Silvercorp Metals Maps Global Growth With Ecuador and Kyrgyzstan Mine Builds

Key Points

• Silvercorp is expanding beyond China while continuing to grow its Ying Mining District, which currently produces about 7.5 million silver-equivalent ounces annually plus lead and zinc.
• The El Domo copper-gold project in Ecuador is under construction and targeted for commissioning in July 2027, with an estimated $284 million capital cost and an 11.5-year projected mine life.
• Kyrgyzstan adds a major gold growth pipeline: Tulkubash is targeting first gold in late 2027 or early 2028, while the larger Kyzyltash project is being evaluated for annual production of 200,000–230,000 ounces and a potential 18-year mine life.

Silvercorp Metals NYSEAMERICAN: SVM outlined plans to broaden its operating footprint beyond China through mine development projects in Ecuador and Kyrgyzstan, while continuing to expand capacity at its Ying Mining District.

The company said its existing Chinese operations remain the foundation of its business, producing at a run rate of approximately 7.5 million silver-equivalent ounces, in addition to roughly 90 million pounds of lead and zinc. On a trailing 12-month basis, Silvercorp reported an all-in sustaining cost of $15 per ounce of silver.

At the Ying Mining District, Silvercorp said it sees an opportunity to increase production through mechanization, a new mill and the development of a satellite deposit. The company said its current mine life is 17 years, with resources that could potentially be converted into reserves beyond that period.

El Domo Construction Targets 2027 Commissioning

Silvercorp said the El Domo project in Ecuador is expected to become its first mine outside China. The company is targeting commissioning in July 2027.

El Domo carries an estimated capital cost of $284 million, including expected spending of $160 million during the current fiscal year. Wheaton, Silvercorp’s partner in the project, is contributing $175 million toward the capital requirement, of which $88 million had been drawn at the time of the presentation.

The company said the technical report for El Domo outlines an 11.5-year mine life and an after-tax net present value of $571 million using an 8% discount rate. While the mine is not expected to be large, Silvercorp characterized it as potentially profitable because of its grade.

Construction work is underway on the open pit, roads, tailings dam, waste dump areas and process plant layout. Mill equipment has been ordered and was en route to Ecuador, according to the presentation. The company said contractors have also been lined up for installation work.

Kyrgyzstan Projects Add Gold Growth Pipeline

Silvercorp acquired its Kyrgyzstan projects in a transaction announced in January, paying $92 million to acquire the interest of a U.K.-based developer. The company also reached an agreement with the Kyrgyz government to operate the assets through a joint venture in which Silvercorp holds a 70% interest and state gold company Kyrgyzaltyn holds 30%.

The company later paid the Kyrgyz government a $60 million progress payment connected to the issuance of a new mining license extending through 2062. Silvercorp said the mining license covers roughly 7 square kilometers and includes the Tulkubash open-pit heap-leach project and the Kyzyltash sulfide project. An exploration license covering approximately 27 square kilometers surrounds the mining area.

For Tulkubash, Silvercorp has budgeted $160 million and said it has started construction activities including open-pit stripping, heap-leach pad development, solution ponds and the recovery plant area. The project had previously been scoped as a four-year open-pit operation producing roughly 110,000 ounces of gold annually. Silvercorp said nearby satellite deposits could potentially extend the mine life by two years or more.

The company is targeting initial ore stacking in late 2027, with first gold potentially poured in late 2027 or early 2028. It has also established a camp intended to support construction through the winter.

At Kyzyltash, Silvercorp is initially scoping a larger operation capable of producing between 200,000 and 230,000 ounces of gold annually for about 18 years. The company has budgeted $30 million for approximately 100,000 meters of drilling over the next two years and said it currently has 16 drill rigs active across the main and contact zones.

Silvercorp said recent drilling identified previously unrecognized structures that could increase the project’s resource potential. The company is targeting a preliminary economic assessment in 2027 and a feasibility study in 2028.

Condor and Ying Expansion Remain Part of Growth Plans

In Ecuador, Silvercorp also highlighted the Condor gold project, which it views as a potential second mine in the country. A preliminary economic assessment completed late last year contemplated a 5,000-tonne-per-day underground mine producing approximately 113,000 ounces of gold annually over 13 years, with initial capital expenditures of about $300 million.

The assessment outlined a net present value of more than $500 million using a 5% discount rate and a gold price of $2,600 per ounce, according to the company. Silvercorp said it plans to pursue a staged approach, initially seeking permits for smaller-scale mining and a 1,000-tonne-per-day mill. The company said the facility could also process ore from local mining operations.

Meanwhile, Silvercorp is building a third mill at Ying, with planned capacity of 3,000 tonnes per day. The company expects the approximately $30 million mill to begin operating by the middle of next year.

Silvercorp said it believes its valuation does not reflect its margins, return on equity, silver exposure and growth pipeline. It attributed part of the discount to its current status as a single-asset, single-jurisdiction company, a profile it expects to change as the Ecuadorian and Kyrgyzstan projects advance.

The company also said institutional ownership had increased to approximately 65%, while retail investors represented about 30% and insiders held roughly 4%. Silvercorp has additionally filed for a Hong Kong listing and is targeting an early 2027 listing.

About Silvercorp Metals (NYSEAMERICAN:SVM)

Silvercorp Metals Inc is a Canadian mining company focused on the acquisition, development, and operation of precious- and base-metal properties. The company primarily produces silver, lead, and zinc, with revenue generated from the sale of concentrates produced at its mines.

Silvercorp's principal operating assets are located in China, including the Ying Mining District in Henan Province and the GC Mine in Guangdong Province. Its activities include underground mining, mineral processing, exploration, and project development.

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