Silvercorp Metals(SVM) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Fiscal Q3 2025 was the strongest quarter ever for the company, with record revenue of $84 million, up 43$45 million, an increase of 90% compared to the same quarter last year [5] - Attributable net income for the quarter was $26 million or$0.12 per share, more than double the $11 million or$0.06 per share reported in the same period last year [8] Business Line Data and Key Metrics Changes - Silver production reached 1.9 million ounces, up 16% year-over-year, driven by strong performance from the Ying Mine [5][14] - The company experienced a 40% increase in gold sold, a 15% increase in silver sold, and a 5% increase in lead sold year-over-year [9] - Zinc sold decreased by 10% due to lower head grades [14] Market Data and Key Metrics Changes - Realized gold and silver prices rose by 35%, zinc price increased by 49%, and lead price rose by 8% compared to the same period last year [6] - Silver contributed 63% of net realized revenue in Q3, compared to 59% in the same quarter last year [7] Company Strategy and Development Direction - The company completed a mill expansion at the Ying Mine, increasing production capacity from 2,500 tons to 4,000 tons per day [5] - The company is focused on responsible and sustainable development, aiming to create lasting benefits for local communities in Ecuador [24] - The Kuanping satellite project is ready for construction, with a budget of $1 million allocated for development [18] Management Comments on Operating Environment and Future Outlook - Management noted that the robust commodity market contributed to improved realized metals prices [5] - The company remains confident in achieving its silver guidance of between 6.7 million to 7.2 million ounces for fiscal 2025 [14] - Management acknowledged potential indirect impacts from global economic activity due to tariffs but emphasized that they have no direct exposure [27][29] Other Important Information - The company ended the quarter with a cash balance of$355 million, including $143 million in net proceeds from a convertible notes offering [12] - The all-in sustaining cost per ounce of silver net of byproduct credits was 12.75%, reflecting a 13% increase year-over-year [16] Q&A Session Summary Question: Is the company exposed to tariff discussions? - Management confirmed that they are not exposed to tariff discussions as they sell all concentrates to domestic smelters and do not export from China [27][28] Question: Will there be a comprehensive update on El Domo in April? - Management indicated that they will provide a budget and estimates for construction and fiscal year but emphasized that it may be premature to release detailed numbers now [31][33] Question: What pricing model should be used for El Domo concentrates? - Management advised that an LME pricing basis would be appropriate for modeling the concentrates produced at El Domo [41] Question: How much extra tonnage is expected from milling during the Chinese New Year? - Management estimated that they would end the quarter with a more typical ore inventory, processing a significant portion of the stockpile [44][45]