Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Canadian silver miner Silvercorp Metals
With that in mind, let's take a closer look at Silvercorp's business and see what CAPS investors are saying about the stock right now.
Silvercorp facts
| Headquarters | Vancouver, Canada |
| Market Cap | $1.5 billion |
| Industry | Precious metals and minerals |
| Trailing-12-Month Revenue | $121.3 million |
| Management | Chairman/CEO Dr. Rui Feng President/COO Myles Gao |
| Return on Equity (Average, Past 3 Years) | 18.0% |
| Cash/Debt | $106.1 million / $0 |
| Competitors |
Hecla Mining Pan American Silver Silver Standard Resources |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 376 members who have rated Silvercorp believe the stock will outperform the S&P 500 going forward. These bulls include Slayman123 and All-Star leohaas, who is ranked in the top 2% of our community.
This past summer, Slayman123 tapped Silvercorp as rather cost-effective play on silver prices: "[L]owest cash cost per ounce of silver mined. Demand for silver may drop if China goes into recession with the rest of the world, but money-printing should continue to drive the price of silver up."
Because of the low-cost jurisdiction (Henan, China) in which its flagship Ying silver-lead-zinc property is located, Silvercorp actually mines silver at a negative cash cost. In fact, Silvercorp's three-year average return on equity (18%) is higher than that of fellow silver miners Silver Standard (-4.5%), Hecla (3.9%), and Pan American (7.4%), as well as silver royalty sensation Silver Wheaton
In these increasingly unpredictable times, CAPS member leohaas tapped Silvercorp as particularly solid way to stay safe:
Silver is undervalued (the metal), as are many companies mining for it. Precious metals will go up if the economy recovers because of inflation fears; precious metals will go up if the economy makes a double dip, because they are the ultimate safety. Miners follow the metal. The only way this may not play out if the economy does not recover, but also does not fall back into recession.
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