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Silvercorp Metals Inc. T.SVM

Alternate Symbol(s):  SVM

Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company’s strategy is to create shareholder value by 1) focusing on generating free cashflow from long life mines; 2) organic growth through extensive drilling for discovery; 3) equity investments in potential world class opportunities; 4) ongoing merger and acquisition efforts to unlock value; and 5) long term commitment to responsible mining and ESG.


TSX:SVM - Post by User

Bullboard Posts
Post by namehijon Sep 17, 2009 9:26am
434 Views
Post# 16314097

Calc's

Calc'sI agree with the calc's. A few unsolicited (and maybe worthless) comments:

1. I don't think this values the cash on hand and that will be generated. I think it would be cool if they could become the Silver Wheaton of China on the side.
2. They might not get a 20 multiple as sign. portion of revenue is lead and zinc--base metal portion often gets a lower multiple. They are less leveraged to price of silver than most other silver companies due to their low cost structure---this is great when things are going bad--but would seem to hurt the multiple going forward. Then again, a higher multiple could be justified given great growth prospects--I'll personally be disappointed with 20% growth over next 5 years (maybe I'm greedy).

I like the direction they are headed along with the direction silver is going. I think once it gets above $5 for a while--the bigger funds will get involved--often they can't buy less than $5 stocks.

Go Silvercorp.
Bullboard Posts