Silvercorp Metals Inc. (TSE:SVM)

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Silvercorp Metals Inc. (TSE:SVM)

Postby Pixel8r » Thu Dec 31, 2009 11:15 am

Here's another one of my favourites, a silver miner in china with a negative cash cost of $6.33 per silver ounce.

http://www.silvercorpmetals.com/

Silvercorp Metals Inc. is a Canadian-based primary silver producer with mining, development and exploration projects located in the People’s Republic of China. Since commencing production in 2006, Silvercorp has enjoyed high profitability and returns due to the exceptionally high-grade nature of its Ying deposit and the incredibly low-cost jurisdiction in which it operates. The company is publicly traded on the Toronto Stock Exchange in Canada and the New York Stock Exchange in the U.S. and is a component of the S&P/TSX Composite and Global Mining Indexes.

Silvercorp today is China's largest primary silver producer and has achieved an enviable three-year track record of being the lowest cost producer of silver among its industry peers. In Q2/2010 (ended September 30, 2009), the company produced 1.2 million ounces of silver at a cash cost of negative $6.33 per ounce. At the same time, the company is growing its resource base through continuous exploration of existing projects as well as seeking to acquire new development projects in multiple jurisdictions. It is one of only a handful of metals producers to pay shareholders a dividend (C$0.02 per share per quarter).

Now with US$79-million in cash, no long-term debt, strong operations and the lowest production costs among its global industry peers, Silvercorp sees today’s unprecedented market volatility as one ripe with opportunities to grow its business in the long term.


Image

Updated Chart Link


And here a link to another bulletin board with a thread about Silvercorp;

http://www.stockhouse.com/Bullboards/SymbolList.aspx?s=SVM&t=LIST
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Pixel8r » Fri Feb 19, 2010 4:19 pm

Silver Standard Sells Silvertip Project To Silvercorp For $15 Million

Silver Standard Resources (TSX: SSO, NASDAQ: SSRI) is selling its Silvertip Project in British Columbia to China’s largest primary silver producer, Silvercorp Metals (TSX:SVM), for a total consideration of CDN$15 million.


The Silvertip Project, considered non-core to Silver Standard, is a silver-base metals project first acquired in 2002. The project is located in northern British Columbia, approximately 85 kilometers south-west of Watson Lake, Yukon Territory.

Past exploration work has included 71,472 meters of drilling in 491 holes and 2.67 kilometers of underground development. Silvertip is among the highest-grade silver-lead-zinc carbonate replacement deposits in North America, with 11 ounces silver per ton and combined grades of 17% lead and zinc indicated resources.


Silver Standard has the largest in-ground silver resource of any publicly-traded primary silver company, with a pipeline of projects in Argentina, Peru, Mexico, Canada, Chile, the United States and Australia.
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Pixel8r » Sat May 15, 2010 8:01 am

SILVERCORP REPORTS NET INCOME OF $9.8 MILLION AND CASH FLOW OF $23.8 MILLION IN FOURTH QUARTER; PROVIDES OUTLOOK FOR FY2011

FOURTH QUARTER HIGHLIGHTS

During the quarter ended March 31, 2010, highlights included:

     Net earnings of $9.8 million, or $0.06 per share, compared to earnings of $1.2 million, or $0.01 per
    share, in the same quarter last year;

     Quarterly cash flows from operations of $23.8 million, or $0.14 per share, up 123% from the same
    quarter last year of $10.6 million;

     Production of 1.08 million ounces of silver in the quarter, resulting in record annual production of 4.62
    million ounces and the fourth consecutive year of silver production growth;

     Total production costs of negative $4.61 per ounce of silver and cash costs of negative $5.64 per ounce
    of silver;

     Proven and Probable reserves established for the first time at the Ying mining district of 63.4 million
    ounces of silver, 384,837 tonnes of lead and 117,559 tonnes of zinc -- giving the Ying mine over a10-
    year mine life after four years of production;

     Acquisition of the high-grade Silvertip silver-lead-zinc property in northern British Columbia, Canada;

     Payment of $3.1 million, or CAD$0.02 per share, in quarterly dividends to shareholders; and

     Increase in total cash and short term investments to $95.0 million from $65.0 million a year ago.
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Pixel8r » Sun Nov 28, 2010 9:58 am

Double Post

Jim Puplava interviews the top silver juniors at the 7th Hard Assets Show in San Francisco. Including two of my favourites, Silvercorp and Great Panther as well as First Majestic. Worth a listen. :thumbup:

Silver Exploding

James J Puplava CFP
Lorne Waldman
Robert A Archer...
Keith Neumeyer

Seventh Annual Hard Asset Show: Silver exploding
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Pixel8r » Mon Jan 10, 2011 5:35 pm

"Money is Gold, and nothing else"
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Pixel8r » Mon Apr 18, 2011 11:32 am

Interesting post by Dan Norcini over at jsmineset where he talks about the underperformance of some juniors to the metals and the hedge fund shorts on them.

http://jsmineset.com/2011/04/17/gdx-maj ... tio-chart/

He does give this chart which shows that Silvercorp is currently valued at the same price compared to silver as it was in early 2010. I wouldn't say silvercorp has under performed the metal as I am up 733% since December '08 which is better than silver, but it does depend on your timing I guess. Maybe it's a good time to add a few more to this one.

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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Pixel8r » Thu May 12, 2011 8:46 am

Silvercorp Reports Record Silver Production of 5.3 Million Ounces, Record Net Income of $68.8 Million, Up 79%, and Record Cash Flows of $104.2 Million, Up 60% for Fiscal Year 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 11, 2011) - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)(NYSE:SVM) reported today its unaudited financial and operating results for the fourth quarter and fiscal year ended March 31, 2011, and provided an outlook for its fiscal 2012 year. The following financial results are expressed in US dollars (US$) unless stated otherwise.

FOURTH QUARTER HIGHLIGHTS

During the quarter ended March 31, 2011, the Company's China operation was closed 28 days for the Chinese New Year Holiday. Highlights from the fourth quarter included:

-- Net earnings up 29% to $12.6 million, or $0.07 per share, compared to net earnings of $9.8 million, or $0.06 per share, in the same quarter last year;
-- Quarterly cash flows from operations up 44% to $34.3 million, or $0.20 per share, from $23.8 million in the same quarter last year;
-- Produced 1.05 million ounces of silver in the quarter, resulting in a record annual production of 5.3 million ounces of silver and achieved the fifth consecutive year of production growth;
-- Total production costs of negative $6.06 per ounce of silver and cash costs of negative $7.61 per ounce of silver, representing 31% and 35% improvements, respectively;
-- Payment of $3.5 million, or CAD$0.02 per share in quarterly dividends to shareholders, and
-- Closed the acquisition of the BYP Gold-Lead-Zinc Mine in Hunan Province, China.
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Pixel8r » Fri Aug 26, 2011 11:30 pm

Silvercorp is following suit with Pinetree now. :clap:

Silvercorp Metals Inc.: Update on Normal Course Issuer Bid

VANCOUVER, BRITISH COLUMBIA--(Marketwire -08/26/11)- Silvercorp Metals Inc. (TSX: SVM - News)(NYSE: SVM - News) ("Silvercorp" or the "Company") announces that to date, pursuant to its normal course issuer bid ("NCIB") announced on June 17, 2011, it has acquired a total of 1,624,233 of its common shares at an average price of CDN$8.18.

The Company is purchasing its own shares because it believes that prevailing market conditions have resulted in Silvercorp's shares being undervalued relative to the immediate and long term value of Silvercorp's portfolio of producing and development properties in China and Canada. The Company notes that the short interest position in its common shares has climbed from 3.6 million as of July 29, 2011 settlement date to 9.6 million as of August 15, 2011 settlement date, the most recent date for which short interest data is known by the Company. Under the existing NCIB the Company intends to acquire up to 10 million common shares. All common shares purchased under the NCIB will be cancelled.
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Mr P » Sat Aug 27, 2011 3:44 pm

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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Pixel8r » Sat Aug 27, 2011 3:53 pm

Mr P wrote:Looks like PAAS are at it too: http://www.marketwatch.com/story/pan-am ... 2011-08-26

All these normal course issuer bids should help rid the market of the hedge fund shorters. Things are looking good for the 4th quarter to me. :)
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Pixel8r » Sat Sep 03, 2011 8:56 pm

This share is starting to look seriously cheap to me, may have to add a few more soon.

Silvercorp Denies Fraud Allegations

The largest silver producer in China says it is being accused of accounting fraud and other types of deception by an anonymous party who admits to placing financial bets that the Vancouver-based company's shares will fall.

Silvercorp Metals Inc., said Friday there has been a dramatic increase in the short position of its shares over the past two months to 23 million shares, or 13 percent of the approximately 175 million shares outstanding.

The NYSE-listed company, which says the Aug. 29 letter was sent to the Ontario Securities Commission, among other parties, accuses it of reporting a profit last year to the SEC but a loss to Chinese financial authorities. The anonymous letter further accuses Silvercorp of overstating the amount of cash on hand and the quality of its Chinese silver reserves.

Shares of Silvercorp, which denies the accusations, have dropped 46 percent in the last six months.
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Capitalist_Pig » Sun Sep 04, 2011 7:15 pm

Unfortunately, this is why I avoided this stock, having already had similar experiences with another company in China, namely Deer Consumer Products (DEER), which the stock got hit hardest even after a share buy back and dividend was announced. It seems every Chinese exposed stock gets tarred with the fraud brush.

Here's a few others which got tarred with the fraud brush -

CHBT
CGA
CRPT
FEED
A lot of the time, the stock market is just like Tescos ... You just gotta find the value packs, reduced to clear, and buy one get one free offers!
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Pixel8r » Sun Sep 04, 2011 8:08 pm

I have been in SVM since the end of '08 and am very happy with the results, even after the current pullback am still up over 400%. They are making good profits, have a regular dividend and have some other properties coming on line soon.

I think I may add some more very soon, I am reasonably sure that this anonymous fraud accusation is just an interested party trying to get the stock for cheap.
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Pixel8r » Thu Sep 08, 2011 4:53 pm

Nice bounce back from the unsubstantiated fraud claims today +11.9%. I hope some of the shorts got well and truly burnt.
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Pixel8r » Tue Sep 13, 2011 3:15 pm

Silvercorp Update on Progress to Identify the Anonymous Letter Writer and to Restore Its Reputation

Silvercorp Metals Inc. (TSX: SVM)(NYSE: SVM) ("Silvercorp" or the "Company") welcomes the British Columbia Securities Commission (BCSC) taking quick and decisive actions to investigate the allegations against the Company in an anonymous letter dated August 29, 2011 (refuted by the Company's in its September 2, 2011 news release), and in particular the BCSC's efforts to discover the anonymous letter writer's identity.

The BCSC, in a departure from their usual policy of keeping investigations confidential, announced on Friday that in order to conduct a balanced and thorough review it is publicly asking the author of the anonymous letter to come forward. The BCSC is examining both the nature of the complaint and the allegations contained in the letter. The BCSC is also asking anyone else who may have information related to the allegations or the identity of the author to contact Michael Pesunti of the BCSC Enforcement division at 1-800-373-6393 or 604-899-6500.

"We see this as an important first step towards mitigating the damage done to Silvercorp's reputation," commented Dr. Rui Feng, Silvercorp's Chief Executive Officer. "We are cooperating fully with the BCSC and other regulatory and law enforcement agencies so that truth can be restored, Silvercorp's reputation can be cleansed, and those involved in this manipulative scheme are held accountable."
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Pixel8r » Tue Sep 13, 2011 8:30 pm

Really not sure what is happening with Silvercorp, they are down 20.9% today but on massive volume which is heavier on the buy side.

Buy Volume = 4,913,400 Sell Volume = 4,671,000
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Capitalist_Pig » Tue Sep 13, 2011 8:43 pm

Pixel8r wrote:Really not sure what is happening with Silvercorp, they are down 20.9% today but on massive volume which is heavier on the buy side.

Buy Volume = 4,913,400 Sell Volume = 4,671,000


Suspect MM's and short sell traders play all sorts of games. You could try matching the volume spikes to the price movement on say a 1 minute chart?
A lot of the time, the stock market is just like Tescos ... You just gotta find the value packs, reduced to clear, and buy one get one free offers!
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Rosco » Tue Sep 13, 2011 11:38 pm

Silvercorp slammed on analyst's claims

http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/silvercorp-slammed-on-analysts-claims/article2164150/

Silvercorp Metals Inc., a TSX-listed silver miner that operates solely in China, has been accused of fraud by a short-seller, sending its stock plummeting 16 per cent.

Researchers from Alfred Little, an independent research firm that looks into companies doing business in China, allege that Silvercorp (SVM-T6.20-1.58-20.31%) has overstated its production, inflated the grade of silver it mines and failed to disclose that its largest customer is a related party.

The report was released much in the same way that Muddy Waters released its initial findings from its investigation into Sino-Forest's business dealings in China. The head of Muddy Waters, Carson Block, was also short Sino-Forest's stock when he released his report.

Alfred Little started looking in Silvercorp earlier this summer, but did not disclose its findings until Tuesday. During the course of its investigation, the company’s stock has fallen from a peak of $11.34 in July, down to $6.50 on Tuesday, a 42-per-cent drop. Part of that fall can be attributed to an anonymous letter writer who sent Canadian regulators and the company a note that alleged Silvercorp was engaged in a “Potential $1.3 Billion Accounting Fraud.”

Before its stock started to plummet, Silvercorp had a market capitalization of just over $2-billion.

To conduct its investigation, a team from Alfred Little made multiple visits to Silvercorp’s largest mine, named Ying, in Henan province. During the trip, Alfred Little said that it found the grade of Silvercorp’s ore was much lower than it had reported in U.S. filings. To assess the grade, the investigators examined the mined material that fell off trucks on their way to mills. Alfred Little said it knows this is a small sample size, so it is submitting more samples for examination.

The researchers also claim that the production Silvercorp reports in U.S. filings is much lower than what it reports to the Ministry of Land and Resources in China. To look into the matter, the company watched the trucks leaving Silvercorp’s biggest mine for two weeks and found that based on the number of 30 tonne capacity trucks coming and going each day, Silvercorp’s production could about half of what is expected.

Alfred Little has also talked to an international geological consulting firm that puts together 43-101s reserve reports. This firm said Silvercorp’s latest 43-101s were likely based on earlier reports, rather than new information because Silvercorp’s own external geologists have not visited the company’s main SGX mine since 2008. That means Silvercorp’s employees are likely creating their own resource estimates, Alfred Little wrote.

Moreover, the report alleges that Silvercorp has failed to disclose that its largest customer is a related party. (It is partly owned by a Silvercorp subsidiary.) Moreover, the company’s acquisition of Yangtze Gold in 2008 gave a relative of Silvercorp’s chairman and chief executive officer a 1500 per cent gain on capital that was invested for only six months.

This isn’t the first blow to Silvercorp. On Sept. 1, the company was forwarded a copy of a letter alleging a “Potential $1.3 Billion Accounting Fraud at Silvercorp.” The author did not provide his or her name, but acknowledged holding a short position on the stock. The letter was sent to the Ontario Securities Commission, the company’s auditors and some media outlets.

Some of the claims made in the anonymous letter are similar to those made by Alfred Little, particularly the discrepancies between the Chinese resource filings and U.S. filings. Silvercorp addressed this issue (and some others) earlier in September and claimed it has done nothing wrong.

Alfred Little’s researchers say they do not know the identity of the anonymous author and have not collaborated with him or her.
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Pixel8r » Wed Sep 14, 2011 8:18 am

From what I can gather this is a ruse to install fear in the market and make money off shareholders via shorting. Frist we get the 'anonymous' letter claiming that they have been profit has been overstated and cash on hand isn't correct, this is proved to be incorrect by Silvercorp.

The company has denied the allegations in the letter, saying its four Chinese subsidiaries taken together had net profit of $73 million. It provided tax and bank statements to prove its profit and cash position.


Then we get AlfredLittle claiming lower ore grades off a few rocks that fell of a lorry! AlfredLittle have history of this sort of manipulation in the past.

Deer Consumer Products Inc. (DEER), a China-based maker of household products that trades on the Nasdaq Stock Market, filed suit against Alfredlittle.com in March, alleging “an orchestrated scheme to manipulate and depress Deer’s stock.” The company said “Alfred Little” is a fictitious figure.


I think I might use this opportunity to add to my shares in Silvercorp and certainly won't be selling those that I have.

Silvercorp Chief Executive Officer Rui Feng bought 100,000 shares of the company at an average price of $7.87 a share on Sept. 6, according to Canadian regulatory filings.

“It’s important to fight back,” Feng said Sept. 12 in a telephone interview from New York. “This is a real company with real cash flow and real metals production. The shorts are just playing games.”


In a note to clients on Monday, UBS analyst Chris Lichtenheldt said he had no reason to believe fraud had taken place at Silvercorp, and commended management for the manner in which it had handled the allegations.

The bank maintained a "buy" rating for the stock, also leaving its $11.25 price target unchanged.
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Re: Silvercorp Metals Inc. (TSE:SVM)

Postby Concrete Jungle » Wed Sep 14, 2011 2:40 pm

I took advantage of the shenanigans surrounding Silvercorp to get in at six bucks a pop. :)
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