8 Cheap Penny Stocks to Buy Right Now

3. Silvercorp Metals, Inc. (NYSE:SVM)

Share Price: $4.40

Forward P/E: 12.85

EPS Growth This Year: 65%

Number of Hedge Fund Holders: 13

Silvercorp Metals (NYSE:SVM) is a Canadian mining company that produces gold, silver, lead, and zinc. It operates several silver-lead-zinc mines in China, including the Ying Mining District in Henan Province and the GC silver-lead-zinc mine in Guangdong Province. While the company’s producing mines are in China, its development and exploration projects are in Mexico and China.

The company owns seven underground mines in the Ying Mining District and two processing plants with a combined capacity of 2,500 tpd. The GC silver-lead-zinc mine is 200km west of Guangzhou, while the BYP Mine lies 220km southwest of Changsha. Silvercorp Metals (NYSE:SVM) also focuses on the Kuanping and La Yesca projects.

The company recently announced the completion of the acquisition of Adventus Mining Corporation. The acquisition positions Silvercorp Metals (NYSE:SVM) to gain a competitive advantage by promising benefits such as geographic diversification into a new and promising mining jurisdiction. A significant part of this acquisition is El Domo, Adventus’s flagship asset and an advanced copper-gold project in Ecuador. Adventus’s advanced stage and permit status means the project is well-positioned for immediate improvement and advancement toward production.

Besides geographic diversification, Silvercorp Metals (NYSE:SVM) stands to benefit from substantial metal diversification, growing its capabilities in key metals such as silver, lead, zinc, copper, and gold. It is set to increase its production growth in the short and long term.

According to the company, the acquisition is also likely to improve its precious metal exposure significantly. The combined resources are expected to increase the company’s silver-equivalent ounces to 473 million, a substantial increase from the current 217 million ounces. In addition, the acquisition will likely result in growth on a copper-equivalent basis, increasing company resources from 361 million tons to 667 million tons.

Silvercorp Metals (NYSE:SVM) is thus on the path to increasing its scale and expanding its growth profile. Its strategic alignment positions it as a significant player in the green metals sector, enabling it to take advantage of the global demand for diversified metal resources. All these factors make it one of the best cheap penny stocks to buy right now.