Silvercorp Metals Acquires Kyrgyz Gold Projects as Net Income Drops
The mining company reported net income of $32.9 million for the year ended March 31, 2026, down from $78.8 million in the prior year.
Silvercorp Metals Inc. (SVM), a company engaged in the acquisition, exploration, development, and mining of mineral properties, expanded its geographical footprint into Central Asia through the acquisition of a 100% interest in Chaarat ZAAV CJSC on January 27, 2026. The acquisition includes the fully-permitted Tulkubash and Kyzyltash gold projects and exploration licenses for the Karator and Ishakuld gold zones.
Following the purchase, the company entered into a Cooperation Agreement with the National Investment Agency under the President of the Kyrgyz Republic to convert the entity into a joint venture. Silvercorp Metals will hold a 70% interest and act as the operator, while the state-owned entity Kyrgyzaltyn will hold a 30% free-carried interest.
Financial results for the year ended March 31, 2026, showed a rise in revenue to $438.1 million from $298.9 million in the previous year. Income from mine operations increased to $253.7 million from $123.6 million. However, net income fell to $32.9 million from $78.8 million.
The decline in net income was influenced by a significant increase in the loss on derivative liabilities, which rose to $178.5 million from $9.0 million. Additionally, finance costs increased to $13.6 million from $6.7 million.
Cash flow from operating activities rose to $310.6 million from $138.6 million. The company utilized $229.3 million in investing activities, including $116.4 million for mineral exploration and development expenditures and $91.7 million for the acquisition of Chaarat ZAAV CJSC.
Net income attributable to equity holders of the company was a loss of $9.9 million, compared to earnings of $58.2 million in the prior year. This resulted in a basic loss per share of 0.05 US dollars, compared to earnings of 0.29 US dollars a share in the previous period.
Total equity attributable to equity holders rose to $941.0 million from $702.7 million. This increase included a reclassification of derivative liability to equity totaling $223.9 million. The company distributed $5.5 million in cash dividends during the year.