Silvercorp Metals is a producing silver-led miner whose current cash-flow base is the Ying Mining District in Henan, China, with additional Chinese operations and development at Kuanping. Its main growth projects are the El Domo copper-gold and Condor gold projects in Ecuador, plus the Tulkubash and Kyzyltash gold projects in Kyrgyzstan. In this conversation with President Lon Shaver, we talked about Chinese safety-related production interruption, mine and mill expansion, construction in Ecuador and Kyrgyzstan, funding those projects, drilling, and a proposed Hong Kong listing.
TL;DR
Silvercorp has a lot going on, but the immediate issue is getting Chinese production fully normalized after the safety shutdown. Management was targeting Ying at 70% in the current month and, by extrapolation, 100% in September, while GC still had no firm restart date. At the same time, El Domo remains targeted for production in 2027, Tulkubash is aiming for first ore on the heap-leach pads in late 2027, and Kyzyltash is moving through heavy drilling toward a PEA in 2027 and feasibility study in 2028. Financially, Shaver said they ended June with $387 million cash and have additional undrawn credit, although a new equity issue is being contemplated alongside the Hong Kong listing.
What have they done for shareholders lately?
On actual execution, they have been progressively restarting compliant areas at Ying, while continuing underground development and roughly 250,000–350,000 metres of annual drilling across the district; the new 3,000 tpd mill is also being built, and Kuanping was expected to contribute initial development ore before ramping toward 100,000 tonnes and eventually its 200,000-tonne permitted level. Outside China, El Domo is under construction without management changing its 2027 production expectation, Tulkubash construction has started, and Kyzyltash has 16 rigs working on a 50,000-metre program with the first drill results already released.
How much money do they have and what are they spending it on?
Shaver said Silvercorp ended June with $387 million cash and had an undrawn credit facility of roughly US$200–220 million, while projects are deliberately being funded in stages rather than through one large capital hit. El Domo is the biggest current build, with a stated total capital figure of $284 million and $175 million being contributed through the Wheaton arrangement; Condor tunnel development was estimated at about $15 million over roughly a year. The balance sheet also carries a US$150 million five-year convertible issued in November 2024 with a fixed 4.75% coupon and maturity in 2029. Management said it does not need equity for the operating plan, but it is considering an equity raise alongside the Hong Kong listing, with Shaver describing 10%–20% of market cap as the extreme ends of the possible range.
Upcoming catalysts
Technical: more Kyzyltash drill results, followed by the next 60,000-metre drill program, with a PEA targeted for 2027 and feasibility study for 2028; Condor is also targeting its tunnel permit in the coming quarter, followed by underground access, drilling and surface-facility engineering. Operational: continued El Domo construction milestones and quarterly spending toward the stated $284 million total, plus Tulkubash construction progress toward first ore on the pads in late 2027. Corporate: the Hong Kong listing is targeted for the end of 2026 or early 2027, with a possible associated equity issue.
Risks
The clearest short-term risk is the Chinese safety shutdown and restart process. Ying was still ramping and GC had no firm restart date, so production recovery remains dependent on approvals and management being satisfied that upgraded areas are fully compliant. Shaver also identified hiring enough qualified people as a major execution issue because Silvercorp is trying to build and advance several projects at once. Beyond that, construction and weather risk at El Domo, permitting and development execution across Ecuador and Kyrgyzstan, jurisdictional risk across all three countries, and potential shareholder dilution if the contemplated Hong Kong equity raise proceeds.
SilverCorp Metals Interview
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