Silvercorp Metals, Inc. (SVM) - Aggressive Growth Profile

GBG is one that i follow but dont own. It has  had a huge short position for quite a while , but i noted that in the two week period to June 15 , the short position dropped to 19.5 million ( still huge) but down 1,415,000  from the period ended May 31.

This play has some debt , but big production planned in the next year from South Africa, Burnstone  and Nevada , Hollister.  Plan is for 360,000 ozs per year at somewhere around  500$ US cash costs.  Got a little pop today off the 52 week low. I think  bottom is likley in for GBG. Jmo.

GoodDoctor, I will ask him next time I see him.  At our last meeting he talked about two companies Molycorp and Rare Element but I think these operate in the US not abroad.

http://www.google.com/finance?q=AMEX:REE

http://www.google.com/finance?q=mcp

I get the impression that these stocks are high risk and more volatile than silver and gold stocks.  SVM appears to have the best risk/reward ratio as far as silver miners operating in China go.

Just an FYI these two companies only mine LREE Light Rare Earth Elements. They may be getting the action in the market right now, but there are other companies in Canada that mine the HREE Heavy Rare Earth Elements (more rare and thusly more expensive). The HREE companies will be more successful. Avalon Rare Metals and Great Western Minerals Group are two of them. There are a few others. Avalon has great properties and will be producing in the next couple of years. Same with Great Western Minerals Group. However, they also will control the supply chain since they will not only be mining, but producing, and refining. An additional benefit is that they will be producing/refining for other companies too.

I think REE has less than 5 employees total. Molycorp just IPOed not too long ago and I wish I would have jumped on it after the IPO but I did not. It has gotten as high as 70+ I believe. I'm not saying these companies won't be profitable, just not as profitable as those with the HREE.

I guess my main question is whether or not he has any recos for Rare Earth companies in China. Most specifically, producers or refiners. I'm really only knowledgeable on the US and Canadian companies. I would be interested learning more about China and other global hot spots for the Rare Earths.

Have your friend look up Jack Lifton. He is an old Rare Earth guy from the 50's and 60's. He has some great articles and also clips on You Tube.

I didnt really look at REE ( RES-T) Bear Lodge  deposit that much, and i see there is not much for heavy rees, you are correct. I guess Lifton was referring to the high % of TREO there at Bear Lodge and the high levels of neodymium and praseodymium in that to make a concentrate that would  economic to sell in that form.

I do know he was of the impression that cerium and lanthanum alone will not be sufficient to make a go of it  as a rare earths miner. He believes within 2 years there will be a surplus of those. He also stated that people are misled into believing CHINA is exporting less rare earths. THIS is not the case, they have quotas on export of raw REE concentates, but actually more rare earths are being exported from CHINA in finished form in the machines and products that contain those rare earths. In other words China wants to employ their own people making those products, and so are limiting the export of the concentrates.

This is why Japanese companies have been locking up contracts with  the likes of Lynas and Molycorp for some of the rare earths they will produce. The $ value for those concentrates is not great, silver miners will make a lot more money with a lot less refining headaches.

Same could be said about Peru , or Bolivia , Or Russia , Or Mexico.  Anyone who buys based on what they think might happen is playing a fools game. What might happen in the USA if the crap hits the fan.....

its not nationalization, its an offer you cant refuse.  give it a few more five year plans comrade. each can invest on their own interest comfort level. there are plenty of other choices in the world. if you are a long term resources investor - China is not a place I'd want my "foreign" owned mining operations to be located it.  If china needs it  now and in the future, and the mines are located outside china in relatively friendlier jurisdictions - those are the companies I'd favour.  American Manganese (AMY/AMYZF) for example.

First Majestic has been my favorite miner play for a while now due to its pure silver and its large swings, great for profit but I am afraid it is starting to get overbought a bit.  I am tempted to take a position in SVM... How reputable and experienced is the management team? 

Also I'm wary about the big bad, can do no wrong JPM continuing to short the fark out of SVM.. I guess it has to end some time.

Where do you get your info on the up to date short interests?

I also agree. Could it be the fact that the average investor can actually buy his silver directly from FM and therefore gets some kind of biased opinion about owning shares in it? I'm not saying that your average investor is naive but I do think some people work like this.