Silvercorp Metals (SVM) Q1 2025 earnings summary

Executive summary

• Record quarterly revenue of $72.2 million, a 20% increase year-over-year, driven by higher realized metal prices, especially in China.

• Attributable net income rose to $22 million ($0.12/share), up 138% year-over-year.

• Adjusted net income was $21 million ($0.12/share), compared to $12 million ($0.07/share) in the prior year.

• Cash flow from operating activities reached $40 million, up 38% year-over-year.

• Completed the acquisition of Adventus, adding the El Domo and Condor Projects in Ecuador and enhancing geographic diversification.

Financial highlights

• Realized silver price increased 36%, gold 18%, lead 18%, and zinc 23% year-over-year.

• Silver contributed 63% of Q1 revenue, up from 59% in Q1 and 55% in Q4 of last year.

• Cash, cash equivalents, and short-term investments totaled $216 million at quarter-end, up $31 million from year-end.

• Investments in associates and other companies had a market value of $108 million as of June 30.

• Working capital increased 16% sequentially to $178.9 million.

Outlook and guidance

• Confident in achieving annual production guidance of 6.8–7.2 million ounces of silver.

• Production costs per ton in Q1 averaged $80, in line with annual guidance of $77–$80 per ton.

• All-in sustaining costs per ton were $140, below annual guidance of $144–$152 per ton.

• Mill number two expansion at Ying on track for November completion, increasing capacity to 4,000 tons/day.

• Anticipates processing stockpiled ore in Q3 and Q4 as new 1,500 tpd mill becomes operational by November 2024.