Slide 1: Third Quarter 2010 Financial Results and Project Update
Third Quarter 2010 Financial Results and Project Update
Slide 2: Forward-Looking Statements
Forward‐Looking Statements This presentation includes certain “forward‐looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward‐looking information within the meaning of Canadian securities laws (collectively, "forward‐looking statement
Slide 3: Cautionary Note to U.S. Investors
Cautionary Note to U.S. Investors National Instrument 43‐101 Standards of Disclosure for Mineral Projects (“NI 43‐101”) is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concernin
Slide 4: Q3 Highlights
Q3 Highlights • John Smith CEO effective August 6 • Pirquitas moving to design capacity • San Luis and Pitarrilla projects p j beingg p progressed g • Snowfield and Brucejack strategic transaction Assets and Team to Deliver … 4 NDAQ:SSRI/TSX:SSO
Slide 5: Profit & Loss – 2010 Quarter 3
Profit & Loss – 2010 Quarter 3 $million EPS 2010 Qtr 3 Net Loss ($7 5) ($7.5) ($0 19) ($0.19) Significant Items: • Earnings from mine operations 10.0 • General & Admin (4.4) • Stock S k based b d compensation i (2 3) (2.3) • Interest expense (3.4) • FEX translation (3.7) • Taxes (4.1) 5 NDAQ:SSRI/TS
Slide 6: Cash Flow 2010 Quarter 3
Cash Flow 2010 Quarter 3 $million Cash on hand – June 30, 2010 $ 57.7 Operating activities 4.9 Financing activities 0.9 Investing activities • Project spending (26.4) • Property, Plant & Equipment (5.1) • VAT recoverable (4.8) • Sale of marketable securities 8.6 (27 7) (27.7) Net decrease for quarte
Slide 7: Open Pit
Open Pit • Production efficiency continues to improve • Phase 2 push back advancing on both the North and South sides of the pit • Costs in line with expectations at just under US$2/tonne mined 7 NDAQ:SSRI/TSX:SSO
Slide 8: Average Daily Tonnes Mined
Average Daily Tonnes Mined 60,000 Design rate 50,000 40,000 30,000 20,000 10,000 0 8 NDAQ:SSRI/TSX:SSO
Slide 9: Process Facility
Process Facility Mine • Sulphide ore processing now continuous Silver recovery in line with expectations Crusher Gravity pre‐concentration – positive Separate silver and zinc concs Gravity Pre‐con. • Both at feasibility levels Running at rate of 2 million oz silver Q3 & expect improvem
Slide 10: Ore Processing - Recovery
Ore Processing ‐ Recovery 70 • Sulphide ore from the Silver Recovery (%) 65 open piti is i treating i well – recovery and 60 final concentrate 55 grades for both silver 50 and zinc consistent 45 with feasibility 40 Q1 Q2 Q3 10 NDAQ:SSRI/TSX:SSO
Slide 11: Pre-Concentration Jig Circuit
Pre‐Concentration Jig Circuit 11 NDAQ:SSRI/TSX:SSO
Slide 12: Ore Processing - Production
Ore Processing ‐ Production 2,200,000 • Silver p production 2 000 000 2,000,000 Silver Production ((oz)) rate now consistent 1,800,000 with feasibility with 1,600,000 1 400 000 1,400,000 the introduction of 1,200,000 sulphide ore 1,000,000 800 000 800,000 600,000 400,000 200,000 , Q1 Q2 Q3 12 NDAQ:S
Slide 13: Pirquitas Summary
Pirquitas Summary • Sulphide ore is responding well in the process plant, and the gravity pre‐ concentration stage is upgrading to expectations • The mine is now producing separate silver and zinc concentrates at feasibility grades • Tin recovery is proving to be challenging ‐ testwork is underway •
Slide 14: Development: San Luis JV Project, Peru
Development: San Luis JV Project, Peru (June 2010 Feasibility Study) Gold reserves (oz) 290,484 Silver reserves (m oz) 7.2 Reserves (t) 503,313 Pierina((Barrick) Pierina Barrick) Average reserve grade (g/t) Gold: 17.95 Silver: 446.14 Mine type yp Underground, g , 400 tpd p • High‐grade Hi h d goldld
Slide 15: Development: Pitarrilla Project, Mexico
Development: Pitarrilla Project, Mexico Santa Barbara (June 2009 Pre‐feasibility Study) Pitarrilla Silver reserves (m oz) 91.7 Durango Fresnillo Measured & Indicated silver 551.6 Penasquito q Zacatecas resources (m ( oz)) Guanajuato Inferred Resource (m oz) 82.2 Project (Breccia Ridge Zone) undergro
Slide 16: Snowfield & Brucejack – 2010 Drilling
Snowfield & Brucejack – 2010 Drilling S Snowfield fi ld B Brucejack j k Mineralization September defined in 2010 2010 PA open pit Mineralization defined in 2009 16 NDAQ:SSRI/TSX:SSO
Slide 17: Sale of Snowfield and Brucejack
Sale of Snowfield and Brucejack • C$450m C$450 consideration: id i C$215 C$215m iin cash h + C$235 C$235m in i shares h Deal contingent on Pretium Resources Inc. raising finance through IPO Closing expected Q4 2010 • Importance to Silver Standard: Monetization of projects that do not strategic
Slide 18: 2010 H2 Key Corporate Objectives
2010 H2 Key Corporate Objectives Pirquitas operations optimized and zinc being produced • 2010 silver production guidance: 6.3‐6.5 million oz Production San Luis Environmental Impact Study filed • Land d use agreement negotiations Development Pitarrilla mine planning underway • Underground Fea
Slide 19: Third Quarter 2010 Financial Results and Project Update
Third Quarter 2010 Financial Results and Project Update