Canada's Silvercorp flags output hit of up to 50% after China suspension for safety upgrades, clouding profit jump

Silvercorp Metals

10/08/2026 23:37

Overview
Canada mining firm's Q1 fiscal revenue up 70% yr/yr, driven by higher silver prices
Adjusted net income and EPS rose sharply yr/yr
Company suspended China operations mid-June for safety upgrades, Q2 output expected to drop

Outlook
Company warns Q2 production could fall 40% to 50% after voluntary safety suspension in China
Silvercorp targets commissioning of El Domo mine by July 2027

Result Drivers
HIGHER SILVER PRICES - Co said 135% increase in average realized silver price drove 70% revenue growth, with silver accounting for 77% of Q1 revenue
LOWER PRODUCTION OUTPUT - Co attributed declines in silver, lead, and zinc production to lower head grades, mining dilution, and mid-June suspension for safety upgrades
HIGHER UNIT COSTS AND TAXES - Co said all-in sustaining cost per ounce of silver rose 36% due to higher government taxes linked to increased revenue and less metals produced and sold

Company press release: ID:nPn6Ng7NTa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EPS
 
$0.24
$0.25 (2 Analysts)
Q1 Adjusted Net Income
 
$53.93 mln
 
Q1 Net Income
 
$59.38 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the non-gold precious metals & minerals peer group is "buy"
Wall Street's median 12-month price target for Silvercorp Metals Inc is C$20.00, about 17.6% above its August 10 closing price of C$17.00
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Aug 10 - Canada's K92 Mining Q2 profit jumps 116% on mine expansion, infrastructure upgrades
Aug 10 - Canada's Altius Minerals Q2 royalty revenue more than doubles on higher commodity prices
Aug 10 - Canada's Barrick Mining Q2 profit misses estimates, plans North American IPO by end-2026

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)