Silvercorp Metals (TSX: SVM) reported record revenue for the fourth quarter of fiscal 2026, though operational results showed a decline in metal production compared to the same period last year. The company generated $147.4 million in revenue during the three months ended March 31, marking a 96% increase over the prior-year quarter.
Despite the financial gains, silver production for the fourth quarter fell 11% year-over-year to 1.5 million ounces. Lead production dropped 14% to 14.0 million pounds, while zinc production saw a 12% decrease, totaling 3.9 million pounds. Management attributed the lower output primarily to decreased head grades at the Ying Mining District, which were impacted by an increase in shrinkage mining.
The fourth quarter consolidated these results into a full fiscal year that saw record annual revenue of $438.1 million. Silvercorp processed a total of 1.48 million tonnes of ore throughout the year, an 12% increase that surpassed the company’s own guidance. However, total silver production for the year finished at 6.8 million ounces, down 2% from fiscal 2025.
Annual lead production reached 60.4 million pounds, a 3% decline, while zinc production fell 7% to 21.7 million pounds. Gold production was a relative bright spot for the year, increasing 16% to 8,723 ounces.
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The company continued to advance construction at its Kuanping and El Domo projects during the quarter. At El Domo, site preparation for the processing plant and ore sheds was completed despite heavy rainfall, which necessitated enhanced water and soil conservation measures. Kuanping meanwhile saw 1,335 metres of ramp development and 313 metres of exploration tunneling.
Looking ahead to fiscal 2027, Silvercorp has issued guidance that forecasts a rebound in production. The company expects to process between 1.53 million and 1.61 million tonnes of ore, which is projected to yield between 6.8 million and 7.1 million ounces of silver. Gold production meanwhile is to be between 9,500 and 10,000 ounces, while lead production is estimated to be between 62.7 and 65.8 million pounds. Current zinc production estimates sit at 22.3 to 23.4 million pounds.
Cash costs meanwhile are expected to be $83.30 to $85.40 per tonne of ore, while all in sustaining costs are forecast to be between $155.30 and $161.20 per tonne.
Capital expenditures for the upcoming year are budgeted at $141 million for Chinese operations. A significant portion of this investment is directed at the Ying Mining District for ramp development, exploration tunneling, and the construction of the No. 3 Mill. El Domo in Ecuador meanwhile is expected to see expenditures of $159.8 million in fiscal 2027.
Silvercorp is scheduled to release its full audited financial results for the fiscal year on May 25, 2026.
Silvercorp Metals last traded at $17.33 on the TSX.
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