Silvercorp Metals Inc. · TSX:SVM
Silvercorp Metals — Q3 FY2011 Earnings Presentation
17 slides from Silvercorp Metals's earnings presentation, Feb 9, 2011
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. FY2011 Third Quarter Analyst Conference Call Wednesday, February 9, 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 2011 Third Quarter – Highlights
NYSE: SVM Fiscal 2011 Third Quarter – HIGHLIGHTS Record: → Silver Production of 1.52 million ounces, up 25% → Sales of $51.8 million → Net Earnings of $29.7 million → Cash Flow from Operations of $31.6 million* Achieved cash costs of -$7.13/oz Raised $110.5 million (net) in equity financing
Slide 4: Financials
NYSE: SVM Fiscal 2011 Third Quarter – FINANCIALS $51.8 $0.20 $50 $0.18 $0.18 66% $40.0 $0.16 $40 $0.14 $31.3 65% $29.7 $0.12 $0.13* $30 125% $US Millions $24.2 $0.10 $US/share 140% $0.08 $20 $0.08 $12.4 $0.06 $10 $0.04 $0.02 $0 $- Q3/10 Q3/11 Q3/10 Q3/11 Q3/10 Q3/11 Q3/10 Q3/11 Sales Gross Profit Ne
Slide 5: Cash Flows
NYSE: SVM Fiscal 2011 Third Quarter – CASH FLOWS $31.6 $0.19/sh 30.00 Cash Flow from Operations* $18.7 68% (US$Millions) 20.00 $0.11/sh 10.00 0.00 Q3 2010 Q3 2011 Ended quarter with $223.7 million in Cash and Short-term Investments * Cash flow from operations before non-cash working capital changes
Slide 6: Operations: Silver, Lead and Zinc Production
NYSE: SVM Fiscal 2011 Third Quarter – OPERATIONS Silver Production 1.75 Ounces (Millions) 1.5 1.3 1.25 1.2 Total ores mined in quarter up by 40% 0.75 Q3/2010 Q2/2011 Q3/2011 Lead Production Zinc Production 18.8 19 6 Pounds (Millions) Pounds (Millions) 4.5 4.8 18 3.9 17.0 17 4 16.2 16 2 15 14 0 Q3/20
Slide 7: Operations: Silver Cash Cost of Production and Peer Comparison
NYSE: SVM Fiscal 2011 Third Quarter – OPERATIONS Silver Cash Cost of Production Peer Comparison of Cash Cost per oz silver adjusted for by-product credits per oz silver adjusted for by-product credits $6.08 $6.50 $4.09 $3.75 Q3/2010 Q2/2011 Q3/2011 $1.00 0.00 ($1.75) ($1.01) ($4.50) $/oz -4.00 Pan S
Slide 8: Realized Selling Prices
NYSE: SVM Fiscal 2011 Third Quarter – REALIZED SELLING PRICES 25 1.2 23 21 1.1 Silver Prices $/oz Lead Prices $/lb 19 1 17 0.9 15 13 0.8 11 0.7 9 0.6 7 5 0.5 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Realized Silver Prices $/oz Realized Lead Prices $/lb 7
Slide 9: Fiscal 2012 – Production Projection
NYSE: SVM Fiscal 2012 – Production Projection Ores Head Grade Metal Production Processed Projects (‘000 Silver Gold Ag Eq Lead Zinc Silver Gold Lead Zinc tonne) (‘000 (‘000 (‘000 (mil (mil (g/t) (g/t) (%) (%) oz) oz) oz)* lbs) lbs) Ying 325 460 8.3 3.0 4,300 4 4,500 56 15 Ying TLP 165 145 2.8 0.6 67
Slide 10: Fiscal 2012 – CAPEX Projection
NYSE: SVM Fiscal 2012 – CAPEX Projection Mill Construction, Mine Development and Exploration Projects Mine Development & Exploration & Total Mill Construction Permitting ($ million) ($ million) ($million) Ying $10.1 $4.5 $14.6 Ying TLP $3.6 $1.7 $5.3 Mining HPG+LM $4.8 $2.3 $7.1 Camp Subtotal $18.5
Slide 11: Fiscal 2012 – Exploration Expenditure Projection
NYSE: SVM Fiscal 2012 – Exploration Expenditure Projection Drilling Program for Three Projects in China Projects Drilling Cost (metre) ($ million) U/G drilling 75,000 $3.3 Ying Surface drilling 10,000 $1.2 Ying TLP U/G drilling 36,000 $1.7 Mining Camp HPG U/G drilling 15,000 $0.7 LM U/G drilling 35,
Slide 12: Ying Mining District – Recent development and plans
NYSE: SVM Ying Mining District – Recent development and plans Achieved: Discovered 18 new veins at TLP, 12 new veins at Ying Mining District, LM and substantially extended many existing veins at Henan Province, China Ying in 2010 underground drilling program. Recent discoveries may expand resourc
Slide 13: GC Project – Significant milestone achieved
NYSE: SVM GC Project – Significant milestone achieved Achieved: Mining Permit received Environmental Permit received Plan: Ying Mining District Construct 1,500 t/d Mine and Mill BYP Mine Initial 700 t/d production by end of FY2012, full mining capacity of 1,500 t/d by FY2013 20,000m surface
Slide 14: BYP Project – Progress Update
NYSE: SVM BYP Project – Progress Update Achieved: Acquired 70% interest by paying US$24 million cash and contributing US$9 million to the JV company Plan: Mine and process higher grade gold materials using existing BYP Project, 400 t/d mine and mill, starting FY2012 Ying Mining District Hunan Pr
Slide 15: Silvertip Project – Upcoming High-Grade Silver Mine in BC
NYSE: SVM Silvertip Project – Upcoming High-Grade Silver Mine in BC Silvertip Project, British Columbia, Canada Achieved: 2010 surface drilling program >10,000 m Completed certain studies and reports for BC Small Mine Permit Application Plan: Complete NI 43-101 report Complete environmental as
Slide 16: Concluding Remarks
NYSE: SVM Concluding Remarks Record quarterly silver production, sales, net income and cash flow from operations Established additional platforms for growth in China Recent drilling at Ying Mining Camp may expand resource and extend mine life Aggressive drilling planned in 2012 for China pro
Slide 17: Further Contact Information
NYSE: SVM Further Contact Information: Thank you for listening to Silvercorp’s FY 2011 Third 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 Webs