Silvercorp Metals Q3 2025: Unraveling Contradictions in Mine Plans, Tariff Exposure, and El Domo's Future

These are the key contradictions discussed in Silvercorp Metals' latest 2025Q3 earnings call, specifically including: Mine Plan for El Domo, Exposure to Tariffs, El Domo Project Timeline and Budget, and Exposure to Tariffs:



Revenue and Production Growth:
- Silvercorp Metals reported record revenue of $84 million for Q3 2025, up 43% from the previous year, and record silver production of 1.9 million ounces, up 16%.
- This growth was driven by a strong performance from the flagship Ying Mine, a mill expansion that increased production capacity, and robust commodity market conditions that led to improved realized metals prices, particularly for silver, which contributed 63% of net realized revenue.

Operating Cash Flow and Cash Position:
- The company experienced a record operating cash flow of $45 million in Q3 2025, up 90% year-over-year, and ended 2024 with a healthy cash balance of $355 million.
- This was primarily due to higher metal prices, increased sales, and significant net proceeds from a convertible notes offering, which offset non-cash working capital changes.

Ying Mine Expansion and Production:
- The expansion of Ying Mine's mill #2 increased production capacity from 2,500 tons to 4,000 tons per day, contributing to a 16% increase in silver production and a 53% increase in gold production compared to the previous year.
- The mill expansion, along with a robust ore stockpile, allowed the company to maintain production during the Chinese New Year, supporting its silver guidance for fiscal 2025.

El Domo Project Advancements:
- Silvercorp secured all necessary permits for the Kuanping satellite project and awarded a seasoned operator, RCC 14, for initial civil contracts.
- The company is optimizing site layout and infrastructure designs, with plans to provide a comprehensive project update in April, including capital budget and production targets for fiscal 2026.

All-In Production Costs and Cash Costs:
- The company's all-in sustaining production cost increased by 10% year-over-year to $150 per ton in Q3 2025, driven by increased unit production costs and sustaining capital expenditures.
- Despite this, Silvercorp's cash cost per ounce of silver net of byproducts was negative $1.88, reflecting a significant increase in byproduct credits, which offset higher production costs.