SVM.to Silvercorp Metals

A trading buddy of mine has been buying this one... so i decided to wade in today....
They are the one of the most profitable silver/ base metals miners on the planet, and they are operating in China. That has some drawbacks and some plusses.
Anyways the last report looks good, and lead and zinc prices heading higher again, testing new highs.
As of last report , revenues from lead and zinc, equalled that of silver for Silvercorp.
They also just announced they are continuing the dividend , Semiannually .01 US $$
Last trade at 3.14 today CAD

ORIGINAL: Silvercorp Reports Q2 Results: Net Income of $11.1 Million, $0.07 Per Share



2017-11-08 15:33 MT - News Release


Trading Symbol: TSX: SVM
NYSE AMERICAN: SVM

VANCOUVER, Nov. 8, 2017 /PRNewswire/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) reported its financial and operating results for the second quarter ended September 30, 2017. All amounts are expressed in US Dollars.

SECOND QUARTER HIGHLIGHTS

• Net income attributable to equity shareholders of $11.1 million, or $0.07 per share, compared to net income attributable to equity shareholders of $12.4 million, or $0.07 per share in the prior year quarter;
• Gross margin of 54% compared with 56% in the prior year quarter;
• Sales of $47.5 million, up 3% compared to $46.3 million in the prior year quarter;
• Silver, lead, and zinc metals sold amounted to approximately 1.6 million ounces silver, 16.9 million pounds lead, and 5.6 million pounds zinc, compared to 1.8 million ounces silver, 19.9 million pounds lead, and 5.9 million pounds zinc in the prior year quarter;
• Head grades were 294 grams per tonne ("g/t") for silver, 4.3% for lead, and 0.8% for zinc at the Ying Mining District, compared to 302 g/t for silver, 4.9% for lead and 1.1% for zinc in the prior year quarter;
• Total and cash mining costs per tonne ore1 of $70.58 and $52.77, respectively, compared to $64.67 and $43.09 in the prior year quarter;
• Cash cost per ounce of silver1, net of by-product credits, of negative $5.16, compared to negative $3.05 in the prior year quarter;
• All-in sustaining cost per ounce of silver1, net of by-product credits, of $2.26, compared to $3.15 in the prior year quarter;
• Increased ownership in New Pacific Metals Corp. ("NUAG") from 16.1% to 31.8% for $20.0 million; and,
• Ended the quarter with $98.6 million in cash and cash equivalents and short-term investments, an increase of $2.2 million or 2% compared to $96.5 million as at March 31, 2017.

 

Oh did i mention they have a P/E ratio of under 8 x and have a 25 million $ investment in NUAG, New Pacific Metals, that is up around 60% in the past 6 months...... by my calculations.

 

Hmmm well , bought some at 3.20 and watched it fall further. I think nothing to do with the company, as their P/E , earnings , resource grade , cash position and basically all the fundamentals check in as great. Have another bid in at 3.12 (cad) to complete buying a position.
We saw silver and gold stocks being sold, as the trading started on the TSX, somehow these folks all knew that a big dump of paper gold and silver was coming on the Comex/Nymex....AND in a matter of a few minutes 4 million ozs of paper gold were dumped in the futures markets, and a similar trade was executed at the exact same time in the silver futures.... Sure does seem like collusion and manipulation.But perhaps that is a subject for another thread.
We do know half of Silvercorp revenue comes from zinc and lead, and those prices continued up, so the selling was aimed at precious metals only... and those stocks that produce them.

 

Well lowered my expectations and also my bid and so completed buying the amount i wanted at 3.08 today.
SVM P/E now sitting at 7.74 x earnings... which i believe is the lowest amongst the silver miners.
Could be some tax loss selling hitting the markets today, as I noted the TSX down over 100 points....

 

Much better volume today, and i saw a blurb about a stock repurchase program. But i dont see the news on any of the trusted major news agencies , such as Reuters , SW , etc etc.
Anyways from Dispatch Tribunal.... really have never heard anything about this particular news outlet.
https://www.dispatchtribunal.com/20...svm-board-declares-stock-buyback-program.html

 

Well silver and gold getting a beating at the hands of the paper sellers on the Comex.... unloaded SVM today for a commission loss. Will rebuy later as the carnage in silver continues.. down .45 on the day, trading near the lowest level in over a month.
SVM made a nice pop up today, offering a trade out for me.

 

Hmmm CIBC buying up everything that is offered for sale today it seems.
Hard to figure with the beatdown in silver and zinc. Mostly due to US$ strength i suppose.....

 

SVM announced a share buyback today. Had been some hints out there that this was coming. Basically is a non-event tho... many view it as a positive, as it may raise earnings per share slightly if they buyback the full allotted amount. Many times they only buyback a small portion of what they are allowed. It is more a sign to investors that the shares are undervalued - managements opinion, not necessarily the market's.

Silvercorp Metals to buy back up to 8.4 million shares



2017-11-23 05:15 MT - News Release


Mr. Lorne Waldman reports

SILVERCORP ANNOUNCES SHARE REPURCHASE PROGRAM

Silvercorp Metals Inc. has arranged a normal course issuer bid to acquire up to 8,409,712 common shares, representing approximately 5 per cent the 168,194,254 common shares issued and outstanding as of Nov. 16, 2017. The repurchase program will run from Nov. 27, 2017, to Nov. 26, 2018. 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 properties in China and other strategic investments.

Purchases will be made at the discretion of the directors at prevailing market prices, through the facilities of the Toronto Stock Exchange, the NYSE American, and alternative trading platforms in Canada and the United States, 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 repurchased any of its common shares in the last 12-month period.

The maximum number of shares that may be purchased on the TSX during any trading day may not exceed 25 per cent of the average daily trading volume on the TSX based on the previous six completed calendar months of 709,485, excluding purchases made by Silvercorp under its normal course issuer bid, for a daily total of 177,370 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 alternative trading platforms in the United States.

About Silvercorp Metals Inc.

Silvercorp is a low-cost silver-producing Canadian mining company with multiple mines in China. The company's vision is to deliver shareholder value by focusing on the acquisition of underdeveloped projects with resource potential and the ability to grow organically.