Slide 1: Right Company, Right Time
RIGHT COMPANY, RIGHT TIME April 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 Increased cash Experienced team balance to $185M Two large mines In-country expertise $105M in marketable Focused portfolio securities Deliver to plan Strong operating performance & free cash flow SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX
Slide 4: Operating Highlights
Operating Highlights Marigold mine Pirquitas mine Record production of 67Koz in Record annual production of Q4 2014 8.7Moz in 2014 Continued strong production Record quarterly production of with 56Koz in Q1 2015 2.7Moz in Q1 2015 Decline in costs due to higher Lower costs due to positive
Slide 5: Strong Liquidity Position
Strong Liquidity Position Cash & Marketable Securities as Percentage of Market Capitalization 80% 75% 61% 60% 52% 50% 43% 43% 40% 24% 22% 20% 18% 18% 16% 16% 12% 10% 5% 0% SSRI GSS ASR AGI CDE IAG PAAS AR HL MND FSM EXK AUQ AG PPP $290M CASH & MARKETABLE SECURITIES $265M CONVERTIBLE NOTES Note: Cash
Slide 6: Undervalued Relative to Peers
Undervalued Relative to Peers 18.0x AG 15.0x 2015E EV/EBITDA HL 12.0x AGI AUQ PAAS 9.0x PPP FSM 6.0x AR SSRI GSS 3.0x ASR 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x 2015E P/NAV (5% at Spot Price) Source: Scotiabank GBM estimates; FactSet. As at April 6, 2015. SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 6
Slide 7: Compelling Value Opportunity
Compelling Value Opportunity 2015E Price to Cash Flow 39.1x 28.2x 20.0x 14.5x 13.0x 11.1x 10.7x 10.0x 9.4x 2015E Median 7.3x 6.7x 6.1x 4.5x 4.4x 3.2x 3.1x 0.0x PAAS AGI AUQ FSM HL EXK AG MND ASR PPP AR SSRI IAG GSS SSRI is undervalued compared to peer group Source: BMO Capital Markets. As at March 3
Slide 8: 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 8
Slide 9: Marigold: Established Gold Mine
MARIGOLD ESTABLISHED GOLD MINE SSRI:NDAQ | SSO: TSX 9
Slide 10: Our Second Operating Mine
Our Second Operating Mine Open pit, run-of-mine heap leach operation Conventional truck and shovel equipment Gold doré Twin Creeks Goldstrike MARIGOLD Maverick Springs Continuous operation since 1988 Phoenix Cortez Carlin Trend Strong safety and environmental practices Battle Mountain- Eur
Slide 11: Mineral Reserves and Resources
Mineral Reserves and Resources Probable Mineral Marigold Cross-Section Reserves Mackay Pit N 2.32 Moz of gold 0.49 g/t gold Illustrative potential pit shell Indicated Mineral Red Dot Resources Resource 4.16 Moz of gold 0.51 g/t gold Long history of resource to reserve conversion Note: See “C
Slide 12: 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 Increases Efficiency Lowers Costs SSRI:NASDAQ SSRI:NDAQ ||SSO:
Slide 13: Operational Excellence: Loading Capacity
Operational Excellence: Loading Capacity Rope Shovel Availability +41% Rope Shovel Utilization 100% 90% +18% 90% 80% 80% 70% 70% 60% 60% 50% 50% Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Tonnes Moved per Day Rope Shovel Cost per Tonne 210 +16% $0.20 Loaded 190 $0.16 (37)% 170 $
Slide 14: Operational Excellence: Long-term Cost Savings
Operational Excellence: Long-term Cost Savings $2.00 $1.92 Cost per Tonne Mined $1.74 $1.70 $1.61 $1.62 $1.50 $1.50 $1.00 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 LOM Savings of 1₵ cost per tonne mined = $700,000 annually Note: Annual savings of $700,000 based on assumption of 70 million tonnes of mater
Slide 15: Production Growth at Lower Cost in 2015
Production Growth at Lower Cost in 2015 Gold Production Cash Cost per Ounce Capitalized Stripping (Koz) of Gold Sold ($/oz) ($M) 160 - 175 $29 $838 $900 $725 - $800 $30 $25 150 130 $600 $20 100 $300 $10 50 0 $0 $0 2014 2015 2014 2015 2014 2015 Guidance Guidance Guidance Increasing margins and free c
Slide 16: Marigold Going Forward
Marigold Going Forward Operational excellence to drive costs down Add oxide Mineral Reserves through drilling Explore depth for sulphide mineralization Focused on lowering costs and increasing reserves SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 16
Slide 17: Reserve Conversion and Resource Discovery
Reserve Conversion and Resource Discovery Reserve Pit Added reserves at Mackay pit in Resource Shell 2014 … expect trend to continue (2 ) Better than average reserve gold grade at 8 South 8 South expected to contribute 500 feet Cross-section A – A’ N new Mineral Resources Q4 2015 Reserve Pits
Slide 18: Pirquitas: Large Open-Pit Silver Mine
PIRQUITAS LARGE OPEN-PIT SILVER MINE SSRI:NDAQ | SSO: TSX 18
Slide 19: Proven Capability and Delivery
Proven Capability and Delivery 100% owned and operated silver and zinc mine 2010: Invested capital 2011/12: Delivered predictable production Pirquitas Mine Jujuy, Argentina 2013: Improved cost structure, completed push back 2014: Repositioned on cost curve, record annual production Diablil
Slide 20: Exploration Emphasis at Pirquitas
Exploration Emphasis at Pirquitas 2015 Exploration Goals Progress San Miguel underground to Feasibility San Miguel Open Pit Continue exploring surface targets for Mineral Resources Permit two additional properties in the area Acquired exploration access in 2014 Increasing mine life at Pirquita
Slide 21: 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 $12.08 2011 2012 2013 2014 2015 Guidance Note: Cash costs are a non-GAAP financial measure. Please see "Cautionary Note Regarding Non-GAAP Measures” in this presentation. Infor
Slide 22: Strong Cash Flow Generation in 2015
Strong Cash Flow Generation in 2015 Silver Production Cash Cost per Ounce Capex & Capitalized (Moz) of Silver Sold ($/oz) Stripping ($M) 9.0 - 10.0 $12.08 $11.50 - $12.50 $23 8.7 $20 8.0 $10 $10 4.0 $5 $10 0.0 $0 $0 2014 2015 2014 2015 2014 2015 Guidance Guidance Guidance Increased production and lo
Slide 23: San Luis: Dual Option to Value
San Luis: Dual Option to Value Ancash Region, Peru Going forward N Pursuing community agreements Already secured Ecash EIA Community Feasibility study Ayelén Vein San Simon Vein Bonita Zone Cochabamba 3 km Community SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 23
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) Redefining way forward Continued exploration of land position Water moratorium One of
Slide 25: Strong Technical and Commercial Experience
Strong Technical and Commercial Experience Management Team John Smith Gregory Martin Alan Pangbourne John DeCooman President, CEO SVP and Chief SVP, Operations VP, Business Development and Director Financial Officer and Strategy Nadine Block Kelly Stark-Anderson Jon Gilligan Ed Kirwan Bruce Huber VP
Slide 26: Why Silver Standard in 2015
Why Silver Standard in 2015 Capable Corporate level management team free cash flow Focus on operational Strong balance excellence sheet Maintain cost Strategy for discipline organic and M&A growth SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 26
Slide 27: Appendix
(2) Authentic SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 27
Slide 28: 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 29: 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 30: 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 31: 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 32: 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 33: Marigold Site Overview
Marigold Site Overview Plant and Administrative Facilities N (2) Leach Pads Terry Pit Mackay Pit Target Pit Basalt – Antler Backfilled Pit 1 km SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 33
Slide 34: Marigold 2014 Drilling Results
Marigold 2014 Drilling Results (2) Note: See news release dated October 15, 2014 for selected drillhold highlights and reference data for the Marigold exploration drill program. SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 34
Slide 35: Notes
Notes SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 35
Slide 36: Corporate Presentation
CORPORATE PRESENTATION SSRI:NDAQ | SSO: TSX 36