Silvercorp Metals Inc (SVM) research, news, and more from GeoInvesting

Company description

Thu, 14 May 2009 04:00:00 GMT

Silvercorp Metals Inc., China's largest primary silver producer, is engaged in the acquisition, exploration and development of silver related mineral properties located in the People's Republic of China ("China"). Silvercorp Metals Inc. is operating and developing four Silver-Lead-Zinc mines at the highly profitable Ying Mining Camp, Henan Province, China. Silvercorp is also applying for a mining permit at the newly acquired, 95% owned, GC&SMT property to profitably mine and produce silver, lead and zinc in Guangdong Province, China. The Company's common shares are included as a component of the S&P/TSX Composite and the S&P/TSX Global Mining Indexes.

Company Rebuttal

Thu, 04 Apr 2013 04:00:00 GMT

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 3, 2013) - Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) ("Silvercorp" or the "Company") has noted an article published in the media on April 2, 2013, regarding a subpoena the Company recently received from the U.S. Securities and Exchange Commission (the "SEC"). The article identifies some, but not all, of the individuals and entities referenced in the subpoena. The following is a quotation from the subpoena setting forth the documents and information it seeks:

"III. Documents and information requested

Any and all documents relating to any and all allegations made by Anthion Management LLC (a/k/a chinastockwatch.com), alfredlittle.com, EOS Holdings LLC, Balizar Inc., International Financial Research & Analysis Group (a/k/a IFRA), Muddy Waters Research, Oasis Capital Management, Quantum Asset Partners, Gems Capital Management, Jon Carnes (a/k/a Alfred Little, Andrew Wong, Robert Steven), Loren Weinberg (a/k/a Simon Moore, Tyler Jacobs), Kun Huang (a/k/a Dino Huang, Huang Biqiang), Huang Xiaofu (a/k/a Jeff Huang), Carson Block, Alexander Shoghi or Shawn Rhynes against Silvercorp (collectively, "Allegations"), including:
1. Any and all documents Silvercorp created, originated or otherwise relating to the Allegations; and
2. Any and all documents discovered or produced by any party in the civil litigation, Silvercorp Metals Inc. v. Anthion Management LLC, et al., No. 150374/2011 (J. Edmead), in the Supreme Court of the State of New York, County of New York."

The Company is cooperating fully with the SEC on the matter.

Resolution of Legal Issues

Wed, 13 Mar 2013 04:00:00 GMT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 13, 2013) - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)(NYSE:SVM) today announced that the appeal filed by the Company following the granting of the motion to dismiss the defamation case filed by Silvercorp in the fall of 2011 has been withdrawn.

While Silvercorp disagrees with the decision of Justice Edmead- that "short and distort" publications are statements of opinion and not statements of purported fact (in other words the defendants simply had the freedom to express their opinions pursuant to their constitutional rights), Silvercorp believes it is in the best interest of the Company and its shareholders to end this potentially lengthy and expensive litigation, and continue to focus its efforts on developing the GC project while improving and upgrading its existing operations to deliver long-term shareholder value.

With respect to the current class action lawsuit filed in December 2012 against the Company by certain individual shareholders, as per the news release of January 24, 2013, it is the Company's belief that there is no merit to the allegations set out in the class action lawsuits since they are based on previously made false accusations and as such represent nothing new. Should the class action be certified and proceed, the Company will defend itself accordingly. The Company has retained Latham & Watkins LLP in New York as its defence counsel.

Comments & Business Outlook

Fri, 15 Feb 2013 05:00:00 GMT

Third Quarter 2013 Results

Revenue of $58.7 million compared to $61.9 million in Q3 Fiscal 2012.
Adjusted net income was $14.9 million, or $0.09 per share. Adjusted net income excludes non-recurring or unusual non-operational items and acts as a supplemental financial measure that provides a more complete assessment of the Company's net income for the period. In the quarter ended December 31, 2011 ("Q3 Fiscal 2012"), the Company reported net income of $20 million or $0.12 per share.

Production Guidance

In Fiscal 2014, the Company expects to increase ore production to 1.5 million tonnes, and will produce 6.7 million ounces of silver, 20,800 ounces of gold, 104.7 million pounds of lead and zinc, 300,000 pounds of tin and 20.5 million pounds of sulphur.

Notable Share Transactions

Tue, 29 Jan 2013 05:00:00 GMT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 29, 2013) - Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) ("Silvercorp" or the "Company") is pleased to announce a Normal Course Issuer Bid to acquire up to 8.5 million common shares from February 1, 2013 to January 31, 2014, representing approximately 5% of the Company's 170,766,058 common shares currently issued and outstanding has been approved by the TSX. The Company is taking this action 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.

Purchases will be made at the discretion of the directors at prevailing market prices, through the facilities of the TSX and the NYSE and other alternative Canadian marketplaces in compliance with regulatory requirements. There can be no assurance as to the precise number of shares that will be repurchased under the share repurchase program. Silvercorp may discontinue its purchases at any time, subject to compliance with applicable regulatory requirements. The Company intends to hold all shares acquired under the issuer bid for cancellation.

Directors and senior officers of the Company are not aware of any previously undisclosed material changes or plans or proposals for material changes in the affairs of the Company, nor do any of them have the present intention to sell shares of the Company during the Normal Course Issuer Bid. The Company has not purchased any of its common shares in the last 12 months.

The maximum number of shares that may be purchased on the TSX during any trading day may not exceed 25% of the average daily trading volume on the TSX based on the previous six completed calendar months excluding purchases made by Silvercorp under its Normal Course Issuer Bid, (being 222,774 common shares), for a daily total of 55,693 common shares. This limit, for which there are permitted exceptions, is determined in accordance with TSX regulatory requirements and does not apply to purchases made by the Company on the NYSE.

Shareholder Letters

Mon, 28 Jan 2013 05:00:00 GMT

Letter to shareholders 1/25/2013

To our shareholders:

As you may know, two proposed class actions have been filed in the United States District Court Southern District of New York against Silvercorp Metals, Inc., Myles Gao, Maria Tang and myself. The claims in the proposed class actions are based on false statements made in blogs published by internet blogger Jon Carnes on alfredlittle.com in September 2011. Both the Company and I have denied the allegations made by Mr. Carnes in his blog, and have responded in full on numerous occasions, including immediately after the publication of Mr. Carnes' blogs in September 2011. A subsequent independent third party forensic review undertaken by KPMG in October 2011 supported the integrity of the Company's accounting systems and financial reporting in China and North America, and in June 2012, an independent engineering consulting firm, AMC Mining Consultants (Canada) Ltd. reconfirmed the Company's resources and reserves.

Given the serious nature of the allegations made by Mr. Carnes and the harmful effect his unfounded blogs have had on the Company and our shareholders, the Company had no alternative but to commence action against Mr. Carnes and his related entities for defamation in the United States. Those proceedings are ongoing. Details on the litigation can be found here http://www.silvercorpmetals.com/investors/Short-And-Distort/default.aspx.

The proposed class actions do not rely on any new events or new facts; rather, they simply reiterate the same false claims put forward by self-interested short sellers who intended to manipulate Silvercorp's share price and harm the Company and its shareholders. To date, from public court documents, only two people representing only 7,000 Company shares initiated the class actions.

It is important to remember that these actions are, at this time, only proposed class actions. They have not yet been certified as class actions and the allegations remain unproven. Silvercorp will defend these actions vigorously if they proceed. Ultimately, we believe true value will be delivered to our shareholders by continuing to devote our energies to the business of mining, mine development and exploration.

I thank you for your continuing faith and commitment to the Company. I will continue to take all actions necessary to protect the integrity of our Company and safeguard shareholder value.

Yours sincerely,

Rui Feng
Chairman and CEO
Silvercorp Metals Inc."

Company Rebuttal

Fri, 25 Jan 2013 05:00:00 GMT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 24, 2013) - Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) ("Silvercorp" or the "Company") advises it is aware of the class action lawsuits that were first commenced on December 24, 2012 in New York. Allegations made in the class action suits are based on the accusations made by the blog site alfredlittle.com, which have already been established as entirely false by the Company (see news releases dated September 14 and 19, 2011 as well the Company's website http://www.silvercorpmetals.com/investors/Short-And-Distort/default.aspx for more information). These accusations, solely in the Company's opinion, were proven to be false by the following:

The KPMG Forensic report, which was reviewed by regulatory authorities, verified that the Company fairly presented its financial results (see news release dated October 24, 2011), plus a subsequent full audit of the Company for the year ended March 31, 2012 has been completed by Ernst & Young LLP;

The completion of updated technical reports by AMC Mining Consultants (Canada) Ltd. (see news releases of June 5, 2012 with respect to the Ying Mining District and January 31, 2012 with respect to the GC project), reconfirmed the Company's resources and reserves and verified that the Company's properties are viable economic resources. Furthermore, the report for the Ying Mining District concluded that the asset had a Net Present Value of US$890 million. Regulatory authorities reviewed both technical reports.

On August 16, 2012, in the defamation action commenced by the Company, Justice Edmead of the New York Supreme Court ruled that the "short and distort" allegations made by the blog site alfredlittle.com are merely statements of opinion and as such protected by freedom of speech; Silvercorp disagrees with the decision and filed an appeal in August 2012, in the Appellate Division of New York Supreme Court (see news release dated August 17, 2012). The Company believes the allegations were solely intended to manipulate the market so that profits could be made from short selling.

To date, from public court documents, only two people representing only 7,000 Company shares initiated the class actions. It is the Company's belief that there is no merit to the allegations set out in the class action lawsuits since they are based on previously made false accusations and as such represent nothing new and are a non-event; the Company will defend itself accordingly.

Auditor trail

Wed, 26 Dec 2012 05:00:00 GMT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 24, 2012) - Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) ("Silvercorp" or the "Company") today announced that it has changed its auditors from Ernst & Young LLP ("Ernst & Young") to Deloitte & Touche LLP ("Deloitte & Touche"), on November 27, 2012.

Ernst & Young was re-appointed as the Company's auditors at the Company's most recent annual general meeting held on September 28, 2012. Upon Ernst & Young's submission of their fee budget, which was increased substantially, for the audits of the Company's financial statements for the fiscal year ending March 31, 2013, the Audit Committee then undertook an audit tender process and four proposals were received. As a result of this tender process Deloitte & Touche has been appointed auditors of the Company for the year ending March 31, 2013.

There were no reservations or modified opinions in Ernst & Young's audit reports for the fiscal years ended March 31, 2012 and 2011 or any subsequent period, and there are no reportable events, as such term is defined in National Instrument 51-102, between the Company and Ernst & Young. The Company will be filing the required reporting package on SEDAR in accordance with National Instrument 51-102.

Investor Alert

Mon, 17 Dec 2012 05:00:00 GMT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 14, 2012) - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)(NYSE:SVM) today reported that as a result of work by the local power authority in upgrading a sub-station, power to the local area where TLP, HPG and LM mines as well as the two mills are located will be suspended for approximately 4 to 5 days from December 15, 2012. The Company expects that the temporary power suspension will result in a reduction of approximately 5,000 tonnes of ore production from the mines involved. The main SGX (Ying) mine will not be affected as its power is supplied through a different power line.

Comments & Business Outlook

Wed, 14 Nov 2012 05:00:00 GMT

Second Quarter 2013 Results

In Q2 2013, the Company recorded sales of $45.2 million, compared to $62.1 million in Q2 2012.
Net income attributable to equity holders of the Company of $9.5 million or $0.06 per share, compared to $18.5 million or $0.11 per share, in the quarter ended September 30, 2011 ("Q2 2012").

Investor Alert

Fri, 24 Aug 2012 04:00:00 GMT

Today, Alfred Little has released a new report on Silvercorp Metals.

The report starts...

"In today’s report I dig beneath the headlines to point out the recent reversal of fortune of Silvercorp Metals’ (NYSE: SVM) key SGX mine that accounted for 74% of SVM’s total production the last three years. SVM has done its best to mask the abrupt decline in the SGX mine from investors. Nevertheless, it is now clear that the SGX mine has much lower silver resource estimates than SVM previously disclosed and much lower grades of ore recently produced."

http://labemp.wordpress.com/2012/08/24/silvercorp-reluctantly-discloses-significantly-lower-resources-and-grades-for-its-key-sgx-mine/

Resolution of Legal Issues

Mon, 20 Aug 2012 04:00:00 GMT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2012) - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)(NYSE:SVM) reports that Supreme Court Justice Carol Edmead of the New York County Supreme Court yesterday granted motions to dismiss the defamation case Silvercorp filed last fall against short sellers and others responsible for publications falsely attacking Silvercorp.

Silvercorp disagrees with the decision where Justice Edmead ruled that the "short and distort" publications are statements of opinion and not statements of purported fact; in other words the defendants simply had the freedom to express their opinions pursuant to their constitutional rights. The Company has today filed an appeal in the Appellate Division of New York Supreme Court.

Despite this decision, Silvercorp believes that the action to date has succeeded in identifying the defendants that were initially anonymous and exposing certain of their activities. Justice Edmead's decision does not add any credibility or validity to the accusations originally leveled by the defendants.

All the accusations by the "short and distort" parties against Silvercorp have been proven false. The Company believes these accusations were solely intended to manipulate the market so that profits could be made from short selling. Since the attack Silvercorp has successfully completed a forensic review conducted by KPMG Forensic Inc., filed audited financial statements, filed an Annual Information Form for 2012, and filed new National Instrument 43-101 Technical Reports for all its properties to the satisfaction of the relevant regulatory authorities. Of note, is the 2012 Technical Report for the Company's flagship property, the Ying Mining District, where the contained silver in Proven and Probable Reserves increased by 36% as compared to the previous 2011 Technical Report.

Comments & Business Outlook

Fri, 03 Aug 2012 04:00:00 GMT

First Quarter 2013 Results

In Q1 2013, the Company recorded sales of $44.5 million, compared to $69.7 million in Q1 2012. This decrease was due to a lower realized silver price and lower metal production.
Adjusted net income was $8.1 million, or $0.05 per share, after excluding the withholding tax accrual of $2.0 million for anticipated dividends from the Company's subsidiary in China. Adjusted net income was $17.5 million lower, compared to $25.6 million, or $0.15 per share in the quarter ended June 30, 2011 ("Q1 2012"), primarily due to lower sales, higher production costs and higher general and administrative ("G&A") expenses.

UPDATED OUTLOOK FOR FISCAL YEAR 2013

As a result of the reasons discussed, production guidance for the Ying Mining District for the full Fiscal Year 2013 has been revised and the Company now expects to mine 740,000 tonnes of ore at grades of 245 g/t silver, 0.2 g/t gold, 4.0% lead and 1.5% zinc, yielding 5.3 million ounces of silver, 3,600 ounces of gold, and 78 million pounds of lead and zinc. The cash and total production costs are expected to remain at approximately $68 and $85 per tonne respectively.

Due to construction of the new power supply facility and the unexpected suspension of the construction of the tailings storage facility at the GC project, commercial production at the GC project is now expected to commence at the beginning of the fourth quarter of Fiscal 2013, about three months later than originally planned. The Company therefore expects to mine and mill 35,000 tonnes of ore, yielding approximately 170,000 ounces of silver and 2.7 million pounds of lead and zinc for Fiscal 2013. The cash and total production costs are expected to be approximately $40 and $65 per tonne of ore, respectively. The estimated capital requirement from current quarter-end to the declaration of commercial production at the beginning of Q4 Fiscal 2013 is expected to be approximately $25 million, with an additional $5 million in capital expenditure expected to be required after the commencement of commercial production. As such, total capital expenditure for the development of the GC project is expected to be approximately $63 million, within the budget of $67 million.

In Fiscal 2013, the BYP mine in Hunan Province is expected to mine and mill 70,000 tonnes of gold ore and 22,000 tonnes of lead and zinc ore, yielding approximately 4,700 ounces of gold and 1.3 million pounds of lead and zinc. The cash and total production costs are expected to be approximately $35 and $60 per tonne of ore respectively.

The X mines are expected to produce 50,000 ounces of silver and 3.7 million pounds of lead and zinc in Fiscal 2013.

On a consolidated basis, the Company now expects to produce app

Comments & Business Outlook

Wed, 11 Jan 2012 05:00:00 GMT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 10, 2012) - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)(NYSE:SVM) is pleased to announce that it has received RMB 269 million cash dividend payment (equivalent to USD $43 million) from its 77.5% owned Chinese subsidiary, Henan Found Mining Co. Ltd. ("Henan Found"), in Henan Province, China. The cash dividend has been deposited at a bank in Canada.

The cash dividend represents Henan Found's 2010 calendar year profit distribution. According to its audited statutory financial statements Henan Found had a net profit of RMB 514.8 million in the 2010 calendar year. The board of directors of Henan Found declared 75% of net profit (RMB 386.1 million), as cash dividends to its two shareholders. RMB 299 million, representing 77.5% total dividends declared was paid to the Company. After deducting Chinese dividend withholding tax of RMB 29.9 million, the Company received a net cash dividend payment of RMB 269 million.

Legal Insights

Tue, 10 Jan 2012 05:00:00 GMT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 9, 2012) - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)(NYSE:SVM) today filed an amended lawsuit in the Supreme Court of the State of New York, County of New York, adding EOS Holdings LLC., Jon Carnes, Zane Heilig, Andrew Wong and International Financial Research & Analysis Group ("IFRA"), as defendants. The original claim, filed on September 22, 2011 alleges that defendants Chinastockwatch.com, Jerry Katz, Alfredlittle.com, Alfred Little, Simon Moore, and several "John Doe" defendants with spreading "false, defamatory and fraudulent" information about Silvercorp on the Internet and in letters to the media and regulators to drive down the price of Silvercorp's stock to profit from their short positions in the stock. The defendants have not yet answered the Silvercorp's suit and the allegations remain to be proved.

Silvercorp has conducted extensive investigations to support the allegations concerning the involvement of the various parties who have been added as defendants: Full Release

Company Rebuttal

Wed, 21 Dec 2011 05:00:00 GMT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 20, 2011) - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)(NYSE:SVM) has been advised that Chinese law enforcement agents have opened a criminal case to investigate and find the creators of false and fraudulent reports by anonymous parties such as IFRA, Alfred Little and others, attacking Silvercorp and its Chinese subsidiaries.

In September 2011, the Company also filed a lawsuit in New York County Supreme Court charging defendants Chinastockwatch.com, Jerry Katz, Alfredlittle.com, Alfred Little, Simon Moore, and several "John Doe" defendants with spreading "false, defamatory and fraudulent" information about Silvercorp on the Internet and in letters to the media and regulators. It has also filed two separate actions in British Columbia, Canada.

Even with an independent KPMG forensic report reaffirming the Company's business in the face of a short and distort attack, the Company is still receiving odd and disconcerting communications from anonymous callers.

On November 1, 2011, someone claimed to be Peter Li, representing a US based investment fund (who spoke Mandarin with a Cantonese accent), telephoned (using a Guangzhou phone number) sales department of Henan Found. From the caller's odd and aggressive behavior, Silvercorp believes the caller was trying to falsify information that he could use to attack Silvercorp in an out of context audio recorded conversation; the Company understands that similar tactics were commonly used in Alfred Little and IFRA reports in attacking other Chinese companies.

In November 2011, a mining engineer at Silvercorp's Beijing office received several emails from an employee of the Singapore branch of Guidepoint Global, LLC, who stated his name was "Hang Ming". Hang Ming asked the mining engineer to work as their agent at RMB 2,000 per hour. Hang Ming wrote in his email that he received a request from an analyst named "Soldo Marko" who works for a US based hedge fund. Hang Ming asked the engineer to have a telephone interview with Soldo Marko in a way, we believe, to attain insider information on Silvercorp for trading. The Company understands that the FBI has previously investigated agents of Guidepoint Global and subsequently charged such agents for tipping confidential information of publically traded companies to hedge funds.

Comments & Business Outlook

Mon, 21 Nov 2011 05:00:00 GMT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 21, 2011) - Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) ("Silvercorp" or the "Company") announced that through its 77.5% own subsidiary Henan Found Mining Co. (Henan Found), it has signed a share purchase agreement to acquire a 100% equity interest in the SX Gold Mining Company ("SX Gold"), a Luoyang City government controlled company. SX Gold operates the XHP silver-gold-lead-zinc mine which includes a 14 square-kilometre mining permit and a 500-tonne-per-day flotation/CIL mill (collectively called as "XHP Project"). The share purchase agreement was signed after Henan Found won a public tendering process arranged by the Luoyang City government to sell SX Gold.

The XHP mine is located about 120 kilometres southwest of the Company's Ying mine, a three-hour drive from both Luoyang City and the Ying mine, and six kilometres to the northwest of the XBG mine that was acquired in August 2011. In addition, SX Gold also owns the HGDG gold exploration permit of 4.45 square kilometres and owns a 51% interest in the PLS gold exploration permit covering 3 square kilometres. A map showing the relative location of the properties will be posted on Company's website.

Investor Alert

Mon, 24 Oct 2011 04:00:00 GMT

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/24/11 -- Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) ("Silvercorp" or the "Company") advises that it has received the report of KPMG Forensic Inc. ("KPMG"), commissioned by its Special Committee (the "KPMG Report") to review the allegations issued by two anonymous sources in September respecting the Company's financial position.

Notable Share Transactions

Thu, 22 Sep 2011 04:00:00 GMT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 22, 2011) - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)(NYSE:SVM) announced it has acquired a total of 4,468,012 of its common shares at a total cost of $34,949,140 (average price of CDN$7.82 pursuant to its normal course issuer bid ("NCIB") announced on June 17, 2011. 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.

Company Rebuttal

Mon, 19 Sep 2011 04:00:00 GMT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 19, 2011) - Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM), a Canadian based company ("Silvercorp" or the "Company"), following yet another false and misleading internet posting today by the fictitious and anonymous Alfred Little, posted an open letter today to its shareholders that addresses recent allegations made about the Company. "All of the allegations made against Silvercorp have been anonymous. All of the allegations are baseless and designed to be manipulative," said Rui Feng, Chairman of Silvercorp. "At the risk of repeating this misinformation, we are making sure that every allegation is addressed in detail and investors have all of the information they need to have confidence in our company. While new attacks will keep coming, as is the past practice within the short and distort industry, with this open letter we are turning the corner and putting these allegations behind us," said Rui Feng.

In the past two weeks Silvercorp has appointed an independent committee of its Board to investigate the allegations. Legal advisors and independent accountants, KPMG Forensics Inc. ("KPMG"), have also been retained to investigate. Silvercorp is also working with securities regulators to investigate the source and nature of the allegations.

"We have gone above and beyond all reasonable efforts to deal with this short and distort manipulation scheme. The facts and data are available. Our books have been properly audited, our resource numbers confirmed by independent Qualified Persons, and all our transactions have been fully disclosed. There is absolutely no substance to the allegations," concluded Rui Feng.

Notable Share Transactions

Thu, 15 Sep 2011 04:00:00 GMT

Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)(NYSE:SVM) announced it has acquired a total of 3,918,012 of its common shares at a total cost of $31,290,657 (average price of CDN$7.97 pursuant to its normal course issuer bid ("NCIB") announced on June 17, 2011.

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.

The Company is purchasing its owns 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.

Company Rebuttal

Wed, 14 Sep 2011 04:00:00 GMT

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.
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 shadows and participate with the regulators in their
investigations, if their concerns truly extend beyond the profitability of their short positions.”
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.
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 related parties: see more

3rd Party Hit Pieces

Wed, 14 Sep 2011 04:00:00 GMT

On August 29, 2011, we anonymously sent a letter to a number of parties including Ernst & Young (Silvercorp’s auditor) and the Ontario Securities Commission. We indicated that we planned to post some of our research on Silvercorp on the Internet and we included a preliminary copy of our research with that letter. On September 2, 2011, before we had posted any research, Silvercorp announced publicly that it had received a copy of our letter from Ernst & Young. Silvercorp published a press release in which it stated its response to certain of the matters raised in our letter and made reference to certain documents. In the release Silvercorp stated that a special committee of its board of directors has been established. We reviewed Silvercorp’s response, updated our analysis further, and are now posting our revised analysis on the Internet. On September 9, 2011, the media reported that the British Columbia Securities Commission had been made aware of our research and was “examining both the nature of the complaint and the allegations contained in [our] letter.” We have sent a copy of this Internet posting to the British Columbia Securities Commission, the Ontario Securities Commission, Ernst & Young and Silvercorp’s independent directors. see more

3rd Party Hit Pieces

Tue, 13 Sep 2011 04:00:00 GMT

Alfredlittle.com has released a report on Silvercorp Metals (NYSE and TSX: SVM) that shows that:

Henan Provincial Land & Resource Bureau mining reports contradict the production, quality and resource estimates of SVM's key SGX (Ying) mine as shown in its 40-F and independent NI 43-101 reports that rely heavily upon data provided by management. No independent geologists have visited SVM's SGX mine since 2008.
Outside Tests of Ore Obtained from the SGX Mine Reveal Low Silver Content
98% of Henan Found's Sales Growth in 2010 came from Two Questionable Customers. Management Failed to Disclose SVM's Largest Customer is a Related Party.
Recent Auction Sale of 5% of Henan Found Values it at a 90% Discount to SVM's Market Value.
SVM Acquired Yangtze Gold from Chairman Rui Feng's Relative Giving Him a 1500% Gain in Six Months.

See full report here.

Notable Share Transactions

Mon, 12 Sep 2011 04:00:00 GMT

Repurchase Program Update

Pursuant to its normal course issuer bid ("NCIB") announced on June 17, 2011, Silvercorp has acquired a total of 2,318,012 of its common shares at an average price of CDN$8.12. Under the NCIB the Company intends to acquire up to 10 million common shares. All common shares purchased under the NCIB will be cancelled.

Company Rebuttal

Fri, 02 Sep 2011 04:00:00 GMT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 2, 2011) - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)(NYSE:SVM) announces that there has been a dramatic increase in the short position of its shares over the past two months which is now approximately 23 million shares (Source: (http://www.dataexplorers.com/products/data), or 13% of the total outstanding shares.

Late yesterday afternoon, the Company was forwarded a copy of an anonymous letter dated August 29, 2011 addressed to the Ontario Securities Commission, the Company's Auditors, and various media outlets maliciously alleging a "Potential $1.3 Billion Accounting Fraud at Silvercorp". The anonymous author also stated that his firm held a short position in the Company's shares and intended to make his concerns known through internet postings. The Company has not confirmed whether the letter has been disseminated to all the addressees or if any postings have been made.

Recognizing that the anonymous letter may be disseminated the company wishes to proactively respond to the most serious allegations and has posted supporting information on its website to provide investors with comfort regarding the following allegations made in the anonymous letter:

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Notable Share Transactions

Mon, 27 Jun 2011 04:00:00 GMT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 24, 2011) - Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) ("Silvercorp" or the "Company") is pleased to announce that is has received TSX approval for its Normal Course Issuer Bid to acquire up to 10 million common shares from June 29, 2011 to June 28, 2012, representing 5.7% of the Company's 175,047,941 common shares currently issued and outstanding. The Company is taking this action 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.

Purchases will be made at the discretion of the directors at prevailing market prices, through the facilities of the TSX and the NYSE in compliance with regulatory requirements. There can be no assurance as to the precise number of shares that will be repurchased under the share repurchase program. Silvercorp may discontinue its purchases at any time, subject to compliance with applicable regulatory requirements. The Company intends to hold all shares acquired under the issuer bid for cancellation.

The maximum number of shares that may be purchased on the TSX during any trading day may not exceed 25% of the average daily trading volume on the TSX, excluding purchases made by Silvercorp under its Normal Course Issuer Bid, based on the previous six completed calendar months, for a daily total of 215,990 common shares. This limit, for which there are permitted exceptions, is determined in accordance with TSX regulatory requirements and does not apply to purchases made by the Company on the NYSE.

Liquidity Requirements

Fri, 06 May 2011 04:00:00 GMT

The Company does not have unlimited resources and its future capital requirements will depend on many factors, including, among others, cash flow from operations. To the extent that its existing resources and the funds generated by future income are insufficient to fund the Company’s operations, the Company may need to raise additional funds through public or private debt or equity financing. If additional funds are raised through the issuance of equity securities, the percentage ownership of current shareholders will be reduced and such equity securities may have rights, preferences or privileges senior to those of the holders of the Company’s common stock. No assurance can be given that additional financing will be available or that, if available, can be obtained on terms favourable to the Company and its shareholders. If adequate funds are not available, the Company may be required to delay, limit or eliminate some or all of its proposed operations. The Company believes it has sufficient capital to meet its cash needs for the next 12 months, including the costs of compliance with the continuing reporting requirements.