Silvercorp Metals Inc. · TSX:SVM
Silvercorp Metals — Investor Presentation (December 2010)
24 slides from Silvercorp Metals's investor presentation, Dec 16, 2010
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. Corporate Presentation December 16, 2010
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: Capital Structure & Financial Highlights
NYSE: SVM Capital Structure & Financial Highlights Capital Structure Financial Highlights1 H1 Fiscal Year Fiscal Year NYSE: SVM; TSX: SVM 2011 2010 52-Week Hi/Low: US$13.60/$4.76 Revenue US$73.1 M US$107.2 M Shares Outstanding: 174.3 Million Net Income US$26.6 M US$38.5 M 3-mo Avg. Daily Vol.: 3.12
Slide 4: Industry Leading Profitability
NYSE: SVM Industry Leading Profitability Peer Comparison of Cash Cost per Oz Silver Adjusted for By-Product Credits – Latest Quarter* Lowest cost producer of silver among Pan Silver industry peers: cash cost was -$6.30 American Wheaton Hecla Silvercorp $8.00 per ounce of silver in Q2/2011 $6.08 $4
Slide 5: Management & Board
NYSE: SVM Management & Board Management Rui Feng, Ph.D., Geology Chairman & CEO, Director Myles J. Gao, P.Geo. President & COO, Director Maria Tang, CA, CPA Dr. Feng & Yikang Liu Chief Financial Officer Lorne Waldman, MBA, LL.B. Corporate Secretary Board of Directors Shaoyang Shen, MBA, CMA Rui Feng
Slide 6: Silvercorp’s Strategic Vision
NYSE: SVM Silvercorp’s Strategic Vision Silvercorp’s strategy is to focus on generating cash flows early on by developing high grade projects that may be too small for large companies and too large for junior companies: 1) Develop mine operations and generate cash flows before the project’s potentia
Slide 7: Silvercorp Operations & Development Projects
NYSE: SVM Silvercorp Operations & Development Projects BYP Project, Hunan Province, China Ying Mining District, Henan Province, China Silvertip Project, To produce ~5.3Moz silver British Columbia, Canada from four mines in FY2011 GC Development Project, Guangdong Province, China Head Office, Vancouv
Slide 8: Silver Production History & Forecast
NYSE: SVM Silver Production History & Forecast 12.00 Silver and Gold (at Ag Eq) Production - Actual and Forecast1 Silvertip 10.00 GC 10.1E 1.00 BYP Ounces of Silver 8.00 8.2E 2.00 HPG+TLP+LM 7.1E 1.00 Millions Ying 1.60 1.60 1.60 6.00 5.3E 4.62 0.93 1.43 1.40 1.45 3.96 4.19 0.46 4.00 0.28 0.78 2.00
Slide 9: Reserve & Resource Growth
NYSE: SVM Reserve & Resource Growth History 275 Reserve & Resources: FY2004 - FY2010 April 2005: Resource defined at Ying 250 P&P Reserves 245.9 May 2006: Drilling doubles Ying resources 225 M&I Resources 63.4 September 2007: Resource expansion at Inferred Resources 194.7 Ounces of Silver (Millions)
Slide 10: Operations: Ying Mining District, Henan Province
NYSE: SVM Operations: Ying Mining District, Henan Province Milling Capacity: 2,500 tpd Mining Capacity: ~2,000 tpd 1,000 tpd Mill YING MINE HPG Mine New 1,500 tpd Mill TLP Mine LM Mine Mill Office 9
Slide 11: Ying Mining District – Summary of Mines
NYSE: SVM Ying Mining District – Summary of Mines • 90% of total production & profits in FY2010 • Produced 4.16Moz Ag, 54.5Mlb Pb & 14.1Mlb Zn in FY2010 Ying • Head grades of 465 g/t Ag, 8.5% Pb & 3.1% Zn in FY2010 Mine • Cash cost of -$6.66 in FY2010 • 77.5% JV with Henan Geological Bureau • Acquir
Slide 12: GC Development Project – 2nd Base for Growth in China
NYSE: SVM GC Development Project – 2nd Base for Growth in China M&I Resource of 28.5Moz Silver, 95K tonnes Lead and 214K tonnes Zinc Inferred Resource of 30.8Moz Silver, 115K tonnes Lead and 213K tonnes Zinc Ying Mining District Mining permit received Dec. 2010 1500 t/d Mine & Mill Design cl
Slide 13: GC Development Project – Resource Growth Potential
NYSE: SVM GC Development Project – Resource Growth Potential Drill Program 12
Slide 14: BYP Project – 3rd Production Base in China
NYSE: SVM BYP Project – 3rd Production Base in China Acquired 70% interest by paying US$25.7 million cash and contributing US$8.3 million to the JV company. Ying Mining 3.67 km2 mining permit, safety production permit District and 400 t/d floatation mill built in 2006 Non NI 43-101 historic re
Slide 15: BYP Project – Early cash flows to fund further exploration
NYSE: SVM BYP Project – Early cash flows to fund further exploration Plan: To mine and process higher grade gold materials immediately after the acquisition is closed by March 31, 2011 Expand the mining and milling capacity to 1,000 t/d gold material for FY2013, then to 2,000 t/d (1,000 t/d gold
Slide 16: BYP Project – Thick gold mineralization body near surface
NYSE: SVM BYP Project – Thick gold mineralization body near surface Strata-bound gold mineralization is related to fine quartz veining and disseminated pyrite developed along joints and fractures in sandstones Strata-bound Lead and zinc mineralizations are fine grained and are associated with si
Slide 17: Silvertip Project – Upcoming High-Grade Silver Mine in BC
NYSE: SVM Silvertip Project – Upcoming High-Grade Silver Mine in BC High-grade silver-lead-zinc Carbonate Replacement Deposit (CRD) surrounded by ~800 km2 mineral rights in mining friendly BC, Canada Only 1 km2 has been explored great potential to grow the size of the deposit Can be put into
Slide 18: Silvertip Project – Current Development Status
NYSE: SVM Silvertip Project – Current Development Status Over $40 million already spent on exploration: work included 2.4 km of tunnel development and 71,472 m of surface/underground drilling in 491 holes from 1955 - 2000 Project was put on hold since 2000 High-grade starter pockets (>1,000 g/
Slide 19: Extremely High-Grade Intercepts
NYSE: SVM Extremely High-Grade Intercepts 18
Slide 20: Silvertip – Production and Exploration Plan
NYSE: SVM Silvertip – Production and Exploration Plan “We will apply the same successful strategy we used at our Ying mine in China to the Silvertip Project…” Early Production: apply for Small Mine Permit to mine high-grade starter pockets accessed from existing tunnels (see slide 14). At curren
Slide 21: Strong Resource Growth Potential at Silvertip
Strong Resource Growth Potential at Silvertip NYSE: SVM 20
Slide 22: Capital Expenditure Budget
NYSE: SVM Capital Expenditure Budget Project/Mines Description FY2011 Exploration, Development and Ying Mine $7 Million Mill Development and Remaining TLP, LM & HPG Mines $6 Million Acquisition Cost Permitting & Mine/Mill Pending Receipt of Mining GC Project Construction Permit Permitting, Explorati
Slide 23: Summary of Reserves/Resources
NYSE: SVM Summary of Reserves/Resources Resource Contained Metal Reserves RESERVE CATEGORY (Tonnes) Ag (oz) Pb (t) Zn (t) Ag Equiv.* (oz) Proven 1,322,201 17,182,882 101,532 30,093 32,347,159 Probable 4,820,408 46,171,138 283,305 87,466 89,224,423 Total 6,142,609 63,354,020 384,837 117,559 121,571,5
Slide 24: Contact Information
NYSE: SVM Contact Information Head Office Suite #1378 - 200 Granville St., Vancouver, BC, Canada V6C 1S4 Tel: 604-669-9397 | Fax: 604-669-9387 | Toll-Free: 1-888-224-1881 Email: info@silvercorp.ca Website: www.silvercorpmetals.com INVESTOR RELATIONS: investor@silvercorp.ca China Offices Silvercorp’s
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