Record Quarterly Revenue
Q4 revenue of $147 million, up 96% year-over-year, driven mainly by a 183% increase in realized silver selling price (averaging just above $78/oz) and silver representing 78% of Q4 revenue.
Silvercorp Metals
· SVM
February 9th, 2026
Summary
- Earnings Call Date:
- 2026-02-09
- Change Since:
- -3.44%
- Next Earnings Date:
- 2026-08-06
Earnings Call Sentiment
PositiveThe call was broadly positive: record revenue, materially higher realized silver prices, strong operating cash flow and free cash flow growth, improved adjusted profitability, lower unit costs at Ying and clear progress on multiple growth projects (mill #3, El Domo, Condor and Kyrgyzstan). Key near-term negatives include a one-time $60M noncash derivative charge that produced a small GAAP net loss, modest declines in some metal production due to lower grades and higher dilution, elevated sustaining/tunneling costs in Q4, and substantial near-term capital and acquisition cash outlays that increase deployment risk. Overall, the positives—especially cash generation, margin expansion, balance sheet strength and development progress—significantly outweigh the lowlights.
Company Guidance
The company provided clear near‑ and medium‑term guidance with many quantifiable targets: Ying’s FY production‑cost and AISC guidance were $87–$88/tonne and $158–$161/tonne (management achieved $80/tonne and $134/tonne FY2026), Ying invested $29M in FY2026 for ramp/tunnel development and is budgeting $37M this year, and approved capacity across four Ying permits rose to 1.32M tpa (with total Ying capacity expected to be ~1.5M tpa including Kuanping’s 200k tpa); mill #3 has a $31.6M budget to add 3,000 tpd (commission Q1 FY2028) lifting net milling to ~6,500 tpd from 4,000 tpd today; El Domo’s updated budget is $284M with ~$60M spent (~21%) and construction now active; Condor will develop two 1,500 m tunnels with environmental and water permits in hand and a small‑scale mining license targeted for Q2 FY2027; Tulkubash/Kyzyltash was acquired for $92M, converted to a JV (Silvercorp 72%, Kyrgyzaltyn 30%), paid $60M for a 30‑year license extension to June 2062, and targets pre‑stripping for Tulkubash in Q2 FY2027; balance sheet and financing guidance included cash of $422M, associate investments valued at $275M (Mar 31), and undrawn RMB term loans of ~ $220M, and management expects a Hong Kong listing later in the year.
Strong Cash Generation and Free Cash Flow
Q4 cash flow from operating activities of $90 million and free cash flow of $58 million (up 194% and 308% YoY, respectively). Full-year operating cash flow nearly $311 million, up 124% YoY, and FY free cash flow of >$181 million (more than triple prior year).
Adjusted Profitability Improvement
Q4 adjusted net income of $59.3 million ($0.27/share) versus $14.7 million ($0.07) in the prior-year quarter — a 303% increase. Full-year adjusted net income of $151 million ($0.69) versus $75 million ($0.36) prior year (approximately +101%).
Strong Balance Sheet and Liquidity Actions
Ended quarter with $422 million cash (plus $275 million market value of investments). Secured low-cost RMB term loan facilities of ~ $220 million post-quarter (undrawn) to add liquidity.
Production and Operating Income
Q4 production: ~1.5M oz silver, ~2.5k oz gold, 14M lbs lead, 4M lbs zinc. FY production: 6.8M oz silver and 8,723 oz gold. Consolidated mining operating income of $254 million in FY2026 with Ying contributing $240 million (95% of total).
Unit Cost Improvements and By-product Credits
Ying Q4 production costs averaged $78/tonne (down 8% YoY). Cash cost per oz of silver net of by-product credits was negative $1.03 in Q4 (versus $3.05 prior year). FY cash cost per oz averaged $0.01 versus $0.62 last year, reflecting a ~$10 million increase in by-product credits.
All-in Sustaining Costs Below Guidance
Ying FY all-in sustaining costs averaged $134/tonne, down 4% YoY and below Ying's guidance of $158–$161/tonne. Per-ounce AISC (net of by-products) was $1,309 in Q4 and $1,149 for the full year, supporting healthy margins at higher silver prices.
Growth and Capacity Expansion
Approved capacity across 4 Ying permits increased to 1.32M tonnes/year, with total Ying mining capacity anticipated around 1.5M tonnes/year including Kuanping (200k tpa). Commenced construction of Mill #3 (budget $31.6M) to add 3,000 tpd and deliver ~6,500 tpd net effective milling capacity when commissioned in Q1 FY2028.
Progress on El Domo and Other Development Projects
El Domo: $60M spent to March 2026 (~21% of updated $284M budget), awarded power contracts, mobilized CRCC 19 for construction, and advanced process plant earthworks and tailings quality assurance. Condor: environmental impact study approved and water permits granted; small-scale mining license targeted Q2 FY2027.
Strategic Acquisition and Corporate Development
Acquired 100% of Chaarat ZAAV (Tulkubash and Kyzyltash projects) for $92M in January; subsequently converted ZAAV into a joint venture with Silvercorp holding a majority interest and obtained a new 30-year Kyrgyz mining license (paid $60M). Also filed an application to list shares on the Hong Kong Stock Exchange to broaden investor base.
Operator
Thank you for standing by. Good afternoon. My name is John, and I'll be your conference operator today. At this time, I would like to welcome everyone to Silvercorp Fourth Quarter and Full Year Fiscal 2026 Financial Results Conference Call. [Operator Instructions] I would now like to turn the conference over to Lon Shaver, President of Silvercorp. Please go ahead.
Lon Shaver
Thank you, John. On behalf of Silvercorp, I'd like to welcome everyone to this call to discuss our fourth quarter and full year fiscal 2026 financial results, which we released on Tuesday. A copy of the news release, the MD&A and our financial statements are available on our website and SEDAR+. Before we get going, please note that certain statements on today's call will contain forward-looking information within the meaning of securities laws. Additionally, please review the cautionary statements in our news release as well as the risk factors described in our most recent regulatory filings. So I'll start with the financial results for the quarter. We delivered another quarter of strong performance in Q4, which was highlighted by record revenue of $147 million, up 96% from last year. Cash flow from operating activities and free cash flow reached $90 million and $58 million, respectively, up 194% and 308% from last year.
This performance was mainly driven by a 183% increase in the realized selling price of silver, which averaged just above $78 an ounce after smelter deductions. Silver accounted for 78% of our revenue in Q4. It's obviously a good time to be a silver miner, and these results show why Silvercorp rema...
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