CHARTS: The coming critical minerals trade war is BRICS short of a load
"While a large number of countries around the world continue to talk about securing raw material supply, China is actually doing something about it."
Silvercorp Metals, China’s biggest silver miner, was changing hands for $9.72 in Toronto on heavy volumes shortly after the open Monday, up almost 19% after a report by the forensic accounting arm of KPMG showed no truth to allegations of $1 billion in accounting fraud at the company.
Shareholders who held onto their Silvercorp stock during the rollercoaster ride that started on September 2 when the company had to go public with the accusations, believed to be the work of shortsellers that had built up a massive position in the stock, are now able to show a handsome profit for their loyalty. The company is suing two New York-based websites – Chinastockwatch.com and Alfredlittle.com – for spreading false information and is seeking punitive and compensatory damages.
The counter closed at $8.23 September 1, the day before the announcement of an anonymous letter alleging the fraud and the revelation of a short position of 23 million shares or 13% of the outstanding stock. During September trade volumes rocketed, intra-day swings reached 22% and at one point shell-shocked owners were down a net 30%.
Silvercorp’s gains were also into the teeth of a silver price that dropped 27% during the month and a sector slaughtered along with it. Silver futures were priced at $31/oz on Monday from $42/oz at the start of September.
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