscal 2027, capital expenditures for Kuanping mine construction totaled $1.8 million, with 3,217 metres or $1.6 million
worth of ramps and development tunnels and 3,716 metres or $0.1 million worth of diamond drilling completed and
capitalized.
• Ecuador Operations:
Capital
Expenditures
($ Thousand) Package #1* Package #2* Package #3* Packages #4&5*
Temporary and
Permanent Camps
Direct costs
sub-total Owner's Cost Total
Q1 Fiscal 2027
El Domo 4,486 840 905 2,998 503 9,733 2,547 12,279
Q1 Fiscal 2026
El Domo 2,627 — — — — 2,627 2,149 4,776
*Package #1 - Site preparation/Roads/Channels/TSF/SWD
Package #2 - Open Pit Mining and Stripping
Package #3 - Processing Plant Construction and Equipment
Packages #4&5 - Site Infrastructure (bypass roads, power line, standby diesel generators, water treatment plant)
i) El Domo Project
Capital expenditures for El Domo totaled $12.3 million, compared to $4.8 million in Q1 Fiscal 2026, bringing cumulative
project expenditures to $66.2 million. Mine construction advanced steadily despite rainfall challenges. The non-contact
water channel, foundation work for the processing plant and the initial dam for the tailings storage facility advanced with a
total of approximately 604,600 cubic metres of earthworks excavation and fill completed.
The open-pit pre-stripping commenced, with efficiency improved via equipment additions, expanded operational areas, and
road upgrades. Meanwhile, major equipment for the processing plant and water treatment station has been procured and
shipped to Ecuador. The contract for the construction of the process plant has been concluded with TGJA, a contractor who
has just built the 80,000 tonne per day flotation mill for the Mirador copper-gold mine in Ecuador. The Company is working
towards the target of commissioning the operation by July 2027 as planned.
Subsequent to the quarter, the Company received the second installment of $43.9 million under the $175.5 million stream
financing agreement, to be applied toward continued support of the mine construction.
ii) Condor Project
The Company increased its ownership of the Condor Project in southern Ecuador from 98.7% to 100% in Q4 Fiscal 2026.
In Q1 Fiscal 2027, total expenditures incurred and capitalized were $0.6 million, primarily on permitting, engineering, and
community engagement activities, compared to $0.7 million in the same prior year period.
A PEA study for an underground mining operation was completed in Q3 Fiscal 2026. The PEA underscores significant
potential for the project. The water permits have been approved by the relevant government authorities. Technical reports
for the environmental license were also completed and submitted to the related government authorities for review. The
Environmental Impact Study ("EIS") has been approved by the Ministry of Energy and Mines(“MAE”). The Company
continued to advance the Free, Prior and Informed Consultation ("FPIC") and Citizen Participation Process ("PPC") required to
obtain the small-scale mining environmental license, targeted for Q2 Fiscal 2027. Once this license is secured, the Company
will commence the development of underground access tunnels into the Camp and Los Cuyes deposits to facilitate advanced
underground exploration and resource definition.
• Kyrgyzstan Operations:
i) Tulkubash Project
The Tulkubash project advanced rapidly with $ 0.6 million capital expenditures incurred in Q1 Fiscal 2027. A mining
contractor, China Railway 19th Bureau Group Co., Ltd. ("CRCC19"), has been hired after a bidding process that involved five
bidders. CRCC19 is currently operating in Kyrgyzstan and is also the mining contractor for our El Domo project in Ecuador.
Construction of the temporary camp and related facilities is underway, and CRCC19 has started to build access roads to the
open pit mine and waste storage area, and to prepare the site foundation for the heap leach pad area. In addition, a
bankable feasibility study is currently under compilation by LogiProc, a third party engineering firm, and is expected to be
completed in mid August 2026.
ii) Kyzyltash Project
A 50,000 m drilling program, including both in-fill and step-out, has completed 12,967 m or $1.7 million worth of drilling
during the quarter with 16 drill rigs, and the assay results are pending. Geotechnical and hydrogeological studies commenced
In Q1 Fiscal 2027, target to be completed in Q3 Fiscal 2027.
CONFERENCE CALL DETAILS
A conference call to discuss these results will be held on Tuesday, August 11, at 9:00 am PDT (12:00 pm EDT). To participate in the
conference call, please dial the numbers below.
Canada/USA TF: 888-510-2154
China Toll: 864000211716
International/Local Toll: 437-900-0527
Conference ID: 50395
Participants should dial-in 10 – 15 minutes prior to the start time. A replay of the conference call and transcript will be available on
the Company’s website at www.silvercorpmetals.com.
Mr. Guoliang Ma, P.Geo., Manager of Exploration and Resources of the Company, is the Qualified Person as defined by National
Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and has reviewed and given consent to the
technical information contained in this news release.
About Silvercorp
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth
potential. The Company’s strategy is to create shareholder value by 1) focusing on generating free cash flow from long life mines;
2) organic growth through extensive drilling for discovery; 3) ongoing merger and acquisition efforts to unlock value; and 4) long
term commitment to responsible mining and ESG. For more information, please visit our website at www.silvercorpmetals.com.
For further information
Silvercorp Metals Inc.
Lon Shaver
President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: [email protected]
Website: www.silvercorpmetals.com
ALTERNATIVE PERFORMANCE (NON-GAAP) MEASURES
This news release should be read in conjunction with the Company's Management Discussion & Analysis (“MD&A”), the unaudited consolidated
condensed interim financial statements and related notes contains therein for the three months ended June 30, 2026 , which have been posted
on SEDAR+ under the Company’s profile at www.sedarplus.ca and on EDGAR at www.sec.gov, and are also available on the Company's website
at www.silvercorpmetals.com under the Investor section. This news release refers to various alternative performance (non-IFRS) measures, such
as adjusted earnings and adjusted earnings per share, EBITDA and EBITDA per share, adjusted EBITDA and adjusted EBITDA per share, free cash
flow, cash cost and all-in sustaining cost per ounce of silver, net of by-product credits, cash cost and AISC per tonne of ore processed, silver
equivalent, and working capital. The tonnage of ore production refers to wet tonne, containing approximately 2% to 3% moisture. These
measures are widely used in the mining industry as a benchmark for performance, but do not have standardized meanings under IFRS as an
indicator of performance and may differ from methods used by other companies with similar description. The detailed description and
reconciliation of these alternative performance (non-GAAP) measures have been incorporated by reference and can be found under section 12 –
Alternative Performance (Non-GAAP) Measures in the MD&A for the three months ended June 30, 2026 filled on SEDAR+ at www.sedarplus.ca
and EDGAR at www.sec.gov and which is incorporated by reference here in.
CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS
This news release includes “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995
and “forward-looking information” within the meaning of applicable securities laws relating to, among other things statements the accuracy of
mineral resource and mineral reserve estimates at the Company’s material properties; estimates of the Company’s revenues and capital
expenditures; estimated production from the Company’s mines in the Ying Mining District and the GC Mine; timing of receipt of permits and
regulatory approvals; availability of funds from production to finance the Company’s operations; and access to and availability of funding for
future construction, use of proceeds from any financing and development of the Company’s properties; the amount of ore to be processed
during the Chinese New Year holiday; estimated El Domo and Kuanping mine construction progress, and timing of development ore from the
Kuanping project to be available for processing. By their very nature, forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking information may in some cases
be identified by words such as “will”, “anticipates”, “expects”, “intends” and similar expressions suggesting future events or future performance.
We caution that all forward-looking information is inherently subject to change and uncertainty and that actual results may differ materially from
those expressed or implied by the forward-looking information. A number of risks, uncertainties and other factors, including fluctuating
commodity prices; recent market events and condition; estimation of mineral resources, mineral reserves and mineralization and metal recovery;
interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; climate change;
economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future
production; integration of future acquisitions into existing operations; permits and licences for mining and exploration in China; title to
properties; non-controlling interest shareholders; acquisition of commercially mineable mineral rights; financing; competition; operations and