Silvercorp MetalsNYSE American: SVM

Silvercorp (SVM) came out with quarterly earnings of $0.02 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.03 per share a year ago.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

The ongoing acquisition of OreCorp is potentially transformative. The Nyanzaga gold project in Tanzania, owned by OreCorp, is projected to produce an average of 240,000 ounces of gold per year at AISC below $1000 per ounce. The acquisition is contested by Perseus Mining, but Silvercorp is likely to complete the transaction.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Silvercorp Metals Inc. (SVM) Q3 2024 Earnings Call Transcript

Silvercorp Metals Inc. is trading at a very cheap valuation compared to its peers, despite having a much stronger track record of profitability. The company owns 27% of New Pacific Metals, an exciting and undervalued silver explorer and developer. Silvercorp is set to grow production from its flagship Ying Mine project by over 20% by FY 2026 via optimization and exploration activities.

Silvercorp Metals Inc.'s Q2 production and sales show a decline in silver production but an increase in gold production and overall positive performance. Production costs have declined, while selling prices for gold, silver, and lead have increased. We forecast a large ramp in production, coupled with favorable pricing, indicating continued upside for Silvercorp Metals Inc. stock.

Silvercorp (SVM) came out with quarterly earnings of $0.07 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.08 per share a year ago.

Silvercorp Metals Inc. is undervalued compared to its competitors, with a low forward P/E and EV/EBITDA. The company has consistently reported positive net income and free cash flow, with a large reserve base. The jurisdiction risk associated with Silvercorp's operations in China and Bolivia is a major factor contributing to its low valuation.