Silvercorp Metals (SVM) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 revenue of $126.1 million, up 51% year-over-year, driven by higher silver and gold prices and strong operational performance.

• Adjusted net income was $47.9 million ($0.22/share), more than doubling year-over-year, excluding a $60 million non-cash derivative liability charge.

• Cash flow from operating activities reached $133 million, up 196% year-over-year, including a $43.9 million drawdown from Wheaton Precious Metals.

• Ended the quarter with $463 million in cash and short-term investments, and $233.2 million in equity investments.

• Net income reported as -$15.8 million due to a $60 million non-cash charge related to convertible notes.

Financial highlights

• Revenue increased 51% year-over-year to $126.1 million; mine operating earnings up 164% to $77.1 million.

• Free cash flow surged 336% to $90 million; adjusted EBITDA was $66.7 million, up 66% year-over-year.

• Realized silver price increased 80% to $49/oz after smelter deductions; silver contributed 72% of Q3 revenue.

• Q3 operating cash flow (adjusted for one-time items) was $79.6 million, up 129% year-over-year.

• Net loss of $15.8 million due to a $60.2 million non-cash charge on convertible notes fair value.

Outlook and guidance

• Ying mine throughput expected at the lower end of guidance due to Q2 challenges and lower grades, despite higher tons milled.

• Extra ore stockpiled to support Q4 production during Chinese New Year; Ying Mining District mines to close for three weeks, but processing plant will operate using stockpiled ore.

• Kuanping Mine to begin initial ore production in June 2026, with ore shipped to Ying's plant.

• GC Mine expected to process 50,000 tonnes of ore in Q4 Fiscal 2026.