Slide 1: Right Company, Right Time
RIGHT COMPANY, RIGHT TIME August 2015 Corporate Presentation SSRI:NDAQ | SSO: TSX 1
Slide 2: Cautionary Notes
Cautionary Notes Cautionary Note Regarding Forward-Looking Statements This presentation contains “forward-looking information” within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively
Slide 3: Why Silver Standard?
Why Silver Standard? ASSETS CAPITAL MANAGEMENT Free cash flow $217M in cash Experienced team Two large mines ~$100M in marketable In-country expertise securities Focused portfolio Deliver to plan Strong balance sheet Strong operating performance & free cash flow SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX
Slide 4: Strong Start to 2015
Strong Start to 2015 Delivered strong production at lower costs in Q2 Marigold: 49Koz gold at $717/oz cash cost Pirquitas: 2.4Moz silver at record low $9.45/oz cash cost $52.3M of cash generated by operating activities in H1 $1.8M net income in H1 Cost improvements from Operational Excel
Slide 5: Strong Production and Cost Profile
Strong Production and Cost Profile 8.0 $16 $14.34 $14.29 6.9 6.0Moz 6.8 $12.36 Silver Equivalent Production (Moz) Silver Equivalent Cash Costs ($/oz) 6.0 6.0 $10.78 $12 5.1 Silver Eq. Production in 2Q15 $9.57 $9.74 4.0 $8 3.5 1.9 $9.74/oz 2.0 $4 0.0 $0 Silver Eq. Cash Costs in 2Q15 Q1 Q2 Q3 Q4 Q1 Q2
Slide 6: Marigold: Established Gold Mine
MARIGOLD ESTABLISHED GOLD MINE SSRI:NDAQ | SSO: TSX 6
Slide 7: Improved Operating and Political Profile
Improved Operating and Political Profile Open pit, run-of-mine heap leach gold operation Continuous production since 1988 Strong safety and environmental practices Twin Creeks Goldstrike MARIGOLD Maverick Springs Phoenix Excellent infrastructure Cortez Carlin Trend Probable Mineral Reserve
Slide 8: Invested $160M in 2012 and 2013
Invested $160M in 2012 and 2013 Shovel Capacity Hauling Capacity Haul Truck Maintenance (Cubic Yards) (Tonnes) (Hours) 150 5,000 20 Maintain Wash 18 Trucks 100 3 Shovels 12 Trucks 2,500 2 Shovels 10 50 0 0 0 2012 2014 2012 2014 2012 2014 Operational Excellence for increased efficiency and lower cost
Slide 9: Loading Trends Leading to Lower Costs
Loading Trends Leading to Lower Costs Rope Shovel Availability Rope Shovel Utilization +20% 100% +36% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2014 2014 2014 2014 2015 2015 2014 2014 2014 2014 2015 2015 Tonnes Moved per Day +18% 210 190 170 150 Q1 Q2 Q3 Q4 Q1 Q2 20
Slide 10: Operational Excellence: Long-term Cost Savings
Operational Excellence: Long-term Cost Savings $1.92 Total cost per tonne mined $1.74 $1.70 $1.61 $1.62 $1.57 $1.48 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Savings of 1₵ cost per tonne mined = $700,000 annually Notes: Annual savings of $700,000 based on assumption of 70 million tonnes o
Slide 11: Improved 2015 Gold Guidance
Improved 2015 Gold Guidance Gold Production (Koz) Cash Cost per Ounce of Capital ($M) Gold Sold ($/oz) $50 195 - 205 200 $900 $838 $725 - $800 160 - 175 $40 $700 - $750 $20 150 130 $11 $30 $600 $25 100 $20 $300 $25 $25 $10 50 $13 $0 0 $0 2014 Previous Revised 2014 Previous Revised 2014 Previous Revi
Slide 12: Marigold Going Forward
Marigold Going Forward Operational excellence to drive costs down Assay Program increases 2015 gold production by 12% Add oxide Mineral Reserves through drilling Explore depth for sulphide mineralization Focused on increasing reserves and margin SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 12
Slide 13: Resource Discovery and Reserve Conversion
Resource Discovery and Reserve Conversion Added Mineral Reserves in the W Reserve Pit E Resource Shell Mackay pit area in 2014 … expect (2 ) trend to continue 8 South: Recent drill program extends mineralization; goal to 500 feet Cross-section A – A’ convert to Mineral Reserves Reserve Pits Mine
Slide 14: Assay Program – Increases Ore Zones
Assay Program – Increases Ore Zones Pit Outline as of April 2015 Mackay Phase 3 Pit Outline Mineralized Ore as at December 2014 250 feet W E SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 14
Slide 15: Assay Program – Increases Ore Zones
Assay Program – Increases Ore Zones Pit Outline as of April 2015 Mackay Phase 3 Pit Outline Mineralized Ore as at December 2014 Additional Ore Tonnage and Ounces 250 feet W E Increases tonnage 21%; Increases ounces 12% Notes: See news release dated July 6, 2015 for additional information on the Mari
Slide 16: Pirquitas: Large Open-Pit Silver Mine
PIRQUITAS LARGE OPEN-PIT SILVER MINE SSRI:NDAQ | SSO: TSX 16
Slide 17: Proven Capability and Delivery
Proven Capability and Delivery 100% owned and operated silver and zinc mine 2010: Invested capital 2011/12: Delivered predictable production 2013: Improved cost structure, completed push back Pirquitas Mine Jujuy, Argentina 2014: Repositioned on cost curve, record annual production Diablil
Slide 18: Actively Managing Costs Down for Long Term
Actively Managing Costs Down for Long Term $19.70 Cash costs per payable $16.88 ounce of silver sold $12.87 $11.50 - $12.50 $12.08 $11.25 $10.50 - $11.50 $9.45 2011 2012 2013 2014 Q1 2015 Q2 2015 Previous Revised Guidance Guidance 2015 2015 Cash costs declined 16% sequentially Note: Cash costs are a
Slide 19: Strong Sustainable Operating Performance
Strong Sustainable Operating Performance Q2 2015 Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 Strip ratio w/o 3.0 3.4 4.9 7.9 7.1 10.4 Silver mined grade g/t 172 184 150 160 167 163 Silver mill feed grade g/t 262 267 222 248 213 204 Silver recovery % 83.7% 83.9% 83.8% 78.7% 74.3% 72.1% Zinc recovery (zin
Slide 20: Improved 2015 Silver Guidance
Improved 2015 Silver Guidance Silver Production (Moz) Cash Cost per Ounce of Capital ($M) Silver Sold ($/oz) 12.0 9.5 - 10.5 $11.50 - 9.0 - 10.0 $12.08 $12.50 $10.50 - $11.50 $20 8.7 8.0 $10 $11 $10 4.0 $5 $10 $10 0.0 $0 $0 2014 Previous Revised 2014 Previous Revised 2014 2015 Guidance Guidance Guid
Slide 21: Exploration Emphasis at Pirquitas
Exploration Emphasis at Pirquitas 2015 Exploration Goals Upgrade San Miguel UG Mineral Resources San Miguel Open Pit Drilling surface targets Permit additional properties Highlighted drill results 6.9 meters at 1,038 g/t silver Acquired exploration 18 meters at 517 g/t silver access in 2
Slide 22: Properties, Projects and Production
Properties, Projects and Production 10 1 8 7 7. Candelaria 11 3 9 1. Marigold 8. Maverick Springs 5. Diablillos 3. Pitarrilla 9. San Marcial 2. Pirquitas 6. Berenguela 4 4. San Luis 6 10. Sunrise Lake 2 5 11. Parral + $570M SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 22
Slide 23: San Luis: Dual Option to Value
San Luis: Dual Option to Value Ancash Region, Peru High grade mineralization N with Mineral Resources of: 8.9M oz Ag at 595.5 g/t 0.35M oz Au at 25.2 g/t Already secured Ecash Community EIA Ayelén Vein Feasibility study Going forward Pursuing community San Simon Vein agreements Bonit
Slide 24: Pitarrilla: Large Option
Pitarrilla: Large Option Parral Mining District Open pit project Chihuahua Conventional flotation and leaching Pitarrilla Project Durango 695 Moz silver Mineral Resources Mexico (Measured and Indicated) Evaluating optimization of mine plan Continued exploration of land position Water mor
Slide 25: Why Silver Standard in 2015
Why Silver Standard in 2015 Management team Corporate level that delivers free cash flow Focus on operational Strong balance excellence sheet Cost discipline Strategy for growth SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 25
Slide 26: Authentic
(2) Authentic SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 26
Slide 27: Mineral Reserves
Mineral Reserves (as at December 31, 2014) Mineral Reserves Location Tonnes Silver Gold Zinc Silver Gold millions g/t g/t % million oz million oz Proven Mineral Reserves San Luis Peru 0.06 604.5 28.3 1.1 0.05 Total 1.1 0.05 Probable Mineral Reserves Pirquitas Argentina 5.37 220.10 0.47 38.0 Pirquita
Slide 28: Mineral Resources: Measured and Indicated
Mineral Resources: Measured and Indicated (as at December 31, 2014) Mineral Resources Location Tonnes Silver Gold Lead Zinc Copper Silver Gold millions g/t g/t % % % million oz million oz Measured Mineral Resources (Inclusive of Proven Mineral Reserves) Pitarrilla Mexico 20.30 95.40 62.3 San Luis Pe
Slide 29: Mineral Resources: Inferred
Mineral Resources: Inferred (as at December 31, 2014) Mineral Resources Location Tonnes Silver Gold Lead Zinc Copper Silver Gold millions g/t g/t % % % million oz million oz Inferred Mineral Resources Pirquitas UG Argentina 2.85 174.0 3.61 15.9 Marigold U.S. 18.20 0.44 0.26 Pitarrilla Mexico 22.10 6
Slide 30: Reserves & Resources: Notes to Tables
Reserves & Resources: Notes to Tables All estimates set forth in the Mineral Reserves and Mineral Resources tables have been prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”). The estimates of Mineral Reserves and Mineral Resources fo
Slide 31: Marigold Exploration Drill Program
Marigold Exploration Drill Program Selected drillhole highlights from the 8 South Extension (8SX) and 8D areas: From To Width Gold Grade Hole ID Deposit Area (metres) (metres) (metres) (g/tonne) MRA6034 140.2 231.6 91.4 2.48 8SX Including 178.3 214.9 36.6 5.86 8SX MR6042 210.3 259.1 48.8 1.17 8D Inc
Slide 32: Valmy Property Location
Valmy Property Location Notes: See news release dated August 11, 2015 announcing the acquisition of the Valmy Property at Marigold. See also “Cautionary Notes” in this presentation. SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 32
Slide 33: San Luis Project
San Luis Project San Luis Feasibility Study Results (June 2010) 3.5-year life: Underground mine Avg. annual 1.9M oz Ag production: 78,000 oz Au Cash cost: $313 / oz Au Resources (M+I): 9.0M oz Ag at 578.1 g/t 0.35M oz Au at 22.4 g/t Capital: $90 -$100M Mill throughput: 400 tpd NPV: $39
Slide 34: Increased Financial Strength
Increased Financial Strength $390M $265M Cash, Marketable Securities and Credit Facility Convertible Notes Source: $390 million includes $217 million of Cash and Cash Equivalents, $98 million of marketable securities and $75 million of undrawn senior secured credit facility. Cash and marketable secu
Slide 35: Notes
Notes SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 35
Slide 36: Corporate Presentation
CORPORATE PRESENTATION SSRI:NDAQ | SSO: TSX 36