Q4 2025 Silvercorp Metals Inc Earnings Call

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Speaker Change: Hi, welcome to go for a sentiment of what she called franchise joining.

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Speaker Change: Merchant capacity in tunneling expenses at 13 million mineral rights royalty related to the S. G X license renewal 9 million noncash loss on the fair value of derivative liabilities.

Speaker Change: And a $6 million increase in corporate admin and business development expenses.

However, our adjusted earnings for the year were 75 million or <unk> 30.

<unk> 37 per share and this compared to $39 million or 22 cents per share in the prior year.

Speaker Change: Our annual cash flow from operating activities was 139 million. This was up from $92 million in the prior year.

Speaker Change: And the results reinforce why silver recovery remains a compelling investment we are a growing and profitable silver producer that provides leverage to higher metals prices.

Speaker Change: Capital expenditures for the year were approximately $86 million and that was up from $64 million in the prior year largely due to increased underground development and completion of the new tailing storage facility and mill expansion projects at Yang.

Speaker Change: And ongoing spending at El Domo, which was $7 million and the Condor project at $1 million in Ecuador.

Speaker Change: Additionally over the year, we repaid our wheaton precious metals $13 million that had been drawn as an early deposit for the abdominal per project.

Speaker Change: We paid $5 million in dividends and repurchased close to a million dollars worth of our shares under the current NCI V program.

Just to quickly recap our Q4 operating results as we reported in April we mined over 246000 tons and processed over 345000 tonnes of ore in Q4.

Speaker Change: These numbers are up 26% and 46% respectively compared to the same quarter last year and.

Speaker Change: And we produced on a consolidated basis, approximately one 6 million ounces of silver.

Speaker Change: <unk> 3110 ounces of gold 16 million pounds of lead and 4 million pounds of zinc in the quarter and these were increases of 40 to 62, and 30% respectively in silver gold and lead production and a modest 3% decrease in zinc production.

Speaker Change: On the cost side Q4 production cost averaged $83 per ton down 1% from last year. This reflects a 7% decrease in unit costs at Yang due to the higher volumes mined and processed partially offset by a 23% increase at G. C. Due to less ore produced in the quarter and more underground development.

Speaker Change: Pleated and Expensed as part of the mining cost.

Speaker Change: Holidayed cash cost per ounce of silver net of byproduct credits was $2 49 in Q4 compared to $1 22 in the prior year quarter.

Speaker Change: This reflects a 14 million increase in production costs offset by a $12 million increase in byproduct credits.

Speaker Change: The all in sustaining production costs decreased by 8% year over year to $132 per ton in Q4 and on a per ounce net of byproduct basis. The on sustaining cost was 14 31 per ounce.

Speaker Change: Which is pretty much in line with the prior year quarter.

Speaker Change: For the full year, we mined and milled, one 3 million tons of ore, which was up 20%.

Speaker Change:

Speaker Change: And 19% year over year, respectively metal production totaled $6 9 million ounces of silver.

Speaker Change: 7495 ounces of gold 62 million pounds of lead and 23 million pounds of zinc.

Silver and gold output rose, 12% and 3% respectively.

<unk> lead and zinc declined slightly by two and point.

Speaker Change: 3%.

Speaker Change: For the year production cost averaged $81 per ton up.

Speaker Change: Up 3% from last year and $1 above the high end of our guidance range of 77 to 80. This in part reflects a 5% increase in unit mining cost at Yang to our higher mine tunneling and grade control drilling partially offset by a 9% decrease in milling costs.

Speaker Change: Consolidated cash cost per ounce of silver net of byproduct credits was neck.

Speaker Change: Negative 54 cents compared to a negative 38 cents last year with the improvement driven by a $21 million increase in byproduct credits.

But offset by a 20 minute all rise in production costs.

Speaker Change: The all in sustaining production cost averaged 142 per tonne up 1% year over year, but below our guidance of $1 44 to $1 52.

Speaker Change: On a per ounce net of byproduct basis, all in sustaining cost was 12 12 up from 11 38 in fiscal 2024, reflecting modest increases in G&A sustaining capital plus government payments totaling $13 million.

Speaker Change: Looking ahead to our fiscal 2026 guidance, which we announced in April we expect to produce between seven four and $7 6 million ounces of silver 9100 to 10400 ounces of gold between 65, and 67 million pounds of lead and between 29 to 30.

Speaker Change: 8 million pounds of zinc.

Speaker Change: These reflect the potential increases of 9% and silver, 39%, Ingalls, 6%, Atlanta, and 42% and zinc.

Speaker Change: If you're looking at the upper end of the guidance compared to fiscal 2025.

Speaker Change: In terms of production cost guidance, we are anticipating between 81 and.

Speaker Change: At <unk> 82 per ton in fiscal 2026, which is consistent with fiscal 2025 and on an all in sustaining basis, we're anticipating a cost between 155 and 158 per ton modestly higher than last year's figure of $1 42, as we are going to be increasing.

Speaker Change: Increasing some spending at Yang as mentioned.

Speaker Change: This is a good segue to discuss some of our growth projects at young we budgeted $25 million in fiscal 2026 for ramp in tunnel development.

Speaker Change: Enhanced underground access and materials handling.

Speaker Change: Where we're looking to replace shops with a trackless system.

Speaker Change: An additional $25 million is allocated to exploration tunneling and $6 million to capitalized drilling as we continue to explore this district, which is perspective, not only for silver lead and zinc, but also for its emerging gold potential.

Speaker Change: At Quant paying our satellite project North of Yang all required permits and licenses for mining construction are in place and site preparation is underway we.

Speaker Change: We budgeted 4 million for construction activities in fiscal 2026.

Speaker Change: Turning to Ecuador, We recently announced the construction plan and schedule for the ELD Domo project with first production targeted by the end of 2026, the capital cost is estimated at $241 million.

Speaker Change: And since acquiring the projects in.

Speaker Change: Last July we've optimized the site layout infrastructure designs and open pit production plan to reduce haulage and support construction of the tailing storage facility.

Speaker Change: We've engaged a group called Gen payment to lead detailed engineering for the process plant and oversee equipment selection buying a power line agreement with SNL State power company and initiated permitting for backup diesel generation and we finalize the project's materials balance, which supported our shift to a unit cost approach to contra.

Speaker Change: Rack bidding ensuring we pay only per ton of material moved.

Speaker Change: Based on this approach we awarded the first civil works contract to <unk> 14, which is now on site working on access roads and preparing temporary camp construction bidding.

Speaker Change: Bidding for the open pit mining contract is underway with pit stripping expected to begin in August construction of the main plant unexploited filler facilities is scheduled to start in September followed by major equipment installation in may of 2026.

Speaker Change: Construction and installation are projected to be completed by November of 2026 and plant commissioning is planned for December of 2026.

Speaker Change: But the Condra Gold project, we recently published an updated mineral resource estimate, which outline a higher grade underground resource at the camp and more squeezed the pilot deposits based on this we plan to complete a PPA for an underground gold operation.

Speaker Change: Later this year.

Speaker Change: <unk> 3500 meter surface drill campaign is set to begin this month to test some priority targets at both deposits and in parallel we are advancing permits in community agreements to support the development of exploration tunnels into the high grade zones, which would then help us make.

Speaker Change: Make good decisions about a potential feasibility study following the P. A.

Speaker Change: We'd like to thank our echoed Orient team our in country partner salads, our resources and our stakeholders for their continued support and hard work in advancing these projects.

Speaker Change: And as always as we expand our presence in Ecuador, we remained committed to working closely with the government local communities and partners to develop these assets responsibly and.

Speaker Change: And sustainably.

Speaker Change: Creating long term value for all stakeholders.

Speaker Change: And with that operator, I'd like to open the call for questions.

Speaker Change: Thank you, Sir ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question press the star followed ligand and been one on your telephone keypad. If you would like to withdraw your question. Please press star two if you're using a speaker phone. Please keep the handset is progressing and once again that would be star one.

Speaker Change: To ask a question one moment. Please for your first question.

Speaker Change: And once again, if you would like to ask a question simply press star one on your telephone keypad.

Speaker Change: And I'm showing no further questions at this time I would like to turn it back to Lawrence <unk> for closing remarks.

Speaker Change: Well, that's great maybe it's a busy morning today, so I, thank everyone for their attendance and as always if anyone does come up with any questions.

Speaker Change: We remain available to answer them. So please reach out by phone or email.

Speaker Change: Thanks, very much everyone and have a great day.

Speaker Change: Thank you and this concludes today's conference call. You May now disconnect. Your lines. Thank you for participating and have a wonderful day.

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