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Silvercorp Metals – Growth From 7 Producing Silver And Gold Mines, And 300,000 Meters Of Ongoing Exploration Utilizing 80 Drill Rigs

Lon Shaver, Vice President Of Silvercorp Metals (TSX: SVM) (NYSE: SVM), joins us for a comprehensive overview of the growth on tap from the 7 producing silver and gold mines, and the 300,000 meters of ongoing exploration underway utilizing 80 drill rigs.   We start off by getting a production update from the 7 mines operating in China, the 2 mills with a 3rd mill under construction to increase throughput next year, and the growth planned around existing operations and well as the potential for other satellite operation, like the Kuanping Project bought in a Chinese auction, to be brought into production using a hub and spoke approach.

 

We have Lon outline the existing resources, which break down into 115 million ounces of proven and probable silver equivalent ounces, contained in the 210 million ounces of Ag eq. measured and indicated category, and then the additional 126 million ounces of Ag eq. in the inferred category.  Those are calculated using just the silver and gold components, and don’t even factor in the lead, zinc, or copper credits, which would be in addition to those resources. The company has a long runway of productive capacity through 2037 at present, and is aggressively exploring to expand these resource with one of the larger drill programs and sheer number of drills in the sector. We also review the more recent discovery over the last 2 years of new gold/copper mineralization found at the HPG Mine and LMW Mine.

 

Beyond the production growth, and exploration growth, we discuss the 3rd prong of value creation from the Company’s investment in 4 other earlier stage exploration companies in Latin America, including their successful incubation of New Pacific Metals (TSX: NUAG) (NYSE: NEWP) since 2017, as well as the ongoing search for other acquisition targets.   We wrap up by getting Lon to review the valuation mismatch considering their $200 in cash on the balance sheet, as well as $100 million in value just for their shares in New Pacific Metals alone, leaving all 7 of their Chinese mines that are generating revenues and cashflows, and allowing the company to pay a dividend, at only $139 million, which compares favorably to peers with a similar production profile.

 

If you have any questions for Lon regarding Silvercorp, then please email us at either Fleck@kereport.com or Shad@kereport.com.

 

 

 

 

https://silvercorpmetals.com/investors/news/

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https://silvercorpmetals.com/_resources/presentations/corporate-presentation.pdf

Discussion
27 Comments
    Nov 02, 2022 02:42 AM

    (SVM) Silvercorp Reports Operational Results and the Financial Results Release Date for the Second Quarter of Fiscal 2023

    October 13, 2022

    https://silvercorpmetals.com/investors/news/silvercorp-reports-operational-results-and-the-financial-results-release-date-for-the-second-quarter-of-fiscal-2023-

    Nov 02, 2022 02:44 AM

    (SVM) Silvercorp Intercepts New High-Grade Structures at LMW Mine, Ying Mining District, China, Including Vein LM26: 5.39 Metres True Width Grading 2,896 Grams Per Tonne Silver and 2.58% Copper

    October 6, 2022

    https://silvercorpmetals.com/investors/news/silvercorp-intercepts-new-high-grade-structures-at-lmw-mine-ying-mining-district-china-including-vein-lm26–539-metres-true-width-grading-2896-grams-per-tonne-silver-and-258-copper-

    Nov 02, 2022 02:01 AM
      Nov 02, 2022 02:23 AM

      That’s an impressive deal in todays environment I’d say…..

      Nov 03, 2022 03:15 AM

      That’s a big deal for Brixton to bring in BHP as a key stakeholder to help with Thorn. Gary mentioned it was far too large for them to truly explore it meaningfully without bringing in a stategic partner, with deeper pockets, and now they have got a major involved.

      Good on them, and now maybe they can get some significant traction on that project, as it does appear to be well-endowed for copper and precious metals.

    Nov 02, 2022 02:39 AM

    Looks like today is going like all Fed Days. Whether good or bad news, it will be bad for the metals. The hit came at open and is continuing.

      Nov 02, 2022 02:14 AM

      Tanking the economy…………is JOb No. One…………….. lol…………

      Hidden Inflation is no surprise……… been the mission since day one……

      Remember , you will own nothing…………

      Modern Monetary Theory (MMT).

      This is the completely idiotic idea that governments can go into debt and print as much money as they want, forever and ever until the end of time, without any consequences whatsoever.

      MMT has made its rounds all over the world, and it’s astonishing how many policymakers have bought into it.

      Nov 02, 2022 02:31 AM

      41 Billion in losses…should have put it in metals

    Nov 02, 2022 02:30 AM

    According to its latest balance sheet, the Fed owns $8.3 TRILLION worth of bonds. That’s a pretty big portfolio.

    Remember, though, that bond prices fall as interest rates go up. So as the Fed has been aggressively raising rates lately, they’ve managed to create enormous losses of their own bond portfolio.

    In fact the Fed lost $3.2 billion just last week alone. And in the month of October, they lost $4.1 billion.

    $4.1 billion constitutes roughly 10% of the Fed’s entire capital base, so it’s a LOT of money for them to lose, especially in a single month. And these losses are mostly the result of their interest rate hikes that have caused their bond portfolio to lose value.

    At this pace the Fed will be completely insolvent by next spring, at which point they’ll require a bailout from the federal government. I’m sure America’s adversaries will be terrified by such a display of financial strength.

    Of course, MMT suggests that the Fed will first have to print the money for its own government bailout. Truly bizarre.

    What’s notable here, though, is that the Fed typically earns a very healthy profit each year… and those profits ultimately flow into the Treasury Department and become a funding source for the US government.

    But now the Fed doesn’t have profits. It has losses. So the government is about to lose a source of revenue…

    Coincidentally, another source of government revenue used to be interest payments received on student debt. But with the stroke of a pen, the President recently canceled student debt, eliminating another important source of government revenue.

    Yet simultaneously while policymakers deliberately torpedo government funding sources, they continue to engage in completely reckless deficit spending (insisting it will “cost nothing”) and taking on larger amounts of debt at higher rates of interest.

    This is literally the opposite of what any sensible person would do.

      Nov 02, 2022 02:37 AM

      The business world, the bank world and the job market are like Bowlerama, a set of ten pins ready to knock one another over as they fall. Each one has a potential to decrease the buying power of a country. Real money is created by mining, agriculture, and manufacturing, not money printing. DT

    Nov 02, 2022 02:03 AM

    “We’ll know our disinformation program is complete when everything the American public believes is false.”
    – William J. Casey, CIA Director

      Nov 02, 2022 02:55 AM

      Well that is false…

        Nov 02, 2022 02:47 PM

        Whether the quote is true or not the American public leaves little doubt that disinformation is the goal.

          Nov 02, 2022 02:58 PM

          I should have put a smilie face.

            Nov 02, 2022 02:16 PM

            lol………. 🙂

    Nov 02, 2022 02:36 AM

    Wow … Powell is pumping my account up … I just reached – $29

    (He moved to questioning and dollar dropping, metals increasing and my account going more red. )

    Nov 02, 2022 02:56 AM

    Powell: “It’s very premature to talk about pausing.”
    Take that all you silly pivoters! This year sure has exposed a lot of experts’ blind spots or outright ignorance.

      Nov 02, 2022 02:01 PM

      In honor of silly pivoters and those that keep a savings account with Chase Bank, I added to my BBBXF.

        Nov 02, 2022 02:12 PM

        Good move!

        Nov 02, 2022 02:24 PM

        Lake, add some more tomorrow, I’m surprised you are so tardy! LOL! DT

          Nov 02, 2022 02:10 PM

          I actually did two tardy adds to Brixton today as I have been building up i-80, tectonic, Nine Mile, Surge Battery and Snowline. I am thinking they all can’t keep going down. But if they do, I will add some more before Joe tells me to sell. I did some house cleaning and consolidation as I have nothing else to do until The Fed stops moving future tax earnings to the Banks to cover xmas bonuses. I figure that will only be a couple of trillion and then we can get back to the EV revolution.

    Nov 02, 2022 02:29 PM

    My account says that whatever Powell said is bad for silver. I was thinking it was better than that.

    Nov 02, 2022 02:05 PM

    Major Goal Achieved: It took me since late January, but I officially will owe the IRS “0” (zero) capital gains for 2022. If the federal government is not going to stop intervention, then I am not going to share any earnings with them this year. They are going to have to do better.