#Canada #Vancouver #mining #Silvercorp #El Domo

Silvercorp Adjustments for the El Domo Project Budget

Silvercorp Metals Inc., a leading player in the mining sector, has announced a critical budget update for its El Domo Project. This Canadian mining company, known for its focus on silver, gold, lead, and zinc, has revealed that the construction budget has risen by $14.6 million, bringing the total to $298.2 million. This figure marks a notable hike from its earlier estimate of $283.6 million dated February 4, 2026.

Key Reasons for Increased Budget

The revisions in the budget stem from several underlying factors:
1. Diesel Fuel Price Surge: Ecuador's removal of diesel subsidies has led to an alarming increase in fuel prices, escalating from below $3 per gallon in December 2024 to $5.64 per gallon by October 2026. The subsequent impact translates to an additional cost of approximately $8.3 million for ongoing construction work on Package #1 and Package #2.

2. Water Management Enhancements: Owing to excessive rainfall, Silvercorp has had to allocate an extra $4.7 million to improve water management infrastructure. This includes $3.5 million for enhanced construction and cleaning costs totaling $1.2 million.

3. Power Supply Adjustments: Additional needs for increased power supply capabilities have emerged, resulting in a $2.4 million budget extension.

4. Processing Plant Changes: The actual expenses related to the processing plant construction have risen by $3.7 million, based on revised estimates.

Additionally, new requirements such as two cofferdams and reactive power compensators have further contributed to the upward adjustment of costs.

Cost-Saving Measures

Despite the challenges, Silvercorp has successfully implemented a series of strategic cost-saving measures totaling $9.8 million. These include utilizing onsite materials for construction, eliminating unnecessary components from the design, and reducing the size of temporary camps.

Timeline Adjustments

Another significant aspect of the update is the impact of unexpected weather patterns, notably Super El Nino, which has delayed the construction timeline by approximately four months. The revised projection now anticipates production commencement by November 1, 2027.

Financial Overview

As of September 30, 2026, the total expenses have been categorized into various budget packages, reflecting ongoing expenditures against planned amounts. The majority of costs highlight the pre-fabricated structural steel for the processing plant, which is nearing completion and pending final installation.

About Silvercorp

Silvercorp prides itself on a legacy of profitability and growth, bolstering its strategy with a focus on free cash flow generation, ongoing exploration, and a commitment to environmentally responsible mining practices. The company has demonstrated its adaptability amid challenges, continuously seeking opportunities for improvement and investment in sustainable practices.

For more information about the El Domo Project and other updates, interested parties can visit Silvercorp's website at www.silvercorpmetals.com.

This update not only emphasizes the resilience of Silvercorp amid external pressures but also showcases the company’s proactive approach to navigating the complexities of project management within the mining sector.