Silvercorp Announces Project Update for El Domo

Rhea-AI Summary

Silvercorp (TSX/NYSE American: SVM) updated the El Domo construction budget to $284 million, a $44 million increase from the prior $240 million estimate, and set production for July 1, 2027 (six-month delay). Key drivers include a VAT rate increase to 15% (+$16M), higher process-plant equipment costs (+$15M), logistics and construction increases, lowered contingency to 8% ($17M), and $44.5M spent in 2025 (~16% of new budget).

The company awarded or expects major contracts for mining, processing engineering and powerline work, ordered long-lead equipment, and reports improved metallurgical recoveries from a revised flowsheet.

Positive

• Updated budget $283.6M reflecting current cost estimates
• Production target set for July 1, 2027 (six-month delay)
• Spent $44.5M in 2025, ≈16% of the new budget showing active progress
• Mining contract structure: $35M construction and ~$63M five-year operations
• New flowsheet yields +5.4% Cu and +6.2% Au recoveries

Negative

• Budget increase of $44M (≈18% vs prior $240.5M estimate)
• VAT rise to 15% adds $16M to capex (recoverable as tax credit later)
• Contingency reduced from 20% to 8% (owner contingency $17M), lowering buffer
• Project schedule delayed by 6 months to July 1, 2027

News Market Reaction – SVM

-9.79%

22 alerts

-9.79% News Effect

-20.0% Trough in 38 hr 32 min

-$257M Valuation Impact

$2.37B Market Cap

1.1x Rel. Volume

On the day this news was published, SVM declined 9.79%, reflecting a notable negative market reaction. Argus tracked a trough of -20.0% from its starting point during tracking. Our momentum scanner triggered 22 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $257M from the company's valuation, bringing the market cap to $2.37B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Updated El Domo budget: $284 million Prior 2025 budget: $240 million Feasibility study budget: $248 million +5 more

8 metrics

Updated El Domo budget $284 million New construction budget vs prior $240 million estimate

Prior 2025 budget $240 million El Domo estimate dated March 31, 2025

Feasibility study budget $248 million 2021 Feasibility Study capital cost for El Domo

2025 spend $44.5 million Capital spent on El Domo in 2025

CRCC19 construction phase $35 million Mining and stripping construction phase contract value

CRCC19 operations phase $63 million Five-year mining and stripping operations contract value

TSF dam contract $8 million Multi-stage raising and management of TSF dam

Recovery improvement 5.4% Cu, 6.2% Au Increase in copper and gold recovery from new flowsheet tests

Market Reality Check

Price: $9.13 Vol: Volume 6,333,133 vs 20-da...

normal vol

$9.13 Last Close

Volume Volume 6,333,133 vs 20-day average 7,810,481 — activity below recent norms. normal

Technical Price $10.62 trades above 200-day MA at $6.05, sitting 24.14% below 52-week high and 249.34% above 52-week low.

Peers on Argus

SVM gained 7.29% while key silver peers EXK, MAG, and AG fell between roughly -0...

SVM gained 7.29% while key silver peers EXK, MAG, and AG fell between roughly -0.25% and -1.96%, with TGB down -9.02%. This divergence suggests the El Domo update drove a company-specific move rather than a sector-wide reaction.

Historical Context

5 past events · Latest: Feb 02 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 02	Technical report filing	Neutral	-0.6%	Filed NI 43-101 PEA for Condor gold project with technical details.
Jan 27	Acquisition closing	Positive	+0.6%	Completed acquisition of Tulkubash/Kyzyltash projects via 70% JV structure.
Jan 20	Acquisition agreement	Positive	+8.2%	Agreed to acquire 70% of Chaarat ZAAV, adding major gold projects.
Jan 15	Operational update	Positive	+1.3%	Q3 operational results with revenue about $126.1M, up 51% YoY.
Dec 22	PEA economics	Positive	-3.1%	Condor PEA showed strong after-tax NPV and IRR but shares fell.

Pattern Detected

Growth and project-development news generally aligned with positive price reactions, while a robust PEA in Dec 2025 saw a negative reaction, showing occasional selloffs on strong technical updates.

Recent Company History

Over the past few months, Silvercorp has focused on growth and project advancement. In Dec 2025, it reported a robust PEA for the Condor project with strong NPV and IRR figures, yet shares fell. In Jan 2026, Q3 operational results showed revenue up 51% year-over-year and the stock rose. The company then agreed to and completed a 70% interest acquisition in the Tulkubash/Kyzyltash gold projects, again with positive price responses. The latest El Domo budget and schedule update fits this sequence of capital-intensive project development across multiple jurisdictions.

Market Pulse Summary

The stock moved -9.8% in the session following this news. A negative reaction despite project advanc...

Analysis

The stock moved -9.8% in the session following this news. A negative reaction despite project advancement would fit past instances where technically strong studies, like the Condor PEA with robust NPV and IRR, coincided with share price weakness. With the stock at $10.62, still 24.14% below its 52-week high but well above its 200-day MA at $6.05, investors could reassess higher El Domo capex, reduced contingency, and schedule slippage, alongside existing capital commitments for other growth projects.

Key Terms

vat, sag mill, qa/qc, rom ore shed, +1 more

5 terms

vat financial

"The VAT: rate has been revised from 10% ($19 million) to 15% ($35 million)"

A value-added tax (VAT) is a consumption tax charged at each stage of producing and selling goods or services, collected by businesses on behalf of the government. Think of it as a small extra charge added along a supply chain that companies remit to tax authorities; for investors it affects pricing, profit margins, cash flow and regulatory risk because firms must manage collection, reporting and potential refunds across jurisdictions.

sag mill technical

"water recycling system from Tailing Storage Facility ("TSF"), SAG mill, regrind mill"

A SAG mill is a large rotating drum used in mining to crush and grind ore by tumbling it with a mix of steel balls and larger chunks of the ore itself, similar to how a cement mixer tumbles material to break it down. For investors, its performance matters because mill efficiency and uptime directly affect how much metal a mine can produce, operating costs, and the speed at which ore is processed into saleable product.

qa/qc technical

"Engineer of Record ("EoR"), and construction quality assurance and control ("QA/QC") supervision"

QA/QC stands for Quality Assurance and Quality Control, processes used to ensure products or services meet certain standards. Think of it as a way to check that a product is safe and works properly before reaching consumers, similar to how a chef tastes food before serving it. For investors, strong QA/QC practices indicate a company's commitment to delivering reliable, high-quality offerings, reducing risks and building trust.

rom ore shed technical

"laid the foundation for a 5000 square metre ROM Ore Shed, which will serve as a warehouse"

A ROM (run‑of‑mine) ore shed is a covered storage area where freshly mined, unprocessed rock and ore are held before they go to crushing or processing. Think of it as a pantry for a mine: it smooths out supply interruptions, lets operators blend material for consistent quality, and protects ore from weather. Investors watch ROM inventory because its size and condition affect production continuity, processing efficiency, and short‑term revenue timing.

ni 43-101 regulatory

"for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects"

A Canadian regulatory standard that sets the rules for how mining and exploration companies must report mineral resources and reserves, requiring technical reports prepared or signed off by an independent, certified expert. It matters to investors because it creates a consistent, transparent “inspection report” for mining projects, making it easier to compare prospects, judge the reliability of claims, and assess geological and financial risk before investing.

AI-generated analysis. Not financial advice.

Trading Symbol:           TSX/NYSE American: SVM

VANCOUVER, BC, Feb. 4, 2026 /PRNewswire/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX/NYSE American: SVM) (the "Company") 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 $284 million, an increase of $44 million compared to the $240 million estimate dated March 31, 2025 (for reference, the 2021 Feasibility Study Budget was $248 million). The main items of increase or decrease are as follows:

1. The VAT: rate has been revised from 10% ($19 million) to 15% ($35 million), resulting in a $16 million increase, which represents 36% of total budget growth. The Company expects to recover this VAT as a tax credit in the first year of operations once concentrate exports commence.
2. Package #1 Construction: $5.1 million increase due to detailed design changes, construction of two rock buttress for waste dumps (SWD and WRF1) were added.
3. The equipment and material purchases of the process plant have increased by $15 million due to: 
   1. 1. Some equipment was previously missing in both the April 2025 and 2021 Feasibility Studies, e.g. water recycling system from Tailing Storage Facility ("TSF"), SAG mill, regrind mill, bigger flotation cells and thickeners required to accommodate an increase in sulfur content from 9% (2021 Feasibility Study design) to 25% (current design) (~ $11 million).
      2. Logistics costs increased by $4 million (considering 15% of all equipment for sea freight, customs fees, storage, local transport, insurance, plus ~ 3.5% import tax), which was previously underestimated.
4. The estimated construction and installation of the process plant have increased by $7.2 million based on the actual construction quotes for the 5000-square-metre ROM ore shack currently under construction.
5. Bypass roads and access roads: $3.3 million increase mainly due to the upgrade of the new southern access road, so that 40-foot container trucks can pass.
6. External powerline: added $2.3 million for payment on behalf of the Ecuador National Power Company (CNEL)for third-party supervision and land easements.
7. Missing items such as Engineer of Record ("EoR"), and construction quality assurance and control ("QA/QC") supervision for TSF construction, site internal power distribution facilities, environment rehabilitation and protection, 4G network added another $10.1 million. 
8. Added $6.6 million in local purchases to support local supply chains and economy.
9. Owner's Cost has increased from $30 million to $32.5 million, based on the monthly burn rate and additional expenses (e.g. insurance, services, community and institutional relationship, and security) plus a six-month extension for the construction period-~$2.5 million increase.
10. Package #2 Mining and Stripping: estimated cost has decreased by $4.2 million based on the winning bidder's unit prices.
11. Achieved savings of $4.7 million across various other projects.
12. Contingency has been reduced from 20% ($32 million) to 8% ($17 million), a reduction of $15 million, reflecting more accurate estimates for the current budget. The contingency may account for the diesel price increase during construction (~10% to ~15% increase in unit costs for civil works), and inherent uncertainties as engineering design work continues.

Capital Cost Estimate Details:
The table below summarizes the schedule and costs to construct the Project:

		2025 April Budget	New Budget
			Spent in 2025	2026	July 1st, 2027	Total Budget
		($ Million)	($ Million)	($ Million)	($ Million)	($ Million)
1	Package #1 - Site preparation /Road s/Channels / TSF/SWD	47.5	22.4	32.5	2.5	57.4
2	Package #2 - Open Pit Mining and Stripping	39.0	0.0	23.4	11.3	35.0
3	Package #3 - Processing Plant Construction and Equipment	33.0	3.5	41.5	9.8	54.8
4	Temporary and Permanent Camps	7.0	1.9	4.7	0.4	7.0
	Packages #4,5 -Site Infrastructure (bypass roads, powerline, standby diesel generators, water treatment plant)	33.0	3.7	36.1	5.6	45.4
	Direct costs sub-total	159.4	31.5	138.2	29.6	199.3
6	Owner's Contingency	31.9	0.0	14.2	2.8	17.0
7	Owner's Cost	30.0	9.8	12.5	9.8	32.1
8	Value added tax (VAT)	19.1	3.1	27.1	5.0	35.2
	Total	240.5	44.5	191.9	47.2	283.6

Based on this new budget, the El Domo Project is scheduled to be in production by July 1^st, 2027, representing a six-month delay from the previous estimate of early-2027.

Progress Achieved in 2025:

2025 has been a productive year, as we focused on construction Package #1: including Site preparation, Roads, Non-contact

Water Channels, TSF, Saprolite Waste Dump ("SWD"), and proceeded with other packages. During the year, we established a new project construction team, while overcoming an exceptionally heavy and long rainy season that lasted well into June, working with different communities and government agencies to ensure a sound working environment. Through the hard work of our local team, CRCC 14 and other contractors, along with the support of communities and government authorities, the Company made significant progress at the Project.

1. Spent $44.5 million in 2025, representing approximately 16% of the total new budget.
2. Successfully cleared 1,040 of the total 1,109 archaeological units, completing archaeological clearance in full compliance with permit conditions to start earth-moving activities.
3. Over 2.6 million cubic metres of material were moved (including topsoil, saprolite and andesite material) for site preparation of Process plant, roads, TSF, SWD, and other site preparation.
4. Built 8.1 km of internal haul roads, providing comprehensive access across the site, and upgraded and repaired 23.1 km of external roads, allowing 40-feet haul truck access. Additionally, 2.1 km of non-contact water channels were excavated as part of a robust water management system.
5. Completed and commissioned the Construction Camp with a capacity of over 600 beds.
6. Blasted at an on-site quarry and from Process plant Site Preparation to generate fresh non-acid generating rock for roads and the construction of the starter dam of the TSF, plus laid the foundation for a 5000 square metre ROM Ore Shed, which will serve as a warehouse initially during the construction period.
7. Yantai Jinpeng Mining Machinery Co.,Ltd has finalized the detailed process flowsheet, equipment selection and cost estimates for the processing plant construction and equipment. The improved process flowsheet introduced a standalone sequential flotation of copper-gold into copper concentrates first; all other parts of the flowsheet follow the previous design. The new metallurgical recovery test results for the sequential flotation of copper-gold into copper concentrates first show a 5.4% increase in copper recovery and a 6.2% increase in gold recovery, enhancing the Project's projected economics.
8. Ordered most of the long-lead time major equipment for the process plant and Diesel Power Generator Sets providing backup power for the entire site; paid a down payment of $7.2 million towards a total contract price of $16.9 million.
9. Continuously engaged with different communities and stakeholders for support.
10. Built an effective, integrated construction team, collaborating among team members at the El Domo construction site, Quito, Vancouver and Beijing.
11. Strong and improving safety culture and management at site, with more than 960,000 hours worked with no major incidents.
12. Implemented and complied with the Environmental Management Plan during construction activities.

Bidding for the Package #2 - Open Pit Mining and Stripping

After a competitive bidding process and several months of negotiation, the Company is expected to execute the mining contract for the construction and operation of the Project with China Railway 19th Bureau Group Co., Ltd. ("CRCC 19") on a "Unit Cost" basis, that is, the cost of drilling, blasting, hauling and dumping or compacting each cubic metre of rock over a certain distance. The fixed unit rate contract is structured into two primary phases: 1) the Construction Phase, valued at $35 million for mining and stripping, includes pre-stripping activities such as earthworks, rock stripping, and by-product ore mining; and 2) the Operations Phase, valued at approximately $63 million over the subsequent five years, covers annual mining and stripping of ore and waste rock. In addition, the contract includes the construction and management of the multi-stage raising of the Tailings Storage Facility (TSF) dam ($8 million). CRCC19 has a regional headquarter in Quito with over ten years operating experience in Ecuador building a large open pit copper-gold mine and ongoing mining and stripping. In advance of executing the contract CRCC 19 began mobilizing personnel to the El Domo site in January 2026 and equipment mobilization will begin this month.

Package #3 - Processing plant construction and equipment 

Yantai Jinpeng Mining Machinery Co.,Ltd is expected to complete the detailed engineering design of the processing plant based on the new flowsheet by early April 2026. This will serve as the cost base to initiate the bidding process for construction. With most equipment already ordered, the primary budget variables for Package #3 would be the construction cost and materials

Packages #4 - External Powerline and standby diesel generators

The total distance of the external powerline is 61.3 km. The northern section (27.5 km) and three substations, with a $10.15 million budget, have been awarded to two Ecuadorian contractors last September, but only recently received the approval by CNEL required before construction can be started. The southern part (33.8 km) is pending the completion of detailed engineering design. The powerline is expected to be completed in 2027. As a backup plan, the company has ordered 14MW of diesel generator sets which will be delivered to site by December 2026 for installation. This mitigation plan will ensure power is available for commissioning of the process plant in July 2027, regardless of the External Powerline status.

Qualified Person

Guoliang Ma, P. Geo., Manager of Exploration and Resource of the Company, is the Qualified Person for Silvercorp for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (''NI 43-101'') and has reviewed and approved the technical information contained in this news release.

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 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, date which the Project is scheduled to be in production; 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 powerline. By their very nature, forward-looking statements involve 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 statements.  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  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; 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 Tincorp Metals Inc.;  and the other risk 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 and that it would be unreasonable to rely on such statements as creating legal rights regarding our future results or plans. 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 their public reports and filings which are available under its profile at www.sedarplus.ca.

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SOURCE Silvercorp Metals Inc.

FAQ

What is the new El Domo construction budget for Silvercorp (SVM) as of February 4, 2026?

The new construction budget is $283.6 million, representing a $44 million increase. According to the company, increases were driven by higher VAT, added equipment, logistics and site works, with contingency reduced to 8%.

When does Silvercorp (SVM) now expect El Domo to reach production and how much was the delay?

Silvercorp targets July 1, 2027 for production, a six-month delay. According to the company, the revised schedule reflects updated construction timelines and detailed engineering progress.

How much did Silvercorp (SVM) spend on El Domo in 2025 and what percent of the budget does that represent?

Silvercorp spent $44.5 million in 2025, about 16% of the new budget. According to the company, expenditures covered site prep, roads, TSF work, camp construction and long-lead equipment down payments.

What major contracts and equipment orders has Silvercorp (SVM) secured for El Domo?

Silvercorp expects a mining unit-cost contract valued at $35M for construction and ordered major long-lead process equipment. According to the company, CRCC19 mobilized personnel and key equipment down-payments were made.

How did the VAT and contingency changes affect El Domo's capital estimate for Silvercorp (SVM)?

A VAT rate rise to 15% added $16M to the budget and contingency was reduced to 8% ($17M). According to the company, VAT is expected to be recovered as a tax credit in year one of operations.