- Silvercorp Metals is a Canadian precious metals producer with a proven track record in China and plans to open new operations in South America.
- Shares have more than doubled in 2025 amid strengthening precious metals markets, yet the company continues to trade at levels that may not fully reflect its business fundamentals and growth prospects.
- Development of the El Domo copper-gold project in Ecuador is expected to boost revenues by 50% upon commissioning in late 2026.
- Silvercorp reported revenues of $81.3 million from silver, gold, lead, and zinc sales, during its most recent quarterly period, achieving more than $600 million in profits since 2006, returning more than $200 million of that to investors.
Precious metals such as gold and silver are regaining their shine despite contrary winds in the marketplace. Silver, particularly, has outperformed gold, climbing more than 68% this year (https://ibn.fm/ySJm9), -and recently surpassing its 2011 all-time high of $49.83, now trading above $50 (https://ibn.fm/wbBKj).
The prices have driven a rally in silver producers as market watchers bet on Federal Reserve rate cuts and a continued global de-dollarization trend (https://ibn.fm/ZI1xW).
Precious metals producer Silvercorp Metals (NYSE American/TSX: SVM) has benefited from the trend, more than doubling its share price this year. Despite this strong rally, the company continues to show value potential relative to peers on the strength of its asset base.
The company is well-positioned for a re-rate with:
- One of the highest silver exposures in the sector
- Strong cost management supporting margin expansion at higher prices
- Funded growth in Ecuador, including construction of the El Domo mine, expected to boost revenue by 50% and enhance diversification
- The potential for additional M&A supported by a strong balance sheet.
Two sell-side firms recently initiated coverage on Silvercorp, highlighting the company’s strong fundamentals and near-term growth potential.
The analyst at Cantor Fitzgerald (https://ibn.fm/h5Be1) counseled that “Investors stand to benefit from steep production growth, leverage to the silver price and multiple expansion on an improved risk profile as (Silvercorp’s) Ecuador operation comes online.”
Cormark Securities echoed the view, stating that “Silvercorp’s valuation (on NAV and cash flow) is at the bottom end of its silver producer peers despite its scale, long reserve life, and high margins. We believe most of this can be explained by its exposure to China, which we expect it to continue diversifying away from. Silvercorp has been successfully operating in China, and moving capital out of it, since 2006.”
Silvercorp has been successfully operating in China since 2006, with new focus recently on the potential of a mining operation a world away in Ecuador. The company has a copper-gold mine under construction there named El Domo, which has an anticipated 10-year life, and a scoping study underway for a separate gold deposit named Condor. El Domo construction is well underway with commissioning of the mine and process plant anticipated next year. Once operational, the project is expected to boost total company revenue by about 50% and strengthen geographic diversification.
In the meantime, Silvercorp’s flagship operation in China continues to drive revenues, with $81.3 million from silver, gold, lead and zinc sales reported during the most recent quarter, and generating $22.5 million in free cash flow (https://ibn.fm/oGtPI). The company’s profitable mines in China have enabled it to return more than $200 million to shareholders via dividends and share buybacks (https://ibn.fm/w5Q1e).
For more information, visit the company’s website at https://silvercorpmetals.com/.
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