Silvercorp Announces Project Update for El Domo

Additional CNEL reviews and approvals have delayed the powerline, while prolonged generator use may increase operating costs.

Rhea-AI Summary

Silvercorp Metals (TSX/NYSE American: SVM) raised El Domo’s construction budget to $298.2 million and pushed back its production target. The budget is $14.6 million above the February 4, 2026 estimate of $283.6 million. Extended rainfall delayed expected completion by four months; the company now targets November 2027 production, subject to weather and contractor performance.

Higher diesel costs, water-management work and plant construction contributed to the increase. Offsets included material reuse and a reduced contingency allowance, with $14.3 million remaining. Expenditures totaled $90.9 million through September 30, 2026, leaving $207.3 million. Plant-site preparation is complete and foundations are progressing. Powerline construction is delayed by additional CNEL reviews and approvals; longer reliance on generators may increase operating costs.

9 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 7 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Minor pointProcess-plant site preparation is complete, with foundation construction underway.
• Minor pointFine ore bin foundations were 92% complete by September 30, 2026.
• Minor pointGrinding and flotation plant foundations were 45% complete by September 30, 2026.
• Minor pointDewatering plant foundations were 86% complete by September 30, 2026.
• Minor pointMaterial reuse reduced haul-road construction costs by $1.8 million.

4 minor points

• Minor pointEliminating the West Non-contact Water Channel reduced the budget by $1.5 million.
• Minor pointPermanent-camp downsizing reduced the budget by $0.7 million; the existing construction camp is satisfactory for long-term use.
• Minor pointMost equipment has been ordered, with approximately $10.6 million paid as an approximate 30% down payment.
• Minor pointIndependent power supply preparations advanced: 10 generator sets of 17 MW capacity are manufactured and ready for shipment.

Negative

• Moderate pointEl Domo’s construction budget rose $14.6 million to $298.2 million versus the February 4, 2026 estimate.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Production is now targeted for November 2027 after a four-month expected completion delay, subject to weather and contractor performance.
• Moderate pointPowerline construction is delayed by additional CNEL reviews and approvals; only the site substation has commenced.
• Minor point. Forward-looking: it has not happened yet and may not happen.Remaining project expenditure totals $207.3 million after $90.9 million spent through September 30, 2026.
• Minor pointContingency was reduced by $2.7 million, leaving $14.3 million; this is not a direct cost saving.

2 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Longer reliance on generators following continued powerline delays may increase operating costs.
• Minor pointPrefabricated plant steel has shipped, but payments remain pending on Ecuador-port arrival and final installation.

Key Figures

Updated construction budget: $298.2 million Remaining construction fuel adjustment: $8.3 million Expected completion delay: Four months +4 more

Updated construction budget

$298.2 million

Up $14.6 million from the $283.6 million estimate disclosed February 4, 2026

Remaining construction fuel adjustment

$8.3 million

Package #1 and Package #2 combined

Expected completion delay

Four months

Delay attributed to extended rainfall at the site

Target production

November 2027

Subject to weather conditions and contractor performance

Actual expenditures

$90.9 million

As of September 30, 2026

Total remaining

$207.3 million

Updated construction budget table

Owner's contingency remaining

$14.3 million

Allowance remaining for future cost increases

Historical Context

1 past event · Latest: Oct 19

1 event

1. Oct 19

   Project update

   24h Move

   -5.2%

   Heavy rainfall interrupted El Domo construction and damaged completed works.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

reactive power compensators, cofferdams, bill of quantities, value added tax (vat)

4 terms

reactive power compensators technical

"Two new Reactive Power Compensators (SVG) are estimated at $2 million"

Devices or systems installed on an electrical grid to control and supply reactive power—the portion of electricity that alternately stores and releases energy in inductive or capacitive components—so as to maintain voltage levels and improve power quality. They operate by switching capacitor banks, adjusting the excitation of synchronous machines, or using power-electronics converters (e.g., STATCOMs) to absorb or inject reactive current quickly; they do not provide net real (energy) power but change the phase relationship between voltage and current to stabilize voltages and reduce losses. A key limitation is that reactive power compensation affects voltage and stability locally and on short time scales; the amount and location of compensators determine their effectiveness on the wider grid.

cofferdams technical

"Two cofferdams and pipes beneath the TSF Starter Dam"

A cofferdam is a temporary, watertight enclosure built around a work area in or next to water so the enclosed space can be pumped dry and construction, repair, or excavation can proceed below the normal waterline. Cofferdams are made from sheet piling, interlocking steel, timber, concrete, or inflatable barriers and rely on pumps and structural bracing to resist water and soil pressure; they are removed after the work is completed. Their purpose is temporary access and safety rather than serving as a permanent structure, and their design must account for seepage, buoyancy, and changing water or soil conditions.

bill of quantities technical

"quantities and unit rates in the contract bill of quantities"

A bill of quantities is a detailed, itemized list used in construction and project contracting that describes every work element, material, and measurable quantity needed for a job so bidders can supply unit prices. Prepared typically by a quantity surveyor or cost consultant, it lets multiple contractors price the same scope, supports cost comparison during tendering, and becomes the basis for measuring progress and valuing change orders during the contract.

value added tax (vat) financial

"Value added tax (VAT) | 35.2 | 36.7 | 8.8 | 27.9"

A value added tax (VAT) is a consumption tax added to the sale price of goods and services and collected by businesses on behalf of the government. Think of it like a toll charged at each step of making and selling a product: businesses collect the tax from customers, pass it on to the tax authority, and may offset what they paid on purchases. VAT matters to investors because it affects a company’s pricing, cash flow, reported sales and expenses, profit margins, and compliance costs, and can influence competitiveness in different markets.

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Silvercorp Announces Project Update for El Domo

VANCOUVER, BC, Nov. 3, 2026 /PRNewswire/ -- Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX/NYSE American: SVM) is providing minor corrections to yesterday's press release. The corrections are mainly related to announces an update for its budget and construction schedule for the construction of the El Domo Project (the "Project").

The construction budget for the Project has been updated to $298.2 million, a net increase of $14.6 million compared to the $283.6 million estimate disclosed by the Company on February 4, 2026 (for reference, the 2021 Feasibility Study Budget was $248 million). The main items of increase or decrease are as follows:

1. Diesel fuel adjustment: Ecuador eliminated diesel subsidies, resulting in, together with other factors, the diesel price increasing from under $3/gallon in December 2024 to $5.64/gallon in October 2026, an increase of $2.7/gallon. As a result, the fuel adjustment for Package #1 is $3.6 million and for Package #2 is $4.7 million, totaling $8.3 million for remaining construction.
2. Enhancement work for Water Management Related Infrastructure: Due to heavy rainfall experienced at the Project, additional work to upgrade the designs and enhance the construction for reinforcement results in an increase of $3.5 million, plus site cleaning costs of $1.2 million, for a $4.7 million budget addition. This is added to the Package #1 TSF budget.
3. Equipment and Facilities for Site Power Supply: $2.4 million increase mainly due to the additional demand for the power cables and power distribution facilities based on the detailed engineering design.
4. Construction on Processing Plant: $3.7 million increase following execution of the Package #3 construction contract, reflecting further refinement of the quantities and unit rates in the contract bill of quantities.
5. New Items:
   1. Two cofferdams and pipes beneath the TSF Starter Dam to drain the water from the impoundment area during the Construction Period, plus cemented roadside ditches are required to divert water from the construction site, at a cost of nearly $2 million. This is added to the Package #1 TSF budget.
   2. Two new Reactive Power Compensators (SVG)  are estimated at $2 million plus other power supply related items of $1.3 million, for a total increase of $3.3 million.
6. Offsetting budget reductions of $9.8 million were mainly achieved through, among other things: (i) using rocks from the process plant site preparation for haul road construction instead of purchasing replacement materials for $1.8 million; (ii) eliminating the West Non-contact Water Channel for $1.5 million, as the explosives magazine site has effectively diverted surface water, (iii) reducing the permanent camp size for $0.7 million as the Construction Camp currently in use is satisfactory for long-term use, and (iv) reducing of contingency for $2.7 million. The reduction in contingency is not a direct cost saving, but a reduction in the Company's allowance for future cost increases, of which $14.3 million remains.

Due to the extended rainfall experienced at site caused by Super El Nino, the El Domo completion date is currently expected to be delayed by four months. The Company is now targeting production at El Domo in November 2027, subject to, among other things, weather conditions, and contractor performance. There can be no assurance that production will commence when targeted.

Capital Cost Estimate Details:

The table below compares the Updated Budget to the Budget released on February 4, 2026, and also the Total Actual Expenditures as of September 30, 2026:

	4-Feb-26	3-Nov-26	30-Sep-26	Total Remaining
	Budget	Updated Budget	Total Actual Expenditures
	(million)	(million)	(million)	(million)
Package #1 Site preparation /Roads /Channels /TSF /SWD	57.4	57.2	26.7	30.5
Package #2 Open Pit Mining and Stripping	35.0	40.0	2.4	37.6
Package #3 Processing Plant Construction and Equipment	54.8	62.2	14.1	48.1
Construction and Permanent Camps	7.0	6.3	3.2	3.1
Packages #4&5 - Site Infrastructure (bypass roads, powerline, standby diesel generators, water treatment plant)	45.4	49.3	16.6	32.7
Direct costs sub-total	199.3	215.1	63.0	152.1
Owner's Contingency	17.0	14.3	0.0	14.3
Owner's Cost	32.1	32.0	19.1	12.9
Value added tax (VAT)	35.2	36.7	8.8	27.9
Grand Total	283.6	298.2	90.9	207.3

Progress Achieved by September 30, 2026:

For Package #1: the main delay includes delays relating to TSF construction and Non-contact Water Channel. Site preparation for the process plant has been completed and construction of foundations for the processing plant is well underway.

Package #1		4-Feb-26		3-Nov-26		30-Sep-26		Total  Remaining
		Budget		Updated  Budget		Total Actual Expenditures
		(million)		(million)		(million)		(million)
Site Preparation		8.3		8.3		7.0		1.3
TSF	Original Budget	9.0		1.4		2.4		6.5
	Enhancement work for Water Management			4.7				4.7
	New Items for water management			2.0				2.0
Roads		10.0		8.2		8.2		0.0
Channels		12.3		10.8		5.4		5.4
SWD		4.8		4.6		0.8		3.8
Crusher station		0.7		0.7		0.7		0.0
Others		12.3		5.3		2.2		3.1
Diesel fuel adjustment				3.6				3.6
Sub-total		57.4		57.2		26.7		30.5

Package #2 - Open Pit Mining and Stripping

Package #2	4-Feb-26	3-Nov-26	30-Sep-26	Total Remaining
	Budget	Updated Budget	Total Actual Expenditures
	(million)	(million)	(million)	(million)
Stripping	25.5	33.5	2.3	31.2
Ore Mining	0.1	0.1	-	0.1
Other	9.4	1.7	0.1	1.6
Diesel fuel adjustment		4.7		4.7
Sub-total	35.0	40.0	2.4	37.6

The Company awarded the Mining Contract for the Package #2 Project to China Railway 19th Bureau Group Co., Ltd. ("CRCC 19") on a "Unit Cost" basis, valued at $35 million for mining and stripping. This Updated Budget increases by $5.0 million, of which $4.7 million reflects the diesel price increase.

Package #3 - Processing Plant Construction and Equipment

Package #3	4-Feb-26	3-Nov-26	30-Sep-26	Total Remaining
	Budget	Updated Budget	Total Actual Expenditures
	(million)	(million)	(million)	(million)
General Layout	11.6	12.8	0.9	11.9
ROM Platform +Ore Shed+Crushing Workshop Facilities	2.3	2.3	1.5	0.8
Grinding and Grading Facilities	2.2	2.2	0.6	1.6
Flotation Workshop Facilities	2.1	2.1	0.2	1.9
Concentrate/Tailing Dewatering Facility	1.7	1.7	0.1	1.6
Water Supply and Drainage Facilities	1.5	1.5	-	1.5
Others	3.5	6.0	0.2	5.8
Sub-total	24.9	28.6	3.5	25.1

Foundations for the fine ore bin were 92% complete, 45% for the grinding & flotation plant, 21% for the thickener, 86% for the dewatering plant, 75% for the warehouse, and 35% for the oil depot. Buildings were 78% and 46% complete for the lab and office, respectively. The plant site is well protected by the Northeast Non-contact Water Channel.

As most costs are related to the pre-fabricated structural steel for the Process Plant which has been ordered and shipped from the factories, and payment is pending on arrival at Ecuador port and final installation, Total Actual Expenditures as of September 30, 2026 are not significant.

Package #3 Equipment	4-Feb-26	3-Nov-26	30-Sep-26	Total Remaining
	Budget	Updated Budget	Total Actual Expenditures
	(million)	(million)	(million)	(million)
Ball Mill, Semi-Autogenous Mill	3.3	3.3	1.7	1.6
Flotation Column	2.2	2.2	1.1	1.1
Flotation Machine, Stirring Tank	1.0	1.9	1.6	0.3
Filters (4 sets)	1.7	1.7	1.4	0.3
Vertical Stirred Regrinding Mill, Ultrafine Mill	2.1	2.0	1.4	0.6
Thickeners (8 sets )	1.6	1.4	1.0	0.4
Equipment and Facilities for Power Supply	2.2	4.6	-	4.6
Logistics	4.0	4.3	1.1	3.2
Others	11.5	12.1	1.1	11
Sub-total	29.9	33.6	10.6	23.0

Most equipment has been ordered and the Company has paid an approximate 30% down payment, which totals approximately $10.6 million.

Packages #4,5 -Site Infrastructure (bypass roads, powerline, standby diesel generators, water treatment plant)

Package #4 & #5		4-Feb-26	3-Nov-26	30-Sep-26	Total Remaining
		Budget	Updated Budget	Total Actual Expenditures
		(million)	(million)	(million)	(million)
External Powerline	Original External Powerline	17.3	15.3	4.0	11.3
	Added Compensators		2.8		2.8
Generator Sets		4.2	4.7	2.5	2.2
Access roads upgrade and maintenance		5.0	5.0	2.5	2.5
East & West Bypass Roads		2.0	2.4	-	2.4
Two Water Treatment Plants		3.1	3.1	-	3.1
On-Site Power Supply, Environment, TSF Construction EoR and CQA team		6.4	6.1	2.7	3.4
Local Purchases		2.8	2.8	0.1	2.7
Other Project		4.6	7.1	4.8	2.4
Sub-total		45.4	49.3	16.6	32.7

Construction of the Powerline has been delayed as more reviews and approvals have been required from CNEL. Only construction of a Substation at the El Domo site has commenced. Meanwhile, 10 gen-sets of 17 MW capacity have been manufactured and are ready to be shipped to site as an independent power supply. Continued delays in the construction of the Powerline would require that the Project rely on the gen-sets for longer, which may increase operating costs.

About Silvercorp

Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company's strategy is to create shareholder value by 1) focusing on generating free cash flow from long life mines; 2) organic growth through extensive drilling for discovery; 3) ongoing merger and acquisition efforts to unlock value; and 4) long term commitment to responsible mining and ESG. For more information, please visit our website at www.silvercorpmetals.com.

For further information Silvercorp Metals Inc. Lon Shaver

President

Phone: (604) 669-9397

Toll Free 1(888) 224-1881

Email: investor@silvercorp.ca

Website: www.silvercorpmetals.com

CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS

This news release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking information") relating to, among other things statements regarding the recovery of the VAT as a tax credit, the construction schedule, duration, and costs for the development of the Project, the date which the Project is scheduled to be in production; the updated construction budget and its components; anticipated cost savings; diesel prices; timing of execution of mining contract and mobilization of personnel and equipment to the Project, timing of completion of detailed engineering design, delivery of diesel generators, and completion of the external powerline; reliance on gen-sets; and the funding of remaining construction costs. By their very nature, forward-looking information involves known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information . Forward-looking information may in some cases be identified by words such as "will", "anticipates", "expects", "intends" and similar expressions suggesting future events or future performance.

We caution that all forward-looking information is inherently subject to change and uncertainty and that actual results may differ materially from those expressed or implied by the forward-looking information. A number of risks, uncertainties and other factors, including but not limited to: fluctuating commodity prices; recent market events and condition; activities of anti-mining groups; estimation of mineral resources, mineral reserves and mineralization and metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; climate change; severe weather, including flooding and extended rainfall; fuel and input cost increases, including as a result of changes to government subsidies or taxes; delays by third parties; construction risks and cost overruns; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions into existing operations; permits and licences for mining and exploration in China; title to properties; non-controlling interest shareholders; acquisition of commercially mineable mineral rights; financing; competition; operations and political conditions; regulatory environment in Ecuador and China; regulatory environment and political climate in Bolivia and Ecuador; integration and operations of Adventus; environmental risks; natural disasters; dependence on management and key personnel; foreign exchange rate fluctuations; insurance; risks and hazards of mining operations; conflicts of interest; internal control over financial reporting as per the requirements of the Sarbanes-Oxley Act; outcome of current or future litigation or regulatory actions; bringing actions and enforcing judgments under U.S. securities laws; cyber-security risks; public health crises; the Company's investment in New Pacific Metals Corp. and Auro Metals Inc.; and the other uncertainties, risks and other factors described in the Company's Annual Information Form and other filings with Canadian and U.S. regulators on www.sedarplus.ca and www.sec.gov; could cause actual results and events to differ materially from those expressed or implied in the forward-looking information or could cause our current objectives, strategies and intentions to change. Accordingly, we warn investors to exercise caution when considering statements containing forward-looking information. We cannot guarantee that any forward-looking information will materialize and you are cautioned not to place undue reliance on this forward-looking information. Any forward-looking information contained in this news release represents expectations as of the date of this news release and is subject to change after such date. However, we are under no obligation (and we expressly disclaim any such obligation) to update or alter any statements containing forward-looking information, the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. All of the forward-looking information in this news release is qualified by the cautionary statements herein.

A comprehensive discussion of other risks that impact Silvercorp can also be found in its public reports and filings which are available under its profile at www.sedarplus.ca. and on EDGAR at www.sec.gov.

Correction: This press release cancels and replaces the one issued earlier on November 3, 2026, at 5:05 p.m. (EST), which contained clerical errors.

View original content to download multimedia:https://www.prnewswire.com/news-releases/c-o-r-r-e-c-t-i-o-n--silvercorp-metals-inc-302929015.html

SOURCE Silvercorp Metals Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Silvercorp’s updated El Domo construction budget?

El Domo’s updated construction budget is $298.2 million, compared with $283.6 million estimated on February 4, 2026. Actual expenditures through September 30, 2026 totaled $90.9 million, with $207.3 million remaining.

When does Silvercorp now expect El Domo to begin production?

Silvercorp now targets November 2027 production at El Domo, subject to weather conditions and contractor performance. Extended rainfall caused an expected four-month delay in completion.

How much did higher diesel prices add to Silvercorp’s El Domo budget?

Diesel adjustments added $8.3 million for remaining construction: $3.6 million for Package #1 and $4.7 million for Package #2. Diesel prices increased from under $3/gallon in December 2024 to $5.64/gallon in October 2026 following Ecuador’s subsidy removal and other factors.

What additional water-management work is planned at Silvercorp’s El Domo project?

Water-management enhancements add $4.7 million, comprising $3.5 million for design upgrades and construction reinforcement plus $1.2 million for site cleaning. Another $2.0 million covers new water-management items, including two cofferdams, pipes beneath the tailings storage facility’s starter dam and cemented roadside ditches.

Who holds Silvercorp’s El Domo mining and stripping contract?

China Railway 19th Bureau Group holds the Package #2 mining and stripping contract, awarded on a unit-cost basis and valued at $35 million. The updated Package #2 budget is $40.0 million, including a $4.7 million diesel adjustment.