Silvercorp (TSX: SVM) combined higher realized prices with disciplined unit costs to set quarterly records for revenue, operating cash flow, and free cash flow in the three months ended December 31, 2025, even as reported earnings swung to a loss due to fair value accounting on financing instruments.
Revenue rose to $126.1 million, up 51% from $83.6 million last year, on sales of 1.9 million ounces of silver, 2,250 ounces of gold, 16.4 million pounds of lead, and 7.0 million pounds of zinc. Mine operating earnings increased to $77.1 million from $29.2 million, up 164%.
By cost line, cost of mine operations totaled $49.0 million, down from $54.4 million, driven by lower government fees and other taxes at $3.9 million versus $12.7 million.
However, the firm still ended at a net loss of $15.8 million or $0.07 loss per share, versus net income of $26.1 million or $0.12 per share a year ago. The swing was mainly tied to a $60.2 million loss on derivative liabilities tied to mark to market fair value movements, versus a $11.6 million gain in the prior year. Adjusted net income was $47.9 million or $0.22 per share, up from $22.0 million or $0.10.
Adjusted EBITDA was $66.7 million or $0.30 per share, up from $40.1 million or $0.18.
Cash flow from operating activities was $132.9 million, up from $44.8 million a year ago, and included a $43.9 million October 2025 drawdown from Wheaton Precious Metals recorded as a long term deposit received. Free cash flow was $89.6 million, up from $20.5 million, as sustaining capex held at $13.7 million versus $14.2 million while growth capex rose to $29.6 million from $10.2 million.
Silvercorp also paid $2.8 million in dividends and issued $4.9 million of common shares in the quarter.
The firm ended the quarter with $462.8 million in cash and cash equivalents plus short term investments, up 21% QoQ from $382.3 million. Total liabilities rose to $506.0 million from $305.6 million, reflecting the reclassification and fair value of $113.7 million current convertible notes and $163.6 million current derivative liabilities.
On throughput, production was about 2.0 million silver equivalent ounces, including 1.9 million ounces of silver and 2,096 ounces of gold. Realized silver price was $49.0 per ounce net of smelter deductions, with silver representing 72% of quarterly revenue.
Consolidated cash cost was negative $3.02 per ounce of silver net of by product credits, improved from negative $1.88, while AISC was $12.86 versus $12.75.
Silvercorp last traded at $67.76 on the TSX.
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