UPDATE: Silvercorp Metals Still Up 6%, But Well Off Day Highs After Detailed Rebuttal of Fraud Allegations
China-focused miner Silvercorp (SVM.TO) offered a detailed rebuttal of new anonymous allegations of fraud on Wednesday, releasing figures on taxes, production and assay grades to fend off a short-seller attack, according to a Reuters report.
Struggling to defend itself against allegations similar to those that have downed Sino-Forest (TRE.TO) and other China-focused North American-listed companies, Silvercorp reportedly dismissed what it described as "false, selective or ignorant statements and rumors".
"I ask shareholders to exercise common sense in assessing whether these allegations of 'fraud' against the company have any merit whatsoever in the face of very significant revenues, tax payments and dividends," Chief Executive Rui Feng is cited as saying in a release, reportedly adding that the allegations were particularly weak given they are being made anonymously by parties whose only interest is in depressing the company's share price.
The company's stock was down 60% at the end of trade on Tuesday from the record high of $15.60 it touched on April 8. The shares jumped as much as 20% and touched $7.42 Wednesday morning following Silvercorp's rebuttal and were up 6% at around $6.55 late Wednesday.
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