SVM - Silvercorp: My Thoughts After The Q3 2020 Earnings Release
Thesis
Silvercorp Metals (SVM) has posted an unwelcome Q3 2020 (pertaining to the 3 months ended on December 31, 2019) in terms of revenues and EPS, and consequently lost more than 20% in price. The disappointing share price performance was triggered mainly by the declining lead and zinc prices during Q3 2020 that neutralized the impact of improving silver prices. However, despite having attractive cost dynamics, SVM's operational focus in China (in the current situation) has landed heavily on the share price amid global concerns over the 2019-nCov (read: coronavirus) epidemic. As the epidemic continues