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Silvercorp Metals Inc (TSE:SVM)
TSX:SVM
Top Page
Silvercorp Metals
(TSX:SVM)
76Outperform
Positive Factors
Financial Stability
Cash flow from operating activities increased significantly, facilitating financial stability and growth opportunities.
Operational Efficiency
Production costs were below forecast, boosting profitability and operational efficiency.
Revenue Performance
Silvercorp reported record quarterly revenue of $83.6M, which was pre-reported and exceeded expectations.
Negative Factors
Capital Expenditure
The El Domo project has an estimated capex of $248M and a $175.5M stream agreement is fully available to draw in installments during construction.
Silvercorp Metals (SVM) vs. S&P 500 (SPY)
Market Cap
$1.12B
Dividend Yield0.69%
Average Volume (3M)560.15K
Price to Earnings (P/E)10.3
Beta (1Y)1.92
Revenue Growth31.23%
EPS Growth110.49%
CountryCA
Employees1,207
SectorBasic Materials
Sector Strength61
IndustrySilver
Share Statistics
EPS (TTM)0.50
Shares Outstanding217,416,490
10 Day Avg. Volume560,778
30 Day Avg. Volume560,146
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.98
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit8.74
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.88Price Target Upside52.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Silvercorp Metals Business Overview & Revenue Model
Company DescriptionSilvercorp Metals Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and mining of mineral properties in China and Mexico. The company primarily explores for silver, gold, lead, and zinc metals. It holds interests in the Ying project located in the Ying Mining District in Henan Province, China; Gaocheng (GC) mine located in Guangdong Province, China; Kuanping project located in Sanmenxia City, Shanzhou District, Henan Province, China; and La Yesca project located in northwest of Guadalajara, Mexico. The company was formerly known as SKN Resources Ltd. and changed its name to Silvercorp Metals Inc. in May 2005. Silvercorp Metals Inc. is headquartered in Vancouver, Canada.
How the Company Makes MoneySilvercorp Metals Inc. generates revenue through the extraction and sale of metals, primarily silver, lead, and zinc. The company operates several mines in China, where it extracts these metals from its mineral properties. After extraction, the metals are processed and sold to various customers, including smelters and other buyers in the metals industry. Silvercorp benefits from the market demand for these commodities, and its earnings are influenced by metal prices, production volumes, and operational efficiencies. Additionally, the company may engage in strategic partnerships or joint ventures to expand its mining operations and maximize its revenue potential.
Silvercorp Metals Financial Statement Overview
Summary
Silvercorp Metals has demonstrated robust financial performance with strong revenue growth, profitability, and effective cost management. While the income statement, balance sheet, and cash flow metrics are solid, a slight decrease in gross profit margin could be a concern if it continues.Income Statement
Silvercorp Metals has shown strong performance in the TTM (Trailing-Twelve-Months) with a significant gross profit margin of 45.8% and a net profit margin of 26.8%. The revenue growth rate from the previous annual report is approximately 23.8%, indicating robust growth. The EBIT margin stands at 42.1%, and the EBITDA margin is 52.5%, reflecting efficient cost management and operational strength. However, the gross profit margin saw a slight decrease compared to the previous year, which may be a point of concern if the trend continues.75
Positive
Balance Sheet
The company's financial stability is highlighted by a low debt-to-equity ratio of 0.15, indicating conservative financial leverage. The return on equity (ROE) is strong at 10.1% for the TTM, suggesting effective utilization of equity. The equity ratio is 63.4%, showcasing a solid equity position relative to total assets. These metrics suggest a well-balanced balance sheet with minimal risk from leverage.82
Very Positive
Cash Flow
The company's free cash flow growth rate is notable, with an increase from the previous period to $49.64 million in the TTM. The operating cash flow to net income ratio is 1.66, and the free cash flow to net income ratio is 0.70, indicating strong cash generation relative to net income. These figures reflect a healthy cash flow position, although the capital expenditures slightly offset the free cash flow growth.78
Positive
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 215.19M | 208.13M | 217.92M | 192.10M | 158.83M | Gross Profit |
| 125.81M | 70.78M | 84.30M | 84.16M | 59.37M | EBIT |
| 63.92M | 33.75M | 62.56M | 71.72M | 59.37M | EBITDA |
| 99.14M | 64.80M | 98.04M | 97.07M | 77.36M | Net Income Common Stockholders |
| 36.31M | 20.61M | 30.63M | 46.38M | 34.27M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 184.89M | 203.32M | 212.93M | 199.09M | 142.52M | Total Assets |
| 702.82M | 676.80M | 723.54M | 652.64M | 512.76M | Total Debt |
| 1.31M | 583.00K | 1.26M | 1.74M | 2.07M | Net Debt |
| -151.63M | -145.11M | -112.04M | -116.99M | -63.71M | Total Liabilities |
| 105.81M | 96.97M | 103.42M | 86.91M | 73.79M | Stockholders Equity |
| 507.25M | 489.05M | 512.40M | 467.57M | 368.68M |
| Cash Flow | Free Cash Flow | |||
| 28.10M | 30.69M | 40.17M | 33.71M | 41.94M | Operating Cash Flow |
| 91.57M | 85.64M | 107.38M | 85.91M | 77.25M | Investing Cash Flow |
| -65.71M | -26.52M | -106.63M | -40.97M | -70.79M | Financing Cash Flow |
| -16.80M | -17.98M | -7.43M | -1.45M | -2.93M |
Silvercorp Metals Technical Analysis
Negative
5.15
Price Trends
5.38
Negative
4.93
Positive
5.19
Negative
Market Momentum
-0.05
Negative
47.63
Neutral
32.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SVM, the sentiment is Negative. The current price of 5.15 is below the 20-day moving average (MA) of 5.15, below the 50-day MA of 5.38, and below the 200-day MA of 5.19, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 47.63 is Neutral, neither overbought nor oversold. The STOCH value of 32.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SVM.
Silvercorp Metals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Performance Comparison
TSE:SVM
Silvercorp Metals
4.90
0.43
9.67%
EXK
Endeavour Silver
3.64
0.98
36.84%
FSM
Fortuna Silver Mines
5.95
1.27
27.14%
MAG
MAG Silver
15.56
3.35
27.44%
SILV
SilverCrest Metals
11.55
3.27
39.49%
Silvercorp Metals Earnings Call Summary
Earnings Call Date:Feb 11, 2025
(Q3-2025)
| % Change Since: 12.69%|
Next Earnings Date:May 22, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial and operational performance, including record revenue and production, driven by strategic expansions and favorable commodity prices. Although there were some increased costs and a decrease in zinc production, these were outweighed by the significant accomplishments and positive outlook for future growth.Q3-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Fiscal Q3 was the strongest quarter ever with record revenue of $84 million, up 43% from the previous year, and record operating cash flow of $45 million, up 90%.
Increased Production and Mill Expansion
Record silver production of 1.9 million ounces, up 16%, with the Ying Mine completing a mill expansion in December, increasing capacity from 2,500 tons to 4,000 tons per day.
Commodity Price Surge
Realized gold and silver prices rose by 35%, zinc by 49%, and lead by 8%, contributing to increased revenue and net income.
Strong Cash Position
Ended 2024 with a healthy cash balance of $355 million, including $143 million from convertible notes.
Operational Success and Future Outlook
Secured necessary permits for the Kuanping project, mobilized contractors at El Domo, and positioned for sustained production growth.
Negative Updates
Decreased Zinc Production and Sales
Zinc production decreased by 10% due to lower head grades, and zinc sold decreased by 10% year-over-year.
Increase in Costs
Production costs averaged $78 per ton, up 5% year-over-year, and all-in sustaining production cost increased by 10% to $150 per ton.
One-time Government Payment
A one-time $12 million government payment related to the renewal of the SGX mine license impacted finances.
Company Guidance
In Silvercorp's third quarter fiscal 2025 call, the company reported record revenue of $84 million, a 43% increase from the same period last year, complemented by a 90% rise in operating cash flow to $45 million. Silver production reached a record 1.9 million ounces, up 16%, primarily driven by the Ying Mine's mill expansion. Improved commodity prices also contributed, with silver accounting for 63% of net realized Q3 revenue. Zinc sales fell by 10% due to lower head grades, although gold and lead sales increased by 53% and 5%, respectively. Net income more than doubled to $26 million or $0.12 per share, with adjusted net income at $22 million or $0.10 per share. The company invested $25 million in mine development and repaid $13.25 million to Wheaton Precious Metals. Silvercorp aims to achieve 6.7 to 7.2 million ounces of silver production for fiscal 2025, with production costs averaging $78 per ton, while maintaining an all-in sustaining cost per ounce of silver net of byproduct credits at 12.75%. The company also highlighted progress on growth projects, including the El Domo Copper Gold project in Ecuador, and plans to provide fiscal 2026 capital budget guidance in April.Silvercorp Metals Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Silvercorp Metals Unveils Construction Plan for El Domo Project
Positive
Apr 23, 2025
Silvercorp Metals Inc. has announced its construction budget for the El Domo Project in Ecuador, targeting production by the end of 2026 with an estimated cost of $240.5 million. The project involves advanced engineering and infrastructure development, including mine design, powerline contracts, and construction of various facilities, positioning Silvercorp to strengthen its operational capabilities and market positioning in the mining industry.
Spark’s Take on TSE:SVM Stock
According to Spark, TipRanks’ AI Analyst, TSE:SVM is a Outperform.
Silvercorp Metals demonstrates robust financial performance with strong revenue growth and profitability, a solid balance sheet, and healthy cash flow. The recent earnings call reinforced positive operational outcomes and future growth prospects. While technical indicators suggest moderate upward momentum, valuation metrics imply potential undervaluation, making it an attractive investment option. The company should continue to monitor cost increases and zinc production levels.
To see Spark’s full report on TSE:SVM stock, click here.
Business Operations and StrategyFinancial Disclosures
Silvercorp Metals Reports Strong Q4 Fiscal 2025 Results and Announces Fiscal 2026 Guidance
Positive
Apr 16, 2025
Silvercorp Metals reported significant growth in its Q4 Fiscal 2025 operational results, with a 76% increase in revenue and a 42% rise in silver production compared to the previous year. The company also announced its fiscal 2026 production and cost guidance, indicating a strategic focus on maintaining production levels and managing operational costs, which may positively impact its market positioning and stakeholder confidence.
Spark’s Take on TSE:SVM Stock
According to Spark, TipRanks’ AI Analyst, TSE:SVM is a Outperform.
Silvercorp Metals exhibits strong financial performance with significant revenue growth and profitability. The technical analysis indicates moderate upward momentum, and the valuation suggests the stock might be undervalued. Positive earnings call highlights further reinforce the company’s strong operational and financial standing. However, attention to costs and zinc production is warranted.
To see Spark’s full report on TSE:SVM stock, click here.
DividendsBusiness Operations and StrategyFinancial Disclosures
Silvercorp Metals Posts Strong Q3 Fiscal 2025 Results with $22 Million Adjusted Net Income
Positive
Feb 11, 2025
Silvercorp Metals reported a strong financial performance for Q3 Fiscal 2025, with an adjusted net income of $22.0 million and operating cash flow of $44.8 million. The company achieved significant production and sales, resulting in revenue of $83.6 million. Key expenses included investments in exploration, development, and infrastructure, as well as repayment obligations and shareholder dividends.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.