Silvercorp Metals (SVM) Q2 2025 earnings summary

Executive summary

• Achieved near-record quarterly revenue of $68 million, a 26% increase year-over-year, driven by higher realized metals prices and increased silver and zinc sales.

• Attributable net income rose to $18 million ($0.09 per share), up from $11 million ($0.06 per share) in the prior year quarter; adjusted net income was $17.8 million ($0.09 per share), up 52% year-over-year.

• Silver contributed 64% of Q2 revenue, up from 58% last year, with significant price increases across all key metals.

• Completed acquisition of Adventus Mining Corporation for $181.3 million, including $150.5 million in shares and $27.0 million in cash.

• Mined 361,440 tonnes of ore and produced 1,183 oz gold, 1.7M oz silver, 13.2M lbs lead, and 5.8M lbs zinc; silver and zinc production up 4% and 26% year-over-year, respectively.

Financial highlights

• Revenue rose 26% to $68.0 million; mine operating earnings increased 51% to $31.7 million year-over-year.

• Net income attributable to equity holders was $17.7 million ($0.09/share), up 60% year-over-year; adjusted net income was $17.8 million ($0.09/share), up 52%.

• Cash flow from operations was $23.1 million, down 20% year-over-year due to working capital changes; operating cash flow excluding non-cash working capital was $28 million, up 8%.

• Ended the quarter with $210 million in cash and $84 million in investments; cash and short-term investments totaled $209.5 million as of September 30, 2024.

• Portfolio of equity investments in associates and other companies valued at $84.4 million.

Outlook and guidance

• Confident in meeting annual production guidance, supported by processing a 129,000-tonne ore stockpile in H2 at the expanded mill.

• Mining rates expected to remain steady, with seasonal slowdown in Q4 due to Chinese New Year.

• Initial production at El Domo targeted for H2 2026, pending legal and permitting developments.

• Mill expansion and tailings storage facility construction to support increased throughput and future growth.