Endeavour Silver Corp. · TSX:EDR
Endeavour Silver — Investor Presentation (February 2007)
31 slides from Endeavour Silver's investor presentation, Feb 7, 2007
Slide 1: Silver Producer Focused on Growth
EJD: DBF EXK: AMEX ENDEAVOUR (3) Silver Producer Focused on Growth.
Slide 2: Caution - Forward Looking Statements
CAUTION - FORWARD LOOKING STATEMENTS Certain statements contained herein regarding the Company and its operations constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including
Slide 3: Global Silver Supply 2005
Global Silver Supply 2005 10/Feb/2006 3
Slide 4: Mine Supply Of Silver By Source 2005
Mine Supply Of Silver By Source 2005 10/Feb/2006 4
Slide 5: Global Mine Production 2005 (677 million oz total)
Global Mine Production 2005(677 million oz total) 10/Feb/2006 5
Slide 6: Global Silver Demand 2005
Global Silver Demand 2005 10/Feb/2006 6
Slide 7: Silver Supply And Demand
Silver Supply And Demand 10/Feb/2006 7
Slide 8: Silver Inventories At A Historic Low
Silver Inventories At A Historic Low 10/Feb/2006 8
Slide 9: Bullion Inventories - Months of Demand
Bullion Inventories- Months of Demand 10/Feb/2006 9
Slide 10: Silver vs. Gold
Silver vs. Gold Silver typically follows gold higher, but is more volatile. 6-Feb-07 Gold Silver 10
Slide 11: Introduction: Who is Endeavour?
Introduction: Who is Endeavour? • Endeavour Silver Corp: One of North America’s fastest growing silver mining companies • Core Asset: Santa Cruz silver mine, Porvenir silver mine and Guanacevi process plant in Durango, Mexico ( the “Guanacevi Mines Project”) • Goal: Become a top 5 primary silver pro
Slide 12: Highlights: Why Own Endeavour?
Highlights: Why Own Endeavour? • Demonstrated Success – Already delivered four- fold production, resource and cash-flow growth at Guanacevi in first two years of operations • Strong Growth Profile –Additional three-fold growth over next two years through exploration and development at Guanacevi just
Slide 13: Highlights: Why Own Endeavour?
Highlights: Why Own Endeavour? • High Grade, High Leverage Ores – High grade (+400 gpt Ag) silver ores highly leveraged (>90% of revenue) to silver price • Strategic Relationships – Through Endeavour’s Strategic Alliance with Peñoles and other senior companies, Endeavour can acquire select mining pr
Slide 14: Mexico: History Rich In Silver
Mexico: History Rich In Silver • Top silver producing country in the world, 103 million oz in 2005. • Four hundred year culture of silver mining, dating back to the Spaniards • Low political risk, modern growing economy and attractive mining code • Substantially under-explored by modern companies an
Slide 15: Guanacevi: A Top 5 Mexican Silver District
Guanacevi: A Top 5 Mexican Silver District Located in the Sierra Madre gold and silver belt, the Guanacevi district has produced over 450 million oz silver. 15
Slide 16: Location: Excellent Access & Infrastructure
Location: Excellent Access & Infrastructure Paved road access, state power grid and all modern amenities. 16
Slide 17: Geology: Classic Low Sulfidation, Epithermal Vein District
Geology: Classic Low Sulfidation, Epithermal Vein District Five main veins have been traced for over 6 km. 17
Slide 18: Mine: Fully Mechanized Underground Mine
Mine: Fully Mechanized Underground Mine Porvenir is the only significant mine operating in the Guanacevi district. 18
Slide 19: Ore: High Silver Grades, Leverage
Ore: High Silver Grades, Leverage High silver grades >400 gpt over robust vein widths (2-10m) >90% of the ore value is silver 19
Slide 20: Reserves/Resources: Longitudinal Section
Reserves/Resources: Longitudinal Section As of March 28, 2006 NI 43-101 Reserves & Resources were: Proven & Probable 3,481,200 oz. Silver Inferred 10,665,500 oz. Silver 20
Slide 21: Plant: Expanding Milling Capacity
Plant: Expanding Milling Capacity Filling the plant to the new capacity should make Endeavour a top 5 primary silver producer. 21
Slide 22: Highlights: What's New 2006
Highlights: What’s New 2006 • Endeavour Expanded into Two Additional Silver Districts: • Dominant land position in Parral, Chihuahua • Potential for large tonnage, medium grade, polymetallic orebodies • Acquires key land package in Arroyo Seco, Michoacan • “Historic” resource of 16 million ounces si
Slide 23: Annual Production Targets Guanaceví: Twelve-Fold Growth
Annual Production Targets Guanaceví: Twelve-Fold Growth Over Five Years Annual Silver Production (millions oz) 5.0 4.5 4.0 3.5 3.0-3.5 3.0 2.5 2.0 1.35 1.5 0.95 1.0 0.35 0.5 0.0 2004 2005 2006E 2007E 23
Slide 24: Annual Resource Targets Guanaceví: Ten Year Mine-Life
Annual Resource Targets Guanaceví: Ten Year Mine-Life at Plant Capacity Total Resources (millions oz) 50 40 30-40 30 20-30 20 14.1* 10 0 2004 2005 2006E 2007E * Proven/Probable reserves of 3.5 million oz and inferred resources of 10.6 million oz (updated March 2006). • Long term target is >35 millio
Slide 25: Cash Cost Targets Guanacevi: Reducing Cash Costs
Cash Cost Targets Guanacevi: Reducing Cash Costs Cash Cost Per Oz 10 8 $7.10 $7.10 - $4.90 6 $5.00 – $4.50 <$4.25 4 2 0 2004 2005 2006E 2007E *Cash costs have decreased from $7.10 per oz in Q1, 2005 to $4.65 in Q2,2006. Long term target is $3.90 cash cost per oz. 25
Slide 26: Cash-Flow Targets at Guanaceví
Cash-Flow Targets at Guanaceví : Increasing Operating Cash-Flows Net Pre-Tax Cash-Flow (US$ millions) 40 35 30 25 $22-$26 20 15 $7-$9 10 Silver price 5 assumptions 2 $6.67/oz $1.48 $7.25/oz $10.00/oz $12.00/oz 0 2004 2005 2006E 2007E • Operating Cash-Flows rose from nil in 2004 to $1.48 million in 2
Slide 27: Sustainability Initiatives: 2005 and 2006
Sustainability Initiatives: 2005 and 2006 Safety Community •Hired safety officers - policies, •Renewed the land use agreement regulations and training. with the local community. •Reduced lost time accidents in half •Awarded two university with double the workforce. scholarships to local students Env
Slide 28: Management Team: Wealth of Experience
Management Team: Wealth of Experience • Bradford Cooke, M.Sc, P.Geo. - Chairman and CEO, Professional Geologist - 30 years experience with Shell, Chevron, Noranda and Canarc. • Godfrey Walton, M.Sc, P.Geo. - President and COO, Professional Geologist - 32 years specializing in discovery and developme
Slide 29: Silver/Endeavour: Price Comparison
Silver/Endeavour: Price Comparison Endeavour vs. Silver 6-Feb-07 SILVER ($US) EDR ($CA) Silver Endeavour 29
Slide 30: Capitalization Summary
Capitalization Summary: • TSX Ticker EDR • DBF Ticker EJD • AMEX Ticker EXK • Share Price (Feb 6, 2007) CA$4.89 • Market Capitalization CA$209 million • Shares Outstanding 42.7 million • Options 3.8 million • Warrants 5.8 million • Fully Diluted 52.3 million • Cash CA$40 million • Cash Fully Diluted
Slide 31: Silver Producer Focused on Growth
EJD: DBF EXK: AMEX ENDEAVOUR (3) Silver Producer Focused on Growth.
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