Silvercorp Metals Inc. (NYSE-A/TSX: SVM; FRA: S9Y) is a good example of what happens when a nascent silver bull market hits a company that has been growing steadily for years thanks to its planning and cost discipline, financing itself primarily from its own cash flow. In fact, 2026 has long since begun for the silver producer, as the company’s fiscal year always ends on March 31 of the calendar year. The company reported revenue of USD 298.9 million for the past year 2025 (previous year: USD 215.2 million), net income of USD 58.2 million (previous year: USD 36.3 million) and record silver production of 6.9 million ounces (previous year: 6.2 million ounces). Earnings per share (basic) were US$0.29. A particularly important measure of financial flexibility from the company’s perspective is free cash flow after investments, which amounted to US$52.6 million in 2025.
For the current fiscal year 2026, the company has announced a further increase in silver production to 7.6 million ounces, which would correspond to growth of 9%. Revenue is projected to reach $354 million. For 2027, revenue of $425 million is forecasted – based exclusively on the two producing Chinese mines – before a major leap in the company’s development is expected to follow in fiscal 2028 with the commissioning of the El Domo project in Ecuador. The integration of the El Domo project in Ecuador is estimated to increase revenue to USD 614 million in fiscal 2028 (beginning in March 2027). This would significantly diversify Silvercorp’s revenue contributions from individual metals, both in terms of share and geography. While silver production in China is projected to generate revenue of US$270 million in fiscal 2028, copper production in Ecuador would generate revenue of US$113 million for the first time. Gold and silver production at El Domo in Ecuador is estimated to contribute a combined US$211 million to revenue. Overall, the share of gold in the portfolio would increase significantly.
These forecasts are based on an ongoing production forecast for the mines in China for the current year 2026 and on a feasibility study for the El Domo project from 2021, whereby in this case the metal prices have been slightly adjusted to the current market environment: a price of US$ 4.60/lb was assumed for copper (currently US$ 5.80; in the feasibility base case still at US$3.50). Gold is estimated at US$3,350 per ounce (currently US$3,313, in the feasibility study still at US$1,700) and silver at US$33 per ounce (currently US$38.16, in the feasibility study still at US$ 23).
Figure 1: Silvercorp expects its revenue to nearly double in the next two years as a result of its expansion into Ecuador.
Figure 2: The chart shows how cost-conscious Silvercorp has been in recent years. Following the correction in the silver price in 2012, the company adjusted its cost structure (AISC) to ensure that it always generated a stable margin.
Figure 3: Silvercorp has enjoyed exceptionally high margins in recent years, far outperforming its competitors on average. In the last 12 months (trailing 12 months), the company generated an EBITDA margin of 46%. Operating cash flow in 2025 amounted to US$138.6 million, capital expenditures were US$86 million, leaving US$52.6 million in free cash flow.
Figure 4: Silvercorp will significantly expand its resource base in the near future through expansion into Ecuador and organic growth.
Figure 5: Profitable silver mines in China support growth in Ecuador and beyond.
Conclusion: From China’s perspective, Ecuador is a direct neighbor that is also conveniently connected by sea passage across the Pacific Ocean. In addition to its wealth of resources, this could be one of the reasons why Silvercorp is starting its diversification strategy in this country. The rising export figures from Ecuador point to favorable conditions, which have now also attracted other well-known companies such as Lundin Gold (Fruta del Norte) and semi-state-owned Chinese companies such as Ecuarcoriente S.A. (Mirador). Mining exports have risen from US$275 million in 2018 to US$3.3 billion in 2023. Silvercorp has a long-track record of profitability and growth. The company is strongly focused on free cash flow from long-life mines and organic growth through extensive exploration drilling. To illustrate: in its Chinese projects alone, the company has drilled 2,600 kilometers since inception, and another 250,000 meters of drilling are planned for the current year. In China, a third silver mine is under construction, and another gold mine is in the permitting process.
Goldinvest.de is pleased to accompany the company with reports and interviews on our channels in the future. The company plans to publish its quarterly figures Q1 2026 on August 7.
