Silvercorp Metals Inc. (SVM)

SIlvercorp metals recently has been raking in huge percentage gains. A few weeks ago SVM was moved from AMEX to the NYSE which increased visibility from potential investors.
Along with this last week SVM released second quarter earnings. Here are some highlights:
" - Net earnings of $8.9 million, 83% higher compared to $4.9 million in the same quarter last year;
- Earnings per share of $0.06, double the earnings per share of $0.03 in the same quarter last year;
- Production of 1.2 million ounces of silver and 15.2 million pounds of lead, representing 35% and 43% increases, respectively, compared to 0.8 million ounces of silver and 10.7 million pounds of lead produced in the same quarter last year;"
These are great increases for an up and coming company, and btw it pays a dividend

Telechart Pick

when one stock will survie , it will be that one wits te negative silver costs of nearly 6 $/oz !!!!!

Pick pending for 24 hours now, was up?

Silver has more commercial uses and tend to run with gold. In previous gold runs, silver did better. I tend to buy precious metal companies rather than buying the ETFs.

Negative $5 per ounce cash cost on their silver and I love Silver.

Profitable Chinese silver mining company with an additional high grade project in the works.

going down

This is before the upcoming depression, late 2009. This time next year, I expect we will be in a full-blown Depression, unfortunately!

By then, I will be in Swiss francs, and growing crops in rural Wisconsin.

Great management, rich ore body, rising PM prices

Peter Schiff recommendation, Oct. 7, 2009.

Chinese silver producer. net cost per recoverable ounce is negative $4.

SVM is a small silver mining company based in Canada which mines primarily in China. They therefore are a good hedge against the dollar. Silvercorp is China's largest primary silver producer.

They have no long term debt.

They are the lowest cost producer of silver among its industry peers.

They currently pay a dividend of 1.7%. Being such a small company and being in the metal production industry, this might not stick.

They increased production for the quarter ending June 2009 to 1.2 million ounces of silver and 16 million pounds of lead vs. last year. Up 6% for silver and 11% for lead.

Sales revenue for the quarter ending June 2009 was $22.6 million compared to $30.9 million in the same quarter last year. This 26.8% reduction was the result of substantially lower net smelter return ( NSR) prices (quoted market metal prices less smelter charges and value added tax) for silver and base metals.

Lowest cost producer,great exploration potential

This one is operating quite profitably right now, with little in the way of debt. It has several projects and prospects that are not yet operational but are in various stages of permitting/approval. It pays a small dividend (better than nothing). Biggest risks appear to be location (mines are located in China) and precious metals prices generally. The mine location is also a plus in the sense that the metals don't have to travel as far to a major and growing market. It failed in its bid for another silver company, but I appreciate the aggresiveness and its refusal to unreasonably up the ante. Its price per share is pretty volatile.

THE CHINA BABY SILVER BEHEMOTH!!!
Gold/Silver Ratio Gap-Closure in an Acute Silver Shortage:

China's largest primary silver miner with China as partner.
China is pushing Silver to 1.3 Billion Chinese on State TV.
China is dumping USDollars & Treasuries for gold & silver.

China issues Warning to Bernie Banks of hedge Default!!!
This Mini-Monster is still flying below analyst radar, for now.

gold/silver ratio

Two things. A play in the gold/silver ratio, most silver stocks have great upside with low risks. Secondly, it's operating in China. The Chinese government will do whatever it can to make this company successful.

SVM, a Chinese company that specializes in silver mining, could make a good long-term play against inflation and/or U.S. $ currency risk.