Silvercorp Metals Inc. reported substantial financial growth in its second fiscal quarter of 2026, with revenue reaching $83.3 million, representing a 23% year-over-year increase. The Canadian mining company's performance was driven by strong sales volumes across multiple metals, including 1.66 million ounces of silver, 2,033 ounces of gold, 14.75 million pounds of lead, and 5.67 million pounds of zinc.
The company's adjusted net income rose to $22.6 million, or $0.10 per share, excluding non-cash and one-time items, while operating cash flow reached an impressive $39.2 million. Free cash flow totaled $11.4 million, underscoring the company's ability to generate substantial returns from its mining operations. Silvercorp ended the quarter with a strong financial position, holding $382.3 million in cash and short-term investments along with $180.2 million in equity holdings.
Capital expenditures during the quarter included $15.8 million across the company's China operations and $10.9 million allocated to development activities at the El Domo mine in Ecuador. The Ecuadorian project received significant financial support through Silvercorp's recent draw of $43.9 million from its $175.5 million stream financing arrangement with Wheaton Precious Metals International Ltd. Additional details about this financing arrangement and the company's overall performance can be found in the full press release available at https://ibn.fm/NX6of.
The company's financial results highlight the ongoing strength in precious metals markets and Silvercorp's operational efficiency in extracting and selling multiple mineral commodities. The substantial cash flow generation provides the company with financial flexibility to continue investing in mine development while maintaining a robust balance sheet. Investors seeking comprehensive information about Silvercorp Metals can access the company's complete newsroom at https://ibn.fm/SVM, which contains detailed financial reports and operational updates.
Silvercorp's performance in the quarter demonstrates the company's successful execution of its strategic focus on generating free cash flow from long-life mining operations. The combination of revenue growth, strong cash generation, and strategic capital allocation positions the company for continued operational expansion and value creation for shareholders. The mining sector continues to face various challenges, including regulatory requirements and environmental considerations, making Silvercorp's financial results particularly noteworthy in the current market environment.
