Prnewswire·2025-11-06 23:34Core Viewpoint - Silvercorp Metals Inc. reported its financial and operational results for Q2 Fiscal 2026, highlighting a significant increase in revenue and production, despite a net loss attributed to a non-cash charge related to convertible notes [1][6]. Financial Results - Revenue for Q2 Fiscal 2026 was $83.3 million, a 23% increase from $68.0 million in Q2 Fiscal 2025, driven by higher selling prices for silver and gold, and increased production [4]. - Income from mine operations rose to $40.9 million, up 29% from $31.7 million in Q2 Fiscal 2025, despite a $3.9 million increase in production costs [5]. - The net loss attributable to equity shareholders was $11.5 million, or $0.05 per share, compared to a net income of $17.7 million, or $0.09 per share in Q2 Fiscal 2025, primarily due to a $53.2 million non-cash charge [6]. - Adjusted net income was $22.6 million, or $0.10 per share, an increase from $17.8 million, or $0.09 per share in Q2 Fiscal 2025 [7]. - Adjusted EBITDA was $38.3 million, or $0.18 per share, compared to $29.3 million, or $0.14 per share in Q2 Fiscal 2025 [7]. Operational Results - The company produced approximately 1.66 million ounces of silver and 2,085 ounces of gold, with total production of 1.84 million ounces of silver equivalent [11]. - The all-in sustaining cost (AISC) per ounce of silver was $13.94, a 20% increase from $11.66 in Q2 Fiscal 2025 [12][14]. - Cash flow from operating activities was $39.2 million, up from $23.1 million in Q2 Fiscal 2025, with free cash flow of $11.4 million compared to $0.6 million in the prior year [8]. Capital Expenditures and Development - Total capital expenditures in Q2 Fiscal 2026 were $26.7 million, a decrease of 5% from $28.1 million in Q2 Fiscal 2025 [21]. - Significant advancements were made in the El Domo mine construction, with approximately 1.29 million cubic meters of material cut for site preparation [26]. - The company incurred $1.2 million in capital expenditures for the Kuanping project, focusing on underground development [23]. Market Position and Strategy - Silvercorp continues to focus on generating free cash flow from long-life mines and pursuing organic growth through extensive drilling and potential mergers and acquisitions [30].