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Silvercorp Metals At Year Lows As Reportedly Hit With Another Short-Seller Report Accusing It Of Fraud

Silvercorp Metals Inc. (SVM.TO) has hit a new year low of $6.20 with more than 4 million shares traded amid reports it has been hit with another short-seller report accusing it of fraud. And this time with a name attached, the Financial Post said.

According to the Financial Post, Alfredlittle.com, a widely-followed site that publishes short-seller research on Chinese companies, said that Silvercorp's production and resource estimates for its flagship Ying mine are far higher than what is reported locally in China. It reportedly stated that the authors of Silvercorp's independent resource reports are a two-man consulting outfit with "no employees, no office and no business licence."

Alfred Little said it spent two weeks counting the trucks delivering ore to Silvercorp's mills, and determined that activity was about 34.3% less than expected, the Financial Post reports.

Alfred Little also reportedly claims that management failed to disclose that the company's largest customer is a related party.

Sivlercorp shares has dropped 16% and hit its lowest level in around 15 months at $6.20 today.

The Alfred Little report has emerged less than two weeks after an anonymous short seller published a similar document with a number of allegations against Vancouver-based Silvercorp, the FP said. The company and the British Columbia Securities Commission are trying to determine who wrote it, the FP added.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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