Silvercorp Metals Inc.

Silvercorp Metals Inc. is a mid-tier gold and silver producer headquartered in Vancouver, Canada, operating primarily in Asia. The company's portfolio consists of 4 projects, comprising 2 operating mines, 1 development, and 1 advanced exploration project. Key assets include Ying Mining District. The company's business model centers on producing and selling metal concentrates directly to local smelters, leveraging a competitive position derived from high-margin operations and high-grade resources. A key advantage is the logistical efficiency gained from proximity to its customer base. The operational approach involves utilizing third-party contractors for specific exploration and mining activities, including drilling, tunneling, and ore transportation, while retaining direct control over critical functions such as mine planning, production safety programs, and technical oversight. Processing capabilities are characterized by multiple company-operated plants employing conventional crushing, grinding, and flotation circuits. Technological adoption is evident through the use of intelligent pre-sorting systems to enhance feed grades and Knelson concentrators to optimize recovery from certain ore types. This integrated operational framework allows for flexibility in processing ores from various sources to maximize value.

Strategic direction is centered on a dual approach of organic growth and value-accretive acquisitions. A core objective is the generation of sustainable free cash flow from long-life mines, supported by extensive drilling programs aimed at discovery and resource expansion. The capital allocation philosophy prioritizes funding for exploration, development, and operational maintenance through a combination of working capital, cash flow from operations, and external financing, including the issuance of convertible notes. A significant component of the growth strategy involves the integration and advancement of newly acquired development-stage projects toward production, including optimizing mine layouts, process flow sheets, and infrastructure plans. Operational priorities include optimizing mine plans to increase production capacity, growing the mineral resource base through systematic exploration, and investing in equipment replacement and facility upgrades to enhance efficiency and support long-term output.

Executive leadership is anchored by a Chairman and CEO with over 2 decades of continuous service in the role since 2003, who also holds director positions at other public resource companies. The board's governance framework is structured around 4 key committees: Audit, Corporate Governance and Nominating, Compensation, and Sustainability. The Audit Committee, composed entirely of independent and financially literate members, meets at least 4 times annually to oversee financial reporting and auditor engagement. Corporate governance practices include annual reviews of key policies such as Anti-Corruption and Code of Conduct, which are then approved by the full board. A formal policy requires the Audit Committee to pre-approve all non-audit services provided by the external auditor, ensuring independence. The board also oversees a share-based compensation plan, with a maximum issuance limit tied to a percentage of outstanding shares.

The organization's sustainability framework is demonstrated through multiple third-party certifications, including ISO 14001 for environmental management and ISO 45001 for occupational health and safety. Environmental stewardship initiatives include achieving "Green Mine" certifications, operating a dedicated plant to recycle waste rock, and implementing automated water treatment systems for reuse in processing and supply to local farmers. A commitment to workplace safety is evidenced by the delivery of over 1,900 safety training sessions in a single fiscal year, covering 100% of the workforce at its primary operations. Social responsibility programs focus on community investments in education, health, and local infrastructure, alongside promoting local economic activity. Governance is supported by a board-level Sustainability Committee and the publication of an annual sustainability report prepared with reference to international standards, including GRI, TCFD, and SASB.

In July 2024, the company completed the acquisition of Adventus Mining Corporation, which resulted in a 75% interest in a development project held in a partnership with Salazar Resources Ltd. Under this arrangement, the company is responsible for funding all capital costs to commercial production in exchange for 95% of free cash flows until its investment is repaid. The corporate structure includes strategic equity holdings in other public entities, with a 27.3% ownership stake in New Pacific Metals Corp. and a 29.1% interest in Tincorp Metals Inc. as of March 2025. Operations are conducted through various subsidiaries, including a 77.5% equity interest in Henan Found Mining Co. Ltd. and a 99% beneficial interest in Guangdong Found Mining Co. Ltd. These entities hold the direct interests in the company's operating assets. In November 2024, the company issued unsecured convertible senior notes to raise capital.