Silvercorp Metals(US:SVM)2026-02-10 18:02Financial Data and Key Metrics Changes - The company reported record-breaking revenue of $126 million, a 51% increase from the previous year [2] - Cash flow from operating activities reached $133 million, up 196%, while free cash flow was $90 million, up 336% from last year [2][3] - Adjusted net income for the quarter was $47.9 million or $0.22 per share, compared to $22 million or $0.10 per share in the same quarter last year, reflecting a 118% increase [3][4] - The company reported a net income of -$15.8 million for the quarter, primarily due to a $60 million non-cash charge on derivative liabilities [3] Business Line Data and Key Metrics Changes - Silver accounted for 72% of total revenue, with an 80% increase in the realized selling price of silver [3] - Production at Ying increased, with tons mined and milled up 23% and 18% respectively compared to Q3 2025 [6] - Q3 production costs averaged $76 per ton at Ying, down 11% from last year, and cash cost per ounce of silver was negative $1.22 [7] Market Data and Key Metrics Changes - The company produced approximately 1.9 million ounces of silver, just over 2,000 ounces of gold, 16 million pounds of lead, and 7 million pounds of zinc in Q3 [5] - Year-to-date production figures showed increases in silver, gold, and lead production by 1%, 42%, and 1% respectively, while zinc production decreased by 6% [6] Company Strategy and Development Direction - The company is focused on expanding mining capacity across its licenses at Ying, with recent permit renewals and expansions [8] - Investment in growth projects at Ying totaled $9 million in Q3, aimed at enhancing underground access and material handling [7] - The company is also advancing its projects in Kyrgyzstan, acquiring a 70% interest in gold projects to diversify its production portfolio [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Q2 but expressed optimism about smoothing out Q4 performance due to additional tons to mill during the Chinese New Year [16] - The company is actively engaged in obtaining necessary permits for its projects, with the environmental impact study for the Condor project approved [11] Other Important Information - The company ended the quarter with a strong cash balance of $463 million, an increase of over $80 million from the previous quarter [5] - A transaction to acquire a gold project in Kyrgyzstan for $162 million was announced, with $92 million paid at closing [5] Q&A Session Summary Question: Guidance and throughput at Ying - Analyst inquired about guidance and throughput expectations, noting that while guidance remains unchanged, throughput may exceed expectations despite lower grades [16] Question: Derivative liability details - Analyst asked if the $60 million derivative liability was solely related to convertible notes, to which management confirmed it was [17]