Silvercorp revenue falls 13% to $72.1 million as production declines

Key Facts

Silvercorp Metals said revenue totaled $72.1 million in the second quarter of fiscal 2027, ended September 30, 2026, down 13% year-on-year due to lower production. The figures came in the company's production and sales update, with its Chinese operations affected by safety compliance work. Preliminary revenue reported for the corresponding quarter of the previous fiscal year was about $83.3 million, according to the company's disclosure for that period. An 82% year-on-year increase in the average realized silver price cushioned the impact of lower production volumes on revenue. The realized gold price also rose 32% from the corresponding quarter, according to the operational update. Even so, the company reported a year-on-year revenue decline despite improved prices for both metals, attributing it to lower production during the period.

At the Ying district, the company processed about 213,320 tonnes of ore during the second quarter of its current fiscal year, according to the reported operating figures. The district's silver production totaled about 0.9 million ounces in the same period, down 41% from the corresponding quarter of the previous fiscal year. Ying also produced about 1,371 ounces of gold, alongside silver output affected by safety compliance work. In an earlier update on its Chinese operations, the company had expected Ying's production to be affected by between 40% and 50% during the July–September quarter. It said the production decline during the quarter was consistent with the expected impact previously disclosed, as it worked to meet new regulatory requirements.

The disruption followed tighter safety requirements for China's mining sector, a measure Silvercorp attributed to a major accident at a coal mine in Shanxi province. The company said in its update on Chinese operations that a self-inspection had identified "some instances of non-compliance with the new regulations." Its response included carrying out safety compliance work at its operations, which affected Ying's production during the reporting period. Under the approval process it described, mining areas that pass inspection can gradually resume production. The company thus linked the resumption of operations to passing inspections at individual mining areas as part of the approval process for compliance work. It said this mechanism allows mines to gradually restore production as requirements are met.

Production at Ying resumed during the period, and the district ended the quarter at an operating rate of 90%, according to Silvercorp's operational performance statement. That rate was reached at quarter-end following safety improvement work carried out by the company in the district. Costs incurred for this work totaled about $13.4 million during the reported quarter, the company said. Original guidance for the current fiscal year targeted consolidated silver production of between 6.8 and 7.1 million ounces. Under that original guidance, Silvercorp targeted silver production of between 6.4 and 6.6 million ounces at Ying for the same fiscal year, whose second quarter saw compliance work and the resumption of operations.

Production at the GC mine remained suspended at the time of the operational update, according to Silvercorp, as it continued to await approvals and additional work required to resume operations. The company said in its statement that "the GC mine remains suspended," explaining that a return to production depends on completing its compliance process. This requires an updated design, along with approvals and the necessary work, according to the details the company provided on the mine's status. The resumption of operations therefore remained tied to these regulatory and implementation steps, which the company was awaiting completion of. Silvercorp aims to resume production at the mine by November 2027, the date it set for a return to operations following the suspension and required work.

Silvercorp set November 5, 2026, as the date for releasing its unaudited interim financial results, with the disclosure to be issued after the market closes. The results will cover the second quarter of fiscal 2027, which ended in September and saw lower production and safety improvement work at its Chinese operations. The scheduled release follows the operational update in which the company reported quarterly production, sales and revenue figures. The company plans to present its interim financial results for the period in that scheduled disclosure, according to its statement, which combined the operating performance announcement with the results release date. The November announcement remains the next financial reporting milestone Silvercorp has set for shareholders following publication of its second-quarter operational update.