This article is based on the interview with Lon Shaver. This is a paid/sponsored content!

Silver prices have flirted with $50 per ounce multiple times this year—surging past the mark, retreating, and now reclaiming it. Behind the volatility lies a confluence of bullish fundamentals, renewed investor interest, and operational leverage at producers like Silvercorp Metals (TSX: SVM; NYSE American: SVM). Silvercorp President Lon Shaver shared his insights on the silver rally, the company’s record quarterly performance, and a pipeline of near-term catalysts across China and Ecuador.

The Silver Price Rally: Gold’s Halo and Structural Tailwinds

Shaver attributes silver’s ascent primarily to gold’s leadership in the precious metals complex. “The move in silver prices has obviously been driven off and lagged the big uptick that we saw in gold,” Shaver said. “As investors have been feeling more positive towards gold, that positive sentiment has rubbed off on silver.”

Layered on top is silver’s robust supply-demand equation. Demand remains resilient across industrial, jewelry, and investment channels, while primary supply faces structural headwinds.

“New mines or getting more production out of existing mines isn’t the easiest thing in the world these days because of permitting challenges,” Shaver noted.

Global primary silver mine production has been in long-term decline, with ~70% of supply now coming as a byproduct of base metals mining (copper, lead, zinc). This dynamic leaves the market vulnerable to disruptions in polymetallic operations.

Primary Producers: Capital, Permitting, and Funding Hurdles

For dedicated primary silver producers like Silvercorp, scaling output is a multi-year endeavor.

“Do you have the ability to permit that growth? Do you feel comfortable with the long-term price of silver to make those capital investments? Where does the funding come from?”, Shaver asked rhetorically.

The recent commodity rally has reopened equity markets, enabling producers to raise growth capital. Shaver highlighted recent permitting successes for silver projects as evidence that supply response is stirring—though none materialize overnight.

“We may see some supply coming on, but I think we could still have a reasonably tight market,” he concluded.

Investor Sentiment: Green Shoots, Not a Stampede—Yet

Investment demand via ETFs and physical bars has been a wild card, with record inflows in markets like India. Shaver sees sentiment tracking end-consumer confidence.

“As long as the view of the commodity is positive, those funds will flow into those products,” he said. “The institutional market will have more money to play with—to buy the underlying commodities or equities.”

The mining investment community, however, awaits the inflection point: generalist investors rotating en masse into the sector.

“I don’t think we’ve seen a big shift yet… But there’s enough green shoots out there where people are talking about it,” Shaver observed. “As long as we don’t have prices collapse—which I don’t think is going to be the case—we’ll gradually win more converts.”

Notably, physical holders largely refrained from selling into the $50 spike. In Europe, where VAT and premiums apply, $50 USD translates closer to $70 equivalent—further insulating retail stacks.

Site Visit to Ying: Dispelling Myths, Discovering Scale

Shaver recently led analysts from Cantor Fitzgerald, Cormark Securities, and a Chinese brokerage—plus a buy-side investor—on a tour of Silvercorp’s flagship Ying mining district in Henan Province, China.

“For the two analysts, it was the first time seeing a mine in China—and even visiting the country,” Shaver said. “They left with very positive impressions of both.”

Ying operates at Western standards: modern, mechanized, and efficient. Despite 20 years of continuous production, the district continues to yield resource upside.

Key Observations from the 2025 visit:

· EV truck fleet expansion for ore haulage.

· Robotic arm deployment in the mill for reagent handling.

· New long-hole stope in a wider, higher-volume zone—enabling larger-scale mining than historical selective methods.

“We were able to visit a long-hole stope… It was interesting to see larger-scale operations being run at Ying,” Shaver said.

Q2 Fiscal 2026: Leverage in Action

Silvercorp reported strong Q2 results, driven by higher realized prices and operational efficiencies.

“Really the kind of quarter that shows the power that Ying has to deliver profits,” Shaver said.

AISC benefited from mechanization-driven cost reductions per tonne and strong byproduct credits (gold, lead, zinc). Shaver expects mine-site costs to remain controlled, though AISC will fluctuate with byproduct volumes and pricing.

Balance Sheet: Fully Funded and Acquisition-Ready

Silvercorp closed the quarter with a robust cash position, bolstered post-period by the first $44M installment of a $175M stream from Wheaton Precious Metals for the El Domo project.

“We’re fully funded to build El Domo… We’ve built this cash position to be out there aggressively looking at opportunities—operating mines or development projects,” Shaver said.

Ecuador Pipeline: El Domo and Condor

El Domo (Curipamba Project, Ecuador)

Construction is advancing:

· 480-person camp now installed.

· Tailings dam and site infrastructure underway.

· Bid package #2 (mining contractor for pre-stripping) expected to be awarded by month-end November 2025.

· Equipment deposits placed; final metallurgical results pending (base case or better).

Condor (Gold Project, Ecuador)

· PEA completion targeted for year-end 2025 (possible early January 2026).

· Permitting in progress for two exploration tunnels to access high-grade structures—tunnels convertible to production declines.

Strategic Stake in New Pacific Metals

Silvercorp remains the largest shareholder in New Pacific Metals (TSX: NUAG; NYSE American: NEWP), participating in a recent financing to maintain its position.

“The priority right now is permitting efforts… but we may see more technical work at Carangas—looking at the big gold resource underneath the silver zone,” Shaver said.

Non-Core Asset: BYP Gold Potential

The BYP project in China—previously on care and maintenance as a lead-zinc mine—hosts a 500,000-ounce gold resource. In the current gold price environment, Silvercorp is pursuing a mining permit to reopen as a gold operation.

“Should we be successful… we’ll have a decision: sell, spin out, or develop,” Shaver said.

Valuation and Re-Rating Potential

Shaver believes Silvercorp tracks peers but remains undervalued relative to its portfolio.

“As we continue demonstrating profitability at Ying, bringing on Ecuadorian projects, and potentially others—there’s potential for a re-rate,” he said.

Upcoming Catalysts

1. Condor PEA – End-2025 / early January 2026

2. El Domo construction milestones – Camp operational, mining contract award, met test results

3. BYP permitting decision

4. M&A updates – Aggressive evaluation of global opportunities

The Interview

Conclusion

Silvercorp Metals enters 2026 with operational cash flow, a fully funded growth project, and multiple optionality levers. As Lon Shaver concluded: “The next real notable updates will be Ecuador-focused—demonstrating progress toward production and identifying Condor as a new growth asset.”

Disclaimer: This article is not a recommendation to buy any shares, products, or services. Always conduct your due diligence and consult with a financial advisor. Read the full disclaimer