In the analysts' view, is Silvercorp the most worthwhile silver mining stock to buy?

Recently, the internationally renowned financial media - Insider Monkey released a list of "Ten Severely Undervalued Silver Mining Stocks," with Silvercorp Metals Inc. (SVM.US) included. Analysts believe that Silvercorp is one of the most worthwhile and undervalued stocks to buy.

They argue that the silver mining industry continues to expand driven by increasing demand in industrial, investment, and technology sectors. According to data from a business research firm, the global silver mining industry's market size has significantly increased from USD 7.87 billion in 2024 to USD 8.56 billion in 2025, with a compound annual growth rate of 8.7%. This growth is driven by demand from renewable energy, medical devices, and consumer electronics. It is expected that by 2029, the industry will grow to USD 11.87 billion at a compound annual growth rate of 8.5%, thanks to recycling programs, advancements in silver refining, and the increasing role of silver in green technologies.

Furthermore, due to a weak dollar, inflationary pressures, and geopolitical instability, silver prices have risen to their highest levels since 2011, exceeding USD 30 per ounce in 2024. Data from The Silver Institute shows that Trump's tariff policies have driven short covering, and the amount of silver delivered to CME warehouses has been steadily increasing, exacerbating market volatility. Therefore, as of March 4, 2025, the one-year return on silver futures was 34.97%, far exceeding the market's return rate of 12.61%. This reflects investors' strong confidence in silver as a hedge against economic uncertainty.

Additionally, according to a report from The Silver Institute, total silver consumption is expected to reach 1.2 billion ounces, supporting the assertion that silver demand will remain strong in 2025. The report further mentions that industrial applications will drive most of the silver demand, with manufacturing demand expected to exceed 700 million ounces for the first time.

It is well known that silver is widely used in electric vehicle charging infrastructure, batteries, and semiconductors, playing an important role in the automotive industry. Data and analytics firm S&P Global Mobility predicts that global sales of pure electric vehicles are expected to reach 1.5 million units in 2025, a 30% increase from 2024, accounting for 16.7% of total global light vehicle sales. Due to the surge in electric vehicles, silver consumption will significantly increase. The Silver Institute predicts that silver demand will reach 90 million ounces by 2025.

The institute also emphasizes that global silver supply is expected to grow by 3% in 2025, reaching 1.05 billion ounces, a new high in 11 years. With increased production from Morocco, China, and Canada, silver mine output is expected to reach 844 million ounces. However, due to limited capital expenditure in base metal mining and declining ore grades, additional supply growth may be constrained. Driven by improved recycling rates of industrial waste, silver recycling is expected to increase by 5%, surpassing 200 million ounces for the first time since 2012.

However, despite the increase in production, the silver market will still face a shortfall of 149 million ounces in 2025, marking the fifth consecutive year of supply shortages. A report from WisdomTree predicts that due to ongoing supply shortages, combined with strong industrial and investment demand, silver prices will be pushed up to USD 40 per ounce by the third quarter of 2025 Therefore, due to supply constraints, ongoing economic uncertainty, and strong demand, silver remains an attractive investment. On this basis, according to analysts' opinions, Insider Monkey has listed the top ten severely undervalued silver mining stocks. Among them, Silvercorp Metals Inc. (SVM) has an average upside potential of 36.60% and an expected price-to-earnings ratio of 9.26, making it one of the most undervalued and investment-worthy silver producers.

Silvercorp is a Canadian silver mining company primarily engaged in the acquisition, exploration, development, and production of precious metals and base metals mines, including gold, silver, lead, and zinc. Driven by a 16% year-on-year increase in silver production and rising silver prices, Silvercorp's revenue grew by 43% to $84 million as of December 31, 2024. Despite high material and labor costs, the average silver price in the fourth quarter was $24.15 per ounce, which offset some cost pressures and boosted revenue.

However, compared to the third quarter's net profit of $11 million, or $0.05 per share, the fourth quarter's net profit more than doubled to $26 million, or $0.12 per share. Favorable factors such as silver and zinc prices supported this growth. Silvercorp's profitability growth benefited from maintaining strong profit margins despite rising costs.

Additionally, the technological transformation and expansion of Silvercorp's mining area in Luoning, Henan, will also drive its growth in 2025, with expected silver production between 6.7 million and 7.2 million ounces. For long-term development, Silvercorp is also increasing resources through enhanced exploration efforts and has made significant discoveries. Furthermore, to help expand its portfolio and reduce dependence on silver prices, Silvercorp is advancing its international expansion at the EL Domo copper-gold project in Ecuador, preparing for sustained development and strategic investments in 2025 and beyond