Did Silvercorp Metals Exaggerate the Original Size of its Ying Mine?

In September 2011 I published a series of reports on Alfredlittle.com that raised a number of serious questions regarding the size and quality of Silvercorp Metals’ (NYSE: SVM) Ying mine and pointed out numerous other red flags related to their Chinese mining business.  SVM’s attempts to answer my questions only led to more questions.  Unable to explain all the red flags I raised, SVM instead commenced a wasteful legal campaign spending millions of shareholder dollars attempting to censor, intimidate and silence its critics, one by one, into submission.

In China, SVM filed a criminal complaint (acknowledged here in this Chinese media report) with the public security bureau in the small town of Luoyang where SVM’s key operating subsidiary, Henan Found, is based.  Under pressure, the local cops aggressively responded to SVM’s complaint and arrested, terrorized, and forbid my researchers from communicating with me or performing any further research on Chinese companies.

The local cops then confiscated all my researchers laptops and extracted all the data, including a copy of my own personal address book.  Soon afterwards, a large number of phone numbers and addresses from my personal address book appeared in this New York Supreme Court filing (clearly cut and pasted, including capitalization and misspellings) in which SVM tried to persuade the Court to help the company illegally gain access to my confidential bank and brokerage account info.

Since SVM began targeting its critics, Rui Feng has avoided answering the tough questions from the U.S. and Canadian media.  Meanwhile in China, Feng has conducted numerous interviews defending Chinese companies accused of fraud, even those that have been delisted or halted by the Exchanges.  Feng bragged to the 21st Century Economic Herald that he had succeeded in shutting down my research effort preventing me from publishing any more negative reports on Chinese companies (link here).  Feng’s Chinese media comments made him the “hero” of all the Chinese frauds that I busted in the past and the “patron saint” of fellow litigants Deer Consumer Products (NASDAQ: DEER) and SinoClean Energy (NASDAQ: SCEI – Halted).  However, the recent halt of SCEI proves that Rui Feng’s campaign to silence me has failed and that I will continue speaking the truth and seeking justice.

Today’s report is the first in a new series that will raise more legitimate questions and reveal even more disturbing truths about SVM and its management.


SVM President and COO Myles Gao’s Recent Description of the Original Size of the Ying Mine Contradicts Historical Resource Reports

One response

  1. It amazes me that the Chinese authorities wouldn’t take all of the fraud more seriously. The fact that they’re actually making it more difficult to uncover these schemes leads me to believe that they’re not really interested in putting an end to it. This makes all Chinese companies toxic from my perspective because it becomes impossible to verify who is telling the truth and who is lying. One would think that they would want to welcome outside investments, but without integrity in their markets, you may as well go to the casino.

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Glenn Chan's Random Notes on Investing

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