Earnings Strong, But El Domo Project Costs Weigh On Silvercorp Metals (SVM) Stock

On February 4, Silvercorp Metals Inc. (NYSE:SVM) said that it had revised the operation fund for the El Domo task to $284 million. The revision reflects a $44 cardinal summation from the erstwhile estimation of $240 cardinal released connected 31 March 2025, citing respective contributing factors. The institution said that the value-added taxation complaint has been accrued to 15% from 10%, lifting the VAT constituent of the fund to $35 cardinal from $19 million. This accommodation unsocial adds $16 cardinal to the wide cost, representing astir 36% of the full emergence successful the task budget.

According to the company, the VAT magnitude is anticipated to beryllium recovered arsenic a taxation recognition during the archetypal twelvemonth of operations, erstwhile ore exports begin. Moreover, the institution said that the costs related to instrumentality and worldly purchases for the process works person risen by $15 million, further contributing to the higher wide budget. Before the fund update, Canaccord Genuity had raised its terms people connected Silvercorp Metals Inc. (NYSE:SVM) from $10.98 to $14.64 portion maintaining a Buy standing connected January 23.

Silvercorp Metals Inc. (NYSE:SVM) operates arsenic an explorer, acquirer, developer, and miner of mineral properties successful China. The institution explores for gold, copper, zinc, silver, and lead. It is based successful Vancouver, Canada.