Silvercorp Metals Inc. (AMEX:SVM) reported fiscal first-quarter 2027 results on Tuesday that fell short of analyst expectations for both earnings and revenue, despite a sharp year-on-year increase in sales supported by substantially higher silver prices.
Adjusted earnings per share came in at $0.21, missing the consensus estimate of $0.27 by $0.06. Revenue reached $138.7 million, below the $149.7 million expected by analysts but 70% higher than $81.3 million in the same quarter last year.
The revenue increase was primarily driven by a 135% rise in Silvercorp’s average realised silver price, which reached $69.38 per ounce.
Silvercorp reports higher adjusted earnings and operating cash flow
Silvercorp produced approximately 1.5 million ounces of silver and 2,536 ounces of gold during the three months ended June 30, 2026.
Adjusted earnings attributable to equity shareholders reached $53.9 million, or $0.24 per share, compared with $21.0 million, or $0.10 per share, in the prior-year period.
Operating cash flow also strengthened, increasing to $61.7 million from $48.3 million a year earlier.
The year-on-year improvements underline the benefit of higher realised metals prices, even though the headline results failed to reach analyst forecasts.
Silver mining costs increase during the quarter
Higher costs provided a more challenging element of the fiscal first-quarter performance.
All-in sustaining cost per ounce of silver increased 36% to $18.38 from $13.49 in the prior-year quarter. Silvercorp attributed the increase primarily to a 72% rise in government taxes associated with higher revenue, as well as lower metals production and sales.
Cash cost per ounce of silver, after by-product credits, increased to $1.33 from $1.11.
The increase in all-in sustaining costs means the impact of stronger silver pricing needs to be considered alongside rising expenses when assessing the improvement in the company’s financial performance.
China safety upgrades set to reduce Q2 production
The most significant near-term operational issue is the temporary suspension of Silvercorp’s Chinese operations.
“Starting mid June, we voluntarily suspended operations in China to conduct comprehensive self-reviews and complete the ’Six Major Safety Systems’ underground upgrades in full compliance with new Chinese government regulations,” the company stated in its release.
Silvercorp expects the safety improvement programme to reduce production by between 40% and 50% during the second quarter of fiscal 2027.
That expected decline creates a clear near-term operational headwind, putting additional focus on the timing and completion of the required upgrades.
Cash and investments stand at $387.1 million
Silvercorp finished the quarter with $387.1 million in cash and short-term investments, compared with $422.3 million as of March 31, 2026.
For investors, the quarter presents a mixed picture. Revenue grew 70%, adjusted earnings attributable to shareholders more than doubled and operating cash flow improved, helped by significantly stronger silver pricing.
However, the earnings and revenue misses, higher all-in sustaining costs and expected 40% to 50% reduction in second-quarter production shift attention toward execution of the China safety upgrades and the company’s ability to restore normal production levels.
Silvercorp Metals stock price
