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. Silvercorp Metals Inc. FY2012 First Quarter Analyst Conference Call August 4, 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: Fiscal 2012 First Quarter – Highlights
NYSE: SVM Fiscal 2012 First Quarter – HIGHLIGHTS Record sales of $69.7 million, up 90% Net income of $25.6 million, up 82% Cash flow from operations of $33.9 million, up 46% Record silver production of 1.6 million ounces, up 15%; Increased gold production to 1,390 ounces, up 30% Achieved
Slide 4: Quarter – Financials
NYSE: SVM Fiscal 2012 First Quarter – FINANCIALS $69.7 $70 $0.15 $0.15 $60 $55.7 $50 90% $0.12 $US/share 67% $US Millions $40 $36.7 110% $30 $26.5 $25.6 82% $0.09 $0.09 $20 $14.1 $10 $0 $0.06 Q1/11 Q1/12 Q1/11 Q1/12 Q1/11 Q1/12 Q1/11 Q1/12 Sales Gross Profit Net Income EPS 3
Slide 5: Quarter – Cash Flows
NYSE: SVM Fiscal 2012 First Quarter – CASH FLOWS $35.00 $0.20 $33.9 $0.19 $30.00 36% $US Millions $US/share 46% $0.15 $0.14 $25.00 $23.2 $20.00 $0.10 Q1/11 Q1/12 Q1/11 Q1/12 Cash Flow from Operations CFPS Ended quarter with $230.5 million in Cash and Short-term Investments and no debt 4
Slide 6: Quarter – Operations
NYSE: SVM Fiscal 2012 First Quarter – OPERATIONS Silver Production Gold Production Ounces (Thousands) 1.4 1.7 Ounces (Millions) 1.6 1.4 1.6 15% 30% 1.2 1.5 1.1 1.4 1.4 1.0 Q1/2011 Q1/2012 Q1/2011 Q1/2012 Lead Production Zinc Production Pounds (Millions) 20.6 5.0 4.4 Pounds (Millions) 21.0 4.1 18.8 1
Slide 7: Quarter – Operations: Silver Cash Cost of Production
NYSE: SVM Fiscal 2012 First Quarter– OPERATIONS Silver Cash Cost of Production Silvercorp remains one of the per oz silver adjusted for by-product credits lowest cost silver producers among its global peers $0.00 Q1/2011 Q1/2012 $/oz -$3.50 Peer Comparison of Cash Costs -$7.00 ($6.31) ($6.12) per oz
Slide 8: Quarter – Realized Selling Prices
NYSE: SVM Fiscal 2012 First Quarter – REALIZED SELLING PRICES 32 1.1 28 1.0 Silver Prices $/oz Lead Prices $/lb 24 0.9 20 0.8 16 0.7 12 0.6 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Realized Silver Prices $/oz Realized Lead Prices $/lb 7
Slide 9: Fiscal 2012 – Production Guidance
NYSE: SVM Fiscal 2012 – Production Guidance Ores Head Grade Metal Production Processed Silver Gold Ag Eq Lead Zinc Projects (‘000 Silver Gold Lead Zinc (‘000 (‘000 (‘000 (mil (mil tonne) (g/t) (g/t) (%) (%) oz) oz) oz)* lbs) lbs) Ying 325 460 8.3 3.0 4,300 4 4,500 56 15 Ying TLP 165 145 2.8 0.6 670
Slide 10: Fiscal 2012 – Capital Expenditures Budget
NYSE: SVM Fiscal 2012 – Capital Expenditures Budget Mine Development Mill Construction & Exploration & Permitting Total Surface Facilities Projects Cost Tunnel * Cost Cost Drilling Cost ($million) (metre) ($million) ($million) (metre) ($million) Ying $6.8 22,830 $3.3 $4.5 85,000 $14.6 Ying TLP $2.7
Slide 11: Ying Mining District – Recent development and plans
NYSE: SVM Ying Mining District – Recent development and plans Achieved: Completed 20,452m of exploration tunnelling, 48,565 m of diamond drilling and 243m of shafts & declines development (Q1FY2012: $5.5MM). Ying Mining District, Sustained Ying’s production level & continued growth trend for TLP
Slide 12: GC Project – Progress towards production
NYSE: SVM GC Project – Progress towards production Achieved: Focused on acquiring land usage rights, construction of the access road and power lines, site preparation, negotiation and finalizing mine and mill construction contracts, and completion of a review of safety production measures by Guang
Slide 13: BYP Project – Progress Update
NYSE: SVM BYP Project – Progress Update Achieved: Brought BYP into production in just 3 short months (May 2011) Refurbished and upgraded the existing 400 t/d mill to 500 t/d. Completed NI 43-101 report BYP Project, Ying Mining District Plan: Hunan Province, China Continue to mine and process
Slide 14: Silvertip Project – Upcoming High-Grade Silver Mine in BC
NYSE: SVM Silvertip Project – Upcoming High-Grade Silver Mine in BC Achieved: Silvertip Project, British Columbia, Canada Completed certain studies and reports for BC Small Mine Permit Application Initiated 2011 exploration program to test the DM zone, a new zone of silver-lead-zinc mineralizati
Slide 15: Concluding Remarks
NYSE: SVM Concluding Remarks Record quarterly silver production & sales Strong growth in gross profits, net income and cash flow from operations Commenced production at BYP while progressing GC and Silvertip properties towards production Commenced aggressive 241,000m FY2012 drilling program
Slide 16: Further Contact Information
NYSE: SVM Further Contact Information: Thank you for listening to Silvercorp’s FY2012 First Quarter Analyst Conference Call For further Information, please contact: Silvercorp’s Investor Relations Department Vancouver: 604-669-9397 or Toll Free (NA) 1-888-224-1881 Email: investor@silvercorp.ca Websi