SVM Declines 33.4% in a Month: How Should You Play the Stock Now?

Zacks11-29

Silvercorp Metals SVM had a challenging month, plunging 34.7%, significantly underperforming the industry’s decline of 6.2%. Meanwhile, the Zacks Basic Materials sector has slipped 3.4%, while the S&P...

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Meanwhile, the Zacks Basic Materials sector has slipped 3.4%, while the S&P...</p>\n\n<a href=\"https://finance.yahoo.com/news/svm-declines-33-4-month-172700362.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SVM Declines 33.4% in a Month: How Should You Play the Stock Now?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSVM Declines 33.4% in a Month: How Should You Play the Stock Now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-29 01:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/svm-declines-33-4-month-172700362.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Silvercorp Metals SVM had a challenging month, plunging 34.7%, significantly underperforming the industry’s decline of 6.2%. Meanwhile, the Zacks Basic Materials sector has slipped 3.4%, while the S&P...</p>\n\n<a href=\"https://finance.yahoo.com/news/svm-declines-33-4-month-172700362.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"EXK","symbol_name":"Endeavour Silver","start_time":0,"source_url":"https://finance.yahoo.com/news/svm-declines-33-4-month-172700362.html","article_id":"2487134423","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/DtMjEj1Q1JAiwxconmtpAg--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/c83f1362322c6aa3cb05fe7d76e52ffe"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2487134423","pubTimestamp":1732814820,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Silvercorp Metals SVM had a challenging month, plunging 34.7%, significantly underperforming the industry’s decline of 6.2%. Meanwhile, the Zacks Basic Materials sector has slipped 3.4%, while the S&P 500 has risen 3.3%.The SVM stock first witnessed a 10% fall in a day following SVM’s second-quarter fiscal 2025 results on Nov. 7. This also coincided with the Fed announcing a rate cut that weighed on commodity prices. Disappointing stimulus measures from China might also have affected the stock’s performance. On Nov. 20, the SVM stock took another major hit, falling 12%  after announcing a private placement offering of convertible senior notes on Nov. 19, 2024.However, SVM had its ups as well. On Nov. 15, Silvercorp announced that the Provincial Court of Bolivar dismissed the appeal challenging El Domo’s environmental license. SVM can now advance the project's construction, resolving a significant concern and boosting the stock by 5%. The high-margin, advanced El Domo project is expecte","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"EXK":"Endeavour Silver","LU0345780521.USD":"NINETY ONE GSF GLOBAL GOLD \"A\" (USD) INC","DOMO":"Domo Inc.","LU0345780281.USD":"NINETY ONE GSF GLOBAL GOLD \"A\"  ACC","BK4570":"地缘局势概念股","BK4210":"白银","ROE":"ASTORIA US QUALITY KINGS ETF","LU1223083913.SGD":"Schroder ISF Global Gold A Acc SGD-H","SVM":"希尔威","PAAS":"泛美白银","HL":"赫克拉矿业","BK4585":"ETF&股票定投概念","LU1223082196.USD":"施罗德环球黄金A Acc","BK4588":"碎股","BK4023":"应用软件"},"translate_title":"SVM一个月下跌33.4%：现在该怎么玩股票？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EXK":1,"HL":1,"PAAS":1,"ROE":1,"SVM":1,"DOMO":0.9},"content_text":"Silvercorp Metals SVM had a challenging month, plunging 34.7%, significantly underperforming the industry’s decline of 6.2%. Meanwhile, the Zacks Basic Materials sector has slipped 3.4%, while the S&P 500 has risen 3.3%.\nThe SVM stock first witnessed a 10% fall in a day following SVM’s second-quarter fiscal 2025 results on Nov. 7. This also coincided with the Fed announcing a rate cut that weighed on commodity prices. Disappointing stimulus measures from China might also have affected the stock’s performance. On Nov. 20, the SVM stock took another major hit, falling 12% (its steepest single-day drop in 2024) after announcing a private placement offering of convertible senior notes on Nov. 19, 2024. \nHowever, SVM had its ups as well. On Nov. 15, Silvercorp announced that the Provincial Court of Bolivar dismissed the appeal challenging El Domo’s environmental license. SVM can now advance the project's construction, resolving a significant concern and boosting the stock by 5%. The high-margin, advanced El Domo project is expected to enhance Silvercorp’s near-term production profile.\nSVM Lags Industry, Sector & S&P 500\nImage Source: Zacks Investment Research\nThe SVM stock is currently trading below its 50-day moving average, indicating a bearish trend.\nSVM Trades Below the 50-Day Moving Average\nImage Source: Zacks Investment Research\nDespite this drop in the past month, Silvercorp stock has managed to yield an 18.2% gain in the past year, faring better than the industry’s 7.5% decline. Is the current market reaction to SVM’s fiscal second-quarter results overdone? Does this pullback in SVM prices present a buying opportunity? Let us find out.\nAnalyzing Silvercorp’s 2Q25 Results\nSilvercorp reported adjusted earnings per share of 9 cents in the second quarter of fiscal 2025 compared with 7 cents in the prior-year quarter. Revenues improved 26% year over year to $68 million. While earnings beat the Zacks Consensus Estimate, revenues were in line. \nTop-line growth was driven by higher realized selling prices for gold (20%), silver (34%), lead (15%) and zinc (43%). Silver and zinc sales rose 29% and 4% year over year, respectively. This was, however, offset by a decline in gold and lead sales volumes of 51% and 13%, respectively, due to lower production.SVM produced 1.75 million ounces of silver (down 4% year-over-year), 13.2 million pounds of lead (down 18%), 5.8 million pounds of zinc (up 26%) and 1,183 ounces of gold (down 52%). This lagged expectations, with the shortfall attributed to lower milling rates at Ying.\nWe believe that the decline in gold output limited Silvercorp’s ability to fully benefit from the solid rally in gold prices in the quarter, which would have otherwise further boosted revenues.\nSVM Buys Adventus to Diversify Assets, Geography & Metals\nIn July, Silvercorp acquired Adventus Mining Corporation, a Canada-based company focused on exploring and developing its mineral properties in Ecuador. Through the acquisition, SVM gained access to 75% interest in the El Domo project, a permitted, pre-construction stage copper-gold project, and a 98.7% interest in the Condor project, a development stage gold project. \nEl Domo has a 10-year mine life, with an average annual production of 10,463 tons per annum of copper and 21,390 tons of copper equivalent over the life of the mine. However, a litigation brought by a group of plaintiffs concerning the environmental license for the El Domo Project had been a major concern for Silvercorp. Now that it has been cleared, SVM can advance the project. \nThis buyout will help SVM diversify its mining assets and enhance its market presence in Latin America. Currently, the company’s only two producing properties are in China — the Ying Mining District and GC Mine. This subjects Silvercorp to higher risks than companies with assets in more developed jurisdictions like the United States and Canada. Bringing El Domo and Condor to production will help the company mitigate this risk.\nEstimate Trend for Silvercorp Instills Optimism\nThe Zacks Consensus Estimate for SVM’s earnings for fiscal 2024 and fiscal 2024 has moved north over the past 60 days, as shown in the chart below.\nImage Source: Zacks Investment Research\nStay up-to-date with all quarterly releases: See Zacks Earnings Calendar.\nSVM’s Investment in Projects to Drive Growth\nThe company has been spending heavily on underground development, constructing the third tailings storage facility and mill expansion activities at Ying, and the newly acquired El Domo and Condor projects. \nAs of the end of second-quarter fiscal 2025, the company had $209.5 million in cash and cash equivalents, and short-term investments. It holds a portfolio of equity investment in associates and other companies, with a total market value of $84.4 million as of Sept. 30, 2024. The company’s total debt-to-total capital was 0.1% as of Sept. 30, 2024, much lower than the industry’s 18%.\nTo boost productivity at the Ying Mining District, the company will continue its planned tunneling development program by adding various ramps and other development tunnels to connect mining areas and facilitate improved access throughout the mine. At the El Domo Project, SVM expects to finalize the project execution planning and detailed engineering, and engage contractors to begin the road access and site construction work in the next two quarters.\nThe company closed the above-mentioned offering of $150-million aggregate principal amount of 4.75% convertible senior notes due 2029 on Nov. 25. Silvercorp intends to use the proceeds for the construction of copper-gold mining projects outside China; the exploration and development of other projects; and generating working capital.\nSVM expects to increase production to 8 million silver equivalent (\"AgEq\") ounces in 2025. Lead and Zinc output is expected to be 95 million pounds.\nSilvercorp Set to Gain on Higher Metal Prices\nThe silver market is set to see a sizeable structural deficit in 2024 for the fourth consecutive year. Exchange-traded products are on track for their first annual inflows in three years as expectations of Fed rate cuts, periods of dollar weakness and falling yields have raised silver’s investment appeal. Gold is also expected to trend higher.\nCopper prices have increased lately on expectations of stronger demand from China’s appliance and automotive sectors. Investors are hopeful that Beijing will introduce more stimulus measures to bolster economic growth and offset the impacts of Trump’s tariff policies, further lending support to copper prices. Global decarbonization and electrification are anticipated to fuel demand for silver and copper. Upbeat prospects for metal prices bode well for SVM’s results.\nSVM’s Margins & Returns Ahead of Peers\nSilvercorp operates low-cost mines that generate consistent cash flow. SVM’s trailing EBITDA margin is at 41.53%, way ahead of its peers.\nImage Source: Zacks Investment Research\nSVM’s return on equity (ROE) — a profitability measure of how prudently the company utilizes its shareholders’ funds — is 8.12%, higher than the industry’s 1.65%.\nImage Source: Zacks Investment Research\n \nAverage Target Price for SVM Suggests Solid Upside\nBased on short-term price targets offered by five analysts, the average price target is $5.42 per share. The average suggests a 63.2% upside from yesterday’s closing price.\nImage Source: Zacks Investment Research\n \nSVM’s Valuation Attractive\nSilvercorp is currently trading at forward price/earnings of 10.24X compared with the industry's 13.01X. It also has a Value Score of A.\nImage Source: Zacks Investment Research\nThe company is also less expensive than peers like Pan American Silver PAAS, Hecla Mining HL and Endeavour Silver EXK, which are trading at forward price/earnings of 15.42X, 19.45 and 12.45, respectively.\nFinal Thoughts on SVM Stock\nWe believe that the recent decline in the SVM stock reflected the anticipated impacts of the ongoing litigation of the El Domo project, lower than the expected production in the fiscal second quarter. With the appeal being dismissed and SVM set to advance the El Domo project, it is expected to be a key growth driver. Since the company’s production is currently based in China, developing projects in other regions will help mitigate risks. Retaining this Zacks Rank #3 (Hold) stock in your portfolios will be prudent now.\nYou can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nHecla Mining Company (HL) : Free Stock Analysis Report\nSilvercorp Metals Inc. (SVM) : Free Stock Analysis Report\nPan American Silver Corp. (PAAS) : Free Stock Analysis Report\nEndeavour Silver Corporation (EXK) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2487134423"}