Silvercorp Metals Updates El Domo Project Budget to $284 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy SVM?
Source: seekingalpha
- Budget Revision: Silvercorp Metals announced an updated construction budget for the El Domo project at $284 million, reflecting a $44 million increase from the previous estimate of $240 million as of March 31, 2025, indicating significant cost escalation.
- VAT Impact: The VAT rate was revised from 10% ($19 million) to 15% ($35 million), resulting in a $16 million increase that accounts for 36% of the total budget growth, which will affect the project's financial planning.
- Rising Equipment Costs: The costs for equipment and material purchases for the process plant have risen by $15 million, which may impact the overall profitability and return on investment of the project.
- Tax Credit Expectations: The company anticipates recovering the VAT expenditure as a tax credit in the first year of operations once concentrate exports commence, thereby alleviating some financial pressure.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SVM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on SVM
Wall Street analysts forecast SVM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SVM is 8.82 USD with a low forecast of 8.65 USD and a high forecast of 9.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 9.580
Low
8.65
Averages
8.82
High
9.00
Current: 9.580
Low
8.65
Averages
8.82
High
9.00
About SVM
Silvercorp Metals Inc. is a Canadian mining company producing silver, gold, lead, and zinc. The Company is engaged in the acquisition, exploration, development, and mining of mineral properties. The Company’s producing mines are located in China and exploration and development projects are located in China and Ecuador. In the Ying Mining District, it has about seven underground mines (SGX, HZG, HPG, TLP, LME, LMW and DCG) and two processing plants. The GC silver-lead-zinc mine is located approximately 200 km west of Guangzhou, the capital city of Guangdong Province, China. El Domo project is a copper-gold mine under construction in central Ecuador, approximately 150 km northeast of the major port city of Guayaquil. The BYP Mine is located approximately 220 km southwest of Changsha, the capital city of Hunan Province, China. Condor project is located in one of Ecuador's developed mining regions. It also has interest in Tulkubash/Kyzyltash Gold Projects, Kyrgyzstan.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Silvercorp Metals Updates El Domo Project Budget to $284 Million
- Budget Revision: Silvercorp Metals announced an updated construction budget for the El Domo project at $284 million, reflecting a $44 million increase from the previous estimate of $240 million as of March 31, 2025, indicating significant cost escalation.
- VAT Impact: The VAT rate was revised from 10% ($19 million) to 15% ($35 million), resulting in a $16 million increase that accounts for 36% of the total budget growth, which will affect the project's financial planning.
- Rising Equipment Costs: The costs for equipment and material purchases for the process plant have risen by $15 million, which may impact the overall profitability and return on investment of the project.
- Tax Credit Expectations: The company anticipates recovering the VAT expenditure as a tax credit in the first year of operations once concentrate exports commence, thereby alleviating some financial pressure.
See More
Silvercorp Updates El Domo Project Budget and Schedule
- Budget Revision: The El Domo Project's construction budget has been updated to $284 million, reflecting a $44 million increase from the previous estimate of $240 million in March 2025, primarily due to the VAT increase from 10% to 15%, which accounts for 36% of the total budget growth.
- Construction Delay: The project is now expected to commence production by July 1, 2027, representing a six-month delay from the earlier estimate of early 2027, indicating challenges and complexities faced during construction that may impact the company's short-term cash flow and market confidence.
- Progress Achieved: In 2025, the company spent $44.5 million on the project, successfully clearing 1,040 archaeological units and moving over 2.6 million cubic meters of material, while constructing 8.1 kilometers of internal haul roads, demonstrating construction capability and efficiency despite adverse weather conditions.
- Contract Signing: The anticipated mining contract with China Railway 19th Bureau Group is valued at $35 million, covering mining and stripping activities, indicating the company's proactive progress in ensuring project implementation despite budget and timeline challenges.
See More
Silvercorp Files Preliminary Economic Assessment for Condor Gold Project
- Project Assessment Release: On February 2, 2026, Silvercorp Metals Inc. announced the filing of its Preliminary Economic Assessment for the Condor gold project, prepared by SRK Consulting (Canada), marking a strategic advancement in Ecuador.
- Compliance Standards: The Technical Report adheres to the Canadian Securities Administrators' NI 43-101 standards, ensuring transparency and compliance, which enhances investor confidence in the project.
- Qualified Personnel Review: The report has been reviewed by qualified experts, including Principal Geologist Mark Wanless from SRK Consulting, ensuring the accuracy and reliability of the technical content, thereby elevating the project's professionalism.
- Company Strategic Direction: Silvercorp aims to create shareholder value through generating free cash flow from long-life mines, ongoing drilling for resource discovery, and merger activities, showcasing its long-term growth potential in the mining sector.
See More
ABRDN Physical Silver Shares ETF Falls 14.2%, Global X Silver Miners Decline 7.5%, iShares Silver Trust Decreases 14%
Physical Silver Shares Decline: Physical silver shares have decreased by 14.2%, indicating a significant drop in value.
Global Silver Miners Performance: Global silver miners have seen a decline of 7.5%, reflecting challenges in the mining sector.
ISHARES Silver Trust Drop: ISHARES Silver Trust shares have also fallen by 14%, contributing to the overall downturn in silver investments.
Market Trends: The overall trend in the silver market shows a notable decrease in share values across various sectors.
See More
Hecla Mining Falls 9%, Coeur Mining Declines 8.6%, Silvercorp Metals Drops 8.7%, Endeavour Silver Decreases 8.1%
Hecla Mining: Hecla Mining's stock has decreased by 9%.
Coeur Mining: Coeur Mining's stock has fallen by 8.6%.
Silvercorp Metals: Silvercorp Metals has seen a decline of 8.7% in its stock.
Endeavour Silver: Endeavour Silver's stock has dropped by 8.1%.
See More
Shares of Silver Miners Listed in the U.S. Decline as Silver Prices Fall Below $100
Silver Miners' Shares Decline: U.S. listed shares of silver mining companies have experienced a significant drop.
Silver Prices Fall Below $100: The decline in share prices coincides with silver prices falling below the $100 mark, impacting the mining sector.
See More
Silvercorp Metals Updates El Domo Project Budget to $284 Million
- Budget Revision: Silvercorp Metals announced an updated construction budget for the El Domo project at $284 million, reflecting a $44 million increase from the previous estimate of $240 million as of March 31, 2025, indicating significant cost escalation.
- VAT Impact: The VAT rate was revised from 10% ($19 million) to 15% ($35 million), resulting in a $16 million increase that accounts for 36% of the total budget growth, which will affect the project's financial planning.
- Rising Equipment Costs: The costs for equipment and material purchases for the process plant have risen by $15 million, which may impact the overall profitability and return on investment of the project.
- Tax Credit Expectations: The company anticipates recovering the VAT expenditure as a tax credit in the first year of operations once concentrate exports commence, thereby alleviating some financial pressure.
See More
Silvercorp Updates El Domo Project Budget and Schedule
- Budget Revision: The El Domo Project's construction budget has been updated to $284 million, reflecting a $44 million increase from the previous estimate of $240 million in March 2025, primarily due to the VAT increase from 10% to 15%, which accounts for 36% of the total budget growth.
- Construction Delay: The project is now expected to commence production by July 1, 2027, representing a six-month delay from the earlier estimate of early 2027, indicating challenges and complexities faced during construction that may impact the company's short-term cash flow and market confidence.
- Progress Achieved: In 2025, the company spent $44.5 million on the project, successfully clearing 1,040 archaeological units and moving over 2.6 million cubic meters of material, while constructing 8.1 kilometers of internal haul roads, demonstrating construction capability and efficiency despite adverse weather conditions.
- Contract Signing: The anticipated mining contract with China Railway 19th Bureau Group is valued at $35 million, covering mining and stripping activities, indicating the company's proactive progress in ensuring project implementation despite budget and timeline challenges.
See More
Silvercorp Files Preliminary Economic Assessment for Condor Gold Project
- Project Assessment Release: On February 2, 2026, Silvercorp Metals Inc. announced the filing of its Preliminary Economic Assessment for the Condor gold project, prepared by SRK Consulting (Canada), marking a strategic advancement in Ecuador.
- Compliance Standards: The Technical Report adheres to the Canadian Securities Administrators' NI 43-101 standards, ensuring transparency and compliance, which enhances investor confidence in the project.
- Qualified Personnel Review: The report has been reviewed by qualified experts, including Principal Geologist Mark Wanless from SRK Consulting, ensuring the accuracy and reliability of the technical content, thereby elevating the project's professionalism.
- Company Strategic Direction: Silvercorp aims to create shareholder value through generating free cash flow from long-life mines, ongoing drilling for resource discovery, and merger activities, showcasing its long-term growth potential in the mining sector.
See More
ABRDN Physical Silver Shares ETF Falls 14.2%, Global X Silver Miners Decline 7.5%, iShares Silver Trust Decreases 14%
Physical Silver Shares Decline: Physical silver shares have decreased by 14.2%, indicating a significant drop in value.
Global Silver Miners Performance: Global silver miners have seen a decline of 7.5%, reflecting challenges in the mining sector.
ISHARES Silver Trust Drop: ISHARES Silver Trust shares have also fallen by 14%, contributing to the overall downturn in silver investments.
Market Trends: The overall trend in the silver market shows a notable decrease in share values across various sectors.
See More
Hecla Mining Falls 9%, Coeur Mining Declines 8.6%, Silvercorp Metals Drops 8.7%, Endeavour Silver Decreases 8.1%
Hecla Mining: Hecla Mining's stock has decreased by 9%.
Coeur Mining: Coeur Mining's stock has fallen by 8.6%.
Silvercorp Metals: Silvercorp Metals has seen a decline of 8.7% in its stock.
Endeavour Silver: Endeavour Silver's stock has dropped by 8.1%.
See More
Shares of Silver Miners Listed in the U.S. Decline as Silver Prices Fall Below $100
Silver Miners' Shares Decline: U.S. listed shares of silver mining companies have experienced a significant drop.
Silver Prices Fall Below $100: The decline in share prices coincides with silver prices falling below the $100 mark, impacting the mining sector.
See More
