Silvercorp releases 2027 guidance Ecuador mine update
Silvercorp Metals Inc. [SVM-TSX, NYSE American], a company with operations in China, has released its fiscal 2027 production guidance as well as an update on construction at its El Domo mine in Ecuador.
In fiscal 2027, the company expects to process 1.5 2 to 1.6 million tonnes of ore, yielding approximately 6.8 to 7.1 million ounces of silver, 9,500 to 10,000 ounces of gold or 7.5 to 7.8 million ounces of silver equivalent (AgEq) 62.7 to 65.8 million pounds of lead and 22.3 to 23.4 million pounds of zinc.
The guidance represents increases of 3.0% to 9.0% in ore processed, 0.04% to 4.0% in silver, 9.0% to 15% in gold, 4.0% to 9.0% in lead and 3.0% to 8.0% in zinc production compared to 2026 results.
Silvercorp’s portfolio includes the operating Ying and GC operating mines in China.
In fiscal 2026, the company reported record revenue of $438.1 million, an increase of 47% over fiscal 2025. Ore processed of 1.47 million tonnes jumped 12% over fiscal 2025, and beat the high end of the 1.37 million tonnes in the company’s annual production guidance.
Silver production of 6.8 million ounces marked a 2.0% decrease over fiscal 2025, gold production of approximately 8,723 ounces was up 16% from fiscal 2025, while AgEq production of 7.5 million ounces was even with fiscal 2025.
At the Ying Mining District, the company reported fiscal 2026 production of 7.0 million ounces of AgEq, 55.1 million pounds of lead and 6.6 million pounds of zinc. The GC mine contributed 500,000 ounces of silver, 5.2 million pounds of lead, and 15.1 million pounds of zinc.
El Domo is a copper-gold mine under construction in central Ecuador, approximately 150 kilometres northeast of the major port city of Guayaquil. It consists of a flat-lying tabular-shaped volcanogenic massive sulphide (VMS) deposit, with mineralization beginning at 30 metres from surface and dimensions of approximately 800 to 400 metres.
The project has received all key permits from the Government of Ecuador, and is expected to begin production by July, 2027.
A 2021 open pit feasibility study envisages average annual payable production in years one to nine of 11,000 tonnes of copper, 26,000 ounces of gold, 12,000 tonnes of zinc, 488,000 ounces of silver and 5,000 tonnes of lead. The total life of mine capital cost, including closure is estimated at US$316 million.
Silvercorp owns a 75% stake in Salazar Holdings, which owns the El Domo project via a wholly-owned subsidiary known as Curimining S.A.
A streaming agreement with Wheaton Precious Metals Corp. (WPM-TSX, WPM-NYSE) provides $175.5 million in funding available in four installments during construction.
In its latest update, Silvercorp said the El Domo mine has completed the site preparation for the processing plant, 5,000 square mete ROM ore shed, construction camp, internal roads, and orders of major equipment.
On Friday, Silvercorp shares rose 5.6% or 71.5 cents to $13.36. The shares trade in a 52-week range of $14.00 and $3.48.