History

Facilitated by China’s 1997 Mineral Resource Law (click here), Silvercorp first entered China in 2003 to capitalize on the country’s vastly underexplored geological potential.  While the Chinese government invested tremendously in geological exploration in the 1950s and 1960s, leading to many discoveries, very little capital or advanced exploration technology were available to exploit them fully.  China's 1997 Mineral Resource Law was adopted specifically to enable foreign mining companies to explore and mine in the country -- inviting in the advanced exploration technology, expertise and funding China needed to truly develop its resources.

In 2004, Silvercorp acquired the Ying project, a small producing mine in the Henan province, and exploration over the next two years led to the discovery of exceptionally high-grade silver-lead-zinc mineralization in a multitude of narrow veins similar to the prolific Coeur d’Alene silver district in Idaho, U.S.A.  On March 31, 2006, Silvercorp received its first mining permit from the Ministry of Labour & Resources and commercial production of silver, lead and zinc from the Ying mine began the next day.

Today, Silvercorp is China’s largest primary silver producer and on course to achieve its fourth consecutive year of production growth in fiscal 2010 of close to 5 million ounces of silver.  Due to the exceptionally low costs of operating in China, along with the high efficiency of a skilled labour force, Silvercorp has enjoyed industry-leading profitability and returns among its industry peers.  In fiscal 2008, the company generated net profits of $59.9-million on sales of $108-million, representing earnings of $0.41 per share.  And despite globally depressed commodity prices in 2009, the company generated adjusted net profits of $27.3-million on sales of $83.5-million.  As testament to its profitability - and a demonstration of its ability to repatriate profits – the company paid its first annual dividend to shareholders of $0.05 per share in October, 2007, and subsequently increased that dividend to $0.02 per share per quarter in August, 2008.   

Following on its success at the Ying mine, Silvercorp acquired three nearby mines and consolidated the district in 2007.  The company now has four mining permits in the Henan province along with a development project in the Guangdong province, which is currently in the mining permit application process.  In addition to its operational success, Silvercorp is considered a preferred mining company in the Henan province, having built a solid reputation for upholding high safety and environmental standards and supporting local community initiatives. Silvercorp plans on continuing its growth through increasing mine capacity and production, resource expansion and continuing acquisitions with a focus in China.

In February 2010, Silvercorp added the Silvertip project to its project portfolio.  Located in northern British Columbia, Canada, the advanced high-grade silver-lead-zinc project represents a new platform for growth plus geographic diversification for the company.  As one of the highest grade carbonate replacement deposits in North America, the Silvertip project fits within Silvercorp's expertise in the accelerated development of high-grade deposits that can generate early cash flows.    

Corporate Background

Silvercorp is listed on the Toronto Stock Exchange under the symbol “SVM”, and is a reporting issuer in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia and New Brunswick, Canada.  The company is also a reporting issuer in the United States and commenced trading on the New York Stock Exchange under the symbol "SVM" on November 5, 2009.  Prior to the NYSE listing, the company traded on the NYSE Amex beginning on Feb. 17, 2009.

The Company was formed as Spokane Resources Ltd. pursuant to an amalgamation of Julia Resources Corporation and MacNeill International Industries Inc., under the British Columbia Company Act, on October 31, 1991. By special resolution dated October 5, 2000 Spokane Resources Ltd. consolidated its share capital on a 10:1 basis and altered its Memorandum and Articles of Incorporation by changing its name to SKN Resources Ltd.  On May 2, 2005, the Company filed a Notice of Alteration with the Registrar of Companies changing its name from ‘SKN Resources Ltd.’ to ‘Silvercorp Metals Inc.’.

Prior to being listed on the Toronto Stock Exchange on October 24, 2005, Silvercorp Metals was listed on the TSX Venture Exchange from July 26, 2001, to May 1, 2005.  

Myles Gao, President and COO of Silvercorp, joined the company as a director on November 25, 2002, just before the company acquired its first project in China.  Dr. Rui Feng,Chairman CEO, joined on September 5, 2003.