Silvercorp Metals (SVM) dropped 33.4% in a month due to disappointing results, but outlook is positive.

From Nasdaq: 2024-11-28 12:27:00

Silvercorp Metals (SVM) faced a tough month, dropping 34.7% compared to the industry’s 6.2% decline. Despite this, SVM is up 18.2% in the past year. The stock fell following disappointing second-quarter results and a private placement offering announcement. However, positive news about the El Domo project boosted SVM by 5%.

Silvercorp reported adjusted EPS of 9 cents in Q2 2025, with revenues rising 26% to $68 million. The company saw growth in selling prices for gold, silver, lead, and zinc, but lower production volumes for gold and lead impacted sales. SVM acquired Adventus Mining Corporation, diversifying its assets with access to the El Domo and Condor projects in Ecuador.

The Zacks Consensus Estimate for SVM’s earnings has been trending upwards for fiscal 2024 and 2025. Silvercorp is investing in projects to drive growth, with plans to increase production to 8 million silver equivalent ounces in 2025. The company’s strong financial position and strategic investments bode well for future growth.

SVM’s stock is currently trading below its 50-day moving average, indicating a bearish trend. However, the company’s margins and returns surpass industry peers, with a strong EBITDA margin and ROE. Analysts suggest a 63.2% upside potential, with SVM trading at an attractive valuation compared to industry peers like Pan American Silver and Hecla Mining.

Despite recent challenges, Silvercorp’s outlook remains positive with the dismissal of legal appeals and advancement of key projects. With a focus on diversifying assets and expanding production, SVM is poised for growth. Retaining a Hold rating, SVM presents a buying opportunity for investors looking to capitalize on the company’s potential.



Read more at Nasdaq: SVM Declines 33.4% in a Month: How Should You Play the Stock Now?