Why Silvercorp Metals Inc. Stock Fell 14% in September
The shares of Canadian miner Silvercorp Metals Inc. (NYSEMKT: SVM) fell 14% last month. But it wasn't the only silver and gold company to get hit, with names like Wheaton Precious Metals (NYSE: WPM) and Pan American Silver (NASDAQ: PAAS) both down nearly 10%. So, the question isn't what drove Silvercorp's stock lower, per se, but what was hitting precious metals miners.
Silvercorp's top line is driven by silver, which made up roughly 50% of first-quarter sales. Only about 2% of the top line came from gold. The rest was a mix of lead (34%) and zinc (12%). Silver prices started September on a positive note, but quickly shifted gears, spending most of the month heading lower. From peak to trough, silver fell around 8%, and investors reacted accordingly with regard to silver-focused Silvercorp and its peers.
Image source: Getty Images.
Source: Fool.com
Pan American Silver Corp. Stock
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