EX-99.1 2 exhibit99-1.htm SILVERCORP METALS INC. FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED JUNE 30, 2025 Exhibit 99.1

Exhibit 99.1

 

 

 

 

 

SILVERCORP METALS INC.

 

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the three months ended June 30, 2025 and 2024

(Unaudited - Tabular amounts are in thousands of US dollars, unless otherwise stated)

 

 

 

 

 

 

 

 

SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Income

(Unaudited - Expressed in thousands of U.S. dollars, except per share amount and number of shares)

 

      Three Months Ended June 30,
   Notes  2025    2024  
Revenue  3  $81,334   $72,165 
Cost of mine operations             
Production costs      29,342    23,468 
Depreciation and amortization      9,013    7,280 
Mineral resource taxes      1,751    1,648 
Government fees and other taxes  4   2,273    635 
General and administrative  5   3,132    2,620 
       45,511    35,651 
Income from mine operations      35,823    36,514 
              
Corporate general and administrative  5   4,778    4,287 
Property evaluation and business development      194    1,422 
Foreign exchange gain      (636)   (1,749)
Gain on investments  10   (4,421)   (2,216)
Loss on derivative liabilities  15/18   4,762    — 
Share of loss in associates  11   309    412 
Loss on disposal of plant and equipment      23    112 
Other expense      14    385 
       30,800    33,861 
              
Finance income  6   3,308    1,680 
Finance costs  6   (3,324)   (65)
       30,784    35,476 
              
Income tax expense  7   6,436    7,347 
Net income      24,348    28,129 
Attributable to:             
Equity holders of the Company      18,126    21,938 
Non-controlling interests  20   6,222    6,191 
       24,348    28,129 
              
Earnings per share attributable to the equity holders of the Company             
Basic earnings per share     $0.083   $0.120 
Diluted earnings per share     $0.082   $0.120 
Weighted Average Number of Shares Outstanding - Basic      217,991,115    177,577,667 
Weighted Average Number of Shares Outstanding - Diluted      221,286,554    180,516,823 

 

Approved on behalf of the Board:

 

(Signed) Ken Robertson   (Signed) Rui Feng  
Director   Director  

 

See accompanying notes to the condensed consolidated interim financial statements

 

1

 

 

SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Comprehensive Income

(Unaudited - Expressed in thousands of U.S. dollars)

 

        Three Months Ended June 30,  
   Notes    2025    2024  
            
Net income       $24,348   $28,129 
Items that may subsequently be reclassified to net income or loss:
Currency translation adjustment        6,175    (4,228)
Share of other comprehensive income (loss) in associates  11     472    (145)
Items that will not subsequently be reclassified to net income or loss:               
Change in fair value on equity investments designated as FVTOCI  10     756    (22)
Other comprehensive income (loss), net of taxes       $7,403   $(4,395)
Attributable to:               
Equity holders of the Company       $6,218   $(4,017)
Non-controlling interests  20     1,185    (378)
        $7,403   $(4,395)
Total comprehensive income       $31,751   $23,734 
                
Attributable to:               
Equity holders of the Company       $24,344   $17,921 
Non-controlling interests        7,407    5,813 
        $31,751   $23,734 

 

See accompanying notes to the condensed consolidated interim financial statements

 

2

 

 

SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Financial Position

(Unaudited - Expressed in thousands of U.S. dollars)

 

As at  Notes  June 30, 2025    March 31, 2025  
Current Assets         
Cash and cash equivalents  24  $376,112   $363,978 
Short-term investments  8   1,021    5,078 
Trade and other receivables      449    1081 
Inventories  9   9,692    8,028 
Due from related parties  21   1,280    1,158 
Income tax receivable      —    37 
Prepaids and deposits      6,073    7,561 
       394,627    386,921 
Non-current Assets             
Long-term prepaids and deposits      4,040    2,099 
Reclamation deposits      4,544    4,263 
Other investments  10   24,483    17,277 
Investment in associates  11   47,675    46,016 
Investment properties  12   503    511 
Plant and equipment  13   94,273    93,793 
Mineral rights and properties  14   606,676    586,982 
Long-term receivables      1,364    1,079 
TOTAL ASSETS     $1,178,185   $1,138,941 
Current Liabilities             
Accounts payable and accrued liabilities     $68,172   $63,881 
Current portion of lease obligation  16   300    278 
Current portion of convertible notes  15   293    2,460 
Deposits received      13,365    7,264 
Income tax payable      3,497    2,679 
       85,627    76,562 
Non-current Liabilities             
Long-term portion of lease obligation  16   1,085    1,053 
Long-term portion of convertible notes  15   109,892    108,193 
Derivative liabilities  15/18   55,625    50,768 
Deferred income tax liabilities      59,106    59,338 
Environmental rehabilitation  17   9,612    9,639 
Total Liabilities      320,947    305,553 
Equity             
Share capital  18   413,924    411,960 
Equity reserves  18   (8,950)   (15,140)
Retained earnings      321,044    305,908 
Total equity attributable to the equity holders of the Company      726,018    702,728 
              
Non-controlling interests  20   131,220    130,660 
Total Equity      857,238    833,388 
              
TOTAL LIABILITIES AND EQUITY     $1,178,185   $1,138,941 

 

See accompanying notes to the condensed consolidated interim financial statements

 

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SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Cash Flows

(Unaudited - Expressed in thousands of U.S. dollars)

 

      Three Months Ended June 30,   
   Notes  2025    2024  
Operating activities         
Net income     $24,348   $28,129 
Add (deduct) items not affecting cash:             
Finance costs  6   3,324    65 
Income tax expense  7   6,436    7,347 
Depreciation, amortization and depletion      9,450    7,736 
Gain on investments  10   (4,421)   (2,216)
Loss on derivative liabilities  15/18   4,762    — 
Share of loss in associates  11   309    412 
Loss on disposal of plant and equipment      23    112 
Share-based compensation  18   1,194    1,201 
Reclamation expenditures  17   (203)   (188)
Income taxes paid      (6,586)   (3,136)
Interest paid  6   (27)   (30)
Changes in non-cash operating working capital  24   9,672    523 
Net cash provided by operating activities      48,281    39,955 
Investing activities             
Payment on plant and equipment acquisition      (2,805)   (3,791)
Proceeds from disposal of plant and equipment      11    — 
Payment on mineral exploration and development expenditures      (22,961)   (12,594)
Payment on reclamation deposits      (309)   (16)
Refunds from reclamation deposits      84    25 
Payment on other investments acquisition  10   (1,130)   (18,773)
Proceeds from disposal of other investments  10   —    34,107 
Payment on investment in associates  11   (1,496)   (4)
Payment on short-term investment acquisition      —    (72,931)
Proceeds on short-term investment redemption      4,053    33,268 
Net cash (used in) provided by investing activities      (24,554)   (40,709)
Financing activities             
Interest paid on convertible notes  15   (3,958)   — 
Lease payment  16   (65)   (40)
Cash dividends distributed  18   (2,727)   (2,221)
Non-controlling interests distribution  20   (7,110)   (3,733)
Proceeds from issuance of common shares      742    126 
Net cash used in financing activities      (13,118)   (5,868)
Effect of exchange rate changes on cash and cash equivalents      1,525    (1,906)
Increase in cash and cash equivalents      12,134    (8,528)
Cash and cash equivalents, beginning of the period      363,978    152,942 
Cash and cash equivalents, end of the period     $376,112   $144,414 
Supplementary cash flow information  24          

 

See accompanying notes to the condensed consolidated interim financial statements

 

4

 

 

SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Changes in Equity

(Unaudited - Expressed in thousands of U.S. dollars, except numbers for share figures)

 

      Share capital  Equity reserves            
   Notes  Number of  shares   Amount   Share  
option   reserve  		  Reserves   Accumulated  
other  
comprehensive  
loss  		  Retained   earnings    Total equity 
attributable to the 
equity holders 		  Non- 
controlling  interests 		  Total 
equity 
Balance, April 1, 2024      177,311,696   $258,400   $21,303   $25,834   $(60,045)  $261,763   $507,255   $89,754   $597,009 
Options exercised      40,000    176    (50)   —    —    —    126    —    126 
Restricted share units vested      321,662    1,533    (1,533)   —    —    —    —    —    — 
Share-based compensation      —    —    1,201    —    —    —    1,201    —    1,201 
Dividends declared      —    —    —    —    —    (2,221)   (2,221)   —    (2,221)
Distribution to non-controlling interests      —    —    —    —    —    —    —    (3,733)   (3,733)
Comprehensive income (loss)      —    —    —    —    (4,017)   21,938    17,921    5,813    23,734 
Balance, June 30, 2024      177,673,358   $260,109   $20,921   $25,834   $(64,062)  $281,480   $524,282   $91,834   $616,116 
Options exercised      894,222    4,221    (1,709)   —    —    —    2,512    —    2,512 
Warrants exercised      29,607    148    —    —    —    —    148    —    148 
Warrants reclassified as derivative liabilities      —    —    (2,098)   —    —    (673)   (2,771)   —    (2,771)
Restricted share units vested      620,298    2,429    (2,429)   —    —    —    —    —    — 
Securities issued upon acquisition of Adventus      38,818,841    146,016    4,501    —    —    —    150,517    22,808    173,325 
Share-based compensation      —    —    2,491    —    —    —    2,491    —    2,491 
Dividends declared      —    —    —    —    —    (2,727)   (2,727)   —    (2,727)
Shares buy-back as per normal course issuer bid      (300,000)   (963)   —    —    —    —    (963)   —    (963)
Adjustments to the non-controlling interests      —    —    —    —    —    (8,424)   (8,424)   8,424    — 
Distribution to non-controlling interests      —    —    —    —    —    —    —    (7,316)   (7,316)
Comprehensive income      —    —    —    —    1,411    36,252    37,663    14,910    52,573 
Balance, March 31, 2025      217,736,326   $411,960   $21,677   $25,834   $(62,651)  $305,908   $702,728   $130,660   $833,388 
Options exercised  18(b)   197,666    1,041    (299)   —    —    —    742    —    742 
Restricted share units vested  18(b)   277,376    923    (923)   —    —    —    —    —    — 
Share-based compensation  18(b)   —    —    1,194    —    —    —    1,194    —    1,194 
Dividends declared  18(c)   —    —    —    —    —    (2,727)   (2,727)   —    (2,727)
Adjustment to non-controlling interests  20   —    —    —    —    —    (263)   (263)   263    — 
Distribution to non-controlling interests  20   —    —    —    —    —    —    —    (7,110)   (7,110)
Comprehensive income      —    —    —    —    6,218    18,126    24,344    7,407    31,751 
Balance, June 30, 2025      218,211,368   $413,924   $21,649   $25,834   $(56,433)  $321,044   $726,018   $131,220   $857,238 

 

See accompanying notes to the condensed consolidated interim financial statements

 

5

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

1.CORPORATE INFORMATION

 

Silvercorp Metals Inc., along with its subsidiary companies (collectively the “Company”), is engaged in the acquisition, exploration, development, and mining of mineral properties. The Company’s producing mines are located in China, and current exploration and development projects are located in China and Ecuador.

 

On July 31, 2024, the Company acquired a 75% interest in the El Domo project, a permitted, pre-construction stage copper-gold project (the “El Domo Project”), and a 98.7% interest in the Condor project, a development stage gold project (the “Condor Project”), through the acquisition of Adventus Mining Corporation (“Adventus”). The acquisition has diversified Silvercorp’s mining assets and expanded its geographical market presence in Latin America.

 

The Company is a publicly listed company incorporated in the Province of British Columbia, Canada, with limited liability under the legislation of the Province of British Columbia. The Company’s shares are traded on the Toronto Stock Exchange and NYSE American.

 

The head office, registered address and records office of the Company are located at 1066 West Hastings Street, Suite 1750, Vancouver, British Columbia, Canada, V6E 3X1.

 

2.MATERIAL ACCOUNTING POLICIES

 

(a)Statement of Compliance

 

These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standards 34 - Interim Financial Reporting (“IAS 34”) of the IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IASB”). These unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended March 31, 2025 as some disclosures from the annual consolidated financial statements have been condensed or omitted. These unaudited condensed consolidated interim financial statements follow the same accounting policies set out in Note 2 to the audited consolidated financial statements for the year ended March 31, 2025 with the exception of the adoption of certain amendments noted in Note 2(b) below.

 

These unaudited condensed consolidated interim financial statements were authorized for issue in accordance with a resolution of the Board of Directors dated August 5, 2025.

 

(b)Adoption of New Accounting Standards, Interpretation or Amendments

 

The Company adopted various amendments to IFRS® Accounting Standards, which were effective for the accounting period beginning on or after April 1, 2025, including the following:

 

Lack of Exchangeability (Amendments to IAS 21)

 

The amendments clarify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. In addition, the amendments require the disclosure of information that enables users of financial statements to understand the impact of a currency not being exchangeable.

 

The amendments were applied effective April 1, 2025 and did not have a material impact on the Company’s unaudited condensed consolidated interim financial statements.

 

(c)New Accounting Standards Issued but not effective

 

Certain new accounting standards and interpretations have been issued that are not mandatory for the current period and have not been early adopted.

 

Presentation and Disclosure in Financial Statements (IFRS 18 replaces IAS 1)

 

In April 2024, the IASB released IFRS 18 Presentation and Disclosure in Financial Statements. IFRS 18 replaces IAS 1 Presentation of Financial Statements while carrying forward many of the requirements in IAS 1. IFRS 18 introduces new

 

6

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

requirements to: i) present specified categories and defined subtotals in the statement of earnings, ii) provide disclosures on management-defined performance measures (“MPMs”) in the notes to the financial statements, iii) improve aggregation and disaggregation. Some of the requirements in IAS 1 are moved to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors and IFRS 7 Financial Instruments: Disclosures. The IASB also made minor amendments to IAS 7 Statement of Cash Flows and IAS 33 Earnings per Share in connection with the new standard. IFRS 18 requires retrospective application with specific transition provisions.

 

The amendments are effective for annual reporting periods beginning on or after January 1, 2027, with early adoption permitted. The Company is currently evaluating the impact of IFRS 18 on its financial statements.

 

Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)

 

The amendments contain guidance to derecognition of a financial liability settled through electronic transfer, as well as classification of financial assets for:

 

•Contractual terms that are consistent with a basic lending arrangement;

 

•Assets with non-recourse features;

 

•Contractually linked instruments.

 

Also, additional disclosures relating to investments in equity instruments designated at fair value through other comprehensive income (“FVOCI”) and added disclosure requirements for financial instruments with contingent features. The amendments are effective for annual reporting periods beginning on or after January 1, 2026. The Company is currently evaluating the impact of these amendments.

 

(d)Basis of Consolidation

 

These unaudited condensed consolidated interim financial statements include the accounts of the Company and its wholly or partially owned subsidiaries.

 

Subsidiaries are consolidated from the date on which the Company obtains control up to the date of the disposition of control. Control is achieved when the Company has power over the subsidiary, is exposed or has rights to variable returns from its involvement with the subsidiary and has the ability to use its power to affect its returns.

 

For non-wholly owned subsidiaries over which the Company has control, the net assets attributable to outside equity shareholders are presented as “non-controlling interests” in the equity section of the condensed consolidated interim statements of financial position. Net income for the period that is attributable to the non-controlling interests is calculated based on the ownership of the non-controlling interest shareholders in the subsidiary. Adjustments to recognize the non-controlling interests’ share of changes to the subsidiary’s equity are made even if this results in the non-controlling interests having a deficit balance. Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control are recorded as equity transactions. The carrying amount of non-controlling interests is adjusted to reflect the change in the non-controlling interests’ relative interests in the subsidiary and the difference between the adjustment to the carrying amount of non-controlling interest and the Company’s share of proceeds received and/or consideration paid is recognized directly in equity and attributed to equity holders of the Company.

 

Balances, transactions, revenues and expenses between the Company and its subsidiaries are eliminated on consolidation.

 

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SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

Table below summarizes the Company’s material subsidiaries which are consolidated as follows:

 

Name of subsidiaries  Principal activity  Place of
incorporation		  Ownership
interest		  Mineral properties
Henan Huawei Mining Co. Ltd. (“Henan Huawei”)  Mining  China   80%   Ying Mining District
Henan Found Mining Co. Ltd. (“Henan Found”)  Mining  China   77.5%    
Xinshao Yunxiang Mining Co., Ltd. (“Yunxiang”)  Mining  China   70%   BYP
Guangdong Found Mining Co. Ltd. (“Guangdong Found”)  Mining  China   99%   GC
Shanxi Xinbaoyuan Mining Co., Ltd. (“Xinbaoyuan”)  Mining  China   77.5%   Kuanping
Curimining S.A  Mining  Ecuador   75%   El Domo
Condormine S.A  Mining  Ecuador   98.7%   Condor

(i) British Virgin Islands (“BVI”)

 

(e)Critical Accounting Judgments and Estimates

 

These condensed consolidated interim financial statements follow the same significant accounting judgments and estimates set out in Note 2 to the audited consolidated financial statements for the year ended March 31, 2025.

 

3.SEGMENTED INFORMATION

 

All of the Company’s operations are within the mining and metals industry. The Company reviews its segment reporting to ensure it reflects the operational structure of the Company after the Adventus acquisition and enables the Company’s chief operating decision maker to review operating segment performance.

 

An operating segment is defined as a component of the Company that:

 

•Engages in business activities from which it may earn revenues or incur expenses;

 

•Whose operating results are reviewed regularly by the entity’s chief operating decision maker; and

 

•For which discrete financial information is available.

 

The Company has determined that each producing mine and significant development property represents an operating segment. The Company has organized its reportable and operating segments by significant revenue streams and geographic regions.

 

As of June 30, 2025, the Company’s significant operating segments include its two producing properties in China, two development and exploration projects in Ecuador. “Other” consists primarily of the Company’s corporate assets, other development and exploration properties, and corporate expenses which are not allocated to operating segments.

 

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SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

(a)Segmented information for operating results is as follows:

 

Three months ended June 30, 2025
   China  Ecuador      
   Ying Mining   District    GC Mine    El Domo    Condor    Other    Total   
Revenue  $73,378   $7,956   $—   $—   $—   $81,334 
Costs of mine operations   (38,999)   (6,512)   —    —    —    (45,511)
Income from mine operations   34,379    1,444    —    —    —    35,823 
                               
Other operating and investment items   (313)   (3)   (565)   (93)   (4,049)   (5,023)
Finance items, net   538    124    (2)   21    (697)   (16)
Income tax expenses   (5,505)   (352)   —    —    (579)   (6,436)
Net income (loss)  $29,099   $1,213   $(567)  $(72)  $(5,325)  $24,348 
                               
Attributable to:                              
Equity holders of the Company   22,713    1,201    (424)   (71)   (5,293)   18,126 
Non-controlling interest   6,386    12    (143)   (1)   (32)   6,222 
Net income (loss)  $29,099   $1,213   $(567)  $(72)  $(5,325)  $24,348 

 

Three months ended June 30, 2024
   China  Ecuador      
   Ying Mining   District    GC Mine    El Domo    Condor    Other    Total  
Revenue  $62,783   $9,382   $—   $—   $—   $72,165 
Costs of mine operations   (29,195)   (6,355)   —    —    (101)   (35,651)
Income (loss) from mine operations   33,588    3,027    —    —    (101)   36,514 
                               
Other operating and investment items   (654)   21    —    —    (2,020)   (2,653)
Finance items, net   465    58    —    —    1,092    1,615 
Income tax expenses   (5,171)   (537)   —    —    (1,639)   (7,347)
Net income (loss)   28,228    2,569    —    —    (2,668)   28,129 
                               
Attributable to:                              
Equity holders of the Company   22,018    2,544    —    —    (2,624)   21,938 
Non-controlling interest   6,210    25    —    —    (44)   6,191 
Net income (loss)  $28,228   $2,569   $—   $—   $(2,668)  $28,129 

 

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SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

(b)Segmented information for assets and liabilities is as follows:

 

   China  Ecuador      
As at June 30, 2025  Ying Mining   District    GC Mine    El Domo    Condor    Other    Total   
Current assets  $136,767   $19,091   $18,563   $1,301   $218,905   $394,627 
Long-term prepaids and deposits   1,736    214    1,997    —    93    4,040 
Reclamation deposits   1,301    3,125    —    —    118    4,544 
Other investments   —    —    —    —    24,483    24,483 
Investment in associates   —    —    —    —    47,675    47,675 
Investment properties   503    —    —    —    —    503 
Plant and equipment   76,574    12,742    540    135    4,282    94,273 
Mineral rights and properties   306,918    39,448    212,854    26,877    20,579    606,676 
Long-term receivables   —    —    1,364    —    —    1,364 
Total Assets  $523,799   $74,620   $235,318   $28,313   $316,135   $1,178,185 
Current liabilities  $72,196   $6,699   $1,708   $504   $4,520   $85,627 
Long-term portion of lease obligation   —    —    168    —    917    1,085 
Long-term portion of convertible debenture   —    —    —    —    109,892    109,892 
Derivative liabilities   —    —    —    —    55,625    55,625 
Deferred income tax liabilities   54,353    3,172    —    —    1,581    59,106 
Environmental rehabilitation   7,183    1,464    —    —    965    9,612 
Total liabilities  $133,732   $11,335   $1,876   $504   $173,500   $320,947 
Non-controlling interests  $98,541   $(159)  $31,653   $(403)  $1,588   $131,220 

 

   China  Ecuador      
As at March 31, 2025  Ying Mining   District    GC Mine    El Domo    Condor    Other    Total   
Current assets  $132,782   $17,376   $27,021   $1,704   $208,038   $386,921 
Long-term prepaids and deposits   1,782    225    —    —    92    2,099 
Reclamation deposits   1,183    3,073    —    —    7    4,263 
Other investments   —    —    —    —    17,277    17,277 
Investment in associates   —    —    —    —    46,016    46,016 
Investment properties   511    —    —    —    —    511 
Plant and equipment   76,248    12,600    499    133    4,313    93,793 
Mineral rights and properties   294,310    38,321    208,180    26,220    19,951    586,982 
Long-term receivables   —    —    1,079    —    —    1,079 
Total Assets  $506,816   $71,595   $236,779   $28,057   $295,694   $1,138,941 
Current liabilities  $59,624   $5,858   $4,121   $180   $6,779   $76,562 
Long-term portion of lease obligation   —    —    182    —    871    1,053 
Long-term portion of convertible debenture   —    —    —    —    108,193    108,193 
Derivative liabilities   —    —    —    —    50,768    50,768 
Deferred income tax liabilities   53,076    2,925    —    —    3,337    59,338 
Environmental rehabilitation   7,212    1,480    —    —    947    9,639 
Total liabilities  $119,912   $10,263   $4,303   $180   $170,895   $305,553 
Non-controlling interests  $98,104   $(179)  $31,327   $(403)  $1,811   $130,660 

 

10

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

(c)Sales by metal

 

The sales generated for the three months ended March 31, 2025 and 2024 were all earned in China and were comprised of:

 

   Three months ended June 30, 2025
   Ying Mining
District   		  GC    Total  
Silver  $51,000   $3,024   $54,024 
Gold   5,611    —    5,611 
Lead   13,581    1,035    14,616 
Zinc   1,794    3,199    4,993 
Other   1,392    698    2,090 
   $73,378   $7,956   $81,334 

 

   Three months ended June 30, 2024
   Ying Mining
District   		  GC     Total   
Silver  $42,786   $3,012   $45,798 
Gold   1,986    —    1,986 
Lead   14,070    1,513    15,583 
Zinc   2,570    4,011    6,581 
Other   1,371    846    2,217 
   $62,783   $9,382   $72,165 

 

(d)Major customers

 

Revenue from major customers is summarized as follows:

 

   Three months ended June 30, 2025
Customers  Ying Mining
District  		  GC    Total    Percentage of
total revenue     
Customer A  $15,940   $490   $16,430    20%
Customer D   13,783    —    13,783    17%
Customer E   13,113    515    13,628    17%
Customer B   12,235    —    12,235    15%
Customer C   9,727    —    9,727    12%
   $64,798   $1,005   $65,803    81%
                     
    Three months ended June 30, 2024 
Customers   Ying Mining
District		    GC    Total    Percentage of
total revenue		 
Customer E  $16,067   $401   $16,468    23%
Customer B   16,169    —    16,169    22%
Customer D   13,116    —    13,116    18%
Customer A   11,953    105    12,058    17%
Customer C   2,444    668    3,112    4%
   $59,749   $1,174   $60,923    84%

 

11

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

4.GOVERNMENT FEES AND OTHER TAXES

 

Government fees and other taxes consist of:

 

   Three Months Ended June 30,
   2025    2024  
Government fees  $21   $15 
Mineral rights royalty   1,481    — 
Other taxes   771    620 
   $2,273   $635 

 

Government fees include environmental protection fees paid to the state and local Chinese government. Mineral right royalty was paid or payable to the local Chinese government pursuant to the guideline of “Measure for the Levy of Mining Rights Transfer Royalty” implemented by the Province of Henan, China in 2024. It is calculated based on certain percentages of revenue arising from the mineral resources that had not yet been compensated to the local government.

 

Other taxes were composed of surtax on value-added tax, land usage levy, stamp duty and other miscellaneous levies, duties and taxes imposed by the state and local Chinese government.

 

5.GENERAL AND ADMINISTRATIVE

 

General and administrative expenses related to mining operations consist of:

 

   Three Months Ended June 30,
   2025     2024  
Amortization and depreciation  $231   $278 
Office administrative expenses   558    688 
Professional fees   95    90 
Salaries and benefits   2,248    1,564 
   $3,132   $2,620 

 

General and administrative expenses related to corporate operations consist of:

 

   Three Months Ended June 30,
   2025     2024  
Amortization and depreciation  $206   $178 
Office administrative expenses   1,000    665 
Professional fees   308    313 
Salaries and benefits   2,070    1,930 
Share-based compensation   1,194    1,201 
   $4,778   $4,287 

 

12

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

6.FINANCE ITEMS

 

Finance items consist of:

 

   Three Months Ended June 30,
   2025     2024  
Finance income      
Interest income  $3,308   $1,680 
Finance costs          
Interest on lease obligation  $84   $30 
Interest on convertible notes   3,195    — 
Accretion of environmental rehabilitation liabilities   45    35 
   $3,324   $65 
Net finance (costs) income  $(16)  $1,615 

 

The total interest accretion on the convertible notes during the three months ended June 30, 2025 was $3.49 million, of which a total of $0.29 million was capitalized and recorded as mineral rights and properties as part of the development expenditures of the El Domo Project.

 

7.INCOME TAX

 

The significant components of income tax expense are as follows:

 

   Three Months Ended June 30,
Income tax expenses (recoveries)  2025     2024  
Current  $7,936   $4,321 
Deferred   (1,500)   3,026 
   $6,436   $7,347 

 

8.SHORT-TERM INVESTMENTS

 

Short-term investments consist of the following:

 

As at  June 30, 2025     March 31, 2025  
Bonds, defaulted and measured at fair value  $299   $316 
Money market instruments   722    4,762 
   $1,021   $5,078 

 

9.INVENTORIES

 

Inventories consist of the following:

 

As at  June 30, 2025     March 31, 2025  
Concentrate inventory  $1,662   $1,800 
Ore stockpile   3,849    2,553 
Material and supplies   4,181    3,675 
   $9,692   $8,028 

 

The amount of inventories recognized as expense during the three months ended June 30, 2025 was $38.4 million (three months ended June 30, 2024 - $30.7 million).

 

13

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

10.OTHER INVESTMENTS

 

As at  June 30, 2025    March 31, 2025  
Investments designated as FVTOCI      
Public companies  $2,174   $1,334 
Investments designated as FVTPL          
Public companies   19,775    13,409 
Private companies   2,534    2,534 
    22,309    15,943 
Total  $24,483   $17,277 

 

Investments in publicly traded companies represent equity interests of other publicly-trading mining companies that the Company has acquired through the open market or through private placements. Investments held for trading are classified as FVTPL. For other investments, the Company can make an irrevocable election, on an instrument-by-instrument basis, to designate them as FVTOCI. The continuity of such investments is as follows:

 

   Fair Value    Accumulated fair value  
change included in OCI  		  Accumulated fair value  
change included in P&L  
As at April 1, 2024  $46,254   $(25,715)  $10,459 
Gain on equity investments designated as FVTOCI   5    5    — 
Gain on equity investments designated as FVTPL   12,451    —    12,451 
Acquisition   20,953    —    — 
Disposal   (36,289)   —    — 
Transferred upon acquisition of Adventus   (25,727)   —    — 
Impact of foreign currency translation   (370)   —    — 
As at March 31, 2025  $17,277   $(25,710)  $22,910 
Gain on equity investments designated as FVTOCI   756    756    — 
Gain on equity investments designated as FVTPL   4,421    —    4,421 
Acquisition   1,130    —    — 
Impact of foreign currency translation   899    —    — 
As at June 30, 2025  $24,483   $(24,954)  $27,331 

 

11.INVESTMENT IN ASSOCIATES

 

(a)Investment in New Pacific Metals Corp.

 

New Pacific Metals Corp. (“NUAG”) is a Canadian public company listed on the Toronto Stock Exchange (symbol: NUAG) and NYSE American (symbol: NEWP). NUAG is a related party of the Company by way of one common director and one common officer, and the Company accounts for its investment in NUAG using the equity method as it is able to exercise significant influence over the financial and operating policies of NUAG.

 

As at June 30, 2025, the Company owned 48,341,452 common shares of NUAG (March 31, 2025 – 46,907,701), representing an ownership interest of 28.1% (March 31, 2025 – 27.3%).

 

14

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

The summary of the investment in NUAG common shares and its market value as at the respective reporting dates are as follows:

 

   Number of shares    Amount    Value of NUAG’s  
common shares per  
quoted market price  
As at April 1, 2024   46,904,706   $47,080   $63,693 
Purchase from open market   2,995    4    — 
Share of net loss   —    (1,188)   — 
Share of other comprehensive loss   —    (789)   — 
Foreign exchange impact   —    169    — 
As at March 31, 2025   46,907,701   $45,276   $51,598 
Purchase from open market   1,433,751    1,496    — 
Share of net loss   —    (257)   — 
Share of other comprehensive income   —    488    — 
As at June 30, 2025   48,341,452   $47,003   $64,778 

 

(b)Investment in Tincorp Metals Inc.

 

Tincorp Metals Inc. (“TIN”), formerly Whitehorse Gold Corp., is a Canadian public company listed on the TSX Venture Exchange (symbol: TIN). TIN is a related party of the Company by way of one common director and one common officer, and the Company accounts for its investment in TIN using the equity method as it is able to exercise significant influence over the financial and operating policies of TIN.

 

As at June 30, 2025, the Company owned 19,864,285 common shares of TIN (March 31, 2025 – 19,864,285), representing an ownership interest of 29.1% (March 31, 2025 – 29.1%).

 

The summary of the investment in TIN common shares and its market value as at the respective reporting dates are as follows:

 

   Number of shares    Amount    Value of TIN’s  
common shares per  
quoted market price   
As at April 1, 2024   19,864,285   $2,346   $2,346 
Share of net loss from TIN, net of impairment adjustments        (1,618)     
Share of other comprehensive income        5      
Foreign exchange impact        7      
As at March 31, 2025   19,864,285   $740   $2,073 
Share of net loss from TIN        (52)     
Share of other comprehensive loss        (16)     
As at June 30, 2025   19,864,285   $672   $2,184 

 

15

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

12.INVESTMENT PROPERTIES

 

Investment properties consist of:

 

   Costs    Accumulated  
depreciation and  
amortization  		  Net carrying value   
As at April 1, 2024  $1,115   $(652)  $463 
Transfer from plant and equipment   121    (27)   94 
Depreciation and amortization   —    (17)   (17)
Impact of foreign currency translation   (5)   (24)   (29)
As at March 31, 2025   1,231    (720)   511 
Depreciation and amortization   —    (15)   (15)
Impact of foreign currency translation   10    (3)   7 
As at June 30, 2025  $1,241   $(738)  $503 

 

Investment properties include real estate properties that are rented out to earn rental income. The investment properties were initially recorded at cost, and subsequently measured at cost less accumulated depreciation. Depreciation is computed on a straight-line basis based on the nature and an estimated 20 years’ useful life of the asset. The Company did not engage an independent valuer to value the properties, and the fair value of the properties estimated based on the quoted market prices for the similar real estate properties in the nearby neighborhoods were approximately $1.9 million as at June 30, 2025 (March 31, 2025 - $1.9 million).

 

During the three months ended June 30, 2025, the Company recorded rental income of $0.02 million (three months ended June 30, 2024 - $0.03 million), which was included in other (income) expenses on the consolidated statements of income.

 

16

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

13.PLANT AND EQUIPMENT

 

Plant and equipment consist of:

 

   Land use rights  
and building  		  Office  
equipment  		  Machinery    Motor vehicles    Construction in  
progress  		  Total  
Cost                  
As at April 1, 2024  $108,809   $11,464   $34,423   $7,577   $12,193   $174,466 
Additions   356    896    2,316    439    19,233    23,240 
Acquisition of Adventus   —    51    347    125    —    523 
Disposals   (242)   (135)   (751)   (335)   —    (1,463)
Reclassification of asset groups   23,983    361    3,347    —    (27,691)   — 
Transfer to investment properties   (121)   —    —    —    —    (121)
Impact of foreign currency translation   (607)   (49)   (171)   (31)   (9)   (867)
As at March 31, 2025  $132,178   $12,588   $39,511   $7,775   $3,726   $195,778 
Additions   139    154    63    338    1,104    1,798 
Disposals   (468)   (689)   (89)   (29)   —    (1,275)
Reclassification of asset groups   754    10    317    —    (1,081)   — 
Impact of foreign currency translation   1,655    149    507    99    48    2,458 
As at June 30, 2025  $134,258   $12,212   $40,309   $8,183   $3,797   $198,759 
Accumulated amortization and impairment
As at April 1, 2024  $(57,541)  $(7,641)  $(24,009)  $(5,377)  $—   $(94,568)
Disposals   121    100    366    307    —    894 
Transfer to investment property   27    —    —    —    —    27 
Depreciation and amortization   (4,675)   (1,007)   (2,413)   (652)   —    (8,747)
Impact of foreign currency translation   245    29    111    24    —    409 
As at March 31, 2025  $(61,823)  $(8,519)  $(25,945)  $(5,698)  $—   $(101,985)
Disposals   464    684    78    25    —    1,251 
Depreciation and amortization   (1,365)   (257)   (689)   (166)   —    (2,477)
Impact of foreign currency translation   (765)   (98)   (339)   (73)   —    (1,275)
As at June 30, 2025  $(63,489)  $(8,190)  $(26,895)  $(5,912)  $—   $(104,486)
Carrying amounts                              
As at March 31, 2025  $70,355   $4,069   $13,566   $2,077   $3,726   $93,793 
As at June 30, 2025  $70,769   $4,022   $13,414   $2,271   $3,797   $94,273 

 

17

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

14.MINERAL RIGHTS AND PROPERTIES

 

Mineral rights and properties consist of:

 

As at  June 30, 2025    March 31, 2025  
Producing mineral properties  $346,366   $332,631 
Non-producing mineral properties   260,310    254,351 
   $606,676   $586,982 

 

Producing properties  Ying Mining District    GC    Total  
Carrying values         
As at April 1, 2024  $426,560   $120,557   $547,117 
Capitalized expenditures   48,210    6,122    54,332 
Environmental rehabilitation   3,896    33    3,929 
Foreign currency translation impact   (2,014)   (520)   (2,534)
As at March 31, 2025  $476,652   $126,192   $602,844 
Capitalized expenditures   15,487    1,207    16,694 
Foreign currency translation impact   6,212    1,604    7,816 
Balance as at June 30, 2025  $498,351   $129,003   $627,354 
Accumulated depletion and impairment               
As at April 1, 2024  $(161,657)  $(86,148)  $(247,805)
Depletion   (21,464)   (2,082)   (23,546)
Foreign currency translation impact   779    359    1,138 
As at March 31, 2025  $(182,342)  $(87,871)  $(270,213)
Depletion   (6,708)   (569)   (7,277)
Foreign currency translation impact   (2,383)   (1,115)   (3,498)
Balance as at June 30, 2025  $(191,433)  $(89,555)  $(280,988)
Carrying values               
Balance as at March 31, 2025  $294,310   $38,321   $332,631 
Balance as at June 30, 2025  $306,918   $39,448   $346,366 

 

Non-producing properties  BYP    Kuanping    El Domo    Condor    Total  
Carrying values               
As at April 1, 2024  $6,636   $12,885   $—   $—   $19,521 
Acquisition   —    —    201,014    24,945    225,959 
Capitalized expenditures   —    543    7,166.00    1,275.00    8,984 
Environmental rehabilitation   (26)   —    —    —    (26)
Foreign currency translation impact   (30)   (57)   —    —    (87)
As at March 31, 2025  $6,580   $13,371   $208,180   $26,220   $254,351 
Capitalized expenditures   —    377    4,670    656    5,703 
Foreign currency translation impact   82    174    —    —    256 
Balance as at June 30, 2025  $6,662   $13,922   $212,850   $26,876   $260,310 

 

The Company acquired the El Domo Project and the Condor Project through the acquisition of Adventus on July 31, 2024.

 

In June 2024, an action seeking to void the environmental license of the El Domo Project was brought in local court in Las Naves Canton, Bolívar Province, Ecuador (the “Court”) by a group of plaintiffs alleging defects in the environmental consultation process for the El Domo Project. The Court rejected the litigation on July 24, 2024 ruling that the Ecuadorean government correctly discharged its environmental consultation obligations prior to issuing an environmental license for

 

18

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

the El Domo Project. The plaintiffs filed an appeal (the “Appeal”) to the provincial court, and the Appeal was heard by the provincial court of Bolívar Province on October 17, 2024, and was dismissed by the provincial court on November 12, 2024, affirming the lower court decision that the Ministry of Environment, Water, and Ecological Transition of Ecuador (“MAATE”) correctly discharged its environmental consultation obligations prior to issuing an environmental license of the El Domo Project. The plaintiffs subsequently filed an Extraordinary Protection Action (EPA) before the Constitutional Court of Ecuador. On February 26, 2025, the Constitutional Court issued a decision declining to admit the EPA. On March 3, 2025, the plaintiffs filed a motion for clarification. A clarification motion may proceed where disputed issues have not been fully resolved. On July 24, 2025, the Constitutional Court issued a decision rejecting the clarification motion.

 

15.CONVERTIBLE NOTES

 

On November 25, 2024, the Company issued the unsecured Convertible Senior Notes (“Convertible Notes”) and received gross proceeds of $150 million, before transaction costs of $6.6 million. The Convertible Notes mature on December 15, 2029, and bear interest at 4.75% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning June 15, 2025.

 

If certain fundamental changes occur, including a change in control or upon notice of redemption by the Company as described below, the holders may elect to convert their Convertible Notes and may be entitled to an increased conversion rate. A fundamental change includes the following occurrences:

 

•A change in control where a person or group becomes the beneficial owner of more than 50% of our voting stock, or gains the power to elect a majority of our board of directors.

 

•The consummation of significant transactions such as certain mergers or consolidations pursuant to which our common shares will be converted or exchanged for cash, securities or other property, or sales of substantially all our assets that change the corporate structure or ownership.

 

•Approval by our shareholders of any plan for liquidation or dissolution.

 

Prior to December 20, 2027, the Company may not redeem the notes except in the event of certain changes in Canadian tax law. At any time on or after December 20, 2027, and until maturity, the Company may redeem all or part of the Convertible Notes for cash if the price of the Company’s common shares for at least 20 trading days in a period of 30 consecutive trading days, ending on the trading day prior to the date of notice of redemption, exceeds 130% of the conversion price in effect on each such day. The redemption price is equal to 100% of the principal amount of the Convertible Notes to be redeemed. In the event of a fundamental change, the Company is required to offer to purchase its outstanding Convertible Notes at a cash purchase price equal to 100% of the principal amount plus accrued and unpaid interest, ensuring protection against major corporate transformations that could affect the value of the investment held by the holders.

 

Upon conversion, the Convertible Notes may be settled, at the Company’s election, in cash, common shares or a combination thereof. As a result of the Company’s right to elect to settle the conversion in cash or shares, the conversion feature represents a derivative liability which is accounted for initially and subsequently at fair value through profit or loss. The host debt contract is accounted for at amortized cost. Of the gross proceeds of $150 million, $39.1 million was allocated to the derivative liability component first, representing the fair value on November 25, 2024, the residual value of $110.9 million was allocated to the host loan. Transaction costs of $4.9 million associated with the host loan were capitalized to the liability whereas transaction costs of $1.7 million associated with the embedded derivative liability were expensed in the consolidated statements of income. The $105.9 million net amount allocated to the host loan will be accreted to the face value of the Convertible Notes over the term to maturity using the effective interest method with an effective interest rate of 12.6%. There are no financial covenants associated with the Convertible notes.

 

19

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

The following key inputs and assumptions were used when determining the value of the embedded derivative liability:

 

   March 31, 2025     June 30, 2025     
Share Price:   3.87    4.22 
Credit spread (basis points):   559    476 
Risk free rate:   3.66%   3.43%
Volatility:   42%   42%
Dividend yield:   0.65%   0.59%

 

The continuity of the host liability and embedded derivative liability is as follows:

 

Convertible Notes  Host liability    Derivative liability    Total  
Balance as at April 1, 2024  $—   $—   $— 
Issuance   110,880    39,120    150,000 
Allocated transaction costs   (4,935)   —    (4,935)
Interest accretion   4,708    —    4,708 
Changes on fair value valuation   —    9,908    9,908 
Balance as at March 31, 2025  $110,653   $49,028   $159,681 
Interest accretion   3,490    —    3,490 
Interest payment   (3,958)   —    (3,958)
Change on fair value estimate   —    4,650    4,650 
Balance as at June 30, 2025  $110,185   $53,678   $163,863 
Presentation               
Current liability   293    —    293 
Non current liability   109,892    53,678    163,570 
Total  $110,185   $53,678   $163,863 

 

20

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

16.LEASES

 

The following table summarizes changes in the Company’s lease obligation related to the Company’s office lease.

 

   Lease Obligations   
Balance, April 1, 2024  $1,315 
Addition   283 
Interest accrual   125 
Interest received or paid   (125)
Lease repayment   (271)
Foreign exchange impact   4 
Balance, March 31, 2025  $1,331 
Addition   — 
Change due to lease modifications   59 
Interest accrual   27 
Interest paid   (27)
Lease repayment   (65)
Foreign exchange impact   60 
Balance, June 30, 2025  $1,385 
Less: current portion   300 
Non-current portion  $1,085 

 

The following table presents a reconciliation of the Company’s undiscounted cash flows to their present value for its lease obligation as at June 30, 2025:

 

   Lease Obligations   
Within 1 year  $352 
Between 2 to 5 years  $1,296 
Over 5 years   — 
Total undiscounted amount   1,648 
Less future interest   (263)
Total discounted amount  $1,385 
Less: current portion   300 
Non-current portion  $1,085 

 

The lease obligations were discounted at discount rates ranging from 7.0% to 15.6% as at June 30, 2025. (March 31, 2025 - 7.0% to 15.6%).

 

21

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

17.ENVIRONMENTAL REHABILITATION OBLIGATION

 

The following table presents the reconciliation of the beginning and ending obligations associated with the retirement of the properties:

 

   Total   
Balance, March 31, 2024  $6,442 
Reclamation expenditures   (819)
Unwinding of discount of environmental rehabilitation   139 
Addition to provision   1,175 
Revision of provision   2,728 
Foreign exchange impact   (26)
Balance, March 31, 2025  $9,639 
Reclamation expenditures   (195)
Unwinding of discount of environmental rehabilitation   45 
Foreign exchange impact   123 
Balance, June 30, 2025  $9,612 

 

As at June 30, 2025, the total undiscounted amount of estimated cash flows required to settle the Company’s environmental rehabilitation provision was $13.0 million (March 31, 2025 - $12.8 million), which has been discounted using an average discount rate of 1.94% (March 31, 2025 – 1.94%).

 

During the three months ended June 30, 2025, the Company incurred actual reclamation expenditures of $0.2 million (three months ended June 30, 2024 - $0.2 million), paid reclamation deposit of $0.3 million (three months ended June 30, 2024 - $0.02 million) and received $0.1 million reclamation deposit refund (three months ended June 30, 2024 - $0.03 million).

 

Estimated future reclamation costs are based on the extent of work required and the associated costs are dependent on the requirements of relevant authorities and the Company’s environmental policies. In view of uncertainties concerning environmental rehabilitation obligations, the ultimate costs could be materially different from the amounts estimated.

 

18.SHARE CAPITAL

 

(a)Authorized

 

Unlimited number of common shares without par value. All shares issued as at June 30, 2025 were fully paid.

 

(b)Share-based compensation

 

The Company has a share-based compensation plan (the “Plan”) which consists of stock options, restricted share units (the “RSUs”) and performance share units (the “PSUs”). The Plan allows for the maximum number of common shares to be reserved for issuance on any share-based compensation to be a rolling 10% of the issued and outstanding common shares from time to time. Furthermore, no more than 3% of the reserve may be granted in the form of RSUs and PSUs.

 

For the three months ended June 30, 2025, a total of $1.2 million (three months ended June 30, 2024 - $1.2 million) in share-based compensation expense was recognized and included in the corporate general and administrative expenses and property evaluation and business development expenses on the condensed consolidated interim statements of income.

 

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SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

(i) Stock options

 

The following is a summary of option transactions:

 

   Number of options    Weighted average   
exercise price per   
share in CAD   
Balance, April 1, 2024   1,327,001   $6.02 
Options granted   330,000    4.41 
Replacement options issued upon Adventus Acquisition   1,766,721    5.71 
Options exercised   (934,222)   3.85 
Options cancelled/forfeited   (38,334)   6.30 
Option expired   (171,186)   9.17 
Balance, March 31, 2025   2,279,980   $6.20 
Options granted   277,500    5.06 
Options exercised   (197,666)   5.14 
Options cancelled/forfeited   (153,000)   5.46 
Balance, June 30, 2025   2,206,814   $6.20 

 

The following table summarizes information about stock options outstanding as at June 30, 2025:

 

Exercise price in CAD   Number of options
outstanding at
June 30, 2025		   Weighted average
remaining contractual
life (Years)		   Number of options
exercisable at
June 30, 2025		   Weighted average  
exercise price in CAD  
$9.45   360,000   0.37   360,000   $ 9.45  
9.96   41,956   0.41   41,956     9.96  
12.52   35,525   0.42   35,525     12.52  
7.49   49,096   1.40   49,096     7.49  
9.07   224,989   1.59   224,989     9.07  
7.99   126,875   1.63   126,875     7.99  
3.93   270,000   1.82   270,000     3.93  
6.21   15,225   1.92   15,225     6.21  
3.75   10,150   2.25   10,150     3.75  
3.65   20,162   2.40   20,162     3.65  
4.93   5,075   2.49   5,075     4.93  
5.13   256,708   2.56   256,708     5.13  
4.08   60,000   2.65   40,000     4.08  
2.67   150,220   3.58   150,220     2.67  
4.41   303,333   3.75   96,666     4.41  
5.07   267,500   4.78   —     —  
4.83   10,000   4.85   —     —  
$2.67 to $12.52   2,206,814   2.37   1,702,647   $ 6.63  

 

The options exercisable at June 30, 2025 have a weighted average exercise price of $6.63 (March 31, 2025 - $6.54).

 

23

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

The fair value of stock options granted during the three months ended June 30, 2025 were calculated as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:

 

   Three months ended June 30, 2025 
Risk free interest rate (%)   2.63 
Expected life of option (years)   2.75 
Expected volatility (%)   48.50 
Expected dividend yield (%)   0.71 
Estimated forfeiture rate (%)   9.75 
Weighted average share price at date of grant (in CAD)   5.07 

 

Subsequent to June 30, 2025, a total of 107,428 options with a weighted average exercise price of CAD$3.82 were exercised and a total of 751,701 options with a weighted average exercise price of CAD 7.09 were cancelled.

 

(ii)Share purchase warrants

 

The following is a summary of share purchase warrant transactions:

 

   Number of warrants  

Weighted average
exercise price

CAD

 
Balance, April 1, 2024   —   $— 
Warrants issued upon Adventus acquisition   2,787,020    5.46 
Warrants exercised   (29,607)   6.47 
Warrants expired   (1,387,164)   6.47 
Balance, March 31, 2025 and June 30, 2025   1,370,249   $4.41 

 

In October 2024, the corporate office had changed its functional currency from CAD to USD. As a result, the CAD denominated warrants became derivative liability. The Company reclassified the warrants from equity to derivative liabilities at their fair value, the difference between the fair value of the warrants and the carrying value was recognized in equity upon reclassification. The warrants were remeasured as at June 30, 2025:

 

   Amount 
Initial recognition on October 1, 2024  $2,771 
Value of warrants exercised   (11)
Change in fair value   (897)
Foreign exchange impact   (123)
Balance, March 31, 2025  $1,740 
Change in fair value   112 
Foreign exchange impact   95 
Balance, June 30, 2025  $1,947 

 

24

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

The fair value of share purchase warrants was calculated as of the date of valuation using the Black-Scholes option pricing model with the following weighted average assumptions:

 

   March 31, 2025   June 30, 2025 
Risk free interest rate (%)   2.44    2.60 
Expected life ( years)   1.34    1.09 
Expected volatility (%)   49.67    51.48 
Expected dividend yield (%)   0.80    0.43 
Estimated forfeiture rate (%)   —    — 
Share price at the date of valuation (in CAD)   5.55    5.77 

 

The following table summarizes information about share purchase warrants outstanding as at June 30, 2025:

 

   Exercise price  
CAD  		  Number of warrants outstanding at  
June 30, 2025  		  Expiry date
Warrants issued upon Adventus acquisition   4.41    1,370,249   August 3, 2026

 

(iii)RSUs

 

The following is a summary of RSUs transactions:

 

   Number of units   Weighted average grant
date closing price per
share CAD		 
Balance, April 1, 2024   2,140,250   $5.23 
Granted   1,044,750    4.41 
Forfeited   (45,167)   4.64 
Distributed   (941,960)   5.87 
Balance, March 31, 2025   2,197,873   $4.58 
Granted   1,165,500    5.07 
Forfeited   (50,001)   4.86 
Distributed   (277,376)   4.63 
Balance, June 30, 2025   3,035,996   $4.76 

 

During the three months ended June 30, 2025, a total of 1,165,500 RSUs (three months ended June 30, 2024 - 1,044,750 RSUs) were granted to directors, officers, and employees of the Company at grant date closing prices of CAD$3.93 to CAD$5.28 (three months ended June 30, 2024 - CAD$4.41) per share subject to a vesting schedule over a three-year term with 1/6 of the RSUs vesting every six months from the date of grant.

 

Subsequent to June 30, 2025, a total of 311,333 RSUs were distributed.

 

(c)Cash dividends declared

 

During the three months ended June 30, 2025, dividends of $2.7 million or $0.0125 per share (three months ended June 30, 2024 - $2.2 million or $0.0125 per share) were declared and paid.

 

(d)Normal course issuer bid

 

On September 17, 2024, the Company announced a normal course issuer bid (the “2024 NCIB”) commencing September 19, 2024 to repurchase up to 8,670,700 of its own common shares until September 18, 2025.

 

During the three months ended June 30, 2025, the Company did not repurchase any common shares of the Company (three months ended June 30, 2024 - nil), under the normal course issuer bids.

 

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SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

19.ACCUMULATED OTHER COMPREHENSIVE LOSS

 

As at  June 30, 2025   March 31, 2025 
Loss on investments designated as FVTOCI  $23,660   $24,416 
Share of loss in associate   1,761    2,233 
Loss on currency translation adjustment   31,012    36,002 
   $56,433   $62,651 

 

The change in fair value on equity investments designated as FVTOCI, share of other comprehensive loss in associates, and currency translation adjustment are net of tax of $nil for all periods presented.

 

20.NON-CONTROLLING INTERESTS

 

Tables below summarize the financial information and continuity of the Company’s material non-controlling interests:

 

Non-controlling interest continuity  Henan
Found		   Henan Huawei   Yunxiang   Salazar Holdings   Other   Total 
Non-controlling interest percentage   22.50%   20%   30%   25%   1%-53.9%     
As at April 1, 2024  $84,977   $3,178   $2,393   $—   $(794)  $89,754 
Acquisition   —    —    —    23,204    (396)   22,808 
Share of net income (loss)   18,967    1,851    (149)   (95)   5    20,579 
Share of other comprehensive loss   122    45    (19)   —    (4)   144 
Adjustment to NCI   —    —    —    8,424    —    8,424 
Distribution   (10,128)   (921)   —    —    —    (11,049)
As at March 31, 2025  $93,938   $4,153   $2,225   $31,533   $(1,189)  $130,660 
Share of net income (loss)   5,796    589    (29)   (142)   8    6,222 
Share of other comprehensive income   1,101    61    17    —    6    1,185 
Adjustment to NCI   —    —    —    263    —    263 
Distribution   (6,538)   (572)   —    —    —    (7,110)
As at June 30, 2025  $94,297   $4,231   $2,213   $31,654   $(1,175)  $131,220 

 

Salazar Resources Ltd. (“Salazar”) is a 25% owner of the common shares of Salazar Holding Limited (“Salazar Holding”), who owns 100% interest in the El Domo Project. Pursuant to the shareholders’ agreement with Salazar, the Company has priority repayment of its investment in the El Domo according to an agreed distribution formula. Based on this formula, the percentage share of non-controlling interest will change as a function of advances made by the Company and the earnings or loss recorded by Salazar Holdings and its subsidiaries over time. After the Company has received priority repayment of its investment, the non-controlling interest will revert to 25%. As at June 30, 2025, the effective percentage of the non-controlling interest in Salazar Holding is 13.6% (March 31, 2025 - 13.6%).

 

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SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

21.RELATED PARTY TRANSACTIONS

 

Related party transactions are made on terms agreed upon by the related parties. The balances with related parties are unsecured, non-interest bearing, and due on demand. Related party transactions not disclosed elsewhere in the consolidated financial statements are as follows:

 

Due from related parties

 

As at  June 30, 2025    March 31, 2025  
NUAG(i)  $99   $33 
TIN(ii)   1,181    1,125 
   $1,280   $1,158 

 

i.The Company recovers costs for services rendered to NUAG and expenses incurred on behalf of NUAG pursuant to a services and administrative costs reallocation agreement. During the three months ended June 30, 2025, a total of $0.1 million (three months ended June 30, 2024 - $0.2 million) of services rendered to and expenses incurred on behalf of NUAG. The costs recoverable from NUAG were recorded as a direct reduction of general and administrative expenses on the consolidated statements of income.

 

ii.The Company recovers costs for services rendered to TIN and expenses incurred on behalf of TIN pursuant to a services and administrative costs reallocation agreement. During the three months ended June 30, 2025, a total of $0.06 million (three months ended June 30, 2024 - $0.03 million) of services rendered to and expenses incurred on behalf of TIN. The costs recoverable from TIN were recorded as a direct reduction of general and administrative expenses on the consolidated statements of income.

 

In January 2024, the Company and TIN entered into an interest-free unsecured credit facility agreement with no conversion features (the “Facility”) to allow the Company to advance up to $1.0 million to TIN. In January 2024, the Company advanced $0.5 million to TIN and received 350,000 common shares of TIN as the Bonus Shares for granting the Facility. In April 2024, the Company advanced the remaining $0.5 million to TIN. In January 2025, the Facility has been extended for another year with a new maturity date of January 31, 2026.

 

22.CAPITAL DISCLOSURES

 

The Company’s objectives of capital management are intended to safeguard the entity’s ability to support the Company’s normal operating requirement on an ongoing basis, continue the development and exploration of its mineral properties, and support any expansionary plans.

 

The capital of the Company consists of the items included in equity less cash and cash equivalents and short-term investments. Risk and capital management are primarily the responsibility of the Company’s corporate finance function and are monitored by the Board of Directors. The Company manages the capital structure and makes adjustments depending on economic conditions. Funds have been primarily secured through profitable operations and issuances of equity capital. The Company invests all capital that is surplus to its immediate needs in short-term, liquid and highly rated financial instruments, such as cash and other short-term deposits, all held with major financial institutions. Significant risks are monitored and actions are taken, when necessary, according to the Company’s approved policies.

 

23.FINANCIAL INSTRUMENTS

 

The Company manages its exposure to financial risks, including liquidity risk, foreign exchange risk, interest rate risk, credit risk and equity price risk in accordance with its risk management framework. The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework and reviews the Company’s policies on an ongoing basis.

 

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SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

(a)Fair value

 

The Company classifies its fair value measurements within a fair value hierarchy, which reflects the significance of the inputs used in making the measurements as defined in IFRS 13, Fair Value Measurement (“IFRS 13”).

 

Level 1 – Unadjusted quoted prices at the measurement date for identical assets or liabilities in active markets.

 

Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

 

Level 3 – Unobservable inputs which are supported by little or no market activity.

 

The following tables set forth the Company’s financial assets and liabilities that are measured at fair value level on a recurring basis within the fair value hierarchy as at June 30, 2025 and March 31, 2025 that are not otherwise disclosed. As required by IFRS 13, the assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

 

   Fair value as at June 30, 2025 
   Level 1   Level 2   Level 3   Total 
Financial assets                
Cash and cash equivalents  $376,112   $—   $—   $376,112 
Short-term investments   1,021    —    —    1,021 
Other investments   21,949    —    2,534    24,483 
                     
Financial liability                    
Derivative liabilities   —    55,625    —    55,625 

 

   Fair value as at March 31, 2025 
Recurring measurements  Level 1   Level 2   Level 3   Total 
Financial assets                
Cash and cash equivalents  $363,978   $—   $—   $363,978 
Short-term investments - money market instruments   4,762    —    —    4,762 
Investments in public companies   14,743    —    —    14,743 
Investments in private companies   —    —    2,534    2,534 
Financial liability                    
Derivative liabilities   —    50,768    —    50,768 

 

Financial assets classified within Level 3 are equity investments in private companies and one public company which are suspended from quotation owned by the Company. Significant unobservable inputs are used to determine the fair value of the financial assets, which includes recent arm’s length transactions of the investee, the investee’s financial performance as well as any changes in planned milestones of the investees.

 

Fair value of the other financial instruments excluded from the table above approximates their carrying amount as at June 30, 2025 and March 31, 2025, due to the short-term nature of these instruments.

 

There were no transfers into or out of Level 3 during the three months ended June 30, 2025 and 2024.

 

(b)Liquidity risk

 

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they arise. The Company manages liquidity risk by monitoring actual and projected cash flows and matching the maturity profile of financial assets and liabilities. Cash flow forecasting is performed regularly to ensure that there is sufficient capital in order to meet short-

 

28

 

 

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

term business requirements, after considering cash flows from operations and our holdings of cash and cash equivalents, and short-term investments.

 

In the normal course of business, the Company enters into contracts that give rise to commitments for future minimum payments. The following summarizes the remaining contractual maturities of the Company’s financial liabilities and operating commitments on an undiscounted basis.

 

   June 30, 2025 
   Within a year   2-5 years   Total 
Accounts payable and accrued liabilities  $68,172   $—   $68,172 
Deposits received   13,365    —    13,365 
Convertible notes  $7,125   $174,967    182,092 
Lease obligation   352    1,296    1,648 
Total Contractual Obligation  $89,014   $176,263   $265,277 

 

(c)Foreign exchange risk

 

The Company reports its financial statements in US dollars. The functional currency of the head office, Canadian subsidiaries, intermediate holding companies, and subsidiaries in Ecuador, is the US dollar. The functional currency of all Chinese subsidiaries is the Chinese yuan (“RMB”). The Company is exposed to foreign exchange risk primarily relating to financial instruments that are denominated in RMB, which would impact the Company’s other comprehensive income or loss; and financial instruments that are denominated in the Canadian dollar (“CAD”) and the Australian dollar (“AUD”), which would impact the Company’s net income.

 

The Company currently does not engage in foreign exchange currency hedging. The sensitivity of the Company’s other comprehensive income or loss and net income due to the exchange rates of the U.S. dollar against RMB, CAD, and AUD as at June 30, 2025 is summarized as follows:

 

Currency  Cash and cash equivalents   Short-term investments   Trade and other receivables   Due from related parties   Prepaids
and deposits		   Other investments   Accounts payable and accrued liabilities   Lease liabilities   Total   Effect of +/- 10% change in exchange rate 
RMB  $147,548   $698   $230   $—   $5,049   $—   $(62,889)  $—   $90,636   $9,064 
CAD   1,125    24    3    280    351    20,370    (906)   (1,152)   20,095    2,010 
AUD   264    —    —    —    —    1,509    —    —    1,773    177 
   $148,937   $722   $233   $280   $5,400   $21,879   $(63,795)  $(1,152)  $112,504   $11,251 

 

(d)Interest rate risk

 

Interest rate risk is the risk that the fair values and future cash flows of the Company will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk on its cash and cash equivalents, short-term investments, lease liabilities, convertible notes, and the mark-to-market value of derivative instruments. All of the Company’s cash, cash equivalents and short-term investments earn interest at market rates that are fixed to maturity or at variable interest rates. Due to the short-term nature of these financial instruments, fluctuations in interest rates would not have a significant impact on the Company’s net income.

 

As at June 30, 2025, the Company had $1.4 million lease obligation that are subject to annualized interest rate ranging from 7.0% to 15.6%, and $110.2 million convertible notes liabilities that are discounted at 12.6% of the Company’s unsecured senior convertible notes. The principle of the convertible note is $150.0 million bearing a fixed coupon rate of 4.75% with a maturity date of December 15, 2029. As the amount of the lease obligation is immaterial and the convertible notes bear interest at fixed rates, they are not subject to significant interest rate risk.

 

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SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

As at June 30, 2025, the Company had $55.6 million mark-to-market value derivative liabilities. With other assumptions unchanged, an increase or decrease of 10 basis points of market interest rate would have resulted in an increase (decrease) to the net income of approximately $0.2 million.

 

(e)Credit risk

 

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company is exposed to credit risk primarily associated to accounts receivable, due from related parties, cash and cash equivalents, and short-term investments. The carrying amount of assets included on the statements of financial position represents the maximum credit exposure.

 

The Company undertakes credit evaluations on counterparties as necessary, requests deposits from customers prior to delivery, and has monitoring processes intended to mitigate credit risks. There were no material amounts in trade or other receivables which were past due on June 30, 2025 (March 31, 2025 - $nil).

 

(f)Equity price risk

 

The Company holds certain marketable securities that will fluctuate in value as a result of trading on financial markets. As the Company’s marketable securities holdings are mainly in mining companies, the value will also fluctuate based on commodity prices. Based upon the Company’s portfolio as at June 30, 2025, a 10% increase (decrease) in the market price of the securities held, ignoring any foreign currency effects, would have resulted in an increase (decrease) to the net income of $2.4 million.

 

The fair value of the Company’s derivative liabilities will also fluctuate based on the market price of the Company’s common shares, and with other assumptions unchanged, a 10% increase in the Company’s share price would result in a decrease to the net income of $10.1 million while a 10% decrease in the Company’s share price would result in an increase to the net income of $4.7 million.

 

(g)Metal price risk

 

The Company primarily produces and sells silver, lead, zinc, gold and other metals. In line with market practice, the Company prices its metal concentrates based on the quoted market prices and the head grades of its metal concentrates. The Company’s sales price for silver is fixed against the Shanghai White Platinum & Silver Exchange as quoted at www.ex-silver.com; lead and zinc are fixed against the Shanghai Metals Exchange as quoted at www.shmet.com; and gold is fixed against the Shanghai Gold Exchange as quoted at www.sge.com.cn.

 

The Company’s revenues, if any, are expected to be in large part derived from the mining and sale of silver, lead, zinc, and gold contained in metal concentrates. The prices of those commodities have fluctuated widely, particularly in recent years, and are affected by numerous factors beyond the Company’s control including international and regional economic and political conditions; emerging risks related to pandemics; expectations of inflation; currency exchange fluctuations; interest rates; global or regional supply and demand for jewelry and industrial products containing silver and other metals; sale of silver and other metals by central banks and other holders, forward selling activities, speculators and producers of silver and other metals; availability and costs of metal substitutes; and increased production due to new mine developments and improved mining and production methods. The effects of these factors on the price of base and precious metals, and therefore the viability of the Company’s exploration projects and mining operations, cannot be accurately predicted and thus the price of base and precious metals may have a significant influence on the market price of the Company’s shares and the value of its projects.

 

If silver and other metal prices were to decline significantly for an extended period of time, the Company may be unable to continue operations, develop its projects, or fulfil obligations under agreements with the Company’s non-controlling interest holders or under its permits or licenses.

 

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SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

 

(Unaudited - Tabular amounts are in thousands of U.S. dollars, except numbers for share and per share figures or otherwise stated)

 

24.SUPPLEMENTARY CASH FLOW INFORMATION

 

(a)Table below summarizes the information about changes in non-cash operating working capital:

 

   Three Months Ended June 30,
Changes in non-cash operating working capital:  2025    2024  
Trade and other receivables  $352   $1,721 
Inventories   (1,315)   (4,106)
Prepaids and deposits   (363)   (3,069)
Accounts payable and accrued liabilities   5,169    6,548 
Deposits received   5,951    (22)
Due from a related party   (122)   (549)
   $9,672   $523 

 

(b)Table below summarizes the information related to non-cash capital transactions:

 

   Three Months Ended June 30,
Non-cash capital transactions:  2025    2024  
Environmental rehabilitation expenditure paid from reclamation deposit  $(8)  $— 
Additions of plant and equipment included in accounts payable and accrued liabilities   (1,007)   828 
Capital expenditures of mineral rights and properties included in accounts payable and accrued liabilities  $(564)  $2,443 

 

(c)Table below summarizes the information related to cash and cash equivalents:

 

   June 30, 2025   March 31, 2025 
Cash on hand and at bank  $66,457   $236,457 
Bank term deposits and short-term money market investments   309,655    127,521 
Total cash and cash equivalents  $376,112   $363,978 

 

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