Silvercorp Metals Inc. · TSX:SVM

Silvercorp Metals — Investor Presentation (August 2011)

25 slides from Silvercorp Metals's investor presentation, Aug 3, 2011

  1. 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 August 3, 2011

  2. 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

  3. Slide 3: Capital Structure & Financial Highlights

    NYSE: SVM Capital Structure & Financial Highlights Capital Structure Financial Highlights2 NYSE: SVM; TSX: SVM Fiscal Year Q1 FY2012 2011 52-Week Hi/Low: US$16.32/$6.50 Revenue US$69.7 M US$167.3 M Shares Outstanding1: 175.1 Million Net Income US$25.6 M US$68.8 M 3-mo Avg. Daily Vol.: 4.3 Million (N

  4. Slide 4: Industry Leading Profitability

    NYSE: SVM Industry Leading Profitability  Lowest cost producer of silver among Peer Comparison of Cash Costs per oz silver adjusted for by-product credits* industry peers: cash cost was -$6.12 First Pan Silver per ounce of silver in Q1/FY2012 Majestic American Wheaton Hecla Silvercorp $8.26 $7.83 

  5. 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

  6. 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

  7. Slide 7: Silvercorp Operations & Development Projects

    NYSE: SVM Silvercorp Operations & Development Projects Silvertip Project, British Columbia FY2014: ~1 Moz Ag BYP Project, Hunan China Province FY2012: ~17,000 oz Au Canada GC Project, Guangdong Silvercorp Head Office Province FY2013: ~1.0 Moz Ag, Ying Mining District, FY2014: ~2.0 Moz Ag Henan Provi

  8. Slide 8: Silver Production History & Forecast

    NYSE: SVM Silver Production History & Forecast Silver and Gold (at Ag Eq) Production - Actual and Forecast1,2 12.00 Silvertip 10.6E 10.00 GC 1.00 BYP 8.3E Ounces of Silver 2.00 8.00 HPG+TLP+LM 1.00 6.7E 1.90 1.50 6.00 5.46 0.85 Millions 4.07 4.29 4.70 1.12 1.30 1.40 1.45 0.51 4.00 0.37 0.88 1.95 4.3

  9. Slide 9: Reserve & Resource Growth

    NYSE: SVM Reserve & Resource Growth History Reserves & Resources: FY2004 - FY2011** 300 297.4 April 2005: Resource defined at Ying 58.7 Ounces of Silver and Silver Eq.* (Millions) May 2006: Drilling doubles Ying resources 248.3 250 September 2007: Resource expansion at 221.3 Ying and addition of HPG

  10. Slide 10: FY2012: Another Year of Production Growth

    NYSE: SVM FY2012: Another Year of Production Growth Ores Head Grade Metal Production Processed Silver Gold Ag Eq Lead Zinc Projects (‘000 Silver Gold Lead Zinc (‘000 (‘000 (‘000 (mil (mil tonne) (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

  11. Slide 11: FY2012: Capital Expenditure

    NYSE: SVM FY2012: Capital Expenditure Mine Development Mill Construction & Exploration & Permitting Total Surface Facilities Projects Cost Tunnel * Cost Cost Drilling Cost ($million) (metre) ($million) ($million) (metre) ($million) Ying $6.8 22,830 $3.3 $4.5 85,000 $14.6 Ying TLP $2.7 11,684 $0.9 $1

  12. Slide 12: The China Advantage

    NYSE: SVM The China Advantage Low Capital & Low-cost mining equipment and Operating Costs experienced labour. Rapid Construction All supplies sourced locally and hard Times working labour force. Close to End Market Several smelters located 200 km or closer to Silvercorp’s projects. Third Largest Sil

  13. Slide 13: Ying Mining Camp: Exploration to Grow Resources and Reserve

    NYSE: SVM Milling Capacity: 2,500 tpd YING MINING CAMP: Exploration Mining Capacity: ~2,000 tpd to Grow Resources and Reserve  Goal at the Ying Mining Camp is New 1,500 tpd Mill 1,000 tpd Mill to extend the current mine life of 10 years and to expand the mining capacity from current 2,000 tonnes pe

  14. Slide 14: GC Development Project: 2nd Base for Growth in China

    NYSE: SVM GC Development Project: 2nd Base for Growth in China  Construction of 1,500 tonne per day mine and mill has commenced  FY2012 capital expenditure: $22.5 MM  Initial 700 tonnes per day production by end of FY2012 to produce 1 Moz Silver Ying Mining District  At full mining capacity of 1

  15. Slide 15: GC Development Project: Resource Growth Potential

    NYSE: SVM GC Development Project: Resource Growth Potential Drill Program 14

  16. Slide 16: BYP Project: 3rd Production Base in China for Growth and Diversification

    NYSE: SVM BYP Project: 3rd Production Base in China for Growth and Diversification  Acquired 70% interest by paying US$24 million cash and contributing US$9 million to the JV company. 500 tpd Mill  3.67 km2 mining permit, safety production permit and 500 tonne per day floatation mill  Mine and pr

  17. Slide 17: BYP Project: Exploration to Grow Resources and Reserve

    NYSE: SVM BYP Project: Exploration to Grow Resources and Reserve  New NI 43-101 resource of 225,400 oz of Gold in the Indicated category; 208,000 oz Gold, 395,236 tonnes of Lead & Zinc in the Inferred category  50,000m surface and underground drilling program to upgrade/expand current resource ($3

  18. Slide 18: BYP Project: Exploration to Grow Resources and Reserve

    NYSE: SVM BYP Project: Exploration to Grow Resources and Reserve The 50,000m drilling program will target: To upgrade the main, #3 gold mineralization zone To extend along the strike and down dip of the F5 fault, where #XII lead-zinc- gold mineralization and #1 gold mineralization zones occur; and

  19. Slide 19: BYP Project: Exploration to Grow Resources and Reserve

    NYSE: SVM BYP Project: Exploration to Grow Resources and Reserve To extend along the strike and down dip of the F5 fault, where #XII lead-zinc-gold mineralization and #1 gold mineralization zones occur 18

  20. Slide 20: Silvertip Project: Upcoming High-Grade Silver Mine in BC

    NYSE: SVM Silvertip Project: Upcoming High-Grade Silver Mine in BC  >$40 million spent on exploration including 2.4 km of tunnel and 71,472 m of surface/underground drilling in 491 holes before year 2000.  43 million oz silver resource includes High-grade starter pockets (>1,000 grams per tonne Si

  21. Slide 21: Silvertip: Positive Preliminary Economic Assessment

    NYSE: SVM Silvertip: Positive Preliminary Economic Assessment PA Study Highlight  500 t/d seasonal operation or 72,000 t/year  For the upside case (prices: Ag=$25/oz; Pb=$1/lb; and Zn=$1/lb), the undiscounted pretax NPV is $311-million, with a pretax IRR of 49%.  Capital cost: $49 MM with sustain

  22. Slide 22: Strong Resource Growth Potential at Silvertip

    Strong Resource Growth Potential at Silvertip NYSE: SVM 21

  23. Slide 23: Summary of Resources

    NYSE: SVM Summary of Resources RESERVE Resource Contained Metal Reserves CATEGORY (Tonnes) Ag (oz) Au (oz) Pb (t) Zn (t) Ag Equiv.* (oz) Proven 1,263,450 12,440,080 3,916 75,413 19,787 23,111,814 Probable 5,342,412 45,539,882 12,968 234,080 67,173 78,931,497 Total 6,596,983 57,905,171 16,885 309,338

  24. Slide 24: The Silvercorp Advantage

    NYSE: SVM The Silvercorp Advantage  Industry leading profitability with the lowest cash costs  Plan to double production over next 3 years  Aggressive 241,000 metre drilling program planned for current year on China assets  Brought BYP into production in just 3 short months (May 2011), while als

  25. Slide 25: 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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