Silvercorp Metals Inc. press release

SILVERCORP REPORTS ADJUSTED NET INCOME OF $18.4 MILLION, $0.08 PER SHARE, AND CASH FLOW FROM OPERATING ACTIVITIES OF $62.7 MILLION FOR Q2 FISCAL 2027

2026-11-05

TSX - Toronto Stock Exchange · Silver · Gold · Lead · Zinc · Copper · Canada · Corporate Finance

PR Newswire

VANCOUVER, BC, Nov. 5, 2026/PRNewswire/ -- Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) reported its financial and operating results for the three months ("Q2 Fiscal 2027") ended September 30, 2026. All amounts are expressed in US dollars, and figures may not add due to rounding.

HIGHLIGHTS FOR Q2 FISCAL 2027

As disclosed on June 29, 2026, in order to comply with new industry-wide government safety regulations, the Company undertook major safety improvement works at the Ying Mining District which affected Q2 Fiscal 2027 metal production and financial results. The major safety improvement works have been substantially completed, inspected by the government and approved to resume operations. These improvements are intended to enhance operational safety and reduce safety risks for the Company.

Production results: Produced approximately 0.9 million ounces of silver, 1,371 ounces of gold, or approximately 1.0 million ounces of silver equivalent1during the quarter;

Revenueof $72.1 million, a decrease of 13% over the three months ended September 30, 2025 ("Q2 Fiscal 2026") due to lower production, which was partially offset by an 82% higher average realized silver price of $61.83 per ounce and a 32% higher gold price of $3,955 per ounce;

Cash cost per ounce of silver (net of by-product credits) was $2.14, andall-in sustaining cost per ounce of silver1(net of by-product credits) was $24.13, both affected by the safety system improvements which caused less metals to be produced and sold;

Adjusted earnings before interest, income tax, depreciation and amortization ("EBITDA") attributable to equity shareholders of $37.7 million, or $0.17 per share, compared to $38.3 million or $0.18 per share in Q2 Fiscal 2026;

Net income attributable to equity shareholders of $5.3 million, or $0.02 per share;

Adjusted earnings attributable to equity shareholders of $18.4 million, or $0.08 per share, after excluding the non-cash or one-time items, compared to $22.6 million or $0.10 per share in Q2 Fiscal 2026;

Cash flow from operating activitiesof $62.7 million, up $23.5 million, compared to $39.2 million in Q2 Fiscal 2026, including the $43.9 million draw-down from Wheaton in July 2026;

Mine Development & Construction: spent and capitalized $26.6 million on exploration, development, equipment and facilities at the China operations, $14.6 million at the Ecuador operations mainly for the development and construction of the El Domo mine, and $9.2 million for Chaarat ZAAV mine construction and drilling activities;

Free cash flow generatedof $4.7 million, down $6.7 million, compared to $11.4 million in Q2 Fiscal 2026, mainly due to the Company's planned investments to build new mines;

Strong treasury position: ended the period with cash and cash equivalents and short-term investments of $383.7 million, a decrease of $3.4 million from the previous quarter, after $50.5 million of capital expenditures on mine construction. In addition, the portfolio of equity investments with a total market value of $428.0 million increased by $124.4 million from the previous quarter; and

Subsequent to 30 September, 2026, completed an initial draw-down of RMB750 million (approximately US$112 million) under the RMB1.5 billion syndicated term loan facilities for general corporate purposes and to support the Company's global working capital requirements.

| _ | | 1 Non-GAAP measures, please refer to section 13 for reconciliation. |

CONSOLIDATED FINANCIAL AND OPERATING RESULTS

| | Three months ended September 30, | Six months ended September 30, | | | | | | | 2026 | 2025 | Changes | 2026 | 2025 | Changes | | Financial Results (in thousands of $, except per share) | | | | | | | | Revenue | $ 72,097 | $ 83,330 | (13) % | $ 210,762 | $ 164,664 | 28 % | | Mine operating earnings | 39,883 | 40,858 | (2) % | 124,636 | 76,681 | 63 % | | Net Income (loss)* | 5,315 | (11,516) | 146 % | 64,690 | 6,610 | 879 % | | Per share - basic | 0.02 | (0.05) | 146 % | 0.29 | 0.03 | 875 % | | Per share - Diluted | 0.02 | (0.05) | 146 % | 0.27 | 0.03 | 809 % | | Adjusted earnings* | 18,354 | 22,551 | (19) % | 72,280 | 43,599 | 66 % | | Per share - basic | 0.08 | 0.10 | (20) % | 0.33 | 0.20 | 63 % | | Per share - Diluted | 0.07 | 0.10 | (30) % | 0.28 | 0.20 | 41 % | | EBITDA* | 28,107 | 5,567 | 405 % | 112,580 | 39,337 | 186 % | | Per share | 0.13 | 0.03 | 399 % | 0.51 | 0.18 | 182 % | | Adjusted EBITDA* | 37,705 | 38,312 | (2) % | 114,988 | 73,290 | 57 % | | Per share | 0.17 | 0.18 | (3) % | 0.52 | 0.34 | 55 % | | Cash flow from operating activities | 62,684 | 39,180 | 60 % | 124,366 | 87,461 | 42 % | | Sustaining capital expenditures | 5,415 | 11,952 | (55) % | 16,091 | 22,789 | (29) % | | Growth capital expenditures | 43,434 | 15,858 | 174 % | 63,301 | 30,788 | 106 % | | Free cash flow | 4,655 | 11,370 | (59) % | 33,259 | 33,884 | (2) % | | Basic weighted average shares outstanding | 221,210,023 | 218,585,686 | 1 % | 221,174,549 | 218,290,025 | 1 % | | Metals sold | | | | | | | | Silver (million ounces) | 0.9 | 1.7 | (47) % | 2.4 | 3.5 | (31) % | | Gold (ounces) | 1,574 | 2,033 | (23) % | 4,028 | 3,984 | 1 % | | Lead (million pounds) | 7.5 | 14.8 | (49) % | 21.2 | 30.0 | (29) % | | Zinc (million pounds) | 1.1 | 5.7 | (81) % | 5.3 | 10.9 | (51) % | | Average Selling Price,Net of Value Added Tax and Smelter Charges | | | | | | | | Silver ($/ounce) | 61.83 | 33.89 | 82 % | 66.61 | 31.60 | 111 % | | Gold ($/ounce) | 3,955 | 2,986 | 32 % | 3,938 | 2,932 | 34 % | | Lead ($/pound) | 0.97 | 0.91 | 7 % | 0.98 | 0.94 | 4 % | | Zinc($/pound) | 1.75 | 0.98 | 79 % | 1.42 | 0.97 | 46 % | | Cost Data per ounce of silver, net of by-product credits ($) | | | | | | | | Cash cost | 2.14 | (0.002) | 107,041 % | 1.63 | 0.58 | 181 % | | All-in sustaining cost | 24.13 | 13.94 | 73 % | 20.49 | 13.70 | 50 % | | Financial Position (in thousands of $) as at | September 30, 2026 | June 30, 2026 | | September 30, 2026 | March 31, 2026 | | | Cash and cash equivalents and short-term investments | $ 383,744 | $ 387,107 | (1) % | $ 383,744 | $ 422,335 | (9) % | | Working capital | 289,132 | 293,236 | (1) % | 289,132 | 319,461 | (9) % | | _*Attributable to equity holders_ | | | | | | |

INDIVIDUAL MINE OPERATING PERFORMANCE

(i) Ying Mining District

The Ying Mining District produced approximately 0.9 million ounces of silver, 1,371 ounces of gold, or approximately 1.0 million ounces of silver equivalent, plus 7.6 million pounds of lead and 0.7 million pounds of zinc in Q2 Fiscal 2027, representing production decreases of 41% (silver), 34% (gold), 42% (silver equivalent), 41% (lead) and 51% (zinc) over Q2 Fiscal 2026, due to reduced mining during safety system improvement works.

Cash cost per tonne of ore was $96.76 in Q2 Fiscal 2027, up 17% compared to $82.89 in Q2 Fiscal 2026, mainly due to i) higher unit fixed costs allocation as a result of a decrease of 20% in ore production; ii) an increase of 8% in unit mining contractor cost; and iii) a 6% appreciation of the RMB against the USD. Cash cost per ounce of silver, net of by-product credits, was $2.73, up 181% compared to $0.97 in Q2 Fiscal 2026, mainly due to i) higher unit fixed costs allocation as a result of a decrease of 43% in silver ounces sold; ii) a decrease of $4.8 million or 22% in by-product credits as revenue from non-silver metals; and iii) a 6% appreciation of the RMB against the USD.

AISC per tonne was $143.87, up 3% compared to $139.22 in Q2 Fiscal 2026, mainly due to the increase in cash cost per tonne as discussed above, partially offset by a decrease of $5.3 million sustaining capital expenditures. AISC per ounce of silver, net of by-product credits, was $16.11, up 37% from $11.75 in Q2 Fiscal 2026, mainly due to the increase in cash cost per ounce of silver as discussed above and higher unit overhead costs allocation as a result of a decrease of 43% in silver ounces sold.

| Ying Mining District | Three months ended | | Six months ended | | | | | | | | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | | September 30, 2026 | September 30, 2025 | | Ore processed (tonnes) | | | | | | | | | | Silver-lead ore | 188,061 | 290,064 | 279,627 | 299,217 | 235,168 | | 478,125 | 488,126 | | Gold ore | 25,259 | 33,152 | 32,050 | 29,208 | 29,834 | | 58,411 | 60,231 | | | 213,320 | 323,216 | 311,677 | 328,425 | 265,002 | | 536,536 | 548,357 | | Average head grades for silver-lead ore | | | | | | | | | | Silver (grams/tonne) | 157 | 160 | 161 | 190 | 207 | | 159 | 213 | | Lead (%) | 2.0 | 2.1 | 2.2 | 2.3 | 2.6 | | 2.0 | 2.7 | | Zinc (%) | 0.3 | 0.4 | 0.4 | 0.4 | 0.4 | | 0.3 | 0.5 | | Average head grades for gold-ore | | | | | | | | | | Gold (grams/tonne) | 1.1 | 1.2 | 1.1 | 1.2 | 1.4 | | 1.2 | 1.4 | | Silver (grams/tonne) | 46 | 48 | 54 | 57 | 81 | | 47 | 66 | | Lead (%) | 0.6 | 0.9 | 0.9 | 1.1 | 0.9 | | 0.8 | 0.8 | | Recovery rates | | | | | | | | | | Silver (%) | 94.1 | 94.8 | 95.0 | 95.3 | 94.8 | | 94.5 | 94.7 | | Gold (%)* | 92.9 | 90.5 | 90.8 | 92.8 | 94.2 | | 91.5 | 93.8 | | Lead (%) | 90.4 | 92.4 | 93.2 | 93.6 | 93.5 | | 91.6 | 93.8 | | Zinc (%) | 57.7 | 65.2 | 63.9 | 63.0 | 65.8 | | 62.7 | 64.9 | | Cash Costs | | | | | | | | | | Cash cost ($/tonne) | 96.76 | 87.05 | 78.27 | 75.80 | 82.89 | | 91.00 | 83.03 | | AISC ($/tonne) | 143.87 | 130.25 | 134.23 | 134.06 | 139.22 | | 135.76 | 134.41 | | Cash cost, net of by-product credits ($/ounce of silver) | 2.73 | 2.45 | (1.03) | (1.22) | 0.97 | | 2.56 | 1.12 | | AISC, net of by-product credits ($/ounce of silver) | 16.11 | 13.94 | 13.09 | 11.32 | 11.75 | | 14.76 | 10.88 | | Metal Production | | | | | | | | | | Silver (million ounces) | 0.9 | 1.4 | 1.7 | 1.7 | 1.5 | | 2.3 | 3.2 | | Gold (ounces) | 1,371 | 2,536 | 2,492 | 2,096 | 2,085 | | 3,907 | 4,135 | | Silver equivalent (million ounces) | 1.0 | 1.6 | 1.5 | 1.9 | 1.7 | | 2.6 | 3.6 | | Lead (million pounds) | 7.6 | 12.4 | 12.9 | 14.7 | 12.9 | | 20.1 | 27.5 | | Zinc (million pounds) | 0.7 | 1.6 | 1.4 | 1.9 | 1.4 | | 2.3 | 3.3 | | *Gold recovery only refers to the recovery rate for gold ore processed. | | | | | | | | |

Capacity Expansion and Technical Transformation

To expand the scale of mining production and advance deep resource extraction, the Company is implementing expansion and technical transformation projects across all four mining rights of the Ying Mining District (SGX, TLP-LM, HPG, and DCG). To comply with Chinese regulatory requirements, a series of application and approval processes must be completed in connection with these projects, as outlined below. Capacity expansion licenses (increasing to an aggregate of 1.32 million tonnes per annum) for all mining rights have been secured. The Company is now in the process of updating the production safety permits for the expansion and technical transformation projects. The Ying Mining District continues to operate under existing production safety permits.

| | Reserve Update Process | Mining License Update Process | Production Safety Permit Update Process | | | | | | | Mining Rights | Reserve registration | Mining Proposal | 3-in-1 Report | Updated Mining License | Environmental Impact Assessment | Safety facility design | Underground construction | Production Safety License | | SGX | √ | √ | √ | 9/24/2035 | Submitted | √ | In progress | In progress | | TLP-LM | √ | √ | √ | 2/26/2041 | Submitted | √ | In progress | In progress | | HPG | √ | √ | √ | 4/29/2028 | √ | √ | In progress | In progress | | DCG | √ | √ | √ | 6/16/2037 | Submitted | In progress | In progress | In progress |

| *3-in-1 report includes the Mineral Resource Mining Plan (including the Development and Utilization Plan) and the Mine Area Ecological Restoration Plan. |

Safety Compliance Process Status

Major safety improvement works at the Ying Mining District have been substantially completed, inspected by the government and approved to resume operations, which include tunnel enlargement and support, equipment upgrades, replacing all flame-retardant power cables with halogen-free, flame-retardant cables, and expanding the "Six Major Safety Systems" to all tunnels. Approximately $13.4 million was incurred in Q2 Fiscal 2027 for these improvement works.

Meanwhile, the Company is obtaining environmental, safety and land permits for the construction of multiple waste rock storage facilities, to accommodate the additional waste rock produced from extensive tunneling activities, given the aggregate plant cannot process and sell all waste rock generated. Please refer to the details below:

| Mining Rights | Waste-Dumps | Status | Design volume

（'000 m3） | Progress | | SGX | ZG | Operating | 483 | Reaching full capacity | | HZG | Planned | 10,072 | Application submitted | | | HPG | QZ | Operating | 1,080 | In use | | TLP-LM | 960m | Operating | 640 | In use | | JDG | Planned | 12,632 | Geotechnical study | | | LDG | Planned | 207 | Design Approved | | | SCG | Planned | 3,479 | Design Approved | | | DCG | No. 1 | Planned | 638 | Application submitted | | No. 2 | Planned | 485 | Application submitted | |

(ii) GC Mine

In Q2 Fiscal 2027, the GC mine processed 477 tonnes of stockpiled ore and produced approximately 0.01 million ounces of silver, 0.2 million pounds of lead and 0.1 million pounds of zinc, representing production decreases of 91% (silver), 87% (lead) and 97% (zinc) compared to Q2 Fiscal 2026.

Mining activities at the GC Mine were suspended in Q2 Fiscal 2027. The production costs incurred in Q2 Fiscal 2027 mainly represented the milling costs of processing the stockpiled ore.

| GC Mine | Three months ended | | Six months ended | | | | | | | | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | | September 30, 2026 | September 30, 2025 | | Ore Production (tonne) | 477 | 63,237 | 48,840 | 87,095 | 76,249 | | 63,714 | 151,118 | | Head grades | | | | | | | | | | Silver (grams/tonne) | 51 | 51 | 52 | 52 | 64 | | 56 | 66 | | Lead (%) | 1.1 | 0.8 | 0.9 | 1.0 | 0.9 | | 0.9 | 0.8 | | Zinc (%) | 1.9 | 2.3 | 2.6 | 2.9 | 2.8 | | 2.4 | 2.6 | | Recovery rates | | | | | | | | | | Silver (%) | 83.6 | 84.0 | 86.3 | 85.9 | 85.8 | | 85.5 | 85.6 | | Lead (%) | 94.8 | 92.3 | 93.5 | 89.1 | 89.0 | | 93.3 | 89.5 | | Zinc (%) | 87.8 | 90.6 | 90.6 | 92.7 | 91.1 | | 90.5 | 90.6 | | Cash Costs | | | | | | | | | | Cash cost ($/tonne) | N/M* | 74.59 | 71.12 | 53.37 | 58.20 | | 79.29 | 60.38 | | AISC ($/tonne) | N/M* | 115.17 | 109.68 | 68.53 | 82.63 | | 129.89 | 91.23 | | Cash cost,net of by-product credits ($/ounce of silver) | N/M* | (16.90) | (19.93) | (29.05) | (11.44) | | (18.94) | (5.98) | | AISC, net of by-product credits ($/ounce of silver) | N/M* | 15.00 | 10.22 | (15.66) | 4.71 | | 14.69 | 12.57 | | Metal Production | | | | | | | | | | Silver (million ounces) | 0.01 | 0.1 | 0.1 | 0.1 | 0.1 | | 0.1 | 0.3 | | Lead (million pounds) | 0.2 | 1.0 | 1.1 | 1.7 | 1.3 | | 1.2 | 2.4 | | Zinc (million pounds) | 0.1 | 2.9 | 2.5 | 5.1 | 4.2 | | 3.0 | 7.6 | | *Not meaningful. Mining activities at the GC Mine were suspended in Q2 Fiscal 2027. | | | | | | | | |

GC Mine Production to Remain Suspended

Mining activities have been suspended since late June 2026. The suspension was ordered by the Guangdong Bureau of the National Mine Safety Administration because the Company's actual development deviated from its 2014 China-standard technical design, which was not updated to reflect changes in geology and tunneling advancement. The GC Mine's safety production permit expired at the end of August 2026 and has not been renewed. Safety inspections by the government have been rigidly focused on any deviation of actual development from the original mine design or any updated mine design. Resumption of production at the GC Mine is pending the completion of an updated mine development design by a qualified Chinese engineering firm, and then a completed filing with, and acceptance by, the National Safety Production Administration Bureau and Department of Emergency Management of Guangdong Province. Once the filing is accepted by government authorities, the GC Mine will be able to construct safety-related production facilities, with Phase 1 of the plan intended to upgrade the existing mining areas, and Phase 2 to develop new, deeper levels below -300 m elevation.

The Company has engaged Changsha Institute of Mining Research Co., Ltd. to update the mine development plan design, including the safety facilities, which is currently expected to be completed by the end of December 2026 and then approved by the Guangdong Provincial Department of Emergency Management in March 2027, however the timing of approval is at the discretion of the applicable governmental authorities and may vary significantly from expectations due to many factors. Following approval, the Company estimates that approximately six to eight months of Phase 1 construction will be required, followed by receipt of a new safety production permit, prior to resumption of production. The Company is targeting a resumption of production in November 2027, subject to the receipt of necessary approvals and timely completion of construction, but there can be no assurance that production will resume when expected or that it will return to prior levels once resumed. The suspension will result in substantially no production or revenue from the GC Mine until resumption. The GC Mine contributed less than 10% to the Company's total revenue for the twelve months ended June 30, 2026.

Most technical personnel at GC have been reassigned to operations at the Ying Mining District, the BYP project permitting process, and construction of the El Domo and Condor projects in Ecuador and the Chaarat project in Kyrgyzstan.

Silvercorp has initiated a process to evaluate strategic alternatives to maximize the value and optimize the re-development of the GC Mine, which may include a partial or complete sale of the mine, or other strategic alternatives. Silvercorp intends to continue to advance the mine's redevelopment in accordance with its existing plans while the review process is underway. The Company has not made any decisions related to any strategic alternatives at this time and there can be no assurance that the process will result in a specific outcome or transaction, or that any transaction will be completed or increase value or optimize the GC Mine. The Company has not set a timetable for the completion of this process and the Company does not intend to provide further updates unless and until it determines that further disclosure is appropriate or required.

CAPITAL EXPENDITURES AND DEVELOPMENT FOR GROWTH

Total capital expenditures in Q2 Fiscal 2027 were $50.5 million, up 89% compared to $26.7 million in Q2 Fiscal 2026, mainly due to the mine construction spending for the Chaarat ZAAV, El Domo and Kuanping projects, and the safety improvements at the Ying Mining District.

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) | | | Q2 Fiscal 2027 | | | | | | | | | | Ying Mining District | 11,640 | $ 11,115 | 10,139 | $ 5,087 | 8,578 | $ 333 | $ 8,204 | $ 24,739 | | GC Mine | 60 | 111 | 121 | 114 | — | — | 475 | 700 | | Kuanping | 1,507 | 824 | 462 | 440 | 4,759 | 152 | 88 | 1,206 | | Subtotal | 13,207 | 12,050 | 10,722 | 5,641 | 13,337 | 485 | 8,767 | 26,645 | | Q2 Fiscal 2026 | | | | | | | | | | Ying Mining District | 8,879 | $ 6,122 | 12,639 | $ 5,271 | 34,767 | $ 977 | $ 822 | $ 13,191 | | GC Mine | 1,323 | 605 | 1,799 | 673 | 4,509 | 98 | 36 | 1,412 | | Kuanping | 831 | 736 | 613 | 221 | — | — | 220 | 1,178 | | Subtotal | 11,033 | 7,463 | 15,051 | 6,165 | 39,276 | 1,075 | 1,078 | 15,781 |

i) Ying Mining District

Capitalized expenditures for underground ramps, tunnels and drilling amounted to $16.5 million, plus $8.2 million for plant and equipment, of which approximately $7.2 million were incurred and capitalized for the safety improvement works, compared to $12.4 million for underground ramps, tunnels and drilling and $0.8 million for plant and equipment in Q2 Fiscal 2026. Construction of the No. 3 mill continued, and total capital expenditures incurred were approximately $1.3 million in Q2 Fiscal 2027, with the foundations for the machine shop, crushed ore silo, and main plant completed, welding for the elevated water tank finished, and excavation for the tailings thickener currently underway.