Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) has released results from a Preliminary Economic Assessment for its Condor gold project in Ecuador, revealing strong economic potential based on a Mineral Resource Estimate prepared in accordance with NI 43-101 standards. The PEA outlines an after-tax net present value of $522 million at a 5% discount rate and an internal rate of return of 29% using base-case metal price assumptions. These financial metrics improve substantially under near-spot price conditions, with the after-tax NPV rising to $1.56 billion and IRR reaching 61%.
The project's economic significance extends beyond these headline numbers. With a projected 13-year mine life, the operation would produce payable gold, silver, zinc, and lead, requiring initial capital costs of $292 million. The assessment indicates a three-year post-tax payback period and an average life-of-mine all-in sustaining cost of $1,258 per ounce of gold net of by-product credits. These figures suggest the project could deliver competitive operating margins while contributing to global mineral supply.
For investors and the mining industry, these results demonstrate the potential for value creation through disciplined project development. The company's strategy focuses on generating free cash flow from long-life mines while maintaining commitment to responsible mining practices and environmental, social, and governance principles. The positive PEA results provide a foundation for further technical studies and potential development decisions that could bring new mineral production to Ecuador's mining sector.
The latest news and updates relating to Silvercorp Metals are available in the company's newsroom at https://ibn.fm/SVM. The full press release detailing the PEA results can be viewed at https://ibn.fm/ggjQY. These developments occur within a broader context of increasing demand for precious and base metals, making economically viable projects like Condor strategically important for meeting global supply needs while creating shareholder value through responsible resource development.
