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

Silvercorp Metals Inc. (NYSE:SVM) is one of the 10 undervalued growth stocks for the next 5 years. Silvercorp Metals Inc. (NYSE:SVM) announced its earnings on February 9 and reported a quarterly EPS of $0.22 per share. The revenue came in at $126.11 million, $3.56 million above Wall Street estimates.

On February 4, Silvercorp Metals Inc. (NYSE:SVM) said that it had revised the construction budget for the El Domo project to $284 million. The revision reflects a $44 million increase from the previous estimate of $240 million released on 31 March 2025, citing several contributing factors. The company said that the value-added tax rate has been increased to 15% from 10%, lifting the VAT component of the budget to $35 million from $19 million. This adjustment alone adds $16 million to the overall cost, representing about 36% of the total rise in the project budget.

According to the company, the VAT amount is anticipated to be recovered as a tax credit during the first year of operations, once concentrate exports begin. Moreover, the company said that the costs related to equipment and material purchases for the process plant have risen by $15 million, further contributing to the higher overall budget. Before the budget update, Canaccord Genuity had raised its price target on Silvercorp Metals Inc. (NYSE:SVM) from $10.98 to $14.64 while maintaining a Buy rating on January 23.

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

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