Hecla Mining Company (HL), BHP Billiton Limited (ADR) (BHP): Now It’s Silvercorp Metals Inc. (USA) (SVM)’s Turn to Gets Scammed

When faced with adversity, Silvercorp has moved to be out in front of the problems. It was the miner that revealed that someone was blowing the whistle on its alleged financial shenanigans, and it proactively attacked the cabal of short sellers who were teaming up to knock the its stock down. While it eventually dropped the lawsuit against them (after having been dealt a blow by the courts, which dismissed the charges), it also hired two well-known consulting firms to prepare an NI 43-101 report to lend more credibility to its mineral assessments while also bringing accountants in from KMPG to go over its books.

That last may have been a bit self-serving, as it was given a clean bill of health, but it was Silvercorp that brought to the fore the problems with its contractors and immediately took measures to remediate them.

Its shares have been cut nearly in half over the past year, but that has more to do with the state of silver these days than with the miner, and because I’m very bullish about silver’s long-term future, I think this scam by its contractors will lead to a stronger company that will profit when the gray metal rises once more.

The article Now It’s Silvercorp’s Turn to Gets Scammed originally appeared on Fool.com and is written by Rich Duprey.

Fool contributor Rich Duprey has no position in any stocks mentioned, and neither does The Motley Fool. 

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