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9/12/13

Silvercorp (SVM) (SVM.to) beats the Ottotrans™

There is no way to improve on the comic value of this news release from Silvercorp (SVM) (SVM.to) today, so no alternative Ottotrans™ is offered (that and it's difficult to type and laugh at the same time).

 Tell me, what's your favourite part? Is it this?
The mining contractors at the Ying Mining Camps are paid based on tonnes of ore mined. To determine the amount of ore mined, ore-trucks were scale weighed at the gates of each tunnel. This review has revealed that some mining contractors however were blending waste rock from development tunnels with the ore to obtain higher mining fees, resulting in dilution of ores and reduction of head grades.
Or is it this?
In August 2013, the Company ordered the contractors to implement the New Method. As a result silver and lead head grades at the SGX mine improved by almost 35% and 21% respectively with an approximate 45% reduction in ore production (a 25% reduction in overall silver metal production) compared to July 2013. The New Method has eliminated significant waste rock resulting in less ore being produced. Additionally, some drillers and miners left the mine sites as they feel that under the New Method their pay would be uncertain, which also caused reduced ore production.

How they laughed all the way to the Chapter 11 and Muddy Waters courtrooms.

PS: And we remind ourselves how much Rui Feng, the leader of this tightly-run, carefully managed company, pays himself. From the 2013 MIC:


Oh, just the million or so per year in basic cash is it? Oh, plus options bonuses for efficient workeration, of course. You can't find the people these days at such meagre cash, can you?