5. Silvercorp Metals Inc. (NYSE:SVM)
Share Price as of July 18: $3.68
Number of Hedge Fund Holders: 13
Silvercorp Metals Inc. (NYSE:SVM) is a Canada-based company that acquires, explores, develops, and mines mineral properties for silver, gold, lead, and zinc metals. The company currently has an interest in mines in the Henan Province, Guangdong Province, and Hunan Province in China and is moving to establish its footprint in Ecuador through an acquisition of Adventus Mining Corp. In the first quarter, 13 hedge funds held positions in Silvercorp Metals (NYSE:SVM) worth $27.7 million. As of March 31, Two Sigma Advisors is the most prominent shareholder in the company and has a position worth $5.107 million.
Silvercorp Metals (NYSE:SVM) has recently made moves toward adding to its operational portfolio through a strategic acquisition. The company has announced plans to acquire Adventus Mining Corp. in a deal valued at approximately $150 million, structured entirely with shares. The transaction is expected to be finalized in the third quarter of 2024 and furthers the company’s goal to expand its footprint in the mining sector.
A big part of this acquisition is Adventus’ flagship asset, El Domo, an advanced copper-gold project located in Ecuador, which is already fully permitted. This acquisition promises significant benefits for Silvercorp, including geographic diversification into a new and promising mining jurisdiction. Moreover, El Domo’s advanced stage and permit status means that the project is well-positioned for immediate advancement toward production.
In addition to geographic diversification, Silvercorp Metals (NYSE:SVM) stands to gain substantial metal diversification. The acquisition will grow Silvercorp’s production capabilities in key metals such as silver, lead, zinc, and now copper and gold, further strengthening its position as a diversified metals producer. Adding El Domo enhances the company’s production growth in the short term and provides strategic flexibility with the Condor project, currently in the Preliminary Economic Assessment (PEA) stage.
From a resource perspective, the acquisition significantly improves Silvercorp’s (NYSE:SVM) precious metals exposure. The combined resources of El Domo and Condor will increase the company’s silver-equivalent ounces to 473 million, a substantial increase from the current 217 million ounces. On a copper-equivalent basis, the addition of El Domo and Condor’s contributions will increase the company’s resources to 667 million tonnes, up from 361 million tonnes.
Silvercorp’s (NYSE:SVM) management expects that this acquisition will not only increase scale but also enhance the company’s growth profile. The strategic alignment of these assets positions Silvercorp (NYSE:SVM) as a significant player in the green metals sector. It is one of the best long-term penny stocks to buy now and is positioned well to take advantage of the global demand for diversified metal resources.
