SILVERCORP REPORTS ADJUSTED NET INCOME OF $22.6 MILLION, $0.10 PER SHARE, AND CASH FLOW FROM OPERATING ACTIVITIES OF $39.2 MILLION FOR Q2 FISCAL 2026

Executive Summary

• Silvercorp reported adjusted net income of $22.6 M ($0.10/share) for Q2 FY 2026, a material positive turnaround from the prior year’s loss.
• Revenue rose 23% to $83.3 M, driven by higher silver and gold prices and modest production growth.
• Operating cash flow generated $39.2 M; free cash flow was $11.4 M, supporting a cash balance of $382.3 M.

Key Details

• Production: 1.66 M oz silver, 2,085 oz gold (≈1.84 M oz Ag‑eq), 14.23 M lb lead, 5.64 M lb zinc.
• All‑in Sustaining Cost (AISC): $13.94 per ounce of silver (net of by‑product credits).
• Net loss: $11.5 M ($0.05/share) – primarily a $53.2 M non‑cash mark‑to‑market charge on convertible notes.
• Adjusted EBITDA: $38.3 M ($0.18/share), up 31% YoY.
• Capital Expenditures: $15.8 M (China operations) + $10.9 M (Ecuador – El Domo mine development & Condor permitting).
• Cash Position: End‑quarter cash & short‑term investments of $382.3 M (+$5.1 M QoQ); equity investment portfolio valued at $180.2 M (+$108.0 M QoQ).
• Financing Activity: Drew down $43.875 M under the $175.5 M stream financing agreement with Wheaton Precious Metals International Ltd. for El Domo mine construction.

Operating Highlights – Ying Mining District

• Silver production ↑ 0.2% YoY; gold production ↑ 76%; lead ↑ 5%; zinc ↓ 3%.
• Cash cost per ounce of silver net of by‑product credits rose to $0.002 (from a negative $0.73).

Operating Highlights – GC Mine

• Silver output fell 7% YoY; lead down 6%; zinc down 5%, impacted by ~10 days of severe weather.

Development Updates

• El Domo mine: 1.29 M m³ material cut (↑249% QoQ); 481‑bed camp completed; TSF construction started Sep 2025; $22.2 M equipment orders placed.
• Condor Project: Preliminary Economic Assessment initiated, expected Q3 FY 2026 completion.

Notable Quotes

• “Our strong operating cash flow and disciplined capital spending position us well to continue delivering shareholder value while advancing key growth projects,” – Lon Shaver, President, Silvercorp Metals Inc.