Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) has updated the construction budget and schedule for its El Domo Project in Ecuador, raising the total budget to $298.2 million, an increase of $14.6 million from the $283.6 million estimate released on February 4, 2026. The company also announced a four-month delay in its anticipated production schedule, with production now targeted for November 2027, subject to weather conditions and contractor performance.
The budget increase primarily reflects higher diesel fuel costs following the elimination of Ecuadorian fuel subsidies, additional water management infrastructure, power supply requirements and processing plant construction costs. These increases were partially offset by $9.8 million in budget reductions, including construction efficiencies and a lower contingency allowance.
The delay follows extended rainfall attributed to Super El Nino, which has affected tailings storage facility construction and water management work. As of September 30, 2026, the company had spent $90.9 million on the project, with $207.3 million in remaining budgeted expenditures. Site preparation for the processing plant has been completed, foundation construction is underway and most processing equipment has been ordered.
The announcement matters for investors because it signals rising capital costs and a later timeline for a key growth asset. Silvercorp, a Canadian mining company producing silver, gold, lead and zinc, has positioned El Domo as part of its organic growth strategy. The budget overrun and schedule slip could pressure near-term cash flow expectations and require careful cost management as the company continues to fund the remaining $207.3 million in expenditures.
For a deeper look at the full press release, visit https://ibn.fm/VLMfS. The latest news and updates relating to SVM are available in the company’s newsroom at https://ibn.fm/SVM.
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