Silvercorp Metals (TSE:SVM) (NYSEMKT:SVM), primarily known for silver mining, has announced high-grade silver-lead findings from its ongoing drilling program at the SGX mine located in China’s Ying Mining District.
The mining company’s aggressive drilling campaign, which spanned from January 2022 to mid-June 2023, completed a total of 88,194 meters across 488 diamond drill holes. Out of these, 280 holes intersected mineralization, marking the presence of valuable metals.
Several intercepts were noted for their high concentrations of silver, lead, zinc, and copper, found at different elevations and depths. For instance, at an elevation of 849 meters, high-grade silver, lead, zinc, and copper were found over an interval of 0.51 meters. In another finding, an interval of 2.07 meters at 697 meters elevation revealed significant amounts of silver, lead, zinc, and copper.
This drilling program was strategically focused on three areas: vein structures within the resource area at higher elevations, areas above or below previously-mined stopes, and new vein structures southeast of the resource area.
These successful high-grade intercepts affirm the potential of the SGX mine and can lead to an expansion and upgrading of resources. This not only bolsters Silvercorp’s position but also promises increased profitability in the future, making this a significant milestone for the company.
Is Silvercorp Profitable?
Speaking of profitability, Silvercorp is not one of those unprofitable mining companies. It has been consistently profitable both in terms of free cash flow and net income for several years in a row. For example, its free cash flow for Fiscal 2023 came in at above US$30 million. For extra context, its market cap is about US$500 million. Therefore, for investors interested in silver mining stocks, this is one to consider.
Is SVM Stock a Buy, According to Analysts?
According to analysts, Silvercorp stock comes in as a Strong Buy based on three unanimous Buy ratings assigned in the past three months. The average SVM stock price target of C$8.53 implies 126.3% upside potential.
