Q1 Fiscal 2027
Filed Aug 12, 2026SILVERCORP 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
Revenue increased 70%, adjusted earnings increased 156%, and operating cash flow increased 28%, supported primarily by a 135% higher realized silver price. However, production and metal sales declined across silver, lead and zinc, China operations were voluntarily suspended for safety-system upgrades, and the Company expects Q2 Fiscal 2027 production to be affected by 40% to 50%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $138,665 (in thousands of $) | – | 70% |
| Mine operating earningsother | 84,753 (in thousands of $) | – | 137% |
| Net Income attributable to equity holdersother | 59,375 (in thousands of $) | – | 228% |
| Net Income per share - basic attributable to equity holdersother | 0.27 | – | 223% |
| Net Income per share - Diluted attributable to equity holdersother | 0.24 | – | 195% |
| Adjusted earnings attributable to equity holdersnon-GAAP | 53,926 (in thousands of $) | – | 156% |
| Adjusted earnings per share - basic attributable to equity holdersnon-GAAP | 0.24 | – | 153% |
| Adjusted earnings per share - Diluted attributable to equity holdersnon-GAAP | 0.21 | – | 121% |
| EBITDA attributable to equity holdersnon-GAAP | 84,473 (in thousands of $) | – | 150% |
| EBITDA per share attributable to equity holdersnon-GAAP | 0.38 | – | 147% |
| Adjusted EBITDA attributable to equity holdersnon-GAAP | 77,283 (in thousands of $) | – | 121% |
| Adjusted EBITDA per share attributable to equity holdersnon-GAAP | 0.35 | – | 118% |
| Cash flow from operating activitiesother | 61,682 (in thousands of $) | – | 28% |
| Sustaining capital expendituresother | 10,677 (in thousands of $) | – | (1)% |
| Growth capital expendituresother | 19,866 (in thousands of $) | – | 33% |
| Free cash flownon-GAAP | 28,604 (in thousands of $) | – | 27% |
| Basic weighted average shares outstandingother | 221,138,685 | – | 1% |
| Silver soldother | 1.5 million ounces | – | (16)% |
| Gold soldother | 2,454 ounces | – | 26% |
| Lead soldother | 13.7 million pounds | – | (10)% |
| Zinc soldother | 4.2 million pounds | – | (19)% |
| Average selling price, net of value added tax and smelter charges - Silverother | $69.38/ounce | – | 135% |
| Average selling price, net of value added tax and smelter charges - Goldother | $3,927/ounce | – | 37% |
| Average selling price, net of value added tax and smelter charges - Leadother | $0.99/pound | – | 3% |
| Average selling price, net of value added tax and smelter charges - Zincother | $1.33/pound | – | 39% |
| Cash cost per ounce of silver, net of by-product creditsnon-GAAP | $1.33 | – | 20% |
| All-in sustaining cost per ounce of silver, net of by-product creditsnon-GAAP | $18.38 | – | 36% |
| Cash and cash equivalents and short-term investmentsother | $387,107 (in thousands of $) | (8)% | – |
| Working capitalnon-GAAP | 293,236 (in thousands of $) | (8)% | – |
| Total capital expendituresother | $37.7 million | – | 56% |
| Ying Mining District silver productionother | 1.4 million ounces | – | (16)% |
| Ying Mining District gold productionother | 2,536 ounces | – | 24% |
| Ying Mining District lead productionother | 12.4 million pounds | – | (15)% |
| Ying Mining District zinc productionother | 1.6 million pounds | – | (15)% |
| Ying Mining District cash cost, net of by-product creditsnon-GAAP | $2.45/ounce of silver | – | – |
| Ying Mining District AISC, net of by-product creditsnon-GAAP | $13.94/ounce of silver | – | 38% |
| GC Mine silver productionother | 0.1 million ounces | – | (39)% |
| GC Mine lead productionother | 1.0 million pounds | – | (12)% |
| GC Mine zinc productionother | 2.9 million pounds | – | (16)% |
| GC Mine cash cost, net of by-product creditsnon-GAAP | $(16.90)/ounce of silver | – | – |
| GC Mine AISC, net of by-product creditsnon-GAAP | $15.00/ounce of silver | – | (25)% |
Q2 Fiscal 2027 and stated project milestones outlook
- NoteProduction is expected to be affected by 40% to 50% in Q2 Fiscal 2027 due to major safety system improvement activities at the Ying Mining District.
- NoteThe "Six Major Safety Systems" project at the Ying Mining District has a total budget of approximately $11.5 million.
- NoteThe Company is working towards the target of commissioning the El Domo operation by July 2027 as planned.
- NoteThe Condor Project small-scale mining environmental license is targeted for Q2 Fiscal 2027.
- NoteThe Tulkubash bankable feasibility study is expected to be completed in mid August 2026.
- NoteKyzyltash geotechnical and hydrogeological studies are targeted to be completed in Q3 Fiscal 2027.
What drove it
- Revenue increased 70%, mainly driven by a 135% higher average realized silver price of $69.38 per ounce.
- Silver represented 77% of quarterly revenue.
- Ying production was lower because of lower head grades resulting from higher dilution associated with shrinkage mining and a production suspension since mid June.
- Ying cash cost per ounce increased as silver sold decreased 15% and the RMB appreciated 6% against the USD, partly offset by a $3.8 million increase in by-product credits from non-silver metal revenue.
- Ying AISC per ounce increased with cash cost per ounce and a 68% increase in government taxes linked to increased revenue.
- GC cash cost per tonne increased because ore production decreased 16%, contractor unit cost increased 3% upon contract renewal, and the RMB appreciated 6% against the USD.
- El Domo capital expenditures totaled $12.3 million, compared to $4.8 million in Q1 Fiscal 2026, and cumulative project expenditures reached $66.2 million.
Concerns
- Operations at the Ying Mining District were voluntarily suspended starting mid June for self-review and completion of underground "Six Major Safety Systems" upgrades required by new Chinese government regulations.
- GC operations have been temporarily suspended since late June for mine-safety self-review and related underground upgrades pending approval.
- Production is expected to be affected by 40% to 50% in Q2 Fiscal 2027 because of Ying safety-system improvement activities.
- Silver sold decreased 16%, lead sold decreased 10%, and zinc sold decreased 19% from Q1 Fiscal 2026.
- Consolidated all-in sustaining cost per ounce of silver, net of by-product credits, increased 36% to $18.38.
What to watch
- Completion and approval status of safety reviews and underground upgrades at Ying and GC, and the stated Q2 Fiscal 2027 production impact of 40% to 50%.
- Progress toward the El Domo commissioning target of July 2027 and deployment of the $43.9 million second stream-financing installment.
- Receipt of the Condor small-scale mining environmental license targeted for Q2 Fiscal 2027.
- Completion of the Tulkubash bankable feasibility study expected in mid August 2026.
- The effect of realized silver prices, which were $69.38 per ounce in Q1 Fiscal 2027, on revenue and government taxes.
Balance sheet and cash flow
- Cash and cash equivalents and short-term investments were $387,107 (in thousands of $) as at June 30, 2026, compared with $422,335 (in thousands of $) as at March 31, 2026.
- Working capital was 293,236 (in thousands of $) as at June 30, 2026, compared with 319,461 (in thousands of $) as at March 31, 2026.
- Cash and cash equivalents and short-term investments decreased by $35.2 million from March 31, 2026 after $37.7 million capital expenditures on development and construction and a $60.0 million payment to close the acquisition of Chaarat ZAAV.
- The portfolio of equity investments had a total market value of $303.6 million and increased by $29.0 million from March 31, 2026.
- Cash flow from operating activities was $61.7 million, compared to $48.3 million in Q1 Fiscal 2026.
- Free cash flow was $28.6 million, compared to $22.5 million in Q1 Fiscal 2026.
- Subsequent to the quarter, the Company received the second installment of $43.9 million under the $175.5 million stream financing agreement for continued El Domo mine construction support.
Analysis
Silvercorp reported a sharp increase in financial results for Q1 Fiscal 2027. Revenue was $138,665 (in thousands of $), up 70%, while net income attributable to equity holders was 59,375 (in thousands of $), up 228%. Adjusted earnings attributable to equity holders increased 156% to 53,926 (in thousands of $), and adjusted EBITDA increased 121% to 77,283 (in thousands of $). The release attributes the revenue performance mainly to a 135% increase in the average realized silver price to $69.38 per ounce. Silver represented 77% of quarterly revenue.
The price-driven result occurred alongside lower physical volumes. Silver sold declined 16% to 1.5 million ounces, lead sold declined 10% to 13.7 million pounds, and zinc sold declined 19% to 4.2 million pounds, while gold sold increased 26% to 2,454 ounces. At Ying, lower production reflected lower head grades associated with higher dilution from shrinkage mining and a production suspension since mid June. GC also recorded lower year-over-year production in silver, lead and zinc.
Cost performance was mixed. Consolidated cash cost per ounce of silver, net of by-product credits, rose 20% to $1.33, and AISC rose 36% to $18.38. At Ying, cash cost per ounce was $2.45 and AISC per ounce was $13.94, with the release citing lower silver sales, RMB appreciation, and higher government taxes linked to revenue. GC's cash cost per ounce was negative $16.90, supported by increased by-product credits, while its AISC per ounce declined 25% to $15.00.
Operating cash flow was $61,682 (in thousands of $), up 28%, and free cash flow was $28,604 (in thousands of $), up 27%. The Company spent $37.7 million on capital expenditures, including $12.3 million at El Domo, and cash and cash equivalents and short-term investments declined to $387,107 (in thousands of $) from $422,335 (in thousands of $) at March 31, 2026. The decline followed development and construction spending and the $60.0 million Chaarat ZAAV acquisition payment.
The key near-term issue is the China safety compliance program. Ying was voluntarily suspended starting mid June, while GC has been temporarily suspended since late June. Silvercorp expects production to be affected by 40% to 50% in Q2 Fiscal 2027 due to Ying safety-system improvements. Development activity continues at El Domo, where the Company is targeting commissioning by July 2027, and the Company received a $43.9 million second installment under its $175.5 million stream financing agreement subsequent to quarter-end.
Not in the filing
stated, not guessed- Gross profit and gross margin
- Operating income or operating loss
- Operating expenses
- Income tax expense and tax rate
- Debt and net debt
- Dividend declarations or payments
- Share repurchases
- Segment or mine-level revenue
- Consolidated production totals with comparative figures for gold, silver equivalent, lead and zinc
- Full IFRS financial statements and reconciliations for non-IFRS measures are not included in the filing text
- Prior outlook or guidance was not provided
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.