At least Silvercorp Metals defended themselves against their Anonymous selling.

Regards - VHF

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UPDATE 2-Silvercorp says KPMG report shows books are clean

October 24, 2011

* Review says accounting, financial reporting accurate

TORONTO, Oct 24 (Reuters) - China-focused miner Silvercorp Metals , accused by short sellers of inflating earnings and the size of its resources, said on Monday a report by KPMG Forensics vindicates its accounting system in China and North America.

It said the full KPMG report, commissioned by its special committee, would be delivered to the British Columbia Securities Commission, the Toronto Stock Exchange and the New York Stock Exchange.

"The Special Committee has advised the board that in its view the findings of the forensic review support the integrity of the Company's accounting system and financial reporting in China and North America," Silvercorp said in a statement.

Anonymous short sellers had accused Silvercorp of inflating earnings and the size of its mineral resources, among other allegations, sending the company's stock price as low as C$5.81 in September.

The shares remain below an April high, but they have recovered to levels before the allegations were made public.

The company, which operates silver mines in China, has denied all the allegations against it, describing them as part of a "short and distort" scheme.

Silvercorp said the KPMG report showed its financial records to be substantially correct.

"The findings of its procedures do not support the allegation that 2010 'reported revenues of US$153 million are approx. 10x its true revenues of US approx. $15 million (according to SAIC filings)," Silvercorp said in a 20-page press release.

Silvercorp, one of numerous North American-listed China-focused companies to come under short-seller attack, filed a lawsuit in September asking websites to remove "false, defamatory and fraudulent information" from short-sellers who have accused the company of fraud.

* KPMG review to be submitted to securities commissions