Silvercorp Metals Inc.

Q1 fiscal 2027 revenue was $139 million, up 70% year over year. Net income was $59.4 million, or $0.27 per share, including an $11 million gain on investments and a $6 million gain from the sale of the Santa Barbara project; adjusted net income was $53.9 million, or $0.24 per share, versus $21 million and $0.10 a year ago. Cash flow from operating activities was nearly $62 million and free cash flow was $29 million, up 28% and 27%, respectively; operating cash flow before changes in noncash working capital was $70.4 million, up 82%. Silver production was approximately 1.5 million ounces, gold production was over 2,500 ounces, lead production was 13 million pounds and zinc production was 4 million pounds. Management did not provide full-year guidance, saying it was too early to revise projections while Chinese operations are restarting gradually; it reiterated Q2 production should be 40% to 50% of original plan. On costs, Ying production costs were $87 per ton, cash cost per ounce was $2.45, and all-in sustaining production costs were $130 per ton; all were below annual guidance ranges of $88 to $90 per ton and $155 to $160 per ton, respectively.

Lon Shaver emphasized that the quarter was strong despite the temporary production slowdown tied to safety upgrades in China. He said the upgrades are an important investment in safer and stronger mines, and that the company is comfortable with its Q2 target while production restarts at a reduced rate. He also framed the quarter as evidence of Silvercorp’s financial flexibility and ability to advance growth projects across China, Ecuador, Kyrgyzstan and Kurdistan.

No CFO spoke on the call; management’s financial commentary came from the President. He highlighted strong liquidity with $387 million in cash at quarter-end, plus investments in associates and other companies with a combined market value of $304 million as of June 30, and about USD 220 million of undrawn RMB term loan facilities. He also noted about $22 million spent and capitalized at China operations, $12 million at El Domo, $2.6 million at Chaarat, and a $60 million cash payment to the Kurdistan government in May tied to the new mining license that extends the term to June 2062.

Analysts focused on whether the temporary shutdowns in China would force a change to production guidance, and management said it was premature to revise the annual outlook, though Q2 should be only 40% to 50% of the original plan. Questions also centered on El Domo spending cadence; management said the quarter’s lower spend reflected equipment deposits and back-end weighted construction rather than a change in project status. On Condor, management said the recent ownership increase involved only a nominal payment and was mainly cleanup of legacy government ownership, and it clarified that the contemplated smaller-scale plant would be a stepping stone tied to a small-scale mining permit rather than the original larger PEA concept.