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The Canadian Press - ONLINE EDITION
Silvercorp to boost silver output 20 per cent in next year from Chinese mines
VANCOUVER - Silvercorp Metals Inc. (TSX:SVM), a Vancouver miner which operates primarily in China, is forecasting increased production of silver, gold and other minerals in the next year.
The company, which has been fighting allegations of fraud for much of the last year, said Thursday its silver production will grow by 20 per cent and its gold output by 90 per cent in the next fiscal year, which ends March 31, 2013.
In addition, lead output will rise 12 per cent and zinc production will increase 63 per cent.
From the four mines at the Ying mining camp, Silvercorp said output is expected to increase to 695,000 tonnes.
That will lead to the production of 5.9 million ounces of silver, 3,350 ounces of gold, and 87 million pounds of lead and zinc.
For fiscal 2013, Silvercorp also plans to spend about $89.1 million for mine development, mill construction, and other capital items. In addition, the company will spend $9.8 million on exploration.
Last month, Silvercorp expanded a lawsuit against several companies and individuals accusing them of spreading lies about the mining company as part of a short-selling stock manipulation scheme.
The updated lawsuit filed in a New York court adds EOS Holdings LLC, Jon Carnes, Zane Heilig, Andrew Wong and International Financial Research and Analysis Group.
Shares in Silvercorp dropped by as much as 20 per cent in a day last year after anonymous letters were sent to B.C. and Ontario securities regulators and comments were posted on websites alleging Silvercorp had overstated its financial statements and resource deposits.
The company has repeatedly denied any wrongdoing and alleged that it was the victim of a smear campaign designed to drive down the value of its shares.
The original lawsuit, filed in September last year, alleged Chinastockwatch.com, Jerry Katz, Alfredlittle.com, Alfred Little, Simon Moore, and several ``John Doe'' defendants spread ``false, defamatory and fraudulent'' information about Silvercorp.
The Toronto-listed company, which mines for silver and metals at four mines in China, said the defendants have not yet answered the lawsuit. The allegations have not been proven in court.
Silvercorp is seeking undisclosed compensatory and punitive damages and the transfer of short-selling profits to Silvercorp or to a trust.
Late last year, Silvercorp said Chinese law enforcement agents have opened a criminal investigation into those making the allegations against the company.
Silvercorp is the largest primary silver producer in China with four silver-lead-zinc mines at the Ying mining district in Henan province. In addition to its operations in China, Silvercorp is developing the Silvertip project in northern British Columbia.
The company bought the project from Silver Standard in 2010 for $15 million in cash and shares.
Companies that operate in China but list on foreign stock exchanges have been under the microscope following accusations against Chinese timber company Sino-Forest Corp. (TSX:TRE) by short-seller Muddy Waters Research.
Those allegations precipitated a steep drop in Sino-Forest stock and the company set up an independent committee to review the accusations. In August, the Ontario Securities Commission stopped trading in the Toronto-listed company and made its own allegations of fraud.
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