Disseminated on behalf of Silvercorp Metals Inc. (NYSE-A/TSX: SVM) and includes paid advertisement.
- Analysts remain optimistic about gold and silver prices during the coming months amid economic pressures from geopolitical turbulence
- The S&P/TSX Composite Index recently announced that Silvercorp will be added to its listings beginning Dec. 22, further increasing the company’s visibility and credibility with investors
- Silvercorp Metals is a top performing silver stock this year, increasing over 160%, but the company remains undervalued relative to peers
- The company is building a copper-gold mine in Ecuador, which will diversify its revenue base and potentially catalyze a market re-rate
Precious metals explorer Silvercorp Metals (NYSE American/TSX: SVM) will gain inclusion on the S&P/TSX Composite Index beginning Dec. 22, sending out the old year and ringing in the new with expectations of boosting its liquidity, increasing its visibility, and benefitting in general from the credibility afforded by the primary benchmark for the Canadian market (https://ibn.fm/5mogw).
Silvercorp has been riding a wave of enthusiasm during a year of marked revenue growth that has paralleled rising market prices for both gold and silver. According to the latest commentary from CPM Group, a precious metals research and analysis firm, the rise in silver prices is far from over. While investment demand softened briefly in 2022–2023, CPM notes that both silver demand and prices began strengthening again in 2024 and are set for further gains as investors react to persistent economic, political, and inflationary pressures. The firm projects that these underlying conditions “are unlikely to improve for many years,” and therefore expects silver to move higher over the next decade or more, with the broader precious metals uptrend still intact (https://ibn.fm/DDBVz).
Silvercorp reported last month that the ongoing surge in silver and gold prices gave its most recent quarterly financial report a hefty boost, with a 23% YOY increase in revenues (https://ibn.fm/vmzE0), continuing a trend that has defined itself as silver hovers near record territory and gold remains near-record above $4,000 an ounce (https://ibn.fm/ltGzP).
The company has also increased its production output and continues to anticipate production growth as it nears the end of another financial reporting period. In China, at the company’s Ying area sites, capacity will increase to 1.52 million tonnes, once construction is completed and production is fully ramped up on a satellite project.
In Ecuador, site development is now expected to bring the company another $211 million in gold and silver revenues to the table once operations get under way at its El Domo project. (https://ibn.fm/ZemLf). Ecuador is experiencing a surge in mine-building interests, with some $10 billion in investment going toward decisions on project construction during the country’s new term for its mining-friendly president, which begins in May.
Silvercorp’s strong balance sheet, including cash of over US$380 million as of September 30, allows the company to pursue additional strategic M&A for growth and diversification.
“We’re pretty open-minded to look at what we think could be value-creating, mine-building opportunities for us,” Lon Shaver, President of Silvercorp, told Natural Resource Stocks in October (https://ibn.fm/7LbTE). “We’ve built this cash position so that we can be out there and aggressively looking at opportunities to buy other assets — either operating mines or development projects — and we remain very active on that front,” he added more recently in an interview with Triangle Investor (https://ibn.fm/DVtln). “The objective for this is to be in a position to move decisively and grow if we see something that we like.”
Shaver also noted that Silvercorp remains undervalued relative to peers and that continued operational progress, particularly in Ecuador, could support a future re-rate.
For more information, visit the company’s website at https://silvercorpmetals.com/welcome.
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