Silvercorp Metals (SVM) Acquires 70% Stake in Chaarat ZAAV for $162M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Acquisition Deal: Silvercorp has agreed to acquire a 70% stake in Chaarat ZAAV for $162 million in cash, which holds the mining license for the Tulkubash/Kyzyltash gold projects in the Kyrgyz Republic, marking a strategic expansion in the region.
- Joint Venture Operation: The company has partnered with state miner Kyrgyzaltyn to convert the asset into a joint venture, where Silvercorp will operate and own 70%, while Kyrgyzaltyn receives a 30% free-carried stake, ensuring mutual benefit.
- Investment Commitment: Silvercorp plans to invest $150 million to build a 4 million metric tons/year open-pit mine and heap leach operation, followed by an additional $400 million to develop the Kyzyltash sulfide deposit, significantly enhancing production capacity and market competitiveness.
- Future Production Outlook: Once operational, the Kyzyltash sulfide deposit is expected to produce between 190,000 and 230,000 ounces of gold annually for over 18 years starting in 2031, providing stable cash flow and revenue for the company.
Analyst Views on SVM
Wall Street analysts forecast SVM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SVM is 8.82 USD with a low forecast of 8.65 USD and a high forecast of 9.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 11.310
Low
8.65
Averages
8.82
High
9.00
Current: 11.310
Low
8.65
Averages
8.82
High
9.00
About SVM
Silvercorp Metals Inc. is a Canadian mining company producing silver, gold, lead, and zinc. The Company operates several silver-lead-zinc mines at the Ying Mining District in Henan Province, China and the GC silver-lead-zinc mine in Guangdong Province, China. The Company’s producing mines are located in China, and exploration and development projects are located in China and Ecuador. In the Ying Mining District, it has about seven underground mines (SGX, HZG, HPG, TLP, LME, LMW and DCG) and two processing plants (combined 2,500 tpd capacity), which are located approximately 240 kilometers (km) west-southwest of Zhengzhou, the capital city of Henan Province, China. The GC silver-lead-zinc mine is located approximately 200 km west of Guangzhou, the capital city of Guangdong Province, China. The BYP Mine is located approximately 220 km southwest of Changsha, the capital city of Hunan Province, China. It is also focused on the El Domo Project, Condor Project, and Kuanping projects.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
