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sold half at $7.15 half at $7.45 hell of a trade, hope it dips back down to re-buy
Nice, up to $7.02 so far, really nailed this one today.
Agreed, they still have a lot of PR work ahead, maybe even buy back more shares if the pps stays down here. I doubled my position this morning.
Updated presentation from TVI website
http://www.slideshare.net/tvipacific/tvi-pacific-corporate-presentation
Agreed, but this answer from the article this morning is very telling in my opinion.
"
Moore said that nobody owns Alfredlittle.com, which is hosted in Sweden (though currently in the United States due to some technical issues, and that he “travels a lot and doesn’t maintain a home-base”.
They are not disclosing who their supposed "researchers" are, nor the geologists they consulted or the lab they used and not even who owns the website that published the report.
I added to my position twice already this morning.
New PR its is very long and contains mass documents, here are the first 2 pages
http://silvercorpmetals.com/_resources/news/PR_and_schedule_1_to_4.pdf
PRESS RELEASE
Trading Symbol: TSX: SVM September 14, 2011
NYSE: SVM
SILVERCORP RESPONDS TO SECOND ANONYMOUS ALLEGATION AND PROVIDES
GOVERNMENT CERTIFICATION OF TAXES PAID
VANCOUVER, British Columbia – September 14, 2011 – Silvercorp Metals Inc. (“Silvercorp”
or the “Company”) advises that a second set of anonymous allegations against the Company has
been made, which was published on the internet (the “2nd Anonymous Report”). The Company
refutes the substance of all allegations in the 2nd Anonymous Report, and believes it has been
published in furtherance of concerted efforts by a group of short sellers to drive down the
Company’s share price through false, selective or ignorant statements and rumors. Investigations
are ongoing by the RCMP, the BC Securities Commission, the SEC and the FBI to determine the
identity of the anonymous authors.
The Independent Committee, in keeping with its duty, has retained independent legal counsel to
examine the anonymous allegations. In addition, KPMG Forensic Inc. was engaged on September
6th by legal counsel to the Independent Committee to assist the Independent Committee by
completing a report on certain aspects of revenue, cash balances and income tax and VAT
payments in China, and to perform certain reconciliations of the Company’s filings in China with
those filed with North American regulators. The Independent Committee will report further on
its findings and respond to the allegations in the 2nd Anonymous Report in due course.
Dr. Rui Feng, Chairman stated, “Over the course of the last five years, Silvercorp has developed
and commenced profitable mining from its Ying Mining Camp. Revenues from operations have
resulted in Silvercorp’s operating subsidiaries having paid over US$116.6 million in taxes to the
Chinese government, as evidenced by the Tax Certificates issued by Chinese government, and
total dividends of US$152 million to its shareholders. These reflect a total revenue stream that is
in accordance with the mine production and sales revenues reported by the Company during that
period. I ask shareholders to exercise common sense in assessing whether these allegations of
“fraud” against the Company have any merit whatsoever in the face of very significant revenues,
tax payments and dividends, and particularly when the accusations are made anonymously by
parties whose only interest is in depressing the Company’s share price. I invite the authors of the
anonymous allegations to come out of the shadow and participate with the regulators in their
investigations, if their concerns truly extend beyond the profitability of their short positions.”
While Silvercorp is working with the regulators we will not comment further on any rumor or
fabrication on the Company published by anonymous letters or blogs, however we wish to
broadly address two of the concerns raised in the 2nd Anonymous Report respecting (1) the
disparity between grades and production numbers reported in China and North America, and (2)
the sales to the related party:
(1) The Henan L&R Bureau Report or “Dynamic Reconnaissance Report on the SGX Mine” is
solely based on a detailed exploration report on the SGX property prepared a Chinese firm for the
mining permit application in June 2005. The report is based on limited exploration results before
May 2005, just a few months after Silvercorp acquires the SGX property. Alfredlittle should
know that this type of report was not reviewed and checked by an independent qualified person
defined by NI 43-101 so it is not NI43-101 compliant and cannot be relied on. According to
Chinese regulations, once the detailed exploration report for mining permit application was
completed, its resource calculation does not have to be updated every year, and is only updated
when preparing to renew the mining permit. The SGX mining permit expires September 2014 so
an updated exploration and resource estimates report is not required t by the L&R Bureau until a
couple months before September 2014.
(2) It is inferred that significant sales of concentrate to a major customer, Luoyang Yongning
Smelting Co. Ltd. are somehow improper, or not properly reported. The Company’s 15%
ownership interest in the smelter have always been publicly disclosed, most recently in the June
30, 2011 quarterly financial filings available on SEDAR. Neither Canadian GAAP, nor IFRS
standards consider this interest to constitute a “related party” transaction. In fact, sales to the
smelter, in keeping with the profitable concept of vertical integration, are preferred as the
Company obtains an interest in the smelting profit as well. Concentrate sales contracts the Henan
Found signed with all its customer require cash payment first before concentrates are shipped.
The Henan Found has received all funds in relation to its concentrate sales to the Yongning.
Government Verification Certificate of Revenues and Corresponding Taxes Paid
The Company has already taken the unparalleled step of publishing internal financial records in
its news release of September 2, 2011 to demonstrate transparency in its business operations, and
is cooperating fully with securities regulators to assist them in their investigations.
To provide shareholders further comfort on Silvercorp’s China operations, the following
additional information and explanation of Chinese tax procedures is provided:
The Company has obtained Verification Certificates issued by the State Tax Bureau of Luoyang
City of Henan Province (“Tax Certificates”) on September 13, 2011 for two of Silvercorp’s
revenue generating subsidiaries: Henan Found Mining Co. Ltd. (“Henan Found”) and Henan
Huawei Mining Co. Ltd. (“Henan Huawei”). In the Tax Certificates, it certifies the sales
revenues, corresponding value-added tax (“VAT”) and corporate income tax (“CIT”) filed Henan
Found (Table 1 and Schedule 1) and Henan Huawei (Table 2 and Schedule 2).
From Table 1 (Schedule 1), the Tax Certificates certifies that since calendar 2006 and up to June
2011 (5.5 year), Silvercorp’s 77.5% owned subsidiary, Henan Found has generated sales revenue
of RMB3.68 billion (US$521 million), paid VAT of RMB486.85 million (US$69 million), and
paid CIT of RMB250.48 million (US$37 million) for a total of RMB737.33 million (US$106
million). In addition, as a result of repatriating dividends, Henan Found has also paid
withholding taxes of RMB35.65 million Yuan (US$5.3 million) on behalf of Victor Mining Ltd.
In total, the tax paid by Henan Found during the 5.5 year period since its operations began in2006
is US$111.3 million
Good article, points out just a few of the flaws in the so called "report" notice he ducks responsibility for it saying nobody owns that website. I started my position yesterday afternoon and added this morning at $6.05 I feel bad for you guys who lost on this one, but i think it is a real opportunity at these levels. Once the market realizes that the report is crap, and this is a real company with NO debt producing mass amounts of silver, I think there could be some real upside, I am scaling in as I have no idea where the bottom is though.
Here are a LOT of documents SVM put on their website if anyone has not looked at them
http://silvercorpmetals.com/attachments/News_Release_Sept_2_2011_Combined.pdf
Here is the latest 6-K filed with the SEC
http://sec.gov/Archives/edgar/data/1340677/000117625611000711/exhibit99-1.htm
The company made a presentation at a conference and addressed the attack against them. This is worth listening to and following the slides.
http://www.wsw.com/webcast/rrshq20/svm/
they raised a total of about 200 million from equity, they now have 225 million in the bank and have paid dividends to shareholders of 40 million and bought back 33 million in shares.
On their website they have posted bank accounts, tax returns, even VAT tax receipts from all the sales they have made. I think they have a massive PR job ahead of them, but are being more than transparent in my opinion.
__________________
I did a lot of research on SVM last night and came to the conclusion that they are being unjustly accused by an admitted shorter. I am going to copy paste some posts made on another site (many by me)
Casey Research
Comments: Silvercorp was hit by another accusation of wrongdoing today (which you can view in the link above), and the stock plummeted 19.6%. Our first impression of this report is much the same as the other one – biased, long on innuendo, short on proof, and in some cases, flat out wrong. Let’s go through the accusations one-by-one so you can see why we are not panicking about our position…
The report states that their “investigator” picked up a couple rocks that fell off an ore truck and the assays showed much lower grade material than SVM reports. The report notes this sample is not scientific, and promises better data in the future, but that doesn’t stop them from publishing nonsense numbers now. They also counted the trucks entering the mill and say there are not enough to add up to the tonnage of ore SVM says it’s processing – but how many days did they count? How many days did they count when there was a power issue at the mine, or one of the mill circuits was down for maintenance? What does it really prove to have a guy skulking about the bushes taking pictures and picking up rocks?
One very important fact that seems to have escaped the authors of the report is that SVM direct-ships high-grade ore to a smelter. This is a very significant part of production that does not go to the mill, and that would affect the number of trucks entering the mill, as well as the grade of the ore going to the mill (or falling off a truck along the way).
The report also falsely claims that Silvercorp’s narrow veins cannot be mined without dilution, reducing the average grade. This is simply not true. There’s a technique called “resuing” by which you tunnel next to the ore, and then take only the ore to the mill. The ore needs to be just right, but SVM’s massive sulfide veins are just right for this. Plus, there are areas where the veins are meters wide, and still grading kilos per tonne, so they can be mined directly. Louis James has been there and seen this, and saw it in multiple places in multiple levels of the mine.
The report also makes a big fuss about how large SVM’s MCap is compared to its resources and reserves. They say SVM “should” have more resources. This is more nonsense. It’s very common for vein deposits to have only a year or two in reserves drilled off in advance. Yes, that’s a risk factor, but its normal – drilling off the whole deposit in advance is just too expensive. Nobody does it. Furthermore, SVM trades at lower multiples and metrics than many other silver producers, probably because of the “China discount.” It is simply not overvalued, compared to its peers. This accusation smacks of dishonesty.
Another fuss relates to SVM buying a project from a relative of Rui Feng’s – but that, too, was disclosed at the time. Whether or not the relative made a profit is not relevant; what matters is how much the property is worth to SVM. The report states, “SVM’s independent directors need to explain how this could possibly be a fair price.” But the appropriate place for such a challenge is directly to management, or at a shareholder’s meeting. Since these avenues were apparently not tried, one must question the motives of the company’s attackers.
The report makes another big fuss about SVM selling concentrate to a smelter in which it owns at 15% stake. This ignores the fact that this was fully disclosed when SVM made the investment, and that SVM made the investment to ensure better terms for its sales and security for its contracts. This is not a bad thing, but a very good thing. The authors say they were “shocked” to see this well known and fully disclosed fact, but that's a crock.
More apparently damning are statistics quoted from Chinese authorities that appear to show much lower production rates and average grades than SVM is reporting. There’s a link in the report to a Chinese document and an English translation referring to the “yuelianggou” mine showing these much lower production numbers (there’s no link to the source for the lower grades). The Chinese report may even be real and the translation correct – but that doesn’t necessarily mean what the authors of the report are suggesting it does. The Ying Mine is not one hole in the ground, but a mine complex made of many physical components, and legal ones too. Yuelianggou may be one of these components, and not the whole thing.
Keep in mind what these accusations are: an anonymous report from a group who is short the stock. We do not place much credence in parties who have an open interest in seeing the share price fall and hide behind trees to take pictures instead of confronting management directly. Again, Louis James has been to the company’s mines twice and refutes these claims, and Jeff Clark has opted to attend the company’s mine tour in two weeks in lieu of our own Summit.
Could we be wrong? Well, it’s possible. But think about what that would mean. It would imply CEO Rui Feng doesn’t care about all the billions of dollars he could make going forward and has sold his soul for a few hundred million now. We doubt that. It would also have to mean the 43-101 Qualifying Persons who sign off on SVM’s reports are incompetent. Further, the auditors would all have to be crooked. Quite frankly, this would have to be Bre-X and Enron all rolled into one for the accusations to be true. This seems so improbable that we’re willing to bet on it being false.
What if we are wrong? If we are, our shares could go to zero. The company would be toast, and so would our money. We can’t tell you this isn’t possible, but we see the odds of this being extremely low.
Management told us the report is “baseless.” They’re working to refute it and will issue a press release “very soon.” The British Columbia Securities Commission is now involved and is asking the parties to come forward, a departure from their usual policy of keeping investigations confidential. The company also has a task force devoted to the issue, and has sought the assistance of various regulatory and law enforcement authorities in both Canada and the US, and are carrying out their own investigation.
What to do? We still view this as an opportunity, with the caveat that the onslaught of short selling may not be over. And if a third report came out, it would hit the stock even harder. Or, the accusers could be caught or proven wrong and the stock could soar. Either way, panicking is not the right course. We're not changing our recommendation. If you have your full allotment of the stock, hold. If you have room to add shares to your portfolio, we’d still view this as an opportunity. In the interests of full disclosure, some members of Casey Research were filled on bids today.
I will take me about a week to access my home equity line, send me your info. we gonna be rich I tell ya !!!!
"Greenway recently won the Harvey Mudd College/TechAmerica High-Tech Innovation Award for Green Engineering."
I'm all in !!!!
I don't think any of those site have any credibility, I watch them to know what to avoid.
400K will last those idiots a while, they will pop up when the money runs out and scam a whole new herd of sheep.
They will be blaming shorter/bashers soon I'm sure, probably go to "war" with them and call for investigations etc.
I am not going anywhere, just will be a while before any real news can be released and more patience will be required but I think most all of us have plenty of practice.
Well, they do have "Ben 10 Ultimate Alien" toys this week.....
http://www.happymeal.com/en_US/index.html#/Toys
"We had a F4 engine laying around"
doesn't everyone?
Jr. just posted on FB
Dale Earnhardt, Jr.
Today, we need to remember the significance of 9/11. We're thinking about the victims, their families, and everyone who was a hero on that day 10 years ago. Thank you to the men and women serving our country, the firefighters, police officers, and paramedics around the country. You are the real heroes.
I was thinking the same thing, Jr was laughing it up afterwards, I'm sure he realizes just how lucky he is to be in the chase this year, thanks in part to some very timely "debris" cautions during the season that just happen to be at the exact times he needed them.....
not very subtle was he
He is probably the best right now in my opinion, something I noticed at the race last week is that he got plenty of boo's at the driver intro's, but there were more people standing in line at his merchandise trailer than anyone elses, even more than Jr's.
you think Vickers is pissed?
I have been watching the end of the GA-SC game and just noticed Kyle has no sponsors on the car whatsoever, just the red/white/blue and never forget 9-11
is it to late to change my picks.....
I think this is the first week I picked Jr.
14, 18, 88 tonight please.
I'm half Florida cracker and half Georgia redneck and I'm still holding as well.
I tried to add more today at 5 bucks, could not get filled.
Thanks Red, I learned a lot.
Why did the speeds fall off 3 MPH after the first practice?
The BOD of CPRK (the ones we elected) are also the BOD of WUCC and needed their own council and hired Anna out of their pockets.
You guys are funny
I went to the Nascar race, it was scheduled for Sunday but got rained out and postponed until today, they only come to Atlanta once a year now and I would have had to turn in my redneck card if I did not go.
I dont think so, they cant control the weather and they did run the whole race, when they red flagged it for rain, we left and went to the Mexican place down the street, when we came back in the gate they were not even checking tickets.
get out of my room !!
Haha You are right, got good and soaked though, I honestly don't know how they got the race in, it was drizzling and misty most all day.
Big Kudo's to the track crew for getting and keeping the surface ready for racing.
Tony was driving the wheels off the car the last 20 laps but nobody noticed as all eyes were on the Jeff and Jimmy show.
What a day !! Had a great time and would have had a great points day except for Kyle decided to take out the commitment cone
Hope my hearing returns sometime this week. LOL
The current info is being prepared but the info is still a little fluid and they want to get it right so as to avoid any SEC troubles(there is a special form for miners) they charge $3500.00 to file info with them and there is not any money in the budget just yet, but it is on the list. The new board fully understands the need for that kind of stuff and I have every confidence that it will be done, just can't give a date yet. (same on the trading issues)
I am heading to the race this morning, hopefully they will get it in, you guys hold down the fort.
I just called the track, they said they have the dryers running and plan to run it. Heading down there now.