Silvercorp Metals Inc. · TSX:SVM
Silvercorp Metals — Investor Presentation (October 2011)
21 slides from Silvercorp Metals's investor presentation, Oct 13, 2011
Slide 1: The Premier Primary Silver Producer in China Today… A Global Producer Tomorrow
NYSE: SVM The Premier Primary Silver Producer in China Today… A Global Producer Tomorrow. SVM 2011 Corporate Presentation October 13, 2011
Slide 2: Cautionary Statements
NYSE: SVM Cautionary Statements Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securiti
Slide 3: Capital Structure & Financial Highlights
NYSE: SVM Capital Structure & Financial Highlights Capital Structure Financial Highlights2 Fiscal Year NYSE: SVM; TSX: SVM Q1 FY2012 2011 Revenue US$69.7 M US$167.3 M 52-Week Hi/Low: US$16.32/$5.86 Net Income US$25.6 M US$68.8 M Shares Outstanding1: 175.1 Million Operating Cash Flow US$33.9 M US$104
Slide 4: Industry Leading Profitability
NYSE: SVM Industry Leading Profitability Lowest cost producer of silver among Peer Comparison of Cash Costs per oz silver adjusted for by-product credits* industry peers: cash cost was -$6.12 Pan First Silver per ounce of silver in Q1/FY2012 American Majestic Wheaton Hecla Silvercorp $9.19 $8.32
Slide 5: Silvercorp’s Projects
NYSE: SVM Silvercorp’s Projects Ying Mining Camp, Henan Province FY2012: ~5.6Moz Ag & 4,000 oz Au from four mines Silvertip Project, British Columbia China XBG Project, Henan Province Canada BYP Project, Hunan Province Silvercorp Head Office GC Project, Guangdong Province 4
Slide 6: Reserve & Resource Growth
NYSE: SVM Reserve & Resource Growth 1, 2 History Reserves & Resources: FY2004 - FY2011 300 April 2005: Resource defined at Ying 58.7 Ounces of Silver and Silver Eq.* (Millions) May 2006: Drilling doubles Ying resources 250 September 2007: Resource expansion at Ying and addition of HPG mine 64.1 200
Slide 7: FY2012: Ying Mining Camp Production Forecast
NYSE: SVM FY2012: Ying Mining Camp Production Forecast Ores Head Grade Metal Production Processed Silver Gold Ag Eq Lead Zinc Projects (‘000 Silver Gold Lead Zinc (‘000 (‘000 (‘000 (mil (mil tonne) (g/t) (g/t) (%) (%) oz) oz) oz)* lbs) lbs) Ying 325 460 8.3 3.0 4,300 4 4,500 56 15 Ying TLP 165 145 2
Slide 8: FY2012: Capital Expenditure
NYSE: SVM FY2012: Capital Expenditure Mine Development Mill Construction & Exploration & Permitting Total Surface Facilities Projects Cost Tunnel * Cost Cost Drilling Cost ($million) (metre) ($million) ($million) (metre) ($million) Ying $6.8 22,830 $3.3 $4.5 85,000 $14.6 Ying TLP $2.7 11,684 $0.9 $1
Slide 9: The China Advantage
NYSE: SVM The China Advantage Low Capital & Low-cost mining equipment and Yongning Smelter (100,000 t/y Lead) Operating Costs experienced labour. Rapid Construction All supplies sourced locally and hard Times working labour force. Close to End Market Several smelters located 200 km or closer to Silv
Slide 10: Consolidation of the Ying Mining Camp: Next Step for Growth
NYSE: SVM Consolidation of the Ying Mining Camp: Next Step for Growth 9
Slide 11: Ying Mining Camp: Exploration to Grow Resources and Reserve
NYSE: SVM Milling Capacity:3,000 tpd YING MINING CAMP: Exploration Mining Capacity: ~2,000 tpd to Grow Resources and Reserve Goal at the Ying Mining Camp is New 2,000 tpd Mill 1,000 tpd Mill to extend the current mine life of 10 years and to expand the mining capacity from current 2,000 tonnes per
Slide 12: The Newest Addition: XBG Project
NYSE: SVM The Newest Addition: XBG Project 350 tpd Floatation Mill at the XBG Project XBG Acquisition 26.36 km2 XBG mining permit, 350 tpd day floatation mill, tailing facility built in 2010, and an environmental permit to build a 1,000 tpd floatation mill Located at approximately 3 hours drivin
Slide 13: GC Development Project: 2nd Base for Growth in China
NYSE: SVM GC Development Project: 2nd Base for Growth in China Construction of 1,500 tonne per day mine and mill is underway FY2012 capital expenditure: China $22.5 MM Ying Mining District XBG Project 30 year mining permit has BYP Project been obtained Ramp Advance at GC GC Project Explorati
Slide 14: GC Development Project: Resource Growth Potential
NYSE: SVM GC Development Project: Resource Growth Potential Mine Development – Jumbo Operating Mine Development – Portal Under Construction 13
Slide 15: BYP Project: 3rd Production Base in China for Growth and Diversification
NYSE: SVM BYP Project: 3rd Production Base in China for Growth and Diversification Acquired 70% interest by paying US$24 million cash and contributing US$9 million to the JV company. 3.67 km2 mining permit, safety production permit and 500 tonne per day floatation mill 500 tpd Mill at the BYP Mi
Slide 16: BYP Project: Exploration to Grow Resources and Reserve
NYSE: SVM BYP Project: Exploration to Grow Resources and Reserve NI 43-101 resource of 225,400 oz of Gold in the Indicated category; 208,000 oz Gold, 395,236 tonnes of Lead & Zinc in the Inferred category 50,000m surface and underground drilling program to upgrade/expand current resource ($3MM)
Slide 17: BYP Project: Exploration to Grow Resources and Reserve
NYSE: SVM BYP Project: Exploration to Grow Resources and Reserve The 50,000m drilling program will target: To upgrade the main, #3 gold mineralization zone To extend along the strike and down dip of the F5 fault, where #XII lead-zinc- gold mineralization and #1 gold mineralization zones occur; and
Slide 18: Silvertip Project: Upcoming Silver Mine in BC
NYSE: SVM Silvertip Project: Upcoming Silver Mine in BC >$40 million spent on exploration including 2.4 km of tunnel and 71,472 m of surface/underground drilling in 491 holes before year 2000. 35 million oz silver resource in the Indicated category, 8 million oz silver resource in the Inferred c
Slide 19: Summary of Resources
NYSE: SVM Summary of Resources RESERVE Resource Contained Metal Reserves CATEGORY (Tonnes) Ag (oz) Au (oz) Pb (t) Zn (t) Ag Equiv.* (oz) Proven 1,263,450 12,440,080 3,916 75,413 19,787 23,111,814 Probable 5,342,412 45,539,882 12,968 234,080 67,173 78,931,497 Total 6,596,983 57,905,171 16,885 309,338
Slide 20: Endnotes and Cautionary Statements
NYSE: SVM Endnotes and Cautionary Statements Myles Gao, P.Geo, Silvercorp’s President & COO, is the “Qualified Person” within the meaning of National Instrument 43-101 – Standards Of Disclosure for Mineral Projects (“NI 43-101”) who supervised the preparation of the scientific and technical informat
Slide 21: Contact Information
NYSE: SVM Contact Information Head Office Suite #1378 - 200 Granville St., Vancouver, BC, Canada V6C 1S4 Tel: 604-669-9397 | Fax: 604-669-9387 | Toll-Free: 1-888-224-1881 Email: info@silvercorp.ca Website: www.silvercorpmetals.com INVESTOR RELATIONS: investor@silvercorp.ca China Offices Silvercorp’s
Silvercorp Metals — Investor Presentation (October 2011) on 6ix