Silvercorp Metals Inc. Announces Robust Preliminary Economic Assessment for Condor Gold Project, Ecuador

Silvercorp Metals Inc. (TSX: SVM), a Vancouver‑based mining developer focused on high‑grade mineral assets in China and beyond, today released the results of a Preliminary Economic Assessment (PEA) for its Condor Gold Project in Ecuador. The assessment, which is the first major commercial evaluation of the property, demonstrates that the project is likely to deliver strong returns under a range of realistic assumptions.

Key Findings from the PEA

  • Capital Cost: The estimated initial capital outlay is CAD $250 million, inclusive of pre‑construction, mining, and processing facilities.
  • Operating Cost: Annual operating expenses are projected at CAD $45 million, reflecting the use of proven milling technology and local labour markets.
  • Ore Grade and Recovery: The resource model estimates an average ore grade of 1.8 g/t gold with a projected recovery rate of 88 %.
  • Cash‑Flow Profile: The project is expected to reach break‑even in FY 2028 and generate a Net Present Value (NPV) of CAD $650 million at a discount rate of 10 %.
  • Risk Profile: The PEA incorporates a conservative sensitivity analysis, indicating that even a 10 % decline in gold prices would leave the project with a positive NPV of CAD $500 million.

These results underscore the economic viability of Condor Gold and position Silvercorp as a compelling growth catalyst for its shareholders.

Strategic Significance

Silvercorp’s portfolio has long been concentrated on its flagship Ying Silver project in the People’s Republic of China. The successful completion of a PEA for Condor Gold diversifies the company’s geographic exposure and product mix, mitigating the concentration risk inherent in a single‑country operation. Moreover, Ecuador’s mining regulatory environment is increasingly investor‑friendly, offering streamlined permitting and tax incentives that align with Silvercorp’s development timeline.

Market Context

  • Share Price: As of 18 December 2025, Silvercorp’s stock closed at CAD 12.00, reflecting a recent rally that has taken the company to a 52‑week high of CAD 12.31.
  • Market Capitalisation: The company currently trades at CAD 2.64 billion.
  • Valuation: With a P/E ratio of 75.4, Silvercorp remains priced at a premium to the broader materials sector, a level justified by the strong upside potential of its newly vetted projects.

The positive PEA is likely to attract additional capital, enabling Silvercorp to accelerate drilling, secure a production licence, and commence construction within the next 12 months.

Forward‑Looking Perspective

Analysts view the Condor Gold PEA as a turning point that could reposition Silvercorp from a pure exploration and development firm into a mid‑stream mining operator. Should the company secure financing and regulatory approval, the first production phase could start in late 2029, delivering cash flow to support further exploration and potentially a strategic acquisition.

Silvercorp’s management is expected to present the PEA findings to the board and shareholders at its upcoming quarterly meeting. Investors will be closely monitoring the company’s capital‑raising strategy and any updates to the project’s permitting status.

In conclusion, the robust preliminary economic assessment for Condor Gold represents a significant milestone for Silvercorp Metals Inc., offering a credible path to enhanced shareholder value while reinforcing its strategic diversification agenda.