Silvercorp Delivers Robust PEA for Condor Gold Project in Ecuador

On December 22, 2025, Silvercorp released the results of a Preliminary Economic Assessment (PEA) for its 100%-owned Condor gold project in Ecuador. The study outlines an underground mining operation with a 13-year life of mine (LOM). Key metrics include an after-tax NPV (5%) of $522 million and an IRR of 29% at base case prices ($1,850/oz Au). However, at "near-spot" prices ($2,700/oz Au), the NPV(5%) jumps to $1.559 billion with an IRR of 61%. The project requires initial capital of $292 million to produce an average of 105,700 oz of gold per year, with life-of-mine All-In Sustaining Costs (AISC) estimated at $1,258/oz.

This news is materially positive as it defines a legitimate "third leg" for Silvercorp, complementing its producing China operations and the El Domo project currently under construction. - Valuation Support: The near-spot NPV of $1.56 billion represents nearly 60% of the company's current market cap, suggesting significant unrecognized value if the project advances to feasibility. - Diversification: Successfully moving Condor toward production would further reduce Silvercorp’s jurisdictional dependency on China, which currently provides over 90% of its operating income. - Execution Risk: The PEA relies heavily on Inferred resources (12.1 Mt at 3.55 g/t Au), which are geologically speculative. The $292M initial capex is substantial, and while the company has $381M in cash, it is also funding the $240M El Domo construction simultaneously. - Jurisdictional Context: While the Ecuadorian Constitutional Court upheld the El Domo license in July 2025, anti-mining sentiment remains a persistent, albeit currently non-material, threat in the region.

Silvercorp is a profitable mining company historically focused on silver-lead-zinc mines in China (Ying Mining District and GC Mine). It is currently transitioning into a multi-asset, multi-jurisdictional producer. - Flagship (Production): Ying Mining District (China). It is the primary cash generator, with a permitted capacity expanding toward 1.32 million tonnes per year. - Flagship (Development): El Domo (Ecuador). A high-grade copper-gold-zinc project currently in construction, targeting production by late 2026. - Strategic Pivot: The 2024 acquisition of Adventus Mining shifted the company’s growth profile toward Ecuador, adding El Domo and the now-advanced Condor project.