Silvercorp's Strong Financial Growth and Production Projections for Fiscal 2026

Silvercorp Metals Inc. has recently released its operational results for the fourth quarter and the fiscal year ending March 31, 2025. The company demonstrated a remarkable increase in both production and revenue compared to the previous year, positioning itself for continued success in the upcoming fiscal year. In this article, we will delve into these impressive results and the ambitious production targets set for fiscal 2026.

Fiscal 2025 Results

During the fourth quarter of fiscal 2025, Silvercorp reported a staggering revenue of approximately $75.1 million, marking a 76% increase compared to the same quarter in fiscal 2024. The total ore processed also saw a significant rise, reaching 345,984 tonnes, which is up by 46% from the previous year. The silver production for this quarter was recorded at 1.6 million ounces, an increase of 42% from fiscal 2024, while the silver equivalent production surged to about 1.9 million ounces.

For the fiscal year ending March 31, 2025, Silvercorp achieved record-revenue figures reaching approximately $298.9 million, a 39% increase from the prior fiscal year. The company produced around 6.9 million ounces of silver, exceeding its production guidance of 6.8 to 7.2 million and representing a 12% increase from fiscal 2024.

The operational highlights from the Ying Mining District were particularly noteworthy. Here, Silvercorp processed 1,013,659 tonnes of ore, contributing to a total silver production of 6,431 Koz and 7,495 oz of gold, translating to an increase of 13% and 3% respectively from fiscal 2024.

Guidance for Fiscal 2026

Looking ahead, Silvercorp has set ambitious targets for fiscal 2026. The company plans to process between 1,331,000 to 1,369,000 tonnes of ore, from which it anticipates extracting approximately 8,100 to 9,000 oz of gold and 7,380 to 7,600 Koz of silver. Furthermore, production increases are expected in lead and zinc as well, with forecasts indicating a rise of 5% to 8% for lead and a more impressive jump of 26% to 30% for zinc production.

The overall production guidance for fiscal 2026 reflects a modest increase of 1% to 4% in total ore processed. However, production increases in terms of precious metals show a hopeful outlook for growth. Silvercorp is particularly optimistic about the significant uptick forecasted for zinc, which is expected to yield an impressive rise driven by the operational efficiency enhancements the company has been implementing.

Cost Considerations

Silvercorp is also projecting its cash costs for fiscal 2026, with expectations ranging from $80.7 to $82.1 per tonne for consolidated costs. The All-In Sustaining Cost (AISC), which includes additional operational costs, is anticipated to be between $154.8 to $157.8 per tonne. These projections are significantly influenced by regulatory changes in China, where a new 2.3% mineral rights royalty will apply.

At the Ying Mining District, the projected cash cost stands at approximately $86.8 to $88.4 per tonne, similar to the previous year, whereas the GC Mine forecasts a lower end of $60.3 to $60.8 per tonne reflecting its ongoing operational efficiencies.

Capital Expenditure Plans

In addition to operational guidance, Silvercorp disclosed its capital expenditure plans for the upcoming year, estimating a combined total nearing $86.6 million across its projects, including investments in the Ying Mining District and the GC Mine for further development and exploration.

This proactive approach aims not only to sustain current levels of production but also to expand the company's mineral resource base through strategic development projects.

Conclusion

Silvercorp Metals Inc. has set a promising course for fiscal 2026 with a significant increase in production expectations and well-defined financial guidance. With a solid operational foundation established over fiscal 2025, the company is strategically positioned for growth in the metals market, and investors should keep a close eye on these developments as they unfold.