fxtrader07

Silvercorp: Canadian Mining Profits in China

Good article, but I had wished that the author had included the pretty severe issue of widespread recent power shortages and their negative impacts on SVM's operations. the company made a press release on the 8th of August that it experiences very significant power shortages for its major mine due to temporary and non-temporary shutdowns of coal-fired plants and that the situation will actually worsen for the Olympics period (till Sep 5th) and that it might face power shortages also thereafter. Clearly, this will virtually kill their production targets and estimates and also drive up costs.
While I regard the stock groassly undervalued, too, I think these are noteworthy negative factors that should not be hidden or omitted.