Silvercorp Unveils High-Return PEA for Condor Gold Project in Ecuador

The latest update is out from Silvercorp Metals ( (TSE:SVM) ).

Silvercorp Metals has released a robust Preliminary Economic Assessment for its Condor gold project in Ecuador, outlining an underground mine with a 13-year life producing an estimated 1.375 million ounces of payable gold, 5.266 million ounces of payable silver, and significant zinc and lead by-products. At base case metal prices, the study indicates an after-tax NPV (5%) of US$522 million, an internal rate of return of 29%, initial capital costs of US$292 million and a three-year post-tax payback from commercial production, supported by an average life-of-mine all-in sustaining cost of about US$1,258 per ounce net of by-product credits; sensitivity analysis shows materially higher returns at current spot prices, underscoring the project’s potential to become a core growth driver for Silvercorp and strengthen its position in the gold sector, albeit at a preliminary stage that still relies on inferred resources and has not yet been converted to reserves.

The most recent analyst rating on (TSE:SVM) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Silvercorp Metals stock, see the TSE:SVM Stock Forecast page.

Spark’s Take on TSE:SVM Stock

According to Spark, TipRanks’ AI Analyst, TSE:SVM is a Outperform.

Silvercorp Metals’ overall stock score is driven by strong financial performance and positive technical indicators. While the company shows robust revenue growth and efficient operations, the high P/E ratio suggests overvaluation. Earnings call insights and corporate events provide a mixed but generally positive outlook, with strategic investments and sustainability efforts enhancing long-term prospects.

To see Spark’s full report on TSE:SVM stock, click here.

More about Silvercorp Metals

Silvercorp Metals Inc. is a precious metals mining company listed on the TSX and NYSE American under the symbol SVM, primarily focused on the exploration, development and production of silver, gold and base metals. The company operates a portfolio of projects and mines, and is expanding its footprint in Latin America through the Condor gold project in Ecuador, targeting long-life, high-margin underground operations leveraging by-product credits from silver, zinc and lead.

Average Trading Volume: 1,016,460

Technical Sentiment Signal: Buy

Current Market Cap: C$2.64B

See more insights into SVM stock on TipRanks’ Stock Analysis page.