Targeted Strategies for Today's Evolving Markets

• Copper prices jumped 17% last week after U.S. President Donald Trump announced potential 50% tariffs on the industrial metal.
• Global copper market is forecast to reach $253.82 billion by 2029, driven by the rapid rise of EVs, renewable energy, and infrastructure investment.
• Supply risks in key producing regions like Chile and Peru support new project development in other jurisdictions.
• Silvercorp’s El Domo copper-gold project in Ecuador is slated for production by late 2026.
• Backed by strong cash flow from its existing silver operations in China, Silvercorp is growing and diversifying its portfolio at a critical time for the copper market.

Copper prices jumped 17% last week after U.S. President Donald Trump announced potential 50% tariffs on the industrial metal. The move comes amid widespread expectations of a significant rise in global copper demand over the next decade, supported by accelerating demand across construction, electric vehicles (“EVs”), renewable energy infrastructure, and electronics. As this momentum builds, Canadian mining company Silvercorp Metals (NYSE-A/TSX: SVM), is expected to benefit through the development of its copper-gold El Domo project in Ecuador, alongside existing silver and base metal operations in China.

According to a Research and Markets report, the global copper market is expected to grow from $176.88 billion in 2024 to $253.82 billion by 2029, registering a compound annual growth rate (“CAGR”) of 7.4 (https://ibn.fm/2KQBK). The expansion is being driven by key global trends including the rapid rise of EV adoption, 5G rollouts, and urban infrastructure investment, all sectors where copper plays an essential role due to its superior conductivity and durability.

Copper is increasingly indispensable to the energy transition. From EV batteries to solar panels and grid upgrades, demand is expected to intensify over the next decade. EVs, for example, require nearly four times as much copper as internal combustion engine vehicles. The International Energy Agency reported that over 8 million EVs were sold in China in 2022 alone, a 35% increase from the prior year’s volume, highlighting copper’s growing role in transport electrification.

Though China remains the largest single consumer of copper, Mordor Intelligence notes that the greater Asia-Pacific region will continue to dominate overall copper demand due to its expanding construction and electronics sectors. India is increasing its copper use as public infrastructure, housing, and medical device manufacturing ramp up (https://ibn.fm/DY1ET).

While demand rises, long-term supply remains vulnerable. A recent PwC report warned that 32% of global semiconductor production could face copper supply disruptions by 2035 due to water stress in mining regions such as Chile and Peru (https://ibn.fm/B6AjN). Copper is integral to chipmaking, and disruptions in its availability could ripple through electronics, automotive, and industrial sectors. PwC estimates that 25% of Chile’s copper production is at risk of disruptions today, rising to 75% within a decade and to between 90% and 100% by 2050.

This context raises the strategic value of projects in less water-stressed regions—such as Silvercorp’s El Domo. The company has built an 18-year track record in China, with Fiscal 2025 marking record revenues of nearly $299 million, is expanding its exposure to copper via El Domo, a high-grade copper-gold volcanogenic massive sulfide (“VMS”) deposit in central Ecuador. For Silvercorp, El Domo represents a strategic diversification of its asset base and commodity exposure.

El Domo, located roughly 150 kilometers from Guayaquil, Ecuador’s principal port city, is fully permitted and in its construction phase. Silvercorp expects to bring El Domo into production by the end of 2026 at a cost of $240.5 million, below the 2021 feasibility estimate of $247.6 million. The site benefits from strong infrastructure, including nearby roads and proximity to Ecuador’s national power grid.

The flat-lying deposit begins just 30 meters from surface, with dimensions of approximately 800 by 400 meters. This geometry supports cost-efficient development and open-pit mining potential. The site is accessible via well-maintained gravel roads, and its low elevation (300 to 900 meters above sea level) further eases logistics and operational planning.

Once in production, copper is expected to become a significant revenue driver for SVM—especially in the current high-price environment. At the conservative copper price of US$3.50/lb used in El Domo’s feasibility study, copper from El Domo would contribute approximately US$85 million in annual revenue. At current spot prices, this increases to over US$135 million, significantly strengthening Silvercorp’s top line.

The company’s strategy for creating shareholder value focuses on generating free cash flow from existing operations, expanding through organic growth opportunities in China and Ecuador, and pursuing strategic mergers and acquisitions. This approach is designed to support sustainable growth while maintaining financial discipline.

As primary copper projects grow in strategic importance, amid a growing demand for copper and partially disrupted supply, Silvercorp’s presence in both China and Latin America is expanding its global footprint and key commodity exposure at a critical time for the copper market. With El Domo on track and global copper fundamentals strengthening, Silvercorp is well-positioned to emerge as a significant player in the evolving energy economy.

For more information, visit the company’s website at www.silvercorpmetals.com/welcome.

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