Lundin Mining Corporation press release

SILVERCORP REPORTS ADJUSTED NET INCOME OF $53.9 MILLION, $0.24 PER SHARE, AND CASH FLOW FROM OPERATING ACTIVITIES OF $61.7 MILLION FOR Q1 FISCAL 2027

2026-08-10

TSX - Toronto Stock Exchange · Copper · Gold · Silver · Iron · Molybdenum · Nickel · Canada · Corporate Finance

PR Newswire

Trading Symbol: TSX/NYSE AMERICAN: SVM

VANCOUVER, BC, Aug. 10, 2026/PRNewswire/ -- Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) reported its financial and operating results for the three months ("Q1 Fiscal 2027") ended June 30, 2026. All amounts are expressed in US dollars, and figures may not add due to rounding.

HIGHLIGHTS FOR Q1 FISCAL 2027

Production results: Produced approximately 1.5 million ounces of silver, 2,536 ounces of gold, or approximately 1.7 million ounces of silver equivalent1during the quarter; Strong quarterly revenue:Sold approximately 1.5 million ounces of silver, 2,454 ounces of gold, 13.7 million pounds of lead, and 4.2 million pounds of zinc, for revenue of $138.7 million, an increase of 70% over the three months ended June 30, 2025 ("Q1 Fiscal 2026"), mainly driven by a 135% higher average realized silver price of $69.38 per ounce, with silver representing 77% of the quarterly revenue; Cash cost per ounce of silver1 (net of by-product credits): $1.33, compared to $1.11 in Q1 Fiscal 2026; All-in sustaining cost per ounce of silver1(net of by-product credits): $18.38, 36% higher than $13.49 in Q1 Fiscal 2026, mainly due to 72% higher government taxes linked to increased revenue and less metals produced and sold; Adjusted earnings before interest, income tax, depreciation and amortization ("EBITDA")1attributable to equity shareholders of $77.3 million, or $0.35 per share, compared to $35.0 million or $0.16 per share in Q1 Fiscal 2026; Net income attributable to equity shareholders of $59.4 million, or $0.27 per share; Adjusted earnings1attributable to equity shareholders of $53.9 million, or $0.24 per share, after excluding the non-cash or one-time items, compared to $21.0 million or $0.10 per share in Q1 Fiscal 2026; Robust cash flow from operating activitiesof $61.7 million, up $13.4 million, compared to $48.3 million in Q1 Fiscal 2026; Mine Development & Construction: spent and capitalized $22.3 million on exploration, development, and equipment and facilities at the China operations; $12.9 million at the Ecuador operations mainly for the development and construction of the El Domo mine; and $2.6 million for Chaarat ZAAV mine construction; Solid free cash flow1generatedof $28.6 million, up $6.1 million, compared to $22.5 million in Q1 Fiscal 2026; Strong treasury position: ended the period with cash and cash equivalents and short-term investments of $387.1 million, a decrease of $35.2 million from March 31, 2026 after $37.7 million capital expenditures on development and construction, and $60.0 million payment to close the acquisition of Chaarat ZAAV. In addition, the portfolio of equity investments with a total market value of $303.6 million increased by $29.0 million from March 31, 2026; and Proactive Safety Compliance: Starting mid June, we voluntarily suspended operations in China to conduct comprehensive self-reviews and complete the "Six Major Safety Systems" underground upgrades in full compliance with new Chinese government regulations.

| | | 1_Non-GAAP measures, please refer to section 12 for reconciliation._ |

CONSOLIDATED FINANCIAL AND OPERATING RESULTS

| | Three months ended June 30, | | | | | 2026 | 2025 | Changes | | Financial Results (in thousands of $, except per share) | | | | | Revenue | $ 138,665 | $ 81,334 | 70 % | | Mine operating earnings | 84,753 | 35,823 | 137 % | | Net Income* | 59,375 | 18,126 | 228 % | | Per share - basic | 0.27 | 0.08 | 223 % | | Per share - Diluted | 0.24 | 0.08 | 195 % | | Adjusted earnings* | 53,926 | 21,048 | 156 % | | Per share - basic | 0.24 | 0.10 | 153 % | | Per share - Diluted | 0.21 | 0.10 | 121 % | | EBITDA* | 84,473 | 33,770 | 150 % | | Per share | 0.38 | 0.15 | 147 % | | Adjusted EBITDA* | 77,283 | 34,978 | 121 % | | Per share | 0.35 | 0.16 | 118 % | | Cash flow from operating activities | 61,682 | 48,281 | 28 % | | Sustaining capital expenditures | 10,677 | 10,837 | (1) % | | Growth capital expenditures | 19,866 | 14,930 | 33 % | | Free cash flow | 28,604 | 22,515 | 27 % | | Basic weighted average shares outstanding | 221,138,685 | 217,991,115 | 1 % | | Metals sold | | | | | Silver (million ounces) | 1.5 | 1.8 | (16) % | | Gold (ounces) | 2,454 | 1,951 | 26 % | | Lead (million pounds) | 13.7 | 15.2 | (10) % | | Zinc (million pounds) | 4.2 | 5.2 | (19) % | | Average Selling Price,Net of Value Added Tax and Smelter Charges | | | | | Silver ($/ounce) | 69.38 | 29.54 | 135 % | | Gold ($/ounce) | 3,927 | 2,876 | 37 % | | Lead ($/pound) | 0.99 | 0.96 | 3 % | | Zinc($/pound) | 1.33 | 0.96 | 39 % | | Cost Data per ounce of silver, net of by-product credits ($) | | | | | Cash cost | 1.33 | 1.11 | 20 % | | All-in sustaining cost | 18.38 | 13.49 | 36 % | | Financial Position (in thousands of $) as at | June 30, 2026 | March 31, 2026 | | | Cash and cash equivalents and short-term investments | $ 387,107 | $ 422,335 | (8) % | | Working capital | 293,236 | 319,461 | (8) % | | _*Attributable to equity holders_ | | | |

INDIVIDUAL MINE OPERATING PERFORMANCE

(i) Ying Mining District

The Ying Mining District delivered a stable Q1 Fiscal 2027, with ore mined of 304,466 tonnes, flat with 304,863 tonnes in Q1 Fiscal 2026.

Production was approximately 1.4 million ounces of silver, 2,536 ounces of gold, or approximately 1.6 million ounces of silver equivalent, plus 12.4 million pounds of lead and 1.6 million pounds of zinc, representing a production increase of 24% in gold and decreases of 16% (silver), 17% (silver equivalent), 15% (lead) and 15% (zinc) over Q1 Fiscal 2026. Lower production output was due to lower head grades, as a result of higher dilution associated with shrinkage mining and a production suspension since mid June.

Cash cost per tonne of ore was $87.05 in Q1 Fiscal 2027, up 5% from Q1 Fiscal 2026, mainly due to a 6% appreciation of the RMB against the USD. Cash cost per ounce of silver, net of by-product credits, was $2.45, compared with $1.26 in Q1 Fiscal 2026, mainly due to a decrease of 15% in silver sold which increased the unit cost, coupled with a 6% appreciation of the RMB against the USD, partially offset by an increase of $3.8 million in by-product credits from revenue of non-silver metals.

AISC per tonne was $130.25, relatively flat with $129.83 in Q1 Fiscal 2026. AISC per ounce of silver, net of by-product credits, was $13.94, up 38% from $10.10 in Q1 Fiscal 2026, mainly due to the increase in cash cost per ounce as discussed above, and an increase of 68% in government taxes linked to increased revenue.

Mining Permit Expansion Applications

As of March 31, 2026, the Company has completed the mining permit extension and mining capacity expansion for the four mining permits comprising the Ying Mining District, which are the SGX, TLP-LM, HPG, and DCG mining permits. The total mining capacity allowed by the mining permits is 1.32 million tonnes per year.

| Mining permit | SGX | TLP-LM | HPG | DCG | Ying total | | Capacity (tonnes) | 500,000 p.a. | 600,000 p.a. | 120,000 p.a. | 100,000 p.a. | 1,320,000 p.a. | | Expiry dates | 9/24/2035 | 26/02/2041 | 29/04/2028 | 16/6/2037 | |

Production Safety License Renewal

Following the grants of the new SGX, TLP-LM, HPG, and DCG mining permits, the company is working on the renewal of the production safety licenses: for SGX, the safety facility design has been approved, and it is currently in the construction phase; For TLP, the safety facility design has been reviewed by the emergency management department of Henan Province, with amendments incorporated for final approval; for HPG, the safety facility design has been approved by the emergency management department and construction commenced; and for DCG, the safety facility design has been completed and submitted to the emergency management department for approval.

Proactive Safety Compliance

Starting mid June, we voluntarily suspended the operations at the Ying Mining District to conduct a comprehensive self-review and complete the "Six Major Safety Systems" underground upgrades in full compliance with new Chinese government regulations. The company has engaged 5 vendors to implement the "Six Major Safety Systems" and the project is progressing as a top priority, with a total budget of approximately $11.5 million. Due to these major safety system improvement activities, production is expected to be affected by 40% to 50% in Q2 Fiscal 2027.

| Ying Mining District | Three months ended | | | | | | | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | | Ore processed (tonnes) | | | | | | | Silver-lead ore | 290,064 | 279,627 | 299,217 | 235,168 | 252,958 | | Gold ore | 33,152 | 32,050 | 29,208 | 29,834 | 30,397 | | | 323,216 | 311,677 | 328,425 | 265,002 | 283,355 | | Average head grades for silver-lead ore | | | | | | | Silver (grams/tonne) | 160 | 161 | 190 | 207 | 217 | | Lead (%) | 2.1 | 2.2 | 2.3 | 2.6 | 2.8 | | Zinc (%) | 0.4 | 0.4 | 0.4 | 0.4 | 0.5 | | Average head grades for gold-ore | | | | | | | Gold (grams/tonne) | 1.2 | 1.1 | 1.2 | 1.4 | 1.5 | | Silver (grams/tonne) | 48 | 54 | 57 | 81 | 51 | | Lead (%) | 0.9 | 0.9 | 1.1 | 0.9 | 0.8 | | Recovery rates | | | | | | | Silver (%) | 94.8 | 95.0 | 95.3 | 94.8 | 94.6 | | Gold (%) | 90.5 | 90.8 | 92.8 | 94.2 | 93.4 | | Lead (%) | 92.4 | 93.2 | 93.6 | 93.5 | 94.1 | | Zinc (%) | 65.2 | 63.9 | 63.0 | 65.8 | 64.3 | | Cash Costs | | | | | | | Cash cost ($/tonne) | 87.05 | 78.27 | 75.80 | 82.89 | 83.08 | | AISC ($/tonne) | 130.25 | 134.23 | 134.06 | 139.22 | 129.83 | | Cash cost, net of by-product credits ($/ounce of silver) | 2.45 | (1.03) | (1.22) | 0.97 | 1.26 | | AISC, net of by-product credits ($/ounce of silver) | 13.94 | 13.09 | 11.32 | 11.75 | 10.10 | | Metal Production | | | | | | | Silver (million ounces) | 1.4 | 1.4 | 1.7 | 1.5 | 1.7 | | Gold (ounces) | 2,536 | 2,492 | 2,096 | 2,085 | 2,050 | | Silver equivalent (million ounces) | 1.6 | 1.5 | 1.9 | 1.7 | 1.9 | | Lead (million pounds) | 12.4 | 12.9 | 14.7 | 12.9 | 14.6 | | Zinc (million pounds) | 1.6 | 1.4 | 1.9 | 1.4 | 1.8 | | Gold recovery only refers to the recovery rate for gold ore processed. | | | | | |

(ii) GC Mine

The GC Mine produced approximately 0.1 million ounces of silver, 1.0 million pounds of lead and 2.9 million pounds of zinc, representing decreases of 39% in silver, 12% in lead and 16% in zinc compared to Q1 Fiscal 2026.

Cash cost per tonne was $74.59, up 19% compared to $62.53 in Q1 Fiscal 2026, mainly due to i) higher per tonne fixed costs allocation resulting from a 16% decrease in ore production, ii) a 3% increase in the contractor unit cost upon contract renewal, and a 6% appreciation of the RMB against the USD. The AISC was $115.17, up 15% compared to $99.93 in Q1 Fiscal 2026 mainly due to the increase in cash cost discussed above, partially offset by a decrease of 10% in sustaining capital expenditures.

The cash cost per ounce of silver, net of by-product credits in Q1 Fiscal 2027, was negative $16.90, compared to negative $0.80 in Q1 Fiscal 2026, mainly driven by an increase of $1.5 million in the by-product credits from revenue of non-silver metals. The AISC per ounce of silver, net of by-product credits, was $15.00, down 25% compared to $20.02 in Q1 Fiscal 2026, the decrease mainly due to the decrease in cash cost per ounce of silver and a decrease of 10% in sustaining capital expenditures.

GC Mine Classification Update

The Company has commissioned Changsha Mining Research Institute to prepare the development and utilization plan to change the GC's classification from a lead-zinc mine to a silver mine, which was completed in Q1 Fiscal 2027 and submitted to the Department of Natural Resources of Guangdong Province, and received official approval on August 4, 2026. As the next step following this approval, the Company will proceed with the formal process to change the primary mineral category from lead-zinc to silver.

Proactive Safety Compliance

Starting late June, GC's operations have been temporarily suspended since late June to facilitate the self-review in full compliance with new Chinese government regulations on mine safety nationwide, which has since been completed and was submitted to the Municipal Work Safety Committee for approval on 26 July, 2026, and a third-party government-appointed review is underway. Underground upgrades will proceed upon approval.

| GC Mine | Three months ended | | | | | | | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | | Ore Production (tonne) | 63,237 | 48,840 | 87,095 | 76,249 | 74,869 | | Head grades | | | | | | | Silver (grams/tonne) | 51 | 52 | 52 | 64 | 69 | | Lead (%) | 0.8 | 0.9 | 1.0 | 0.9 | 0.8 | | Zinc (%) | 2.3 | 2.6 | 2.9 | 2.8 | 2.3 | | Recovery rates | | | | | | | Silver (%) | 84.0 | 86.3 | 85.9 | 85.8 | 85.3 | | Lead (%) | 92.3 | 93.5 | 89.1 | 89.0 | 90.1 | | Zinc (%) | 90.6 | 90.6 | 92.7 | 91.1 | 90.0 | | Cash Costs | | | | | | | Cash cost ($/tonne) | 74.59 | 71.12 | 53.37 | 58.20 | 62.53 | | AISC ($/tonne) | 115.17 | 109.68 | 68.53 | 82.63 | 99.93 | | Cash cost,net of by-product credits ($/ounce of silver) | (16.90) | (19.93) | (29.05) | (11.44) | (0.80) | | AISC, net of by-product credits ($/ounce of silver) | 15.00 | 10.22 | (15.66) | 4.71 | 20.02 | | Metal Production | | | | | | | Silver (million ounces) | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | | Lead (million pounds) | 1.0 | 1.1 | 1.7 | 1.3 | 1.1 | | Zinc (million pounds) | 2.9 | 2.5 | 5.1 | 4.2 | 3.4 |

CAPITAL EXPENDITURES AND DEVELOPMENT FOR GROWTH

Total capital expenditures in Q1 Fiscal 2027 were $37.7 million, up 56% compared to $24.2 million in Q1 Fiscal 2026, mainly due to mine construction spending for El Domo, Kuanping and Chaarat ZAAV projects.

China Operations:

| Capital Expenditures | Capitalized Expenditures | | | | | | | | | Ramps and Development Tunneling | Exploration Tunneling | Exploration Drilling | Plant and Equipment | Total | | | | | | (Metres) | ($ Thousand) | (Metres) | ($ Thousand) | (Metres) | ($ Thousand) | ($ Thousand) | ($ Thousand) | | | Q1 Fiscal 2027 | | | | | | | | | | Ying Mining District | 10,235 | $ 8,709 | 17,413 | $ 7,085 | 18,398 | $ 642 | $ 2,358 | $ 18,794 | | GC Mine | 1,192 | 715 | 1,336 | 554 | 5,119 | 121 | 243 | 1,633 | | Kuanping | 2,155 | 1,261 | 1,062 | 294 | 3,716 | 107 | 172 | 1,834 | | Subtotal | 13,582 | 10,685 | 19,811 | 7,933 | 27,233 | 870 | 2,773 | 22,261 | | Q1 Fiscal 2026 | | | | | | | | | | Ying Mining District | 12,289 | $ 7,804 | 17,624 | $ 6,735 | 32,889 | $ 948 | $ 1,217 | $ 16,703 | | GC Mine | 401 | 226 | 2,326 | 859 | 5,731 | 121 | 354 | 1,560 | | Kuanping | 262 | 300 | 219 | 78 | — | — | 121 | 498 | | Subtotal | 12,952 | 8,330 | 20,169 | 7,672 | 38,620 | 1,069 | 1,692 | 18,761 |

i) Ying Mining District

Capitalized expenditures for underground ramps, tunnels and drilling amounted to $16.4 million, plus $2.4 million for plant and equipment, compared to $15.5 million for underground ramps, tunnels and drilling and $1.2 million for plant and equipment in Q1 Fiscal 2026. Construction of the No. 3 mill commenced, and total capital expenditures incurred in Q1 Fiscal 2027 were approximately $0.3 million, with the foundation treatment and the elevated water tank currently in progress. The No. 1 TSF has reached full capacity, and its closure safety facility design has been approved by the Henan Provincial Department of Emergency Management with an estimated total budget of $2.2 million and contractor tendering currently in progress.

ii) GC Mine

Total capitalized expenditures amounted to $1.6 million, remaining flat with $1.6 million in Q1 Fiscal 2026.

iii) Kuanping Project

In Q1 Fiscal 2027, capital expenditures for Kuanping mine construction totaled $1.8 million, with 3,217 metres or $1.6 million worth of ramps and development tunnels and 3,716 metres or $0.1 million worth of diamond drilling completed and capitalized.

Ecuador Operations:

| Capital Expenditures

($ Thousand) | Package #1* | Package #2* | Package #3* | Packages #4&5* | Temporary and Permanent Camps | Direct costs sub-total | Owner's Cost | Total | | Q1 Fiscal 2027 | | | | | | | | | | El Domo | 4,486 | 840 | 905 | 2,998 | 503 | 9,733 | 2,547 | 12,279 | | Q1 Fiscal 2026 | | | | | | | | | | El Domo | 2,627 | — | — | — | — | 2,627 | 2,149 | 4,776 | | *Package #1 - Site preparation/Roads/Channels/TSF/SWD

Package #2 - Open Pit Mining and Stripping

Package #3 - Processing Plant Construction and Equipment

Packages #4&5 - Site Infrastructure (bypass roads, power line, standby diesel generators, water treatment plant) | | | | | | | | |

i) El Domo Project

Capital expenditures for El Domo totaled $12.3 million, compared to $4.8 million in Q1 Fiscal 2026, bringing cumulative project expenditures to $66.2 million. Mine construction advanced steadily despite rainfall challenges. The non-contact water channel, foundation work for the processing plant and the initial dam for the tailings storage facility advanced with a total of approximately 604,600 cubic metres of earthworks excavation and fill completed.

The open-pit pre-stripping commenced, with efficiency improved via equipment additions, expanded operational areas, and road upgrades. Meanwhile, major equipment for the processing plant and water treatment station has been procured and shipped to Ecuador. The contract for the construction of the process plant has been concluded with TGJA, a contractor who has just built the 80,000 tonne per day flotation mill for the Mirador copper-gold mine in Ecuador. The Company is working towards the target of commissioning the operation by July 2027 as planned.

Subsequent to the quarter, the Company received the second installment of $43.9 million under the $175.5 million stream financing agreement, to be applied toward continued support of the mine construction.

ii) Condor Project

The Company increased its ownership of the Condor Project in southern Ecuador from 98.7% to 100% in Q4 Fiscal 2026.

In Q1 Fiscal 2027, total expenditures incurred and capitalized were $0.6 million, primarily on permitting, engineering, and community engagement activities, compared to $0.7 million in the same prior year period.

A PEA study for an underground mining operation was completed in Q3 Fiscal 2026. The PEA underscores significant potential for the project. The water permits have been approved by the relevant government authorities. Technical reports for the environmental license were also completed and submitted to the related government authorities for review. The Environmental Impact Study ("EIS") has been approved by the Ministry of Energy and Mines("MAE"). The Company continued to advance the Free, Prior and Informed Consultation ("FPIC") and Citizen Participation Process ("PPC") required to obtain the small-scale mining environmental license, targeted for Q2 Fiscal 2027. Once this license is secured, the Company will commence the development of underground access tunnels into the Camp and Los Cuyes deposits to facilitate advanced underground exploration and resource definition.

Kyrgyzstan Operations:

i) Tulkubash Project

The Tulkubash project advanced rapidly with $0.6 million capital expenditures incurred in Q1 Fiscal 2027. A mining contractor, China Railway 19th Bureau Group Co., Ltd. ("CRCC19"), has been hired after a bidding process that involved five bidders. CRCC19 is currently operating in Kyrgyzstan and is also the mining contractor for our El Domo project in Ecuador. Construction of the temporary camp and related facilities is underway, and CRCC19 has started to build access roads to the open pit mine and waste storage area, and to prepare the site foundation for the heap leach pad area. In addition, a bankable feasibility study is currently under compilation by LogiProc, a third party engineering firm, and is expected to be completed in mid August 2026.

ii) Kyzyltash Project

A 50,000 m drilling program, including both in-fill and step-out, has completed 12,967 m or $1.7 million worth of drilling during the quarter with 16 drill rigs, and the assay results are pending. Geotechnical and hydrogeological studies commenced In Q1 Fiscal 2027, target to be completed in Q3 Fiscal 2027.